Home  »  Company  »  Rana Sugars  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Rana Sugars Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Rana Sugars Limited, which comprise the Balance Sheet as at March 31,2015, the Statement of Profit and Loss and Cash Flow Statement for the period then ended and a summary of significant accounting policies and other explanatory information.

B) Management's Responsibility for the Financial Statements

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 Section 133 of the Companies Act, 2013 (The Act). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatements, whether due to fraud or error.

C) 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 any 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates 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.

D) 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 subject to the Emphasis of Matter paragraph, give a true andfairview 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 the Statement of Profit and Loss, of the Loss for the period ended on that date; and

c) InthecaseoftheCash Flow Statement, of the cash flows for the period ended on that date.

E) Emphasis of Matter

We draw your attention to Note No 23.23 to the financial statements which states that The Govt, of Uttar Pradesh has announced subsidy for Sugar Industry for the Season 2014-15 linked to average selling price of sugar and by-products during the period 1st October 2014 to 31st May 2015. The Company has recognized such subsidy of 3186.78 Lacs and reduced the same from the cane cost and the cane price payable based on present and expected likely average selling price.

F) 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 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 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 appears from our examination of the 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 comply with the Accounting Standards referred to in Section 133 of The Act.

e) On the basis of written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2015, from being appointed as a director in terms of subsection (2) of Section 164 of The Act.

f) In our opinion, the Company has adequate internal financial controls system and the same are operating effectively.

The Annexure referred to in paragraph F-1 of the Our Report of even date to the members of Rana Sugars Limited on the accounts of the Company for the period ended 31 st March, 2015.

On the basis of such checks as we considered appropriate during the course of our audit and according to the information and explanations given to us, we report that:

1. IN RESPECT OF ITS FIXED ASSETS:

a. The Company has maintained proper records showing full particulars including quantitative details and the situation of fixed assets.

b. As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such physical verification.

2. IN RESPECT OF INVENTORIES:

a. The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b. According to the information and explanations given to us, the procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business.

c. The Company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical verification of inventories of finished goods as compared to the book records. However, discrepancies noticed on verification between the physical stocks of stores and consumables were properly adjusted in the consumption of the same.

3. IN RESPECT OF LOANS GIVEN:

According to the information and explanations given to us and on the basis of our examination of the books of accounts, the Company has not granted any loans, secured or unsecured, to Companies, firms or other parties listed in the register maintained under Section 189 of The Act.

4. IN RESPECT OF INTERNAL CONTROL:

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 also for 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.

5. IN RESPECT OF DEPOSITS FROM PUBLIC:

According to the information and explanations given to us, the Company has not accepted any deposits from the public.

6. COST ACCOUNTING RECORDS:

We have reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act and are of the opinion that the prescribed accounts and records have been made and maintained. However, we have not vouched the said records.

7. IN RESPECT OF STATUTORY DUES:

(a) The Company has deposited, with some delays, undisputed statutory dues such as Income Tax, Wealth Tax, Employees' Provident Fund, Tax Collected at Source, Tax Deducted at Source, Excise Duty, Service Tax and Sales Tax with the appropriate authorities.

Further, the following undisputed amounts were payable as at 31st March, 2015, for a period exceeding six months from the date they became payable:

Name of the Statue Nature of Dues Amount (Rs. in lacs)

WealthTaxAct WealthTax 4.02

Name of the Statue Period to which the amount relates

WealthTaxAct FinancialYear2013-14

However, the same has since been paid.

(b) The following are the disputed statutory dues which have not been deposited by the Company as at 31 st March 2015:

Name of the Nature of Dues Total Demand Statute (Rs. in Lacs)

U.PSalesTax Sales Tax and Entry Tax 170.97



PunjabVAT Central Sales Tax 163.29

Name of the Amount Deposited Forum where dispute Statute (Rs. in Lacs) is pending

U.PSalesTax 60.24 Commissioner (Appeals), Moradabad

PunjabVAT - DETC Appeal, Jalandhar

Further, Sales Tax assessments for Sugar unit in District Amritsar and Distillery Unit in District Tarn Taran have been completed upto Financial Year 2011-12. The Department has raised the Purchase Tax demand of Rs.582.74 lacs, Rs. 882.01 lacs and Rs. 90.52 lacs for the Financial years 2005-06, 2009-10 and 2011-12. The Company has preferred appeals against all these orders with the Appellate authorities. Though, the Company has provided purchase tax liability of Rs. 2735.86 lacs for the years 2005-06 to 2014-15, the same has not been paid as the above mentioned appeals against assessment orders are pending with the Appellate authorities.

(c) As per information and explanations given to us, the Company was not required to transfer any amount in Investor Education and Protection Fund.

8. LOSS MAKING COMPANY:

The Company has accumulated losses of Rs. 11700.36 Lacs at the end of the financial year which is more than 50% of its net worth. Further, the Company has incurred a cash loss of Rs. 5504.18 Lacs during the financial year covered by our audit. However, there was no cash loss in the immediately preceding financial year.

9. REPAYMENT OF DUES:

During the year, the Company has paid the amounts due to banks and financial institutions with certain delays. However, as on 31 st March 2015, there were no over dues in respect of Interest and instalments of loans.

10. GUARANTEES GIVEN:

The Company has given guarantees to various banks for repayment of crop loans amounting to Rs.5858.34 lacs taken by farmers from banks. The terms and conditions thereof are not prima facie prejudicial to the interests of the Company.

11. END-USE-OF BORROWINGS:

As per the information and explanations given to us, we report that the Company has applied term loans only for the purpose for which they were obtained.

12. FRAUDS:

Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the period under audit.

For KANSAL SINGLA & ASSOCIATES, Chartered Accountants

Place: Chandigarh (CA.S. K. ARORA) Date: 30.05.2015 PARTNER M. No. 070405, FRN 003897N




Mar 31, 2014

We have audited the accompanying financial statements of Rana Sugars Limited, 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 significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

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). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatements, 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 ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

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. 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 March 31, 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 flows for the year ended on that date.

Report on other Legal and Regulatory requirements.

1. 1.As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub- section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

2. 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 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 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 comply with the Accounting Standards referred to in subsection (3C) of Section 211 of The Act;

e) on the basis of written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of The Act.

The Annexure referred to in paragraph 1 of our report of even date to the members of Rana Sugars Limited, on the accounts of the Company for the year ended on 31st March, 2014.

On the basis of such checks as we considered appropriate during the course of our audit and according to the information and explanations given to us, we report that:

1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) Fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification

(c) During the year, the Company has not disposed off any substantial part of the plant and machinery affecting the going concern status of the Company.

2. (a)The inventories have been physically verified during the year by the management at reasonable intervals.

(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) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification. However, minor discrepancies noticed on verification between the physical stocks were properly adjusted in the consumption of stores.

3. (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of The Act.

(b) The Company has taken interest free unsecured loans from eighteen parties covered in the register maintained under Section 301 of The Act. The balance outstanding as on 31.03.2014 was Mrs. 4694.37 Lacs and the maximum amount outstanding during the year of such loans was Mrs. 4958.83 lacs.

(c) The terms & conditions on which such loans were accepted are not prejudicial to the interest of the Company.

(d) No stipulation has been specified for the repayment of these loans.

4. There is generally an adequate internal control procedure commensurate with the size of the Company and the nature of its business, for the purchase of inventories & fixed assets, for payment of expenses and for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. a) 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 the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of The Act and exceeding the value of rupees five lakhs in respect of any party during the year have been made at terms which are reasonable at the relevant time.

6. In our opinion, the Company has accepted the Deposits covered as per the provisions of Sections 58A and 58AA or any other provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 in the form of unsecured loans which are within the exempted categories of the said section.

7. The Company has an in house internal audit system commensurate with its size and the nature of its business.

8. We have reviewed the books of account 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 but not vouched and are of the opinion that the prescribed accounts and records have been made and maintained.

9. (a) The Company has deposited, with some delay, undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable with appropriate authorities.

(b) The following undisputed amounts were payable in respect of Cess on Sugar Cane, as at 31st March, 2014, for a period exceeding six months from the date it became payable:



Name of Nature of Amount Financial Year to the statute Dues (Rs. in lacs) which the amount relates

Sugar Cane Cess 11.86 Period Ended Cess Act 31.03.13

Sugar Cane Cess 0.54 Period Ended Cess Act 30.09.13

(c) The following dispute amounts were not paid by the Company as at 31st March 2014:

Name of the Nature of Total Amount Balance Statue Dues Demand Paid Amount

U.P Sales Tax Entry tax 163.70 65.00 98.70

Punjab Vat C.S.T. 160.51 _ 160.51

Punjab Vat C.S.T. 2.78 _ 2.78



Name of the Financial Year to Forum where Statue which the amount relates dispute is pending

U.P Sales Tax Year Ended 31.03.2008, Commissioner (Appeals), 31.03.2009, 31.03.2012 Moradabad

Punjab Vat Year Ended 31.03.2010 DETC Appeal, Jalandhar

Punjab Vat Year Ended 31.03.2012 DETC Appeal, Jalandhar

Further, Sales Tax assessments for the sugar and distillery units in Punjab have been completed up to financial year 2011-12. The department has raised the purchase tax demand of Rs. 582.74 lacs, Rs. 882.01 lacs and Mrs. 90.52 lacs for the year 2005-06, 2009-10 and 2011-12 respectively. The company has preferred appeals against these orders with the Appellate authority. Though, the company has provided purchase tax liability of Rs.2734.20 lacs for the years 2005-06 to 2013- 14 but the same has not been paid as the above mentioned appeals are pending with the appellate authorities.

10. The accumulated losses of the Company as at the end of the financial year, do not exceed 50% of its Net worth. Further, the Company has not incurred cash loss during the financial year covered by our audit and in the immediately preceding financial year.

11. The Company has paid, during the year, the amounts due to banks and financial institutions with certain delays. However, as on 31st March 2014, there were no over dues in respect of Interest and instalments of loans.

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidi /mutual benefit fund/society.

14. The Company is not trading in Shares, Mutual funds & other Investments.

15. The Company has given guarantees to various banks for repayment of crop loans amounting to s 5553.06 lacs taken by farmers from banks. The terms and conditions thereof are not prima facie prejudicial to the interest of the Company.

16. During the year, the Company raised term loans (SEFASU 2014) amounting to res. 1694 lacs from Banks, which were utilized for the purposes for which these were obtained.

17. No funds raised on short-term basis have been used for long-term investment by the Company.

18. The Company has not made any preferential allotment of shares during the year.

19. The Company has not issued any debentures during the period under audit.

20. The Company has not raised any money by public issue during the year.

21. No fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.



For KANSAS SINGLE & ASSOCIATES, (Chartered Accountants)

Place: Chandigarh CA. S.K. AURORA Date : 30-05-2014 (PARTNER)

MEMBERSHIP N0.070405 FRN:003897N


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Rana Sugars Limited, which comprise the Balance Sheet as at March 31, 2013, the Statement of Profit and Loss and 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

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). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatements, 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 ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

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. 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 March 31, 2013;

b) in the case of the Statement of Profit and Loss Account, of the profit 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, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

2. 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 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 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 comply with the Accounting Standards referred to in subsection (3C) of Section 211 of The Act;

e) on the basis of written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of The Act.

The Annexure referred to in paragraph 1 of our report of even date to the members of Rana Sugars Limited, on the accounts of the Company for the year ended on 31st March, 2013.

On the basis of such checks as we considered appropriate during the course of our audit and according to the information and explanations given to us, we report that:

1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) Fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification

(c) During the year, the Company has not disposed off any part of the plant and machinery affecting the going concern status of the Company.

2. (a) The inventories have been physically verified during the year by the management at reasonable intervals.

(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) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification. However, minor discrepancies noticed on verification between the physical stocks were properly adjusted in the consumption of stores.

3. (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of The Act.

(b) The Company has taken interest free unsecured loans from Eighteen parties covered in the register maintained under Section 301 of The Act. The balance outstanding as on 31.03.2013 was s4505.53 Lacs and the maximum amount outstanding during the year of such loans was s 4577.68 lacs.

(c) The terms & conditions on which such loans were accepted are not prejudicial to the interest of the Company.

(d) No stipulation has been specified for the repayment of these loans.

4. There is generally an adequate internal control procedure commensurate with the size of the Company and the nature of its business, for the purchase of inventories & fixed assets, for payment of expenses and for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. a) 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 the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of The Act and exceeding the value of rupees five lakhs in respect of any party during the year have been made at terms which are reasonable at the relevant time.

6. In our opinion, the Company has accepted the Deposits covered as per the provisions of Sections 58A and 58AA or any other provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 in the form of unsecured loans which are within the exempted categories of the said section.

7. The Company has an in house internal audit system commensurate with its size and the nature of its business.

8. Cost records prescribed by the Central Government under clause (d) of sub- section (1) of Section 209 of the Act have been made and maintained.

9. (a) The Company has deposited, with some delay, undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable with appropriate authorities.

(b) The following undisputed amount was payable in respect of Wealth Tax, as at 31st March, 2013, for a period exceeding six months from the date it became payable:



Name of Nature of Amount Financial Year to the statute Dues (Rs. in lacs) which the amount relates

Wealth Tax Act Wealth Tax 2.27 Year Ended 31.03.12

However ,the same has since been paid.

(c) The following disputed amounts were not paid by the Company as at 31st March 2013:

Name of Nature of Amount Forum where the statute Dues (Rs. in lacs) dispute is pending

Income Tax Demand u/s 1.96 CIT (Appeals), 143 (3) Chandigarh

Income Tax Demand u/s 110.78 CIT (Appeals), 271 (1) (c) Chandigarh

Sales Tax U.P. Sales Tax 98.70 Appellant Commissioner (Appeals), Moradabad

Punjab Vat Purchase Tax 2248.56 Hon''ble Supreme Court

10. The accumulated losses of the Company as at the end of the financial year, do not exceed 50% of its Net worth. Further the Company has not incurred cash loss during the financial year covered by our audit and in the immediately preceding financial year.

11. The Company has paid, during the year, the amounts due to banks and financial institutions with certain delays. The overdues, in respect of Interest amounting to s 121.16 lacs and instalments of term loans amounting to s 153.58 lacs as on 31st March 2013 have since been paid.

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi /mutual benefit fund/society.

14. The Company is not trading in Shares, Mutual funds & other Investments.

15. The Company has given guarantees for crop loans taken by farmers from banks. The terms and conditions thereof are not prima facie prejudicial to the interest of the Company.

16. During the year, the Company raised a term loan amounting to s 9903.92 lacs, which was utilised for repayment of existing term loans of banks.

17. No funds raised on short-term basis have been used for long-term investment by the Company.

18. The Company has not made any preferential allotment of shares during the year.

19. The Company has not issued any debentures during the period under audit.

20. The Company has not raised any money by public issue during the year.

21. No fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For KANSAL SINGLA & ASSOCIATES,

(Chartered Accountants) Place: Chandigarh CA. S.K. ARORA

Date : 30-05-2013 (PARTNER)

MEMBERSHIP NO.070405

FRN:003897N


Mar 31, 2010

1. We have audited the attached Balance Sheet of Rana Sugars Limited as at 31st March, 2010, Profit & Loss Account and Cash Flow Statement for the period 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.

2. We conducted our audit in accordance with 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 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.

3. As required by the Companies (Auditors Report) Order (Amendment), 2004 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act,1956 (the Act), 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 Annexure referred to in paragraph 3 above, we report that:

(i) 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.

(ii) 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.

(iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books oi account.

(iv) 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 Act.

(v) 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 clause (g) of sub-section (1) of section 274 of the Act.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with Significant Accounting Policies and Notes on Accounts in Schedule XIV, 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 2010.

b. In the case of the Profit and Loss Account, of the profit for the period ended 31st March 2010.

c. In the case of Cash Flow Statement of the Cash Flows for the period ended 31st March 2010.

Annexure Referred to in paragraph 3 of our report of even date.

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) All the assets have been physically verified by the management during the period. In our opinion, the frequency of verification is reasonable having regard to the size of the Company and the nature of its fixed assets. No material discrepancies were noticed on such verification.

(c) During the period, the Company has not disposed off major part of the plant and machinery affecting the going concern status of the company.

(ii) (a) The inventory has been physically verified during the period 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) The Company is maintaining proper records of inventory. As explained to us, no material discrepancies were noticed on physical verification. However minor discrepancies noticed on verification were properly accounted/ adjusted.

(iii) (a) The company has taken interest free loans from parties as covered in the register maintained under section 301 of the Act, pursuant to stipulation imposed by banks/financial institutions at the time of sanction of loans.

The maximum balance outstanding during the period was Rs. 4065.73 Lacs and the year-end balance was Rs. 3350.83 Lacs.

(b) As explained to us, terms & conditions of such loans are not prejudicial to the interest of the Company.

(c) No stipulation has been specified for the repayment of these loans.

(d) The Company has not given any loans to the Companies/Parties covered in the register maintained under section 301 of the Act.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchases of inventory, fixed assets and sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

(v) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Act, have been so entered.

(vi) In our opinion and according to the information and explanations given to us, the Company has not accepted the Deposits covered as per the provisions of sections 58A and 58AA of the Act and the Companies (Acceptance of Deposits) Rules, 1975.

(vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

{viii)According to the information and explanations given to us, the Central Government has prescribed the maintenance of cost records under section 209 (1) (d) of the Act, for the Sugar division & Distillery division. We have broadly reviewed these accounts and records maintained by the Company and we are of the opinion that, prima-facie, the prescribed accounts and records have been made and maintained.

(ix) (a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues including, investor education protection fund, employees state insurance, income tax, wealth tax, custom duty, and other material statutory dues applicable to it except for TDS, WCT and Cess on sugar cane.

(b) According to the information and explanations given to us, undisputed statutory dues outstanding as at 31st

March, 2010 for a period of more than six months from the date they became due:

Name of Nature of Amount Financial Year to the statute Dues (Rs. in lacs) which the amount relates Income Tax Act TDS 3.86 Year ended 31.03.09 Income Tax Act TDS 0.22 Year ended 31.03.10 Work Contract WCT 0.31 Year ended 31.03.08 Tax Act Work Contract WCT 0.08 Year ended 31.03.09 Tax Act Cess on Cess 5.61 Year ended 31.03.09 Sugarcane

(x) The Company has incurred cash losses amounting to Nil (PY 2869.28 Lacs)) during the period from 01.10.2008 to 31.03.2010 covered by our audit.

(xi) As per the information and explanations given to us, the Company has defaulted in repayment of interest on term loans amounting to Rs 243.55 Lacs for the month of . March 2010. Further the company has also defaulted in the repayment of the principal amounting to Rs. 525.43 Lacs and Rs 202. 08 Lacs which was due for payment in March 2010 and January 2009 respectively.

(xii) In our opinion and according to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii)ln our opinion, the Company is not a chit fund or a nidhi mutual benefit fund/ society.

(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments.

(xv) In our opinion, and according to the information and explanations given to us, the Company has given guarantees for loans taken for farmers from banks. In our opinion and according to the information and

explanations given to us, the terms and conditions thereof are not prima facie prejudicial to the interest of the Company.

(xvi) During the period, the Company has availed no term loans from banks/ financial institutions.

(xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that no short term funds have been used for long term purposes.

(xviii) According to the information & explanations given to us, During the period covered by audit the Company has made preferential allotment of 1,09,00,000 equity shares face value of Rs. 10 each at a premium of Rs. 1.5 per share to parties covered in the register maintained under section 301 of the Act.

(xix)According to the information and explanations given to us, during the period covered by our audit report, the Company has not issued any debentures.

(xx) According to the information and explanations given to us, during the period covered by our audit report, the company has issued 1498755 Global Depository Receipts underlying 59950200 equity shares @ Rs. 10 each .

(xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course oi our audit.

for Kansal Singla & Associates Chartered Accountants S.K. KANSAL PARTNER Membership No. 80632 Place : Chandigarh FRN 003897N Date :5th June, 2010

 
Subscribe now to get personal finance updates in your inbox!