Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of Dharani Sugars and Chemicals Limited, (âthe Companyâ), which comprise of the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs board of directors is responsible for the matters stated in Section 134 (5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143 (11) of the Act.
We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended as on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143 (11) of the Act, we give in Annexure âAâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, based on our audit we report that:
a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) the balance sheet, the statement of profit and loss including other comprehensive income, statement of changes in equity and the statement of cash flow dealt with by this report are in agreement with the books of account;
d) in our opinion, the aforesaid financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act;
e) on the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the board of directors, none of the directors are disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure âBâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting; and
g) with respect to the other matters to be included in the auditorsâ report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - refer note 40 to the financial statements;
ii. The Company has made provisions, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts; and
iii. There has been no delay in transferring amounts, required to be transferred, to the investor education and protection fund by the Company.
Other matters
The financial statements of the Company for the year ended March 31, 2017 prepared in accordance with the (Indian Accounting Standards) Rules,2015, as amended, and other accounting principles generally accepted in India, were audited by another firm of chartered accountants under the Companies Act, 2013 who, vide their report dated May29, 2017 expressed an unmodified opinion on those financial statements.
ANNEXURE A TO INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ section of our report to the members of Dharani Sugars and Chemicals Limited of even date)
1. In respect of the Companyâs fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a program of verification to cover all the items of fixed assets in a phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the management during the year. According to the information and explanations given to us and according to the records examined by us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, the records examined by us and based on the examination of the conveyance deeds provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date.
2. The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable.
3. In our opinion and according to the information and explanations given to us, the company has not granted any loan, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register required under section 189 of the Companies Act, 2013. Accordingly, paragraph 3 (iii) of the order is not applicable.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits during the year and does not have any unclaimed deposits as at March 31, 2018 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.
6. In our opinion and according to the information and explanations given to us, pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained.
We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
7. In our opinion and according to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including provident fund, employeesâ state insurance, income tax, sales tax, service tax, value added tax, goods and services tax, customs duty, excise duty, cess and other material statutory dues applicable to it with the appropriate authorities except non-deduction and remittance of tax deducted at source amounting to Rs.41.37 Lakhs
(b) There were no undisputed amounts payable in respect of provident fund, employeesâ state Insurance, income tax, sales tax, service tax, value added tax, goods and services tax, customs duty, excise duty, cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable; and
(c) The details of dues of income tax, sales tax, service tax, excise duty and value added tax which have not been deposited as at March 31, 2018 on account of dispute are given below:
Name of the Statute |
Nature of dues |
Amount (Rs. in lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
Central Excise Act, 1944 |
Cenvat credit on Capital goods |
85.37 |
September 2008 to February 2010 |
CESTAT - Chennai |
Finance Act, 1994 |
Service Tax on Goods Transport Agency |
87.95 |
April 2008 to April 2013 |
CESTAT - Chennai |
*Net of payments made under protest
8 According to the information and explanation given to us and records examined by us, the Company has defaulted in repayment of dues to financial institutions and government which are as follows:
Bank/ Financial Institution |
Nature of the dues |
Rs. in lakhs |
Due date |
Actual date of Payment |
Indian Renewable Energy Development Agency |
Principal and interest |
400.89 378.61 357.96 389.36 |
30-06-2017 30-09-2017 31-12-2017 31-03-2018 |
Rs.297.89 Lakhs paid on 07-11-2017 and Rs.103 Lakhs paid on 01-02-2018 22-03-2018 Unpaid Unpaid |
Sugar Development Fund |
Principal and interest |
2635.29 249.51 249.74 417.06 |
Various dates till last year * 06-06-2017 05-12-2017 05-03-2018 |
Unpaid Unpaid Unpaid Unpaid |
Indian Bank |
Principal |
346.38 |
31-03-2018 |
Unpaid |
State Bank of India |
Principal |
187.07 |
31-03-2018 |
Unpaid |
Central Bank of India |
Principal |
52.75 |
31-03-2018 |
Unpaid |
The South Indian Bank |
Principal |
24.41 |
31-03-2018 |
Unpaid |
IDBI |
Principal |
14.55 |
31-03-2018 |
Unpaid |
Bank of India |
Principal |
83.80 |
31-03-2018 |
Unpaid |
Union Bank of India |
Principal |
66.80 |
31-03-2018 |
Unpaid |
Indian Overseas Bank |
Principal |
44.41 |
31-03-2018 |
Unpaid |
9 In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised. The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year.
10 To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
11 In our opinion and according to the information and explanations given to us, the Company is in the process of obtaining the requisite approvals from secured lenders as stipulated by the Companies Act 2013. Pending such approvals, the Company has not accrued/ paid any remuneration to the Chairman of the Company.
12 The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order is not applicable to the Company.
13 According to the information and explanations given to us and based on our examination of the records of the company, transactions with the related parties are in compliance with section 177 and 188 of the Act. Where applicable, the details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14 According to the information and explanations given to us and based on our examination of the records of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the order is not applicable.
15 According to the information and explanations given to us and based on our examination of the records of the company, the company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the order is not applicable.
16 According to the information and explanations given to us and based on our examination of the records of the company, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
ANNEXURE B TO INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 2 (f) under âReport on Other Legal and Regulatory Requirementsâ section of our report to the Members of Dharani Sugars and Chemicals Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub- section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Dharani Sugars and Chemicals Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement in the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial control system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management of override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For CNGSN & Associates LLP
Chartered Accountants
Firm Registration No.004915S/ S200036
(CHINNSAMY GANESAN)
Place : Chennai - 34 Partner
Date : May 28, 2018 Membership No. 027501
Mar 31, 2016
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of DHARANI SUGARS AND CHEMICALS LIMITED (âthe Company") which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managements Responsibility for the standalone Financial Statements:
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ( âthe Actâ) with respect to the preparation and presentation of these standalone Financial Statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls; that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility:
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Companyâs Directors, as well as evaluating the overall presentation of the Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements. Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
a) in the case of the balance sheet, of the state of affairs of the Company as at 31st March 2016;
b) in the case of the statement of profit and loss, of the loss of the Company for the year ended on that date; and
c) in the case of the cash flow statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditorâs Report) Order, 2016, (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2) As required by Section 143(3) of the Act, we report that :
a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) the balance sheet, statement of profit and loss and cash flow statement dealt with by this report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) on the basis of the written representations received from the directors as on 31st March 2016, and taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March 2016 from being appointed as a director in terms of Section 164(2) of the Act; and
f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies ( Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 25.2 to the financial statements;
ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts -Refer Note 25.4.18 to the financial statements;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditorâs Report to the members of the Company on the standalone financial statements for the year ended 31st March, 2016, we report that;
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of fixed assets by which fixed assets are verified in a phased manner every year. In accordance with this programme, fixed assets were verified during the year and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. In our opinion, the discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) The Company has not granted any loans, secured or unsecured to any companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ) during the year under consideration.
(iv) In our opinion and according to the information provided and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to the loans and investments made.
(v) In our opinion and according to the information and explanations given to us, directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 of the Act or any other relevant provisions of the Act, 2013 and the rules framed there under, to the extent applicable, have been complied with. However, the Company has not accepted any deposits during the year. We are informed by the management that no order has been passed by the Company Law Board, National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.
(vi) We have broadly reviewed the accounts and records maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Value Added Tax, Service Tax, Duty of Customs, Excise Duty, Cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. According to the information and explanations given to us, there were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Value Added Tax, Service Tax, Duty of Customs, Excise Duty, Cess and other material statutory dues were in arrears as at 31st March 2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no material dues of Sales Tax and Duty of Custom which have not been deposited with the appropriate authorities on account of any dispute. However, according to the information and explanations given to us, the following dues of Income Tax, Excise Duty and Service Tax have not been deposited by the Company on account of disputes:
Name of the Statute |
Nature of dues |
Period to which the amount relates |
Status |
Amount (Rs. in lakhs) |
Income Tax Act, 1961 |
Income Tax |
Assessment Year 2013-14 |
Commissioner of Income-tax (Appeals) |
- |
Income Tax Act, 1961 |
Dueslncome Tax |
Assessment Year 2012-13 |
Commissioner of Income-tax (Appeals) |
11.08 |
Income Tax Act, 1961 |
DuesIncome Tax Dues |
Assessment Year 2011-12 |
Commissioner of Income-tax (Appeals) |
- |
Finance Act, 1994 |
Service Tax on Goods Transport Agency |
April 2008 to April 2013 |
CESTAT - Chennai |
39.94 |
Ta m i l n a d u Ta x o n Consumption or Sale of Electricity Act 2003 |
Power Generation Tax |
June 2003 to Sep 2008 and April 2011 to March 2015 |
Supreme Court |
312.80 |
Ta m i l n a d u Ta x o n Consumption or Sale of Electricity Act 2003 |
Power Tariff revision |
August''12 to September 2013 |
Supreme Court |
*67.42 |
Central Excise Act, 1944 |
Cenvat credit on Capital goods |
Sep 2008 to Feb 2010 |
CESTAT - Chennai. |
*41.71 |
* net of amount paid under protest.
(viii) According to information and explanation given to us and as per the books and records examined by us, the Company has defaulted in repayment of dues to financial institution and government which are as follows:
Bank/ Financial Institution |
Nature of dues |
Rs. in lacs |
Due date |
Date of Payment |
|
Sugar Development Fund |
Repayment of |
Loan |
194.03 |
01-Mar-15 |
11-Mar-16 |
Sugar Development Fund |
Repayment of |
Loan |
139.63 |
03-0ct-14 |
â |
Sugar Development Fund |
Repayment of |
Loan |
142.54 |
19-Jan-15 |
â |
Sugar Development Fund |
Repayment of |
Loan |
236.58 |
05-Dec-14 |
â |
Sugar Development Fund |
Repayment of |
Loan |
236.58 |
06-Jun-15 |
â |
Sugar Development Fund |
Repayment of |
Loan |
139.63 |
03-Apr-15 |
â |
Sugar Development Fund |
Repayment of |
Loan |
139.63 |
03-0ct-15 |
â |
Sugar Development Fund |
Repayment of |
Loan |
142.54 |
19-Jul-15 |
â |
Sugar Development Fund |
Repayment of |
Loan |
142.54 |
19-Jan-16 |
â |
Sugar Development Fund |
Repayment o |
Loan |
194.03 |
01-Mar-16 |
â |
Sugar Development Fund |
Repayment of |
Interest |
29.09 |
03-0ct-14 |
â |
Sugar Development Fund |
Repayment of |
Interest |
11.50 |
19-Jan-15 |
â |
Sugar Development Fund |
Repayment of |
Interest |
37.96 |
05-Dec-14 |
â |
Sugar Development Fund |
Repayment of |
Interest |
33.03 |
06-Jun-15 |
â |
Sugar Development Fund |
Repayment of |
Interest |
29.29 |
03-Apr-15 |
â |
Sugar Development Fund |
Repayment of |
Interest |
32.64 |
03-0ct-15 |
â |
Sugar Development Fund |
Repayment of |
Interest |
8.49 |
19-Jul-15 |
â |
Sugar Development Fund |
Repayment of |
Interest |
5.75 |
19-Jan-16 |
â |
Sugar Development Fund |
Repayment of |
Interest |
69.96 |
01-Mar-16 |
â |
Sugar Development Fund |
Repayment of |
Interest |
28.60 |
29-Feb-16 |
â |
Bank/ Financial Institution |
Nature of dues |
Rs. in lakhs |
Due date |
Date of Payment |
Sugar Development Fund |
Repayment of Interest |
77.65 |
01-Mar-15 |
11-Mar-16 |
India Renewable Energy Development Agency |
Repayment of Interest |
68.17 |
31-Mar-16 |
â |
India Renewable Energy Development Agency |
Repayment of Interest |
69.32 |
31-Mar-15 |
21-Jul-15 |
India Renewable Energy Development Agency |
Repayment of Interest |
71.15 |
30-Jun-15 |
22-Sep-15 |
India Renewable Energy Development Agency |
Repayment of Interest |
69.11 |
30-Sep-15 |
29-Dec-15 |
India Renewable Energy Development Agency |
Repayment of Interest |
73.97 |
31-Dec-15 |
12-Feb-16 |
The Company has not issued Debentures till 31st March, 2016. Hence, the question of reporting on default in repayment of dues to Debenture holders does not arise.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. To the best of our knowledge and belief and according to the information and explanations given to us, term loans availed by the Company were prima facie applied during the period for the purposes for which the loans were obtained.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with section 177 and 188 of the Act where applicable and the details of such transactions have been disclosed in the Financial Statements as required by the applicable accounting standards;
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
SRINIVASAN & SHANKAR
Chartered Accountants
(Firm Registration No.: 005093S)
per R MANIKANDAN
Place: Chennai Partner
Dated: 26th May 2016 Membership No.216063
Mar 31, 2015
Report on the Financial Statement
We have audited the accompanying standalone financial statements of
DHARANI SUGARS AND CHEMICALS LIMITED ("the Company") which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements:
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ( "the Act") with respect
to the preparation and presentation of these standalone Financial
Statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rules 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls; that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the Financial Statement
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors' Responsibility:
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the Financial Statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors' judgment, including the assessment of
the risks of material misstatement of the financial statement, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate the in the
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on whether the Company has in place an
adequate internal financial controls systems over financial reporting
and the operative effectiveness of such controls. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by Company's
Directors, as well as evaluating the overall presentation of the
Financial Statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the standalone financial statements give the
information required by the Act, in the manner so required, and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March 2015;
b) in the case of the statement of profit and loss, of the loss of the
Company for the year ended on that date; and
c) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor's Report) Order, 2015, ("the
Order") issued by the Central Government of India in terms of
sub-section 11 of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order
to the extent as applicable.
2) As required by Section 143(3) of the Act, we report that :
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the balance sheet, statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account;
d) in our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under section 133 of the Act,
read with Rules 7 of the Companies ( Accounts) Rules, 2014.
e) on the basis of the written representations received from the
directors as on 31st March 2015, and taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March 2015
from being appointed as a director in terms of sub section 1(g) of
Section 164(2) of the Act; and
f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies ( Audit and
Auditors)
Rules, 2014, in our opinion and to the best of our information and
explanations given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statements; and
ii. the Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts; and
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
The Annexure referred to in our Independent Auditor's Report to the
members of the Company on the standalone financial statements for the
year ended 31st March, 2015, we report that;
(I) (a) The Company has maintained proper records showing full
particulars,including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of
fixed assets by which fixed assets are verified in a phased manner
every year. In accordance with this programme, fixed assets were
verified during the year and no material discrepancies were noticed on
such verification.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
(iii) The Company has granted loans to a body corporate covered in the
register maintained under section 189 of the Companies Act, 2013.
(a) In the case of loans granted to a body corporate listed in the
register maintained under Section 189 of the Act, the borrower has been
regular in payment of interest as stipulated. In terms of the
arrangement, the loan granted is repayable on demand.
(b) There are no overdue amounts of more than rupees one lakh in
respect of the loans granted to the body corporate listed in the
register maintained under Section 189 of the Accordingly, paragraph
3(iii) (b) of the Order is not applicable to the Company in respect of
repayment of the principal amount.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and for the sale of goods. The
activities of the Company do not involve sale of services. During the
course of our audit, no major weaknesses has been noticed in the
internal control system.
(v) In our opinion and according to the information and explanations
given to us, directives issued by the Reserve Bank of India and the
provisions of sections 73 to 76 of the Act or any other relevant
provisions of the Act, 2013 and the rules framed there under, to the
extent applicable, have been complied with. We are informed by the
management that no order has been passed by the Company Law Board,
National Company Law Tribunal or Reserve Bank of India or any Court or
any other Tribunal.
(vi) We have broadly reviewed the accounts and records maintained by
the Company pursuant to the Rules made by the Central Government for
the maintenance of cost records under section 148(1) of the Act and we
are of the opinion that prima facie the prescribed accounts and records
have been made and maintained. We have however, not made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employees' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other material statutory dues have been regularly
deposited during the year by the Company.
There were no undisputed amounts payable in respect of Provident Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other material statutory dues
were in arrears as at 31st March 2015 for a period of more than six
months from the date they became payable.
(b) There are no material dues of Sales Tax, Wealth Tax, Customs Duty
and Cess which have not been deposited with the appropriate authorities
on account of any dispute. However according to the information and
explanations given to us, the following dues of Income Tax, Excise Duty
and Service Tax have not been deposited by the Company on account of
dispute :
Period to
Name of the Statute Nature of dues which the
amount relates
Income Tax Act, 1961 Income Tax Dues AY 12-13
Income Tax Act, 1961 Income Tax Dues AY 11-12
Central Excise Act,
1944 Cenvat credit reversal April 2008 to
on Power sales April 2013
Finance Act, 1994 Service Tax on Goods April 2008 to
Transport Agency April 2013
Tamilnadu Tax on Power Generation Tax June 2003 to Sep
2008
Consumption of Sale of and April 2011 to
Electricity Act 2003 March 2015
Tamilnadu Tax on Power Tariff revision August'12 to
Consumption or Sale of September 2013
Electricity Act 2003
Central Excise Act,
1944 Cenvat credit on Sep 2008 to Feb 2010
Capital goods
Name of the Statute Amount
Status (Rs. in
lakhs)
Income Tax Act, 1961 The matter is pending 11.08
with the CIT (A)
Income Tax Act, 1961 The matter is pending -
with the CIT (A)
Central Excise Act, 1944 The matter is pending 47.91
with CESTAT, Chennai.
Finance Act, 1994 The matter is pending in 23.84
CESTAT, Chennai.
Tamilnadu Tax on
Consumption of Sale of
Electricity Act 2003 This matter is pending 281.20
with Supreme Court
Tamilnadu Tax on
Consumption of Sale of
Electricity Act 2003 # 67.42
This matter is pending
with Supreme Court
Central Excise Act, 1944 The matter is pending in 51.73
CESTAT, Chennai.
# net of amount paid under protest.
(c) According to the information and explanations given to us there are
no amounts which were required to be transferred to the Investor
education and protection fund in accordance with the relevant provision
of the Companies Act, 1956 and rules there under.
(viii) The accumulated losses of the company have exceeded fifty per
cent of its net worth at the end of the financial year. The Company has
incurred cash losses during the current year and also in the
immediately preceding financial year.
(ix) According to information and explanation given to us and as per
the books and records examined by us, the Company has defaulted in
repayment of dues to financial institution and banks which are as
follows:
Bank/ Financial Institution Nature of dues Rs. in lacs
Bank of India Repayment of Loan 214.29
Indian Bank Repayment of Loan 60.00
Sugar Development Fund Payment of Interest 31.33
Union Bank of India Payment of Interest 26.28
Indian Overseas Bank Payment of Interest 18.40
Bank of India Payment of Interest 32.43
Indian Bank Payment of Interest 2.88
Indian Bank Payment of Interest 2.65
Indian Bank Payment of Interest 65.53
Union Bank of India Payment of Interest 24.96
Bank of India Payment of Interest 32.04
Indian Bank Payment of Interest 25.15
Sugar Development Fund Repayment of Loan 236.58
Indian Renewable Energy
Development Agency Repayment of Loan 187.30
Union Bank of India Repayment of Loan 142.85
Indian Bank Repayment of Loan 60.00
Indian Overseas Bank Repayment of Loan 90.00
State Bank of India Repayment of Loan 65.19
Union Bank of India Payment of Interest 26.07
Bank of India Payment of Interest 33.13
Indian Bank Payment of Interest 24.12
Indian Bank Payment of Interest 63.72
Sugar Development Fund Payment of Interest 42.47
Indian Renewable Energy Payment of Interest 138.41
Development Agency Payment of Interest 25.25
Indian Overseas Bank Payment of Interest 18.32
Sugar Development Fund Repayment of Loan 194.03
Sugar Development Fund Repayment of Loan 236.58
Sugar Development Fund Repayment of Loan 139.63
Sugar Development Fund Repayment of Loan 142.54
Sugar Development Fund Payment of Interest 77.65
Sugar Development Fund Payment of Interest 37.96
Sugar Development Fund Payment of Interest 11.50
Sugar Development Fund Payment of Interest 29.09
Indian Renewable Energy
Development Agency Payment of Interest 70.37
Sugar Development Fund Repayment of Loan 236.58
Sugar Development Fund Repayment of Loan 139.63
Sugar Development Fund Repayment of Loan 142.54
Sugar Development Fund Payment of Interest 42.47
Sugar Development Fund Payment of Interest 31.33
Sugar Development Fund Payment of Interest 14.14
Indian Renewable Energy
Development Agency Payment of Interest 69.11
Sugar Development Fund Repayment of Loan 139.63
Bank/Financial Institution Due date Date of Payment
Bank of India 30-Apr-14 25-Jun-14
Indian Bank 31-May-14 30-Jul-14
Sugar Development Fund 03-Apr-14 31-May-14
Union Bank of India 25-Apr-14 23-Jun-14
Indian Overseas Bank 31-May-14 24-Jun-14
Bank of Inida 30-Apr-14 25-Jun-14
Indian Bank 31-May-14 03-Jul-14
Indian Bank 30-Jun-14 03-Jul-14
Indian Bank 30-Jun-14 15-Jul-14
Union Bank of India 25-May-14 23-Jul-14
Bank of India 31-May-14 23-Jul-14
Indian Bank 31-May-14 11-Jun-14
Sugar Development Fund 06-Jun-14 12-Sep-14
Indian Renewable Energy Development
Agency 30-Jun-14 22-Aug-14
Union Bank of India 25-Jun-14 05-Sep-14
Indian Bank 30-Jun-14 14-Oct-14
Indian Overseas Bank 30-Jun-14 23-Sep-14
State Bank of India 30-Jun-14 02-Sep-14
Union Bank of India 25-Jun-14 05-Sep-14
Bank of India 30-Jun-14 12-Sep-14
Indian Bank 30-Jun-14 31-Jul-14
Indian Bank 30-Jun-14 31-Aug-14
Sugar Development Fund 06-Jun-14 12-Sep-14
Indian Renewable Energy Development
Agency 30-Jun-14 20-Sep-14
Indian Overseas Bank 30-Jun-14 12-Sep-14
Sugar Development Fund 01-Mar-15 -
Sugar Development Fund 05-Dec-14 -
Sugar Development Fund 03-Oct-14 -
Sugar Development Fund 19-Jan-15 -
Sugar Development Fund 01-Mar-15 -
Sugar Development Fund 05-Dec-14 -
Sugar Development Fund 19-Jan-15 -
Sugar Development Fund 03-Oct-14 -
Indian Renewabel Energy
Development Agency 31-Mar-15 -
Sugar Development Fund 06-Jun-14 12-Sep-14
Sugar Development Fund 03-Apr-14 30-May-14
Sugar Development Fund 19-Jul-14 18-Sep-14
Sugar Development Fund 06-Jun-14 12-Sep-14
Sugar Development Fund 03-Apr-14 30-May-14
Sugar Development Fund 19-Jul-14 18-Sep-14
Indian Renewable Energy
Development Agency 31-Dec-14 25-Feb-15
Sugar Development Fund 03-Apr-14 31-May-14
The Company has not issued Debentures till 31st March, 2015. Hence, the
question of reporting on default in repayment of dues to Debenture
holders does not arise.
(x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
(xi) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were, prima facie applied during the period for the purposes
for which the loans were obtained.
(xii) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
SRINIVASAN & SHANKAR
Chartered Accountants
(Firm Registration No.: 005093S)
Place: Chennai Per R MANIKANDAN
Partner
Dated : 27th May 2015 Membership No.216063
Mar 31, 2014
We have audited the accompanying financial statements of DHARANI SUGARS
AND CHEMICALS LIMITED ("the Company") which comprise the balance sheet
as at March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements:
The Company''s management is responsible for the preparation of these
Financial Statements that give a true and fair view of the Financial
position, Financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub section
(3C) of section 211 of the Companies Act 1956 ("the Act") (which
continues to be applicable in respect of Section 133 of the Act , 2013
in terms of General Circular 15/2013 dated 13 September 2013 of the
Ministry of Company Affairs) and in accordance with the accounting
principles generally accepted in India. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the Financial Statement that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility:
Our responsibility is to express an opinion on these Financial
Statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical Requirements and plan and perform the audit to obtain
reasonable assurance about whether the Financial Statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors'' judgment, including the assessment of
the risks of material misstatement of the financial statement, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the Financial Statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act, in the manner so required, and give a true and
fair view in conformity with the accounting principles generally
accepted in India:
a) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March 2014;
b) in the case of the statement of profit and loss, of the loss of the
Company for the year ended on that date; and
c) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements As required by the
Companies (Auditor''s Report) Order, 2003, as amended, ("the Order")
issued by the Central Government of India in terms of Section 227(4A)
of the Act, we have annexed hereto a statement on the matters specified
in paragraphs 4 and 5 of the Order.
As required by Section 227(3) of the Act, we report that :
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The balance sheet, statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the balance sheet, statement of profit and loss and
cash flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Act, read with the General Circular 15/2013 dated 13th September
2013 of Ministry of Corporate Affairs in respect of Section 133 of the
Act, 2013; and
e) On the basis of the written representations received from the
directors as on 31st March 2014, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2014 from being appointed as a director in terms of sub
section 1(g) of Section 274 of the Act.
ANNEXURE TO THE INDEPENDANT AUDITORS'' REPORT
With reference to our Auditor''s Report to the Shareholders of Dharani
Sugars and Chemicals Limited, we report that, in our opinion and to the
best of our knowledge and belief and as per the information and
explanations furnished to us and the books and records examined by us
in the normal course of audit;
1. In terms of its fixed assets
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets of the Company have been physically verified during
the period by the management in accordance with a programme of
verification, the frequency whereof is reasonable. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
2. In respect of its inventories
a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act, 1956. Accordingly, paragraphs 4(iii)(e)
4(iii)(f) and 4(iii)(g) of the Order are not applicable.
In respect of loans, secured or unsecured granted by the Company to
companies, firms, or other parties covered in the Register maintained
under Section 301 of the Act, 1956, we state the following:
a) During the period, the Company has granted loans to a body corporate
covered in the register maintained under Section 301 of the Act, 1956
("the Act"). The maximum amount outstanding during the year was Rs.
1255.24 lakhs and the year-end balance of such loan amounted to Rs.
1255.24 lakhs. Other than the above, the Company has not granted any
loans, secured or unsecured, to firms or parties covered in the
register maintained under section 301 of the Act.
b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which the loans had been granted to the body corporate listed in the
register maintained under section 301 of the Act were not, prima facie,
prejudicial to the interest of the Company.
c) The loan granted is repayable on demand. Loan and interest has not
fallen due for payment during the relevant year. Hence clause 4 (iii)
(d) of the Order is not applicable.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system.
5. In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Act 1956.
a) To the best of our knowledge and belief and according to the
information and explanations given to us, the particulars of contracts
or arrangement referred to in section 301 of the Act have been entered
in the register required to be maintained under that section.
b) According to the information and explanations given to us, there are
no transactions of purchase of inventory and fixed assets exceeding
Rs.5 lakhs in respect of each party. In respect of transactions on the
basis of contracts or arrangements referred to in section 301 of the
Act and other transactions exceeding Rs. 5 lakhs in respect of each
party, the transactions have been made at prices, which are prima
facie, reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, directives issued by the Reserve Bank of India and the
provisions of Sections 58A, 58AA or any other relevant provisions of
the Act, 1956 and the rules framed there under, to the extent
applicable, have been complied with. We are informed by the management
that no order has been passed by the Company Law Board, National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the accounts and records maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Act, 1956
and we are of the opinion that prima facie the prescribed accounts and
records have been made and maintained. We have however, not made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
9. According to the information and explanations given to us, in
respect of statutory dues.
a) The Company has been generally regular in depositing undisputed
statutory dues, including Provident Fund, Employees'' State Insurance,
Investor Education and Protection Fund, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material
statutory dues with the appropriate authorities during the period.
Therewere no undisputed amounts payable in respect of Provident Fund,
Employee State Insurance, Investor Education and Protection Fund,
Income Tax, Sales Tax, Wealth Tax, Service Tax customs duty, excise
duty, cess and other material statutory dues were in arrears as at 31st
March 2014 for a period of more than six months from the date they
became payable.
b) There are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and Cess, which have not been deposited by
the Company on account of any disputes other than the following:
Name of the Nature of dues Amount period to
Statute (Rs.in which the
lakhs) amount
related
Central Excise Act, 1994 Bagasse, Bio 443.57 Aprial
compost sales reversal 2008 to
against Cenvat Credit March
rule 6(3) and Central 2013
Excise Act Section 2(d)
Central Excise Act, Cenvat credit reversal 47.92 January
1994 on Power sales 2011 to
February
2011
Central Excise Act, Cenvat credit availment 1331.57 February
1994 on Non-excisable 2009 to
commodity and Non-duty March 2013
payment on captive
consumption
Finance Act, 1994 Service Tax on Goods 25.84 April 2008
Transport Agency to March
2013
Tamilnadu Tax on Power generation tax 252.98 June 2003
Consumption or Sale of to Sep
Electricity Act 2003 2008
and April
2011 to
March 2014
Tamilnadu Tax on Power Tariff revision @ 74.89 August''12
Consumption or Sale of to
Electricity Act 2003 September
2013
Name of the Forum where dispute is pending
Statute
Central Excise Act, CESTAT, Chennai
Central Excise Act, CESTAT, Chennai
1994
Central Excise Act, CESTAT, Chennai
1994
Finance Act, 1994 CESTAT, Chennai
Tamilnadu Tax on Supreme Court
Consumption or Sale of
Electricity Act 2003
Tamilnadu Tax on Supreme Court
Consumption or Sale of
Electricity Act 2003
net off amount paid
under protest.
10. The Company does not have accumulated losses at the end of the
financial year. The Company has incurred cash losses during the
financial year covered by the audit and not in the immediately
preceding financial year.
11. According to information and explanation given to us and as per the
books and records examined by us, the Company has defaulted in
repayment of dues to financial institution and banks which are as
follows:
Name of Bank / Nature of Dues Amount in Rs.
Financial Institution
Sugar Development Repayment of Loan 194,02,880
Fund, Govt of India
Union Bank of India Repayment of Loan 45,62,000
Indian Overseas Bank Repayment of Loan 90,00,000
Indian Renewable Repayment of Loan 1,50,00,000
Energy Development 37,30,000
Agency Ltd
Sugar Development Payment of Interest 46,60,944
Fund, Govt of India
Union Bank of India Payment of Interest 23,79,753
Indian Bank Payment of Interest 26,01,515
Indian Renewable Payment of Interest 1,67,56,513
Energy Development 16,52,712
Agency Ltd
State Bank of India Payment of Interest 12,57,636
Bank of India Payment of Interest 23,82,683
Name of Bank / Due date of Date of
Financial Institution repayment repayment
Sugar Development March 1, 2014 April 3, 2014
Fund, Govt of India
Union Bank of India March 25,2014 April 19,2014
Indian Overseas Bank March 31,2014 May 3, 2014
Indian Renewable March 31, 2014 April 3, 2014
Energy Development March 31, 2014 April 2, 2014
Agency Ltd
Sugar Development March 1, 2014 April 7, 2014
Fund, Govt of India
Union Bank of India March 31, 2014 April 19, 2014
Indian Bank March 31, 2014 April 30, 2014
Indian Renewable March 31, 2014 April 3, 2014
Energy Development March 31, 2014 April 2, 2014
Agency Ltd
State Bank of India March 31, 2014 April 30, 2014
Bank of India March 31, 2014 April 3, 2014
The Company has not issued any debentures.
12. Based on our examination of documents and records, we are of the
opinion that the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the (Auditor''s Report) Order, 2003 (as amended) are not applicable to
the Company.
14. In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the (Auditor''s Report) Order, 2003 (as
amended) are not applicable to the Company.
15. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were, prima facie applied during the period for the purposes
for which the loans were obtained.
17. To the best of our knowledge and according to the information and
explanations given to us, and on an overall examination of the balance
sheet of the Company, we report that the Company has not used funds
raised on short-term basis for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties or to a Company covered in the register maintained under
Section 301 of the Act, 1956
19. According to the information and explanations given to us, the
Company has not issued any debentures.
20. The Company has not raised any money by public issues during the
year.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
SRINIVASAN & SHANKAR
Chartered Accountants
(Firm Registration No.: 005093S)
per P SRINIVASAN
Place : Chennai Partner
Date: 29th May 2014 Membership No.025416
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of DHARANI SUGARS
AND CHEMICALS LIMITED, which comprise the Balance Sheet as at 31st
March 2013, the Statement of Profit and Loss account and Cash Flow
Statement for the year ended on that date and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s management is responsible for the preparation of these
Financial Statements that give a true & fair view of the Financial
position, Financial performance of the Company in accordance with the
Accounting Standards referred to in sub section (3C) of section 211 of
the Companies Act 1956 ("The Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the Financial Statement that gives
the true and fair view and is free from material statement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these Financial
Statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the Financial Statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditors'' judgments, including the
assessment of the risks of material misstatement of the financial
statement, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimate made by the management, as well as evaluating the overall
presentation of the Financial Statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2003 issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we have annexed hereto a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
In terms of and further to our comments in the Annexure referred to
above, we report that:
a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
b) In our opinion, proper books of account as required by law, have
been kept by the Company so far as it appears from our examination of
the said books and records;
c) The Balance Sheet, Profit & Loss account and Cash Flow Statement
referred to in this report are in agreement with the said books of
account;
d) In our opinion, the Balance Sheet, Profit & Loss account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
e) On the basis of the written representations received from the
Directors as on 31st March 2013, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2013 from being appointed as a director in terms of sub
section 1(g) of Section 274 of the Companies Act, 1956
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Companies Act, 1956 in the manner so
required, and give a true and fair view in conformity with the
accounting principles generally accepted in India.
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
b) in the case of the Statement of Profit & Loss Account, of the Profit
of the Company for the year ended on that date and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDIT REPORT
With reference to our Auditor''s Report to the Shareholders of Dharani
Sugars and Chemicals Limited, we report that, in our opinion and to the
best of our knowledge and belief and as per the information and
explanations furnished to us and the books and records examined by us
in the normal course of audit;
1. In terms of its fixed assets
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets of the Company have been physically verified during
the period by the management in accordance with a programme of
verification, the frequency whereof is reasonable. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
c) During the year, the Company has not disposed off any substantial
part of the fixed assets.
2. In respect of its inventories
a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. The Company has not taken/granted any loans, secured or unsecured
during the year from/to companies, firms or parties covered in the
Register maintained under Section 301. In respect of loans, secured or
unsecured taken by the Company from companies, firms, or other parties
covered in the Register maintained under Section 301 of the Companies
Act, 1956, we state the following:
a) During the period, the Company has repaid loans taken from a party
during the previous years covered in the register maintained under
Section 301 of the Companies Act, 1956. The outstanding amount in
respect of such loans is Rs. Nil as at the end of the year.
b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which the loans have been taken from the Company, are not prima facie
prejudicial to the interest of the Company. The amounts are repayable
on demand.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal system.
5. In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act 1956.
a) To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that need to be
entered into the register maintained under Section 301 have been so
entered.
b) According to the information and explanations given to us, there are
no transactions of purchase of inventory and fixed assets exceeding
Rs.5 lakhs in respect of each party. In respect of other transactions
exceeding Rs. 5 lakhs in respect of each party, the transactions have
been made at prices, which are prima facie, reasonable having regard to
the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, directives issued by the Reserve Bank of India and the
provisions of Sections 58A, 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed thereunder, to the extent
applicable, have been complied with. We are informed by the management
that no order has been passed by the Company Law Board, National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the accounts and records maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have however,
not made a detailed examination of the records with a view to
determining whether they are accurate or complete.
9. According to the information and explanations given to us, in
respect of statutory dues and other dues.
a) The Company has been generally regular in depositing undisputed
statutory dues, including Provident Fund, Employees'' State Insurance,
Investor Education and Protection Fund, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other
statutory dues with the appropriate authorities during the period.
b) As confirmed by the Management, there are no dues of Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess
on account of any dispute other than the following:
Amount Forum where dispute
Name of the Statute Nature of dues (Rs. in
lakhs) is pending
Central Excise Act
1994 Bagasse, Bio compost
sales 168.26 Commissioner of
Central
reversal against
Cenvat Credit Excise - Tirunelveli
rule 6(3) and
Central Excise Act
Section 2(d)
Central Excise Act
1994 Bagasse, Bio compost
sales 19.56 Commissioner of
Central
reversal against
Cenvat Credit Excise - Tirunelveli
rule 6(3) and
Central Excise Act
Section 2(d)
Central Excise Act
1994 Bagasse, Bio compost
sales Commissioner of
Central
83.14
reversal against
Cenvat Credit Excise - Tirunelveli
rule 6(3) and
Central Excise Act
Section 2(d)
Finance Act, 1994 Service Tax on Goods 6.30 Central Excise and
Service
Transport Agency Tax Appeal
Commissioner
Tamil Nadu Tax on Electricity
Consumption Tax 209.00 Supreme Court
consumption or
sale of electricity
act 2003
10. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
11. According to information and explanation given to us and as per
the books and records examined by us, the Company has not defaulted in
repayment of dues to financial institution or bank. The Company has not
issued any debentures.
12. Based on our examination of documents and records, we are of the
opinion that the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 (as amended) are not
applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 (as amended) are not applicable to the Company.
15. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were, prima facie applied by the Company during the period for
the purposes for which the loans were obtained.
17. To the best of our knowledge and according to the information
given to us, funds raised on short-term basis have, prima facie not
been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties or to a company covered in the register maintained under
Section 301 of the Companies Act, 1956
19. According to the information and explanations given to us, the
Company has not issued any debentures.
20. The Company has not raised any monies by way of public issues
during the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
SRINIVASAN & SHANKAR
Chartered Accountants
(Firm Registration No.: 005093S)
per P SRINIVASAN
Partner
Place: Chennai
Membership
No.025416
Date: 30th May 2013
Mar 31, 2012
We have audited the attached Balance Sheet of DHARANI SUGARS AND
CHEMICALS LIMITED as at 31st March 2012, the Statement of Profit and
Loss and Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we have annexed hereto a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
In terms of and further to our comments in the Annexure referred to
above, we report that:
a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
b) In our opinion, proper books of account as required by law, have
been kept by the Company so far as it appears from our examination of
the said books and records;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement referred to in this report are in agreement with the said
books of account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub- section (3C) of section 211 of
the Companies Act, 1956;
e) On the basis of the written representations received from the
Directors as on 31st March 2012, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2012 from being appointed as a director in terms of sub
section 1(g) of Section 274 of the Companies Act, 1956
In our opinion and to the best of our information and according to the
explanations given to us, the said financial statements, read in
conjunction with Notes attached thereto, give the information required
by the Companies Act, 1956 in the manner so required, and give a true
and fair view in conformity with the accounting principles generally
accepted in India.
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
b) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date and;
c) in the case of the Cash Flow Statement of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDIT REPORT
With reference to our Auditor's Report to the Shareholders of Dharani
Sugars and Chemicals Limited, we report that, in our opinion and to the
best of our knowledge and belief and as per the information and
explanations furnished to us and the books and records examined by us
in the normal course of audit;
1. In terms of its fixed assets
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets of the Company have been physically verified during
the period by the management in accordance with a programme of
verification, the frequency whereof is reasonable. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
c) During the year, the Company has not disposed off any substantial
part of the fixed assets.
2. In respect of its inventories
a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. The Company has not granted any loans, secured or unsecured during
the year to companies, firms or parties covered in the Register
maintained under Section 301. In respect of loans, secured or unsecured
taken by the Company from companies, firms, or other parties covered in
the Register maintained under Section 301 of the Companies Act, 1956,
we state the following:
a) During the period, the Company has taken loan of Rs.283 lakhs, from
a party covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount outstanding at any time during
the year is Rs. 633 lakhs and the year- end balance is Rs.633 lakhs.
b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which the loans have been taken by the Company, are not prima facie
prejudicial to the interest of the Company. The amounts are repayable
on demand.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal system.
5. In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act 1956.
a) To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that need to be
entered into the register maintained under Section 301 have been so
entered.
b) According to the information and explanations given to us, there are
no transactions of purchase of inventory and fixed assets and sale of
goods exceeding Rs.5 lakhs in respect of each party. In respect of
other transactions exceeding Rs. 5 lakhs in respect of each party, the
transactions have been made at prices, which are prima facie,
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, directives issued by the Reserve Bank of India and the
provisions of Sections 58A, 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under, to the extent
applicable, have been complied with. We are informed by the management
that no order has been passed by the Company Law Board, National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the accounts and records maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have however,
not made a detailed examination of the records with a view to
determining whether they are accurate or complete.
9. According to the information and explanations given to us, in
respect of statutory dues and other dues.
a) The Company has been generally regular in depositing undisputed
statutory dues, including Provident Fund, Employees' State Insurance,
Investor Education and Protection Fund, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other
statutory dues with the appropriate authorities during the period.
b) As confirmed by the Management, there are no dues of Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess,
on account of any dispute other than the following:
Name of the Amount Forum where
Statute Nature of dues (Rs. in
lakhs) dispute is pending
Central Excise Bagasse, bio compost Commissioner of
Act 1944 sales reversal against 168.26
Cenvat Credit rule 6(3)
and Central Excise Act Central Excise
Section 2(d) Thirunelveli
Bagasse, bio compost Commissioner of
Central Excise sales reversal against 19.56 Central Excise -
Act 1944 Cenvat Credit rule 6(3) Thirunelveli
and Central Excise Act
Section 2(d)
Central Excise Bagasse, bio compost Commissioner of
Act 1944 sales reversal against 83.14 Central Excise -
Cenvat Credit rule 6(3) Thirunelveli
and Central Excise
Act Section 2(d)
10. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
11. According to information and explanation given to us and as per
the books and records examined by us, the Company has not defaulted in
repayment of dues to financial institution or bank. The Company has not
issued any debentures.
12. Based on our examination of documents and records, we are of the
opinion that the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 (as amended) are not applicable to the Company.
15. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were, prima facie applied by the Company during the period for
the purposes for which the loans were obtained.
17. To the best of our knowledge and according to the information
given to us, funds raised on short-term basis have, prima facie not
been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties or to a company covered in the register maintained under
Section 301 of the Act.
19. According to the information and explanations given to us, the
Company has not issued any debentures.
20. The Company has not raised any money by way of public issues
during the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
SRINIVASAN & SHANKAR
Chartered Accountants
(Firm Registration No.: 005093S)
per P SRINIVASAN
Partner
Membership No.025416
Place: Chennai
Date: 23rd May 2012
Mar 31, 2011
We have audited the attached Balance Sheet of DHARANI SUGARS AND
CHEMICALS LIMITED, as at 31st March 2011, the Profit and Loss account
and Cash Flow Statement for the year ended on that date annexed the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements. An audit also
includes assessing the accounting principles used and significand
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Governmentt of India in terms of Section 227(4A) of the
Companies Act, 1956, we have annexed hereto a statement on the matters
specifies in paragraphs 4 and 5 of the said Order.
In terms of an further to our comments in the Annexure referred to
above, we report that:
(a) we have obtained all the information and explanations which, to the
best of our knowledge and belief, were neccessary for the purpose of
our audit;
(b) In our opinion, proper books of account as required by law, have
been kept by the Company so far as it appears from our examination of
the said books and records;
(c) The Balance Sheet, Profit & Loss account and Cash flow statement
referred to in this report are in agreement with the said books of
account;
(d) In our opinion, the Balance Sheet, Profit & Loss account and Cash
flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act! 1956;
(e) On the basis of the written representations received from the
Directors as on 31st March 2011, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2011 from being appointed as a director in terms of sub
section 1(g) of Section 274 of the Companies Act, 1956
In our opinion and to the best of our information and according to the
explanations given to us, the said financial statements, read in
conjunction with Notes and Schedules attached thereto, give the
information required by the Companies Act, 1956 in the manner so
required, and give a true and fair view in conformity with the
accounting principles generally accepted in India.
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
(b) in the case of the Profit & Loss Account, of the Profit of the
Company for of the year ended on that date and;
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date;
ANNEXURE TO THE AUDITORS'REPORT
With reference to our Auditor's Report to the Shareholders of Dharani
Sugars and Chemicals Limited, we report that, in our opinion and to the
best of our knowledge and belief and as per the information and
explanations furnished to us and the books and records examined by us
in the normal course of audit;
1. In terms of its fixed assets
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets of the Company have been physically verified during
the period by the management in accordance with a programme of
verification, the frequency whereof is reasonable. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
c) During the year, the Company has not disposed off any substantial
part of the fixed assets.
2. In respect of its inventories
a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. The Company has not granted any loans, secured or unsecured during
the year to companies, firms or parties covered in the Register
maintained under Section 301. In respect of loans, secured or unsecured
taken by the Company from companies, firms, or other parties covered in
the Register maintained under Section 301 of the Companies Act, 1956,
we state the following:
a) During the period, the Company has taken loans from a party covered
in the register maintained under Section 301 of the Companies Act,
1956. The outstanding amount in respect of the loans taken during the
year is Rs. 350 lakhs as at the 0end of the year.
b) ln our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which the loans has been taken from the Company, are not prima facie
prejudicial to the interest of the Company The amounts are repayable on
demand
4. In our opinion and according to the explanations given to us, there
is an adequate internal control system commensurate with the size of
the Company and the nature of its business with regard to purchases of
inventory, fixed assets and for the sale of goods and services. During
the course of our audit, no major weakness has been noticed in the
internal system.
5. In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act 1956.
a) To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that need to be
entered into the register maintained under Section 301 have been so
entered.
b) According to the information and explanations given to us, there are
no transactions of purchase of inventory and fixed assets and sale of
goods exceeding Rs.5 lakhs in respect of each party. In respect of
other transactions exceeding Rs. 5 lakhs in respect of each party, the
transactions have been made at prices, which are prima facie,
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, directives issued by the Resen/e Bank of India and the
provisions of Sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under, to the extent
applicable, have been complied with. We are informed by the management
that no order has been passed by the Company Law Board, National
Company Law Tribunal or Reserve Bank of India or any
CourtoranyotherTribunal.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the accounts and records maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have however,
not made a detailed examination of the records with a view to
determining whether they are accurate or complete
9. According to the information and explanations given to us, in
respect of statutory dues and other dues.
a) The Company has been generally regular in depositing undisputed
statutory dues, including Provident Fund, Employees' State Insurance,
Investor Education and Protection Fund, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other
statutory dues with the appropriate authorities during the period.
b) As confirmed by the Management, there are no dues of Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess,
on account of any dispute other than the following:
Name of the Nature of dues Amount Forum where
Statute (Rs. in lakhs) Dispute is pending
Finance Act, Service Tax on 580.01 Central Excise and
1994 Manpower and Service Tax
Recruipment Appellate Tribunal
Supply Agency
Service
Finance Act, Service Tax on 14.92 Central Excise and
1994 Goods Transport Service Tax
Agency Appellate Tribunal
10. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
11. According to information and explanation given to us and as per
the books and records examined by us, the Company has not defaulted in
repayment of dues to financial institution or bank. The Company has not
issued any debentures.
12. Based on our examination of documents and records, we are of the
opinion that the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the Company.
14.ln our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 (as amended) are not applicable to the Company.
15. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were, prima facie applied by the Company during the period for
the purposes for which the loans were obtained.
17.TO the best of our knowledge and according to the information given
to us, funds raised on short-term basis have, prima facie not been used
for long-term investment.
18. The Company has made preferential allotment of shares to parties
and to a company covered in the register maintained under Section 301
of the Act.
19. According to the information and explanations given to us, the
Company has not issued any debentures.
20. The Company has not raised any monies by way of public issues
during the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
SRINIVASAN&SHANKAR
Chartered Accountants
(Firm Registration No. : 005093S)
per P SRINIVASAN
Partner
Membership No.025416
Place : Chennai
Dated :24th May 2011
Mar 31, 2010
We have audited the attached Balance Sheet of DHARANI SUGARS AND
CHEMICALS LIMITED, as at 31st March 2010 and the related Profit and
Loss account and Cash flow statement for the year ended on that date
Annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An. audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003, as amended
by the Companies (Auditors Report) (Amendment) Order, 2004, issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we have annexed hereto a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
In terms of and further to our comments in the Annexure referred to
above, we report that:
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purposes of
ouraudit
{b) In our opinion, proper books of account as required by law, have
been kept by the Company so far as it appears from our examination of
the said books and w records
(c) The Balance Sheet, Profit & Loss account and Cash flow statement
referred to in this report, are in agreement with the said books and
records
(d) In our opinion, the Balance Sheet, Profit & Loss account and Cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub- section (3C) of section 211 of the
Companies Act, 1956.
(e) On the basis of the written representations received from the
Directors as on 31st March 2010, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2010 from being appointed as a director in terms of sub
section 1(g) of Section 274 of the Companies Act, 1956
In our opinion and to the best of our information and according to the
explanations given to us, the saidfinancial - statements, read in
conjunction with Notes and Schedules attached thereto, give the
information required by the Companies Act, 1956 in the manner so
required, and give a true and fair view in conformity with the
accounting principles generally accepted in India.
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31sMarch 2010
(ii) in the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
ANNEXURE TO THE AUDITORS REPORT
With reference to our Auditors Report to the Shareholders of Dharani
Sugars and Chemicals Limited, we report that, in our opinion and to the
best of our knowledge and belief and as per the information and
explanations furnished to us and the books and records examined by us
in the normal course of audit .
1. In terms of its fixed assets.
a)The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b)The fixed assets of the Company have been physically verified during
the period by the management in accordance with a programme of
verification, the frequency whereof is reasonable. According to the
information and explanations given to us, nd material discrepancies
were noticed on such verification.
c)During the year, the Company has not disposed off any substantial
part of the fixed assets.
2. In respect of its inventories
a)The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. The Company has not granted any loans, secured or unsecured during
the year to companies, firms or parties covered in the Register
maintained under Section 301. In respect of loans, secured or unsecured
taken by the Company from companies, firms, or other parties covered in
the Register maintained under Section 301 of the Companies Act, 1956,
we state the following:
a) During the period, the Company has not taken any loans from parties
covered in the register maintained under Section 301 of the Companies
Act, 1956. However, the outstanding amount in respect of the loans
taken in the earlier years is Rs. 150 lakhs as at the end of the year.
b) ln our opinion the rate of interest and other terms and conditions
on which the loans has been taken from companies, firms or other
parties listed in the registers maintained under Section 301 of the
Companies Act, 1956 are not, prima facie, prejudicial to the interest
of the Company. The repayment of Principal and Interest are regular.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal system.
5. In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act 1956.
a) To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that need to be
entered into the register maintained under Section 301 have been so
entered.
b) According to the information and explanations given to us, there are
no transactions of purchase of inventory and fixed assets and sale of
goods exceeding Rs.5 lakhs in respect of each party. In respect of
other transactions exceeding Rs. 5 lakhs in respect of each party, the
transactions have been made at prices, which are prima facie,
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, directives issued by the Reserve Bank of India and the
provisions of Sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under, to the extent
applicable, have been complied with. We are informed by the management
that no order has been passed by the Company Law Board, National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account and records
maintained by the Company pursuant to the Rules made by the Central
Government for the maintenance of cost records under Section 209 (1)
(d) of the Companies Act, 1956 and we are of the opinion that prima
facie the prescribed accounts and records have beep made and
maintained. We have however, not made a detailed examination of the
records with a view to determining whether they are accurate or
complete.
9. According to the information and explanations given to us, in
respect of statutory dues and other dues.
a) The Company has been generally regular in depositing undisputed
statutory dues, including Provident Fund, Employees State Insurance,
Investor Education and Protection Fund, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other
statutory dues with the appropriate authorities during the period.
b) As confirmed by the Management, there are no dues of Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess,
on account of any dispute other than the following:
Name of the Amount Forum where
Statute Nature oraues (Rs.in lakhs) dispute is
pending
Tamil Nadu Sales 227.68
Tax Act and
Central Purchase Tax on (Rs227.68lacs Supreme Court
Sales Act, 1961 Cane Kurcnase- paid under
protest)
Tamil Nadu
Sales
Tax Act and
Central Purchase Tax on 745.68 Madurai High
court
Sales Act,
1961 Cane Purchase.
Service Tax on. Central, Exrise
and
Service Tax
Act, Manpower and - Service Tax
Recruitment Supply 464.72 Appellate
Tribunal
Service Tax on.
Service Tax
Act, Goods TransDort 12.92 Commissioner
1994 Agency AppealsMadurai
10. The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
11. According to information and explanation given to us and as per
the books and records examined by us, the Company has not defaulted in
repayment of dues to financial institution or bank. The Company has not
issued any debentures.
12. Based on our examination of documents and records, we are of the
opinion that the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 (as amended) are not
applicable to the Company.
14.In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable to the Company..
15. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were, prima facie applied by the Company during the period for
the purposes for which the loans were obtained, other than temporary
deployment pending application.
17.To the best of our knowledge and according to the information given
to us, funds raised on short- term basis have, prima facie not been
used for long- term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act.
19. According to the information and explanations given to us, the
Company has not issued any debentures.
20. The Company has not raised any money through a public issue during
the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
SRINIVASAN & SHANKAR
Chartered Accountants
Firm Registration. No. 005093S
per P SRINIVASAN
Place: Chennai Partner
Dated : 25th May 2010 Membership No. 025416
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