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Auditor Report of Ravalgaon Sugar Farm Ltd.

Mar 31, 2014

Report on the Financial Statements

We have audited the accompanying financial statements of The Ravalgaon Sugar Farm Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the eighteen month period 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 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 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 effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basis of Qualified Opinion

No provision has been made for the present value of the accrued Gratuity liability (net of funds lying with LIC of India) and valued actuarially by an independent actuary as at March 31, 2014 amounting to Rs. 540.53 Lacs which constitutes a departure from the Accounting Standards on Employee Benefits (AS – 15) referred to in section 211(3C) of the Act. Therefore the loss for the period is understated by Rs. 73.20 lacs and the Reserves and Surplus of the company as at March 31, 2014 are higher by Rs. 540.53 lacs. The company has not provided for Excise duty amounting to Rs. 11,64,665/- on closing stock of confectionaries held at their factory which constitutes a departure from the Accounting Standards on Inventories (AS – 2) referred to in section 211(3C) of the Act. Accordingly closing stock of confectionaries and excise duty payable would have been increased by Rs. 11,64,665/-. However, this does not have any impact on the Loss for the period.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis of Opinion paragraph, 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 period ended on that date; and

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order"),as amended, 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 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) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph, 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 Companies Act, 1956;

e) On the basis of written representations received from the directors as on March 31, 2014, 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 Companies Act, 1956;

Annexure to Auditors'' Report

( Referred to in Paragraph 1 under the heading of "Report on other Legal and Regulatory Requirements" of our report of even date to the members of The Ravalgaon Sugar Farm Ltd. for the period ended 31st March, 2014)

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

1. In respect of its fixed assets:

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

b)As explained to us, the fixed assets have been physically verified by the management as per the phased programme of physical verification of fixed assets. As informed to us programme is such that all the fixed assets will get physically verified in two years time which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets.

c)In our opinion, the Company has not disposed of substantial part of fixed assets during the period and the going concern status of the Company is not affected.

2. In respect of inventory:

a)The stock of finished goods and raw material has been physically verified during the year by the Management. The Company has a perpetual inventory system in respect of stores and spare parts. In our opinion, the frequency of verification is reasonable.

b)In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and nature of its business.

c)In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material having regard to the size of the operations of the Company.

3. a)The company has not granted any loans secured or unsecured to any party covered in the register maintained under section 301 of the Act.

b)The company has taken loans from two companies amounting to Rs. 435 Lacs, covered in register maintained under section 301 of Companies Act, 1956. These along with existing unsecured loans have on outstanding balance of Rs. 610 Lacs and maximum balance of Rs. 610 Lacs during the period.

c)The rate of interest and other terms and conditions of loan taken are not prima-facie prejudicial to the interest of the Company. d)The company is regular in repayment of the principal amount of loan taken and interest as stipulated.

4. In our opinion and according to the information and explanations given to us, having regard to the explanation that purchase of certain items of inventory and fixed assets are for the company''s specialized requirements, and similarly, certain goods sold are for the specialized requirements of the buyers and suitable alternate sources are not available to obtain comparable quotations, there is generally adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventories, fixed assets and also for the sale of goods and services. In our opinion, and according to the information and explanations given to us, we have not observed any major weakness during the course of audit.

5. In respect of transactions covered under Section 301 of the Companies Act, 1956:

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 Companies Act, 1956, 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 aforesaid contracts or arrangements in excess of Rs.5 lacs in respect of any party, have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

6. The Company has complied with the provisions of Section 58A, 58AA or any other relevant provisions of the Act and the rules framed there under for deposits Accepted from public. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

7. In our opinion, the company has an internal audit system commensurate with its size and the nature of its business.

8. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the rules made by the Central Government for the maintenance of the Cost records under Section 209(1 )(d) of the Act and we are opinion that prima-facie, the prescribed accounts and records have been made and maintained.

9. In respect of the statutory dues:

a)According to the records of the Company, undisputed statutory dues including, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise duty, cess and other material statutory dues have been regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2014 for a period of more than six months from the date of becoming payable except in case of Provident Fund Rs. 5,04,031/- and Profession Tax Rs. 82,820/- on wage arrears. These have not been paid as on the date of our report.

b)According to the information and explanations given to us, the following disputed statutory dues on account of Excise duty, Purchase tax, Income Tax and Provident Fund on Contract Labour have not been deposited with the appropriate authorities:

Nature of dues Amount not deposited in (Rs. In lacs) Period to which the amount relates Forum where dispute is pending

Sugarcane Purchase Tax Act. 60.92 1995 to 1999. High Court Mumbai Sugarcane Purchase tax payable on harvesting and transport charges.

The Bombay Electricity 76.33 April,2005 to March,2009. High Court Mumbai Duty Act,1958. Electricity duty on own generation.

Income Tax Act,1961 4.20 A. Y 2005-06 I.T.A.T (Mumbai)

6.58 A. Y 2006-07 CIT Appeals (Mumbai)

14.95 A. Y 2008-09 CIT Appeals (Mumbai)

Provident Fund on 140.00 2001-2002 to Provident Fund Commissioner, Contract Labour 2008-2009 Nasik

10. The accumulated losses at the end of the financial period are not less than fifty percent of its net worth. The company has incurred cash loss of Rs. 1214.96 lacs during the period and Rs. 543.88 lacs during the immediately preceding financial period.

11. Based on our audit procedures and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to banks.

12. In our opinion and according to the information and explanation given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund or a Nidhi / mutual benefit fund / society. Accordingly, clause 4(xiii) of the Order does not apply.

14. The Company has not traded in securities, debentures and other investments. Accordingly, clause 4(xiv) of the Order does not apply.

15. In our opinion and according to information and explanations provided to us, the company has not given any guarantee for loans taken by others from banks or financial institutions.

16. The Term loans were applied for the purpose for which they were raised.

17. According to the information and explanations given to us, and on an overall examination of the Balance Sheet of the company, funds raised on short-term basis have, prima facie, not been used during the year for making long-term investments.

18. During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

19. The Company has not issued any debentures. Accordingly, clause 4(xix) of the Order does not apply.

20. The Company has not raised any money by way of public issue during the year. Accordingly clause 4(xx) of the Order does not apply.

21. According to the information and explanations given to us, and based on audit procedures performed and representations obtained from the management, we report that no material fraud on or by the Company, has been noticed or reported during the year under audit.

For V.Sankar Aiyar & Co.

Chartered Accountants

Firm Regn No: 109208W

Arvind Mohan

Place : Mumbai Partner

Dated : 30th April 2014 M.No.124082


Sep 30, 2012

1 We have audited the attached Balance Sheet of The Ravalgaon Sugar Farm Limited as at September 30, 2012, and the Profit & Loss Account and Cash Flow Statement for the period 18 months ended on that date. 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 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, 2003, issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 ("The Act"), as amended by the Companies (Auditor's Report) (Amendment) Order, 2004 on the basis of the information and explanation given to us, and on the basis of such checks as we considered appropriate, we give in the Annexure, hereto a statement on the matters specified in paragraphs 4 & 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 so far as appears from our examination of those books.

(c) The Balance Sheet and Profit & Loss Account referred to in this report are in agreement with the Books of Account.

(d) On the basis of written representation received from the Directors of the Company as at September 30, 2012 and taken on record by the Board of Directors, none of the Directors is disqualified as on September 30, 2012 from being appointed as Director in terms of clause {g} of sub section {1} of section 274 of the Companies Act, 1956.

(e) In our opinion, the Balance Sheet, Profit and Loss Account and Cash flow statement dealt with by this report comply with the mandatory Accounting Standards referred to in sub - section (3C) of section 211 of the Companies Act, 1956 except for the accounting standard relating to employee benefits referred in para 4(f) below.

(f) No provision has been made for the present value of the accrued Gratuity liability (net of adhoc partial provision of Rs. 34 Lacs and funds lying with LIC of India) and valued actuarially by a independent actuary as at September 30, 2012 amounting to Rs. 528.55 Lacs as detailed in Note 32 of financial statements. Therefore the profit for the period is over stated by Rs.139.62 lacs and the Reserves and Surplus of the company as at September 30, 2012 are higher by Rs. 528.55 lacs.

(g) Subject to the effect of matters contained in para 4(f) above, 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 other notes thereon 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:

(i) In so far as it relates to the Balance Sheet, of the state of affairs of the Company as at 30th September 2012;

(ii) In so far as it relates to the Profit and Loss Account, of the loss of the Company for the period ended on that date; and

(iii) In the case of Cash Flow Statement, of the cash flows of the Company for the period ended on that date.

Annexure to Auditors' Report Referred to in Paragraph 3 of our report of even date

1. In respect of its fixed assets:

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

b.As explained to us, the fixed assets have been physically verified by the management as per the phased programme of physical verification of fixed assets. As informed to us programme is such that all the fixed assets will get physically verified in two years time which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets.

c.In our opinion, the Company has not disposed of substantial part of fixed assets during the period and the going concern status of the Company is not affected.

2. In respect of inventory;

a.The stock of finished goods and raw material has been physically verified during the year by the Management. The Company has a perpetual inventory system in respect of stores and spare parts. In our opinion, the frequency of verification is reasonable.

b.In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and nature of its business.

c.In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material having regard to the size of the operations of the Company.

3. a.The company has not granted any loans secured or unsecured to any party covered in the register maintained under section 301 of the Act.Therefore, the requirements of Clause 4(iii) (b), (c) and (d) of the Order are not applicable to the Company.

b.The company has taken loans from two companies amounting to Rs. 155 Lacs, renewable on quarterly basis, covered in register maintained under section 301 of Companies Act, 1956. The existing unsecured loans have on outstanding balance of Rs. 175 Lacs and maximum balance of Rs. 290 Lacs during the period.

c.The rate of interest and other terms and conditions of loan taken are not prima-facie prejudicial to the interest of the Company. d.The company is regular in repayment of the principal amount of loan taken and interest as stipulated.

4. 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 for the purchase of inventories, fixed assets and also for the sale of goods and services. During the course of audit, we have not observed any other continuing failure to correct major weaknesses in the internal control.

5. In respect of transactions covered under Section 301 of the Companies Act, 1956:

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 Companies Act, 1956, 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 aforesaid contracts or arrangements in excess of Rs.5 lacs in respect of any party, have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

6.The Company has complied with the provisions of Section 58A, 58AA or any other relevant provisions of the Act and the rules framed under for deposits Accepted from public. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

7. In our opinion, the company has an internal audit system commensurate with its size and the nature of its business.

8.We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the rules made by the Central Government for the maintenance of the Cost records under Section 209(l)(d) of the Act and we are opinion that prima-facie, the prescribed accounts and records have been made and maintained.

9. In respect of the statutory dues:

a.According to the records of the Company, undisputed statutory dues including, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise duty, cess and other material statutory dues have been regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at September 30, 2012 for a period of more than six mpnths from the date of becoming payable.

b.According to the information and explanations given to us, the following disputed statutory dues on account of Excise duty, Purchase tax, Income Tax and Provident Fund on Contract Lobour have not been deposited with the appropriate authorities:

Nature of dues Amount not deposited In Rs. In lacs Period to which the amount relates Forum where dispute is pending

Sugarcane Purchase Tax Act. 60.92 1995 to 1999. High Court Mumbai Sugarcane Purchase tax payable on harvesting and transport charges.

The Bombay Electricity 7633 April,2005 to March,2009. High Court Mumbai Duty Act, 1958. Electricity duty on own generation.

The Central Excise 136.36 March.2002 to October, 2006 Customs, Excise and Service Tax Act, 1944. Appellate Tribunal and Commissioner (Appeals)

Income Tax Act, 1961 4.20 A.Y 2005-06 I.T.A.T(Mumbai) 6.58 A.Y 2006-07 CIT Appeals (Mumbai) 14.95 A.Y 2008-09 CIT Appeals (Mumbai)

Provident Fund on 140.00 2001-2002 to Provident Fund Commissioner. Contract Labour 2008-2009 Nasik



10. The Company does not have accumulated losses as per the Balance Sheet as the end of the reporting period and has not incurred any cash loss during the period and during the immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to banks.

12. In our opinion and according to the information and explanation given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund or a Nidhi / mutual benefit fund / society. Accordingly, clause 4(xiii) of the Order does not apply.

14. The Company has not traded in securities, debentures and other investments. Accordingly. clause 4(xiv) of the Order does not apply.

15. In our opinion and according to information and explanations provided to us, the company has not given any guarantee for loans taken by others from banks or financial institutions.

16. The Term loans were applied for the purpose for which they were raised.

17. According to the information and explanations given to us, and on an overall examination of the Balance Sheet of the company, funds raised on short-term basis have, prima facie, not been used during the year for making long-term investments.

18. During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

19. The Company has not issued any debentures. Accordingly, clause 4(xix) of the Order does not apply.

20. The Company has not raised any money by way of public issue during the year. Accordingly clause 4(xx) of the Order does not apply.

21. According to the information and explanations given to us, and based on audit procedures performed and representations obtained from the management, we report that no material fraud on or by the Company, has been noticed or reported during the year under audit.



For V.Sankar Aiyar & Co. Chartered Accountants Firm Regn No: 109208W

Place: Mumbai Dated : November 07, 2012



Arvind Mohan Partner M.No.l 24082


Mar 31, 2011

1. We have audited the attached Balance Sheet of The Ravalgaon Sugar Farm Limited as at March 31, 2011, and the Profit & Loss Account and Cash Flow Statement for the year ended on that date. 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 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, 2003, issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 (The Act"), as amended by the Companies (Auditor's Report) (Amendment) Order, 2004 on the basis of the information and explanation given to us, and on the basis of such checks as we considered appropriate, we give in the Annexure, hereto a statement on the matters specified in paragraphs 4 & 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 so far as appears from our examination of those books.

c. The Balance Sheet and Profit & Loss Account referred to in this report are in agreement with the Books of Account.

d. On the basis of written representation received from the Directors of the Company as at March 31, 2011 and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2011 from being appointed as Director in terms of clause {g} of sub section {1} of section 274 of the Companies Act, 1956.

e. In our opinion, the Balance Sheet, Profit and Loss Account and Cash flow statement dealt with by this report comply with the mandatory Accounting Standards referred to in sub - section (3C) of section 211 of the Companies Act, 1956 except for the accounting standard relating to employee benefits referred in para 4(f) below.

f. No provision has been made for the present value of the accrued Gratuity liability (net of adhoc partial provision of Rs. 34 Lacs made during the year and funds lying with LIC of India) and valued actuarially by a independent actuary as at March 31, 2011 amounting to Rs. 388.93 Lacs as detailed in Note 13 of Schedule N of financial statements. Therefore the profit for the year is over stated by Rs.50.72 lacs and the Reserves and Surplus of the company as at March 31, 2011 are higher by Rs. 388.93 lacs.

g. No provision has been made for excise duty payable amounting to Rs.164.64 lacs on the closing stock of finished goods held in the factory as at the close of the year. The same is being accounted for at the point of sale/transfer of goods as detailed in note no.7 of Schedule N. This accounting treatment is not in accordance with the Guidance note on Accounting for Excise Duties issued by the Institute of Chartered Accountants of India. However, this accounting treatment does not have any impact on the Profit for the year, but the closing value of the finished goods inventory would have been higher by Rs.164.64 lacs and other liabilities which include Provision for Excise Duty payable would have been higher by like amount.

h. Subject to the effect of matters contained in Para 4 (f) (g) above, 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 other notes thereon 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:

i In so far as it relates to the Balance Sheet, of the state of affairs of the Company as at 31 st March 2011

ii In so far as it relates to the Profit and Loss Account, of the profit of the Company for the year ended on that date; and

iii In the case of Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

Annexure to Auditors' Report Referred to in Paragraph 3 of our report of even date

1. In respect of its fixed assets:

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

b. As explained to us, the fixed assets have been physically verified by the management as per the phased programme of physical verification of fixed assets. As informed to us programme is such that all the Fixed assets will get physically verified in two years time which in our opinion is reasonable having regard to the size of the Company and the nature of its Fixed assets. The reconciliation between assets and physically verified and books of account is in progress and not material discrepancies have been noticed.

c. In our opinion, the Company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of inventory;

a. The stock of finished goods and raw material has been physically verified during the year by the Management. The Company has a perpetual inventory system in respect of stores and spare parts. In our opinion, the frequency of verification is reasonable.

b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and nature of its business.

c. In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material having regard to the size of the operations of the Company.

3.

a. The company has not granted any loans secured or unsecured to any party covered in the register maintained under section 301 of the Act. Therefore, the requirements of Clause 4(iii) (b), (c) and (d) of the Order are not applicable to the Company.

b. During the year, the company has taken interest-bearing loan of Rs. 140 Lacs from three companies covered in register maintained under section 301 of Companies Act, 1956. The existing unsecured loans have an outstanding balance of Rs. 240 Lacs as on March 31, 2011 and maximum balance of Rs. 240 Lacs during the year.

c. The rate of interest and other terms and conditions of loan taken are not prima-facie prejudicial to the interest of the Company.

d. The company is regular in repayment of the principal amount of loan taken and interest as stipulated.

4. 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 for the purchase of inventories, fixed assets and also for the sale of goods and services. During the course of audit, we have not observed any other continuing failure to correct major weaknesses in the internal control.

5. In respect of transactions covered under Section 301 of the Companies Act, 1956:

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 Companies Act, 1956, 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 aforesaid contracts or arrangements in excess of Rs.5 lacs in respect of any party, have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

6. The Company has complied with the provisions of Section 58A, 58AA or any other relevant provisions of the Act and the rules framed under for deposits Accepted from public. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

7. In our opinion, the company has an internal audit system commensurate with its size and the nature of its business. However, there is a need to strengthen the same by increasing its scope and coverage of areas of fixed assets.

8. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the rules made by the Central Government for the maintenance of the Cost records under Section 209(1 )(d) of the Act and we are opinion that prima-facie, the prescribed accounts and records have been made and maintained.

9. In respect of the statutory dues:

a. According to the records of the Company, undisputed statutory dues including, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise duty, cess and other material statutory dues have been regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2011 for a period of more than six months from the date of becoming payable.

Nature of dues Amount not Period to which Forum where deposited in the amount relates dispute is Rs. In lacs pending

Sugarcane Purchase Tax Act. 60.92 1995 to 1999. High Court Mumbai

Sugarcane Purchase tax payable on harvesting and transport charges.

The Bombay Electricity Duty Act,1958. 76.33 April,2005 to High Court Mumbai Electricity duty on own generation. March,2009.

The Central Excise Act, 1944. 136.36 March,2002 to Customs, Excise and Service Tax October, 2006 Appellate Tribunal and Commissi -oner (Appeals)

Income Tax Act, 1961 4.20 A.Y 2005-06 I.T.A.T (Mumbai)

6.58 A.Y 2006-07 CTT Appeals (Mumbai)

14.95 AY 2008-09 CIT Appeals (Mumbai)

b. According to the information and explanations given to us, there are no disputed dues towards Wealth Tax, Service Tax and Customs Duty outstanding as on March 31, 2011. The following disputed statutory dues on account of Excise duty, Purchase tax and Income Tax have not been deposited with the appropriate authorities;

10. The Company had does not have accumulated losses as per the Balance Sheet as the end of the financial year and has not incurred any cash loss during the year and during the immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to banks.

12. In our opinion and according to the information and explanation given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund or a Nidhi / mutual benefit fund / society. Accordingly, clause 4(xiii) of the Order does not apply.

14. The Company has not traded in securities, debentures and other investments. Accordingly, clause 4(xiv) of the Order does not apply.

15. In our opinion and according to information and explanations provided to us, the company has not given any guarantee for loans taken by others from banks or financial institutions.

16. In our opinion and according to the information and explanation given to us, the term loans were applied for the purpose for which they were raised.

17. According to the information and explanations given to us, and on an overall examination of the Balance Sheet of the company, funds raised on short-term basis have, prima facie, not been used during the year for making long-term investments.

18. During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

19. The Company has not issued any debentures during the year. Accordingly, clause 4(xix) of the Order does not apply.

20. The Company has not raised any money by way of public issue during the year. Accordingly clause 4(xx) of the Order does not apply.

21. According to the information and explanations given to us, and based on audit procedures performed and representations obtained from the management, we report that no material fraud on or by the Company, has been noticed or reported during the year under audit.

For V.Sankar Aiyar & Co. Chartered Accountants Firm Regn No:109208W

Arvind Mohan Partner Membership No. 124082

Place : Mumbai Dated : July 25, 2011


Mar 31, 2010

1. We have audited the attached Balance Sheet of The Ravalgaon Sugar Farm Limited as at March 31, 2010, and the Profit & Loss Account and Cash Flow Statement for the year ended on that date. 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 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 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, 2003, issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 ("The Act"), as amended by the Companies (Auditors Report) (Amendment) Order, 2004 on the basis of the information and explanation given to us, and on the basis of such checks as we considered appropriate, we give in the Annexure, hereto a statement on the matters specified in paragraphs 4 & 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 so far as appears from our examination of those books.

(c) The Balance Sheet and Profit & Loss Account referred to in this report are in agreement with the Books of Account.

(d) On the basis of written representation received from the Directors of the Company as at March 31, 2010 and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2010 from being appointed as Director in terms of clause {g} of sub section {1} of section 274 of the Companies Act, 1956.

(e) In our opinion, the Balance Sheet, Profit and Loss Account and Cash flow statement dealt with by this report comply with the mandatory Accounting Standards referred to in sub - section (3C) of section 211 of the Companies Act, 1956 except for accounting standard relating to employee benefits (AS 15) referred in para 4(f) below.

(f) No provision has been made for the present value of the accrued Gratuity liability (net of adhoc partial provision of Rs. 75 Lacs made during the year and funds lying with LIC of India) and valued actuarially by a independent actuary as at March 31, 2010 amounting to Rs. 337.00 Lacs as detailed in Note 13 of Schedule N of financial statements. Therefore the profit for the year is over stated by Rs.4.73 lacs and the Reserves and Surplus of the company as at March 31, 2010 are higher by Rs. 337 lacs.

(g) Subject to the effect of matters contained in Para 4 (f) above, 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 other notes thereon 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:

(i) In so far as it relates to the Balance Sheet, of the state of affairs of the Company as at 31st March 2010;

(ii) In so far as it relates to the Profit and Loss Account, of the profit of the Company for the year ended on that date; and

(iii) In the case of Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

Annexure to Auditors Report Referred to in Paragraph 3 of our report of even date

1. In respect of its fixed assets:

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

b. As explained to us, the fixed assets have been physically verified by the management as per the phased programme of physical verification of fixed assets. As informed to us programme is such that all the fixed assets will get physically verified in two years time which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. The reconciliation between assets physically verified and books of account is in progress and no material discrepancies have been noticed.

c. In our opinion, the Company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of inventory;

a. The stock of finished goods and raw material has been physically verified during the year by the Management. The Company has a perpetual inventory system in respect of stores and spare parts. In our opinion, the frequency of verification is reasonable.

b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and nature of its business.

c. In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material having regard to the size of the operations of the Company.

3. a. The company has not granted any loans secured or unsecured to any party covered in

the register maintained under section 301 of the Act. Therefore, Clause 4(iii) (a), (b), (c) and (d) of the Order are not applicable to the Company.

b. The company has not taken any loans from parties covered in register maintained under section 301 of Companies Act, 1956. The existing unsecured loans have an outstanding balance of Rs. 100 Lacs and maximum balance of Rs. 265 Lacs during the year.

c. The rate of interest and other terms and conditions of loan taken are not prima-facie prejudicial to the interest of the Company.

d. The company is regular in repayment of the principal amount of loan taken and interest as stipulated.

4. 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 for the purchase of inventories, fixed assets and also for the sale of goods and services. During the course of audit, we have not observed any other continuing failure to correct major weaknesses in the internal control.

5 In respect of transactions covered under Section 301 of the Companies Act, 1956:

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 Companies Act, 1956, 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 aforesaid contracts or arrangements in excess of Rs.5 lacs in respect of any party, have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

6. The Company has complied with the provisions of Section 58A, 58AA or any other relevant provisions of the Act and the rules framed under for deposits Accepted from public. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

7. In our opinion, the company has an internal audit system commensurate with its size and the nature of its business.

8. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the rules made by the Central

Government for the maintenance of the Cost records under Section 209(1 )(d) of the Act and we are opinion that prima-facie, the prescribed accounts and records have been made and maintained.

9. In respect of the statutory dues:

a. According to the records of the Company, undisputed statutory dues including, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise duty, cess and other material statutory dues have been regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2010 for a period of more than six months from the date of becoming payable.

b. According to the information and explanations given to us, the following disputed statutory dues on account of Excise duty, Purchase tax and Income Tax have not been deposited with the appropriate authorities:



Nature of dues Amount Period to Forum where dispute not which the is pending

deposited amount

in relates

Rs. In lacs

Sugarcane Purchase Tax Act. 60.92 1995 to 1999. High Court Mumbai

Sugarcane Purchase tax payable on harvesting and transport charges.

The Bombay Electricity Duty Act, 1958 76.33 April,2005 to High Court Mumbai

Electricity duty on own generation. March,2009.

The Central Excise Act, 1944. 138.07 March,2002 to Customs, Excise and

October, 2006 Service Tax Appellate

Tribunal and Commissioner (Appeals)

Income Tax Act,1961 18.50 A.Y 2005-06 I.T.A.T (Mumbai)

6.59 A.Y 2006-07 CIT Appeals (Mumbai)



10. The Company had does not have accumulated losses as per the Balance Sheet as the end of the financial year and has not incurred any cash loss during the year and during the immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to banks.

12. In our opinion and according to the information and explanation given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund or a Nidhi / mutual benefit fund / society. Accordingly, clause 4(xiii) of the Order does not apply.

14. The Company has not traded in securities, debentures and other investments. Accordingly, clause 4(xiv) of the Order does not apply.

15. In our opinion and according to information and explanations provided to us, the company has not given any guarantee for loans taken by others from banks or financial institutions.

16. In our opinion and according to information and explanations provided to us, the Term loans were applied for the purpose for which they were raised.

17. According to the information and explanations given to us, and on an overall examination of the Balance Sheet of the company, funds raised on short-term basis have, prima facie, not been used during the year for making long-term investments.

18. During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

19. The Company has not issued any debentures. Accordingly, clause 4(xix) of the Order does not apply.

20. The Company has not raised any money by way of public issue during the year. Accordingly clause 4(xx) of the Order does not apply.

21. According to the information and explanations given to us, and based on audit procedures performed and representations obtained from the management, we report that no material fraud on or by the Company, has been noticed or reported during the year under audit.



For V. Sankar Aiyar & Co.

Chartered Accountants Firm Regn. No. 109208W



Arvind Mohan

Partner M. No.124082 Place : Mumbai Dated : July 27, 2010





 
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