Mar 31, 2016
To The Members of M/s. Parrys Sugar Industries Limited Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of M/s. Parrys Sugar Industries Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the 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 Standalone 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 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these 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 the Rules made there under.
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 the disclosures in the financial statements. The procedures selected depend on the auditor''s 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 Company''s 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 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 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:
(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2016, and
(ii) in the case of Statement of Profit and Loss, of the loss for year ended on that date, and
(iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to Note 25(1)(b) to the financial statements, with regard to the preparation of the financial statements on a going concern basis despite erosion in the net worth of the Company.
Our opinion is not qualified in this matter.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in the Annexure-A a statement on the matters specified in paragraphs 3 and 4 of the Order.
As required by Section 143(3) of the Act, 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, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid 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) The going concern matter described in sub-paragraph (b) under the Emphasis of Matters paragraph above, in our opinion, does not have an adverse effect on the functioning of the Company.
(f) On the basis of the written representations received from the directors as on 31st March, 2016 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.
(g) 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 B"
(h) 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 according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations in Note No. 29 of the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. The Company has not delayed in transferring amounts, required to be transferred, to the Investor Education and Protection Fund.
Annexure-A referred to in Paragraph of Report on Other Legal and Regulatory Requirements of our report of even date on the Accounts of the Company, for the year ended 31st March 2016.
(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) Fixed Assets are physically verified by the Management, according to a phased programme designed to cover all items over a period of two years which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. As part of the programme, the Company has physically verified the fixed assets during the year and no material discrepancies were noticed.
(c) The title deeds of the immovable properties (land) is in the erstwhile name of the Company.
(ii) The inventory has been physically verified by the Management during the year. In our opinion, frequency of verification is reasonable no material discrepancies were noticed during the course of physical verification..
(iii) The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act.
(iv) The provisions of Section 185 and 186 of the Act are not applicable, since the Company has not granted any loans to Directors nor has granted any loan or guarantee or security to any company, body corporate or to any person. The investment made by the Company is in compliance with Section 185 and 186 of the Act.
(v) The Company has not accepted deposits during the year. Hence, Clause 3(v) of the Order is not applicable.
(vi) Maintenance of cost records has been specified by the Central Government under sub-section (1) of Section 148 of the Act. We have broadly reviewed the books and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been maintained. We have, however, not made a detailed examination of the records to ascertain whether they are accurate and complete.
(vii) (a) According to the information and explanations given to us, and records of the Company examined by us, in our opinion, the
Company is generally regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess, and any other statutory dues to the appropriate authorities. There are no arrears of undisputed statutory dues outstanding as at March 31, 2016 for a period of more than six months from the date they become payable.
(b) According to the information and explanations given to us, and the records of the Company examined by us, there are no dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax, cess have not been deposited on account of any dispute, except the following:
Name of Statute |
Nature of dues |
Amount (Rs, in lakh), excluding interest, if any |
Period to which amounts relate |
Forum where the dispute is pending |
The Finance Act, 1994 |
Service Tax |
225.38 |
2012-13 |
CESTAT |
Central Excise Act, 1944 |
Central Excise |
2.53 |
2012-13 |
Assistant Commissioner, Belgaum |
Central Excise Act, 1944 |
Central Excise |
6.49 |
2013-14 |
Additional Commissioner, Belgaum |
(viii) According to the information and explanations given to us, and records of the Company examined by us, the Company has not defaulted in repayment of loans or borrowing to any financial institution or bank or government. The Company has not raised any debentures.
(ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments). The term loans obtained by the Company were applied for the purposes for which these were raised.
(x) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither observed any instance of fraud by the Company or any fraud on the Company by its officers or employees of the Company nor have we been informed of such case by the Management, during the year.
(xi) The Company has not paid any managerial remuneration and hence the provisions of Section 197 read with Schedule V to the Act are not applicable.
(xii) The Company is not a Nidhi Company and hence, Clause 3(xii) of the Order is not applicable.
(xiii) All the transactions with the related parties are in compliance with Section 177 and 188 of the Act where applicable and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review, and hence, Clause 3(xiv) is not applicable.
(xv) According to the information and explanation provided to us and based on our examination of records, the Company has not entered into any non-cash transactions with Directors or persons connected with him and hence Clause 3(xv) is not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934 and hence, Clause 3(xvi) is not applicable.
Annexure-B referred to in Clause (h) of Paragraph of Report on Other Legal and Regulatory Requirements of our report of even date on the Accounts of the Company, for the year ended 31st March 2016.
We have audited the internal financial controls over financial reporting of Parrys Sugar Industries Limited (''the Company'') as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date. Management''s Responsibility for Internal Financial Controls
The Company''s Management 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, including adherence to company''s policies, 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting and the Standards of Auditing, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and 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 judgment, including the assessment of the risks of material misstatement of 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 controls 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 authorizations of management and Directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent 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 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
According to the information and explanations given to us and based on our audit, have, in all material respects, an adequate internal financial control over financial reporting and such internal financial control over financial reporting were operating effectively as at March 31, 2016 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 of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For R.G.N. Price & Co.,
Chartered Accountants
Firm''s Registration No: 002785S
Mahesh Krishnan
Chennai Partner
May 2, 2016 Membership No. 206520
Mar 31, 2015
We have audited the accompanying financial statements of Parrys Sugar
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31,2015, the Statement of Profit and Loss, the 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 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 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 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these 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 the 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 the disclosures in the financial statements. The
procedures selected depend on the auditor's judgement, 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 Company's preparation of the financial statements that give a
true and fair view 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 system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the 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 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,
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
(b) in the case of Statement of Profit and Loss, of the loss 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 Section 143(3) of the Act, we report that:
1. As required by the Companies (Auditor's Report) Order 2015 issued by
the Central Government in terms of Section 143 (11) of the Act, we give
in the annexure 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 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, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account
(d) In our opinion, the aforesaid 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 March 31,2015 and taken on record by the Board of
Directors, none of the directors are disqualified as on March 31,2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(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
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 which has been referred
by us in Paragraph (vii)(b) of CARO 2015. - Refer Note 29 to the
financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There were no pending amounts which were, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our Audit Report of even date to the members
of Parrys Sugar Industries Limited on the Financial Statements of the
Company for the year ended on March 31, 2015)
(i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Generally, fixed assets are physically verified by the Management,
according to a phased programme designed to cover all items over a
period of two years which in our opinion is reasonable having regard to
the size of the Company and the nature of its assets. As part of the
programme, the Company has physically verified the fixed assets and no
material discrepancies were noticed.
(ii) a) The inventory has been physically verified by the Management
during the year. In our opinion, frequency of verification is
reasonable.
b) In our opinion, the procedures for physical verification of
inventory 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 Inventory records, in our
opinion, the Company is maintaining proper records of Inventory and no
material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act.
(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 for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) The Company has not accepted any deposits during the year. Hence
Clause 3(v) of the Order is not applicable.
(vi) Maintenance of cost records has been specified by the Central
Government under sub-section (1) of Section 148 of the Companies Act.
We have broadly reviewed the books and records of the Company in this
connection and are of the opinion, that prima facie, the prescribed
accounts and records have been maintained. We have, however, not made a
detailed examination of the records to ascertain whether they are
accurate and complete.
(vii) (a) According to the information and explanations given to us,
and records of the Company examined by us, in our opinion, the
Company is generally regular in depositing the undisputed statutory
dues including provident fund, employees'state insurance, income-tax,
sales-tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues as applicable, with
the appropriate authorities. There are no arrears of undisputed
statutory dues outstanding as at March 31, 2015 for a period of more
than six months from the date they become payable.
(b) According to the information and explanations given to us, and the
records of the Company examined by us, there are no dues of income tax
or sales tax or wealth tax or service tax or duty of customs or duty of
excise or value added tax or cess which have not been deposited on
account of any dispute except the following:
Name of Statute : The Finance Act, 1994
Nature of dues : Service Tax
Amount (Rs in lakhs), excluding interest, if any : 225 38
Period to which amounts relate : 2012-13
Forum where the dispute is pending : CESTAT
(c) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
(viii) The Company has accumulated losses. The Company has incurred
cash losses during the financial year covered by the audit and has
incurred cash losses in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institutions or Banks or Debenture holders during the year.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions. Accordingly, Clause 3(x) of the Order is not
applicable.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were obtained.
(xii) During the course of our examination of the Books and Records of
the Company carried out in accordance with the Generally Accepted
Auditing Practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company noticed or reported during the year nor have
we been informed of such case by the Management
For RGN Price & Co.,
Chartered Accountants
Firm Regn No. 002785S
H. S. Venkatesh
Partner
Membership No. 26666
Mar 31, 2014
We have audited the accompanying Financial Statements of Parrys Sugar
Industries Limited ("Company"), which comprise the Balance Sheet as at
31st March 2014, and the Statement of profit and Loss for the year then
ended, Cash Flow Statement for the year then ended 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 and fair view of the financial
position, financial performance and Cash Flows of the Company in
accordance with the Companies Act, 1956 and Accounting Standards
referred to in sub-section (3C) of Section 211 of the Companies Act,
1956 ("the Act") which as per a clarifcation issued by the Ministry of
Corporate Afairs continue to apply under Section 133 of the Companies
Act, 2013 (which has superseded section 211(3C) of the Companies Act,
1956 with efect from 12th September 2013. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the Financial Statement that
gives a true and fair view and is free from material misstatement,
whether due to fraud or error.
Auditor''s 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 disclosures in the financial statements. The procedures
selected depend on the auditor''s 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 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 efectiveness 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 sufcient and
appropriate to provide a basis for our audit opinion.
As required by the Companies (Auditor''s Report) Order, 2003 (as
amended) issued by the Central Government in terms of sub-section (4A)
of Section 227 of the Act, we enclose in the Annexure, a Statement on
the matters specifed in Paragraphs 4 and 5 of the said Order.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements of the Company for
the year ended 31st March, 2014 are prepared, in all material respects,
give the information required by the "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 afairs of the
Company as at 31st March 2014,
b. In the case of the Statement of profit and Loss, of the Loss for the
year ended on that date; and
c. In the case of the Cash Flow Statement, of the cash fows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
As required under the provisions of 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 purpose of our
audit.
b. In our opinion, proper books of accounts as required by law, have
been kept by the Company, in so far as it 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. The Balance Sheet and Statement of profit and Loss comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956 which as per a clarifcation issued by the
Ministry of Corporate Afairs continue to apply under Section 133 of the
Companies Act 2013 (which has superseded section 211(3C) of the
Companies Act 1956 with efect from 12th September 2013). In our
opinion, the Balance Sheet, the 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".
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 disqualifed as on
31st March 2014 from being appointed as director in terms of Section
274(1)(g) of the Companies Act, 1956.
Annexure referred to in Auditor''s Responsibility Paragraph of our
report of even date on the Accounts of Parrys Sugar Industries Limited,
for the period ended 31st March 2014.
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fxed
assets.
(b) As explained to us and based on our examination of the records, the
Management has carried out the physical verifcation of the fxed assets,
which is considered reasonable having regard to the size of the Company
and nature of its business and no discrepancies were observed during
the course of verifcation.
(ii) (a) The Raw Material, Stores and Spare Parts, Tools, Work in
Progress inventory with the Company have been physically verified during
the period by the Management. In our opinion, the frequency of
verifcation is reasonable. In case of Finished Goods, stock verifcation
was done at the year end.
(b) The procedures of physical verifcation of Raw Material, Stores and
Spare Parts, Tools, Work in Progress Inventory and Finished Goods
followed by the Management are generally reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of Inventory. The
discrepancies noticed on verifcation between the physical stocks and
the book records were not material and have been appropriately dealt in
the books.
(iii) The Company has not granted / taken any loans to / from parties
covered in the register maintained under Section 301 of the Companies
Act, 1956 and hence, Clause No. 4 (iii) of Companies Audit Report
Order, 2003, as amended in 2004, is not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fxed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control system.
(v) According to the information and explanations given to us, we are
of the opinion that there are no transactions that need to be entered
in register maintained under Section 301 of the Companies Act, 1956.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and Section 58AA of the Companies Act, 1956
and rules framed thereunder.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Company, pursuant to the Companies (Cost Accounting) Rules
2011 made by the Central Government for the maintenance and audit of
cost records under Section 209(1)(d) of the Companies Act, 1956 has
maintained cost records. The Cost Records are duly audited by a Cost
Auditor. We are of the opinion that prima facie the prescribed cost
accounts and cost records have been made and maintained. We have not,
however, made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income Tax, Sales Tax (VAT), Wealth Tax, Service Tax,
Customs Duty, Excise Duty, and other material statutory dues applicable
to it.
(b) According to the information and explanations given to us, no
undisputed payable in respect of Income Tax, Service Tax, Sales Tax
(VAT), Customs Duty, Excise Duty were in arrears, as at 31st March 2014
for a period of six months from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues of Income Tax, Service Tax, Sales Tax (VAT), Customs Duty
which have not been deposited on account of any dispute except as
follows:
Sl.
No. Statute Nature of Dues Forum where the dispute is
pending
1 Service Tax Service Tax dues CESTAT
Statue Amount (Rs.In Lakhs) Period to which the
matter pertains
Service Tax 225.38 2012-13
(x) The Company has accumulated losses amounting to Rs. 15272.17 Lakhs as
at March 31, 2014 and the same has exceeded 50% of the Net Worth. The
Company has incurred cash losses during the period ending March 31,
2014 as well as for the previous year ended March 31, 2013 i.e.,
immediately preceding financial period. During the financial year ended
March 31, 2012, the Company has informed BIFR under Section 23(1) of
Sick Industrial Companies (Special Provisions) Act, 1985 since
accumulated losses exceed 50% of the networth as on June 30, 2011.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to bank
and financial institutions at the Balance Sheet date.
(xii) According to the information furnished, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi / mutual benefit /
society. Therefore, the provisions of Clause 4(xiii) of the Companies
(Auditor''s Report) Order, 2003 as amended in 2004 are not applicable to
the Company.
(xiv) 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 are not
applicable to the Company.
(xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions during the period except for
Agricultural purposes availed by the Sugarcane suppliers from Banks,
the repayment of which is out of Cane price payable and in our opinion
the terms and conditions of which, are not prima facie prejudicial to
the Company.
(xvi) In our opinion, based on our examination of books on an overall
basis, the term loans have been applied for the purposes for which they
were obtained.
(xvii) According to the information and explanation given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short term basis have been used for Long Term
investment.
(xviii) The Company has not made preferential allotment of shares to
persons covered under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures and hence Clause 4(xix)
of CARO 2003 is not applicable to the Company.
(xx) The Company has not raised money by Public Issues and hence Clause
4(xx) of CARO 2003 is not applicable to the Company.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company noticed or reported during the period nor
have we been informed of any such case by the Management, that causes
the financial statements to be materially misstated.
For RGN Price & Co.,
Chartered Accountants
Firm Regn No: 002785 S
H.S. Venkatesh
Chennai Partner
April 28, 2014 Membership No: 026666
Mar 31, 2013
Report on the financial statements:
We have audited the accompanying Financial Statements of parrys sugar
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2013, and the Statement of Proft and Loss for the year
then ended, Cash Flow Statement for the year then ended, and a summary
of signifcant accounting policies and other explanatory information.
managementÂs responsibility for the financial statements:
The CompanyÂs Management is responsible for the preparation of these
Financial Statements that give a true and fair view of the fnancial
position, fnancial performance and Cash Flows of the Company in
accordance with the Companies Act, 1956 and 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 a
true and fair view and is free from material misstatement, whether due
to fraud or error.
auditorÂs responsibility:
Our responsibility is to express an opinion on these fnancial
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 fnancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the fnancial statements. The
procedures selected depend on the auditors judgment, including the
assessment of the risks of material misstatement of the fnancial
statement, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
companyÂs preparation and fair presentation of the fnancial 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 fnancial statements.
We believe that the audit evidence we have obtained is sufcient and
appropriate to provide a basis for our audit opinion.
As required by the Companies (AuditorÂs Report) Order, 2003 (as
amended) issued by the Central Government in terms of sub-section (4A)
of Section 227 of the Act, we enclose in the Annexure, a Statement on
the matters specifed in Paragraphs 4 and 5 of the said Order.
opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the fnancial statements of the Company for
the year ended March 31, 2013 are prepared, in all material respects,
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 afairs of the
Company as at March 31, 2013,
b. In the case of the Statement of Proft 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 fows for the
year ended on that date.
report on other Legal and regulatory requirements:
As required under the provisions of 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 purpose of our
audit.
b. In our opinion, proper books of accounts, as required by law, have
been kept by the Company in so far as it appears from our examination
of those books.
c. The Balance Sheet, Statement of Proft 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, the Statement of Proft 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.
e. On the basis of the written representations received from the
Directors as on March 31, 2013 and taken on record by the Board of
Directors, we report that none of the directors is disqualifed as on
March 31, 2013 from being appointed as director in terms of Section
274(1)(g) of the Companies Act, 1956.
anneXure to tHe InDepenDent auDItors report
annexure referred to in auditorÂs responsibility paragraph of our
report of even date on the accounts of parrys sugar Industries Limited,
for the year ended march 31, 2013.
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fxed
assets.
(b) As explained to us and based on our examination of the records, the
Management has carried out the physical verifcation of the fxed assets,
which is considered reasonable having regard to the size of the Company
and nature of its business and no discrepancies were observed during
the course of verifcation.
(c) During the year the Company has disposed of substantial portion of
the fxed assets, under a scheme of demerger as referred to in Note No.
37 of the fnancial statements, however; in our view such disposal of
the fxed assets though substantial in nature would not afect the going
concern.
(ii) (a) The Raw Material, Stores and Spare Parts, Tools, Work in
Progress inventory with the Company have been physically verifed during
the period by the Management. In our opinion, the frequency of
verifcation is reasonable. In case of Finished Goods, stock verifcation
was done at the year end.
(b) The procedures of physical verifcation of Raw Material, Stores and
Spare Parts, Tools, Work in Progress Inventory and Finished Goods
followed by the Management are generally reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of Inventory. The
discrepancies noticed on verifcation between the physical stocks and
the book records were not material and have been appropriately dealt in
the books.
(iii) The Company has not granted / taken any loans to / from parties
covered in the register maintained under Section 301 of the Companies
Act, 1956 and hence, Clause No. 4 (iii) of Companies Audit Report
Order, 2003, (as amended in 2004), is not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fxed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control system.
(v) According to the information and explanations given to us, we are
of the opinion that there are no transactions that need to be entered
in register maintained under Section 301 of the Companies Act, 1956.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and Section 58AA of the Companies Act, 1956
and rules framed thereunder.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Company pursuant to the Companies (Cost Accounting) Rules
2011 made by the Central Government for the maintenance and audit of
cost records under Section 209(1)(d) of the Companies Act, 1956 has
maintained cost records. The Cost Records are duly audited by a Cost
Auditor. We are of the opinion that prima facie the prescribed cost
accounts and cost records have been made and maintained. We have not,
however, made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax (VAT), Wealth Tax, Service Tax,
Customs Duty, Excise Duty, and other material statutory dues applicable
to it.
(b) According to the information and explanations given to us, no
undisputed payable in respect of Income Tax, Service Tax, Sales Tax
(VAT), Customs Duty, Excise Duty were in arrears, as at March 31, 2013
for a period of six months from the date they became payable.
(x) The Company has accumulated losses amounting to Rs. 2,213.17 Lakhs as
at March 31, 2013 and the same has exceeded 50% of the Net Worth. The
Company has incurred cash losses during the year ended March 31, 2013.
However, the Company has not incurred cash losses during the nine
months period ended March 31, 2012. i.e., immediately preceding
fnancial year. During the previous fnancial year, the Company has
informed BIFR under Section 23(1) of Sick Industrial Companies (Special
Provisions) Act, 1985 since accumulated losses exceed 50% of net worth
as on June 30, 2011.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to bank
and fnancial institutions at the Balance Sheet date.
(xii) According to the information furnished, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi/ mutual beneft/
society. Therefore, the provisions of Clause 4(xiii) of the Companies
(AuditorÂs Report) Order, 2003 (as amended in 2004) are not applicable
to the Company.
(xiv) 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 (AuditorÂs Report) Order, 2003 are not
applicable to the Company.
(xv) The Company has not given any guarantee for loans taken by others
from banks or fnancial institutions during the period except for
Agricultural purposes availed by the Sugarcane suppliers from Banks,
the repayment of which is out of Cane price payable and in our opinion
the terms and conditions of which, are not prima facie prejudicial to
the Company.
(xvi) In our opinion, based on our examination of books on an overall
basis, the term loans have been applied for the purposes for which they
were obtained.
(xvii) According to the information and explanation given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short term basis have been used for Long Term
investment.
(xviii) The Company has not made preferential allotment of shares to
parties covered in the register maintained under Section 301 of the
Companies Act, 1956.
(xix) The Company has not issued any debentures and hence Clause 4(xix)
of CARO 2003 is not applicable to the Company.
(xx) The Company has not raised money by Public Issues and hence Clause
4(xx) of CARO 2003 is not applicable to the Company.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company noticed or reported during the period nor
have we been informed of any such case by the Management, that causes
the fnancial statements to be materially misstated.
for r.G.n price & Co.,
Chartered Accountants
Firm Regn. No. 002785S
H.s. Venkatesh
Partner
Membership No. 026666
Chennai April 24, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Parrys Sugar
Industries Limited as at 31st March 2012, the Statement of Profit and
Loss and also the Cash Flow Statement for the nine months period 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.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended) issued by the Central Government in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure,
a statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to in Paragraph 3
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 purpose of our
audit.
b. In our opinion, proper books of account, as required by law, have
been kept by the Company in so far as it appears, from our examination
of those books.
c. The Balance Sheet and the Profit and Loss Account and Cash Flow
Statement dealt with by this report, are in agreement with the books of
accounts of this Company;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in Section 211(3C) of the Companies Act, 1956.
e. On the basis of written representations received from the Directors
as on 31st March, 2012 and taken on record by the Board of Directors,
none of the Directors is disqualified from being appointed as Director
in terms of clause (g) of sub-section (1) of Section 274 of the Act.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and the Notes forming part of accounts
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 31st March, 2012,
ii) In the case of the Statement of Profit and Loss, of the Loss of the
Company, for the nine months period ended on that date.
iii) In the case of Cash Flow Statement, of the Cash Flow for the nine
months period ended on that date.
Annexure referred to in Para 3 of our report of even date on the
Accounts of Parrys Sugar Industries Limited, for the nine months period
ended 31st March 2012
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the management has generally carried out the
physical verification of a portion of the fixed assets in accordance
with their phased programme of physical verification, which is
considered reasonable having regard to the size of the Company and
nature of its business and discrepancies, if any, were properly dealt
with on such verification during the nine months period.
(c) During the nine months period, the Company has not disposed off
substantial portion of the fixed assets.
(ii) (a) The Raw material, Stores and Spare Parts, Tools, Work in
Progress inventory with the Company have been physically verified
during the period by the management. In our opinion, the frequency of
verification is reasonable. In case of finished goods, stock
verification was done at the nine months period end.
(b) The procedures of physical verification of Raw material, Stores and
Spare Parts, Tools, Work in Progress inventory and Finished goods
followed by the management are generally reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and have been appropriately dealt in
the books.
(iii) The Company has not granted / taken any loans to / from parties
covered in the register maintained under Section 301 of the Companies
Act, 1956 and hence, Clause No. 4 (iii) of Companies Audit Report
Order, 2003, as amended in 2004, is not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems 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, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
(v) According to the information and explanations given to us, we are
of the opinion that there are no transactions that need to be entered
in register maintained under Section 301 of the Companies Act, 1956.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58 A and 58 AA of the Companies Act, 1956 and
rules framed thereunder.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, 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.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income Tax, Sales Tax (VAT), Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Service Tax, Sales
Tax(VAT), Customs Duty, Excise Duty and Cess were in arrears, as at
31st March 2012 for a period of more than six months from the date they
became payable.
(c) According to the information and explanations given to us, there
are no dues of Income Tax, Service Tax, Sales Tax(VAT), Customs Duty,
Excise Duty and Cess which have not been deposited on account of any
dispute except as follows:
Sl.
No. Statute Nature of
Dues Forum where
the Amount Period to
which
dispute is
pending (Rs In
Lakhs) the matter
pertains
1. Central
Excise
Act, Central
Excise The
Additional 16.74 2011-12
1944 Duty Commissioner
of Central
Excise and
Customs
CENVAT
Credit The
Additional 3.42 2008-09
Commissioner
of Central 166.10 2011-12
Excise &
Service Tax 0.96 2008-09
3.86 2009-10
The Assistant 0.45 2007-08
Commissioner
of Central 6.16 2011-12
Excise and
Customs
The
Commissioner of 39.69 2007-08
Central
Excise
The
Superintendent 0.25 2010-11
of Central
Excise and
Customs
Goods cleared The
Additional 1.50 2008-09
without
excise Commissioner
of Central
invoice Excise
and Customs
2. Finance
Act, 1994 GTA on
Outward Commissioner
of Central 60.48 2011-12
(Service
Tax) Freight Excise &
Customs
The
Additional 1.68 2008-09
Commissioner
of Central
Excise and
Customs
The Assistant 4.63 2011-12
Commissioner
of Central
Excise and
Customs
Non-payment
of The Assistant 3.11 2008-09
Service Tax Commissioner of
Central
Excise and
Customs
3. Karnataka
Tax on Levy of
Entry Tax Deputy
Commissioner 18.95 2010-11
Entry of
Goods Act, of Commercial
Taxes
1979 (Audit-1)
4. Andhra
Pradesh Excess ITC
claimed Appellate
Deputy 3.27 2010-11
General
Sales Tax Commissioner
Act, 1956 Asst.
Commissioner
(CT) 1.85 2010-11
LTU
Sales Tax High Court
of Andhra 37.01 2004-05
Pradesh
5. Andhra
Pradesh Electricity
Duty Government
of Andhra 314.63 2004-05
to 2011-12
Electri
city Duty Pradesh -
Electrical
Act, 1939 Inspectorate
(x) The Company has accumulated losses amounting to Rs 66.35 crores as
at March 31, 2012 and the same has exceeded 50% of net worth. The
Company has not incurred cash losses during the nine months period.
However the Company has incurred Cash losses of Rs 67.88 Crores in the
immediately preceding financial period. During the period, the Company
has informed BIFR under Section 23 (1) (a) of Sick Industrial Companies
(Special Provisions) Act, 1985 since accumulated losses exceeded 50% of
networth as on 30th June 2011.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to bank
and financial institutions at the Balance Sheet date.
(xii) According to the information furnished, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi / mutual benefit fund
/ society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the company.
(xiv) 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 are not
applicable to the Company.
(xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions during the period except for
Agricultural loans availed by Sugarcane suppliers from Banks, the
repayment of which is out of Cane price payable and in our opinion the
terms and conditions of which, are not prima facie prejudicial to the
Company.
(xvi) In our opinion, based on our examination of books on an overall
basis, the term loans have been applied for the purposes for which they
were obtained.
(xvii) According to the information and explanation given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investment.
(xviii) The Company has not made preferential allotment of shares to
parties covered in the register maintained under Section 301 of the
Companies Act, 1956.
(xix) The Company has not issued any debentures.
(xx) The Company has not raised money by Public Issues and hence Clause
4 (xx) of CARO 2003 is not applicable to the Company.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company noticed or reported during the period nor
have we been informed of any such case by the management, that causes
the financial statements to be materially misstated.
For R.G.N Price & Co.,
Chartered Accountants
Firm Regn. No.: 002785S
H. S. Venkatesh
Chennai Partner
April 24, 2012 Membership No. 026666
Jun 30, 2011
1. We have audited the attached Balance Sheet of Parrys Sugar
Industries Limited (the "Company") as at June 30, 2011, and the related
Profit and Loss Account and Cash Flow Statement for the fifteen months
period ended on that date annexed thereto, which we have signed under
reference to this report. 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.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those 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 signifcant 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.
3. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the "Order"), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of 'The Companies Act, 1956'
of India (the 'Act') and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specifed in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to in paragraph 3
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 appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the applicable
accounting standards referred to in sub-section (3C) of Section 211 of
the Act;
(e) On the basis of written representations received from the
directors, as on June 30, 2011 and taken on record by the Board of
Directors, none of the directors is disqualifed as on June 30, 2011
from being appointed as a director in terms of clause (g) of sub-
section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act, 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 June 30, 2011;
(ii) in the case of the Profit and Loss Account, of the loss for the
fifteen-months period ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash fows for the
fifteen-months period ended on that date.
ANNEXURE TO AUDITORS' REPORT
Referred to in paragraph 3 of the Auditors' Report of even date to the
members of Parrys Sugar Industries Limited on the financial statements
for the fifteen months period ended June 30, 2011.
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets of the Company have been physically verifed by the
Management during the period and no material discrepancies between the
book records and the physical inventory have been noticed. In our
opinion, the frequency of verifcation is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the period.
2. (a) The inventory (excluding stocks with third parties) has been
physically verifed by the Management during the period. In respect of
inventory lying with third parties, these have substantially been
confrmed by them. In our opinion, the frequency of verifcation is
reasonable.
(b) In our opinion, the procedures of physical verifcation of inventory
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 inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verifcation of inventory as compared
to book records were not material.
3. (a) The Company has granted unsecured loan to one company covered
in the register maintained under Section 301 of the Act. The maximum
amount involved during the period and the period-end balance of such
loans aggregates to Rs. 1,312.65 Lakhs and Rs. 1,312.65 Lakhs respectively.
(b) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima facie prejudicial to the interest of the
Company.
(c) In respect of the aforesaid loans, the terms of principle and
interest repayment are not stipulated.
(d) In view of our comment in paragraph 3(c) above, it is not possible
to ascertain whether there is any overdue amount.
(e) The Company has not taken any loans, secured or unsecured, from
companies, frms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, clauses 3(f) and 3(g) of
Paragraph 4 of the Order are 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 for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lakhs in respect of
any party during the period have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
thereunder.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, 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.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is regular in depositing the undisputed statutory dues including
provident fund, investor education and protection fund, employees'
state insurance, income-tax, sales-tax, wealth tax, service tax,
customs duty, excise duty, cess and other material statutory dues as
applicable with the appropriate authorities. .
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
income-tax, sales-tax, wealth-tax, service-tax, customs duty, excise
duty and cess as at June 30, 2011 which have not been deposited on
account of a dispute are as follows:
Sl. Statute Nature of dues Forum where the dispute
is pending
No.
1 Central Excise Act, CENVAT Credit Additional Commissioner/
Deputy
1944
Commissioner/Commissioner,
Central Excise & Customs
2 Andhra Pradesh Electricity duty Government of Andhra
Pradesh-Electrical
Electricity Duty Inspectorate
Act, 1939
3 Entry tax Orissa Sales Tax Commissioner sales Tax
4 The Andhra Pradesh Sales tax High Court
General Sales Tax
Act, 1956
5 Value Added Tax Act VAT Commissioner (Appeals),
Central Excise & Customs
Sl.
No. Amount Period to which
(in Lakhs) the matter pertains
1 158.75 2005-06
7.62 2006-07
95.85 2007-08
7.75 2008-09
3.25 2009-10
2 281.85 2004-05 to 2010-11
3 4.76 2004-05
4 5.52 1999-00
14.55 2000-01
22.46 2005-06
0.74 2007-08
5.12 2009-10
5 31.37 2006-07
10. The Company has accumulated losses as at June 30, 2011 amounting
to Rs. 8,167.10 Lakhs which exceeds ffty per cent of its net worth. The
Company has incurred cash losses in the financial period ended on that
date amounting to Rs. 6,787.82 Lakhs and in the immediately preceding
financial year amounting to Rs. 3,296.16 Lakhs.
11. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund/ societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. 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 during the year except in
respect of repayment, out of its cane price dues to its sugarcane
suppliers, of the agricultural loans taken by them from banks, the
terms and conditions of which, in our opinion are not prima facie
prejudicial to the company.
16. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
17. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have 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 during the period.
19. The Company has not issued any debentures during the period.
20. The Company has not raised any money by public issues during the
period.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, except for misappropriation of Company's
funds during the year, aggregating Rs. 47,98,316/- by a unit fnance head
of the Company by way of creating certain false and misleading records
and documents, and from whom the aforesaid amount has been recovered on
the basis of identifcation of the aforesaid fraud by the Management and
consequential investigation carried out by it and an external frm of
chartered accountants, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year.
For and on behalf of
Price Waterhouse
Firm Registration Number: 301112E
Chartered Accountants
J. Majumdar
Place: Chennai Partner
Date: July 25, 2011 Membership Number F-51912.
Mar 31, 2010
1. We have audited the attached Balance Sheet of GMR Industries
Limited (the ÃCompanyÃ) as at March 31, 2010, and the related Proft and
Loss Account and Cash Flow Statement for the year ended on that date,
annexed thereto, which we have signed under reference to this report.
These fnancial statements are the responsibility of the CompanyÃs
Management. Our responsibility is to express an opinion on these
fnancial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
fnancial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the fnancial statements. An audit also includes
assessing the accounting principles used and signifcant estimates made
by Management, as well as evaluating the overall fnancial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (AuditorÃs Report) Order, 2003, as
amended by the Companies (AuditorÃs Report) (Amendment) Order, 2004
(together the ÃOrderÃ), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of ÃThe Companies Act, 1956Ã
(the ÃActÃ) and on the basis of such checks of the books and records of
the Company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure a
statement on the matters specifed in paragraphs 4 and 5 of the Order.
4. Without qualifying our opinion, we draw attention to Note 6 of
Schedule 19 to the fnancial statements regarding carrying value of long
term investment amounting to Rs.1,368.09 lakhs (2009: Rs.519.06 lakhs)
in the subsidiary company which exceed its net worth and loans
amounting to Rs.1,134.00 lakhs (2009: Rs.250 lakhs) given to the
subsidiary company. Considering the strategic location of the project
and the nearby high recovery sugar cane rich belt which is the lifeline
of a sugar industry, the CompanyÃs Management considers that the
acquisition cost is reasonable and believes that the intrinsic value of
the acquisition including the embedded value of the sugar license held
by the said subsidiary company is far in excess of the carrying cost of
investments and loan given, and therefore, no provision is considered
necessary at this stage in respect of aforementioned amounts.
5. Further to our comments in the Annexure referred to in paragraph 3
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 appears from our examination of
those books;
(c) The Balance Sheet, Proft and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Proft and 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 Act;
(e) On the basis of written representations received from the
directors, as on March 31, 2010 and taken on record by the Board of
Directors, none of the directors is disqualifed as on March 31, 2010
from being appointed as a director in terms of clause (g) of sub-
section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said fnancial statements, together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act 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 March 31, 2010
(ii) in the case of the Proft and Loss Account, of the loss for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash fows for the
year ended on that date.
Annexure to Auditorsà Report
Referred to in paragraph 3 of the Auditorsà Report of even date to the
members of GMR Industries Limited on the financial statements for the
year ended March 31, 2010
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fxed
assets.
(b) The fxed assets of the Company have been physically verifed by the
Management during the year and no material discrepancies between the
book records and the physical inventory have been noticed. In our
opinion, the frequency of verifcation is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fxed assets has not been disposed
off by the Company during the year.
2. (a) The inventory has been physically verifed by the Management
during the year. In our opinion, the frequency of verifcation is
reasonable.
(b) In our opinion, the procedures of physical verifcation of inventory
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 inventory records, in our
opinion, the Company is maintaining proper records of the inventory.
The discrepancies noted on physical verifcation of inventory as
compared to book records were not material.
3. (a) The Company has granted an unsecured loan to one Company
covered in the register maintained under Section 301 of the Act. The
maximum amount involved during the year and the year end balance of
such loan aggregate to Rs.1,134 Lakhs and Rs.1,134 Lakhs respectively.
(b) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima facie prejudicial to the interest of the
Company.
(c) In respect of the aforesaid loans, the terms of principal and
interest repayment are not stipulated.
(d) In respect of aforesaid loans, there is no overdue payment of more
than Rupees one Lakh.
(e) The Company has not taken any loans, secured or unsecured, from
companies, frms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, clauses 3(f) and 3(g) of
Paragraph 4 of the Order are 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 for the
purchase of inventory, fxed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to
in Section 301 of the Act have been entered in the register required to
be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
thereunder.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, 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 determining whether
they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the
Company is generally regular in depositing undisputed statutory dues
including investor education and protection fund, employeesà state
insurance, income-tax, wealth tax, service tax, excise duty and other
material statutory dues, as applicable, with the appropriate
authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
income-tax, sales-tax,wealth-tax, service-tax, customs duty, excise
duty and cess, which have not been deposited on account of a dispute,
are as follows:
Sr. Statute & nature of dues Nature of dues Forum where the
No. dispute is pending
1. Central Excise Act, 1944 CENVAT Credit Additional
Commissioner,Central
Excise & Customs
2. Central Excise Act, 1944 Clearance of goods Additional
Commissioner,Central
Excise & Customs
3. Andhra Pradesh Electricity duty Government of Andhra
Pradesh-Electrical
Electricity Duty Act,1939 Inspectorate
4. Entry tax Orissa Sales Tax Commissioner sales Tax
5. The Andhra Pradesh Sales tax High Court
General Sales Tax Act,
1956
6. Value Added Tax Act VAT Assistant Commissioner
(CommercialTaxes)(LTU)
Sr. Amount Period which the
No. (in Lakhs) matter pertains
1. 21.70 2005-06
126.48 2006-07
0.57 2007-08
8.24 2008-09
2. 30.73 2007-08
3. 166.03 2009-10
4. 4.76 2004-05
5. 14.55 2000-01
22.46 2004-05
6. 10.69 2005-06
10. The Company has no accumulated losses as at March 31, 2010 and
there was no cash loss in the immediately preceding fnancial year.
However, it has incurred cash losses of Rs.3,296.16 lakhs in the
fnancial year ended on that date.
11. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any fnancial institution or bank or debenture
holders as at the balance sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund /
Nidhi / mutual beneft fund/ societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. 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 fnancial institutions during the year except in
respect of repayment, out of its cane price dues to its sugarcane
suppliers, of the agricultural loans taken by them from banks, the
terms and conditions of which, in our opinion are not prima facie
prejudicial to the company.
16. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
17. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, funds amounting to Rs. 10,980 lakhs raised on
a short-term basis have 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 during the year.
19. The Company has not raised any money by public issues during the
year.
20. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For Price Waterhouse
Firm Registration Number: 0075688
Chartered Accountants
J. Majumdar
Place: Bangalore Partner
Date: April 23, 2010 Membership Number: F-51912