Auditor Report of Sagar Cements Ltd.
Mar 31, 2022
Report on the Audit of the Standalone Financial StatementsOpinion
We have audited the accompanying standalone financial statements of Sagar Cements Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2022, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022 and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditorâs Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIâs Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key audit matters are those matters that, in our professional judgement, was of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)® of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
⢠Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) I n our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) I n our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with the requirements of Section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.
h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. a) The Management has represented that, to the best
of itâs knowledge and belief, other than as disclosed in the note 6 to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b) The Management has represented, that, to the best of itâs knowledge and belief, as disclosed in the note 51(iv) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The final dividend proposed in the previous year, declared
and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
As stated in Note 39 to the standalone financial statements, the Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend proposed is in accordance with section 123 of the Act, as applicable.
2. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Order") issued by the Central Government in terms of
Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
For Deloitte Haskins & Sells
Chartered Accountants (Firmâs Registration No. 008072S)
Ganesh Balakrishnan
(Partner)
(Membership No. 201193) (UDIN: 22201193AIUBQK2310)
Place: Hyderabad Date: May 11, 2022
Mar 31, 2018
Independent Auditors'' Report
To the Members of Sagar Cements Limited Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Sagar Cements Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone 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 standalone financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report, to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE "A" TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1(f) under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Sagar Cements Limited("the Company") as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the criteria for internal financial control over financial reporting established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
ANNEXURE "B" TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
(b) The Company has a program of verification of property, plant and equipment to cover all the items in a phased manner over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain property, plant and equipment were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed / transfer deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. Immovable properties of land and buildings whose title deeds have been pledged as security for loans are held in the name of the Company based on the confirmations directly received by us from lenders.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company had granted unsecured loans to a company covered in the register maintained under section 189 of the Companies Act, 2013, in respect of which:
(a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Company''s interest.
(b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year-end.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit falling under the purview of the provisions of section 73 to 76 of the Companies Act, 2013 during the year and does not have any unclaimed deposits, and hence reporting under clause (v) of the order is not applicable.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Goods and Services Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Goods and Services Tax, Cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Custom Duty, Excise Duty, Value Added Tax and Entry Tax which have not been deposited as on March 31, 2018 on account of disputes are given below:
|
Name of Statue |
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates |
Amount Involved C lakhs) |
Amount Unpaid (? lakhs) |
|
Central Excise Act, 1944 |
Excise duty |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) |
2011-13 |
214 |
168 |
|
Commissioner of Appeals |
2015-16 |
834 |
11 |
||
|
High Court of Telangana and Andhra Pradesh |
2006-10 |
1,302 |
1,302 |
||
|
Assistant Commissioner |
2014-16 |
15 |
15 |
||
|
Sales Tax and Values Added Tax (VAT) Laws |
Sales tax and VAT |
Sales Tax Appellate Tribunal |
1999-2000 |
20 |
15 |
|
Enforcement Wing, CTO |
2010-2011 |
7 |
7 |
||
|
Customs Act, 1962 |
Customs duty |
CESTAT |
2012-13 |
193 |
189 |
|
Finance Act, 1994 |
Service Tax |
CESTAT |
2014-15 |
13 |
12 |
|
Income Tax Act, 1961 |
Income Tax |
Income Tax Appellate Tribunal |
2005-06 2008-10 2011-12 |
1,190 |
971 |
|
Local Areas Act, 2001 |
Entry tax |
High Court of Telangana and Andhra Pradesh |
2016-17 |
65 |
65 |
|
Additional Divisional Commissioner, Rural Division, Hyderabad |
2012-13 to 2015-16 |
11 |
10 |
There are no dues of Service tax and Goods and Services tax as on March 31, 2018 on account of disputes.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government. The Company has not issued any debentures.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments). In our opinion and according to the information and explanations given to us, money raised by way of term loans have been applied by the Company during the year for the purposes for which they were raised other than temporary deployment pending application of proceeds.
(x) To the best of our knowledge and according to the information and explanations given to us, no material fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its subsidiary company or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm''s Registration No. 008072S)
Hyderabad, May 29, 2018
Partner
(Membership N°. 2°1193)
Mar 31, 2017
Independent Auditors'' Report
To the Members of Sagar Cements Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of SAGAR CEMENTS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS 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 standalone Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2017, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit, we report, to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the standalone Ind AS financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the November 08, 2016 of the Ministry of Finance, during the period from November 08, 2016 to December 30, 2016. Based on audit procedures performed and the representations provided to us by the management we report that the disclosures are in accordance with the books of account maintained by the Company and as produced to us by the Management.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE "A" TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph (f) under ''Report on Other Legal and Regulatory Requirements'' of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of SAGAR CEMENTS LIMITED ("the Company") as at March 31, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note.
ANNEXURE B TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
(b) The Company has a program of verification of property, plant and equipment to cover all the items in a phased manner over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain property, plant and equipment were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed / transfer deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. Immovable properties of land and buildings whose title deeds have been pledged as security for loans are held in the name of the Company based on the confirmations directly received by us from lenders.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company had granted unsecured loans to company covered in the register maintained under section 189 of the Companies Act, 2013, in respect of which:
(a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Company''s interest.
(b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year end.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit falling under the purview of the provisions of section 73 to 76 of the Companies Act, 2013 during the year and does not have any unclaimed deposits, and hence reporting under clause (v) of the order is not applicable.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) Except for certain delays in payment of excise duty, the Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Value Added Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues in arrears as at March 31, 2017 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, and Value Added Tax which have not been deposited as on March 31, 2017 on account of disputes are given below:
|
Name of statue |
Nature of dues |
Forum where dispute is pending |
Period to which the amount relates |
Amount invalid |
Amount |
|
|
Central Excise Act, 1944 |
Excise duty |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) |
2011-13 |
214 |
168 |
|
|
Commissioner of Appeals |
2015-16 |
834 |
11 |
|||
|
High Court of Telangana and Andhra Pradesh |
2006-2010 |
1,302 |
1,302 |
|||
|
Sales Tax and VAT Laws |
Sales tax and VAT |
Sales Tax Appellate Tribunal |
1999-2000 2009-10 |
129 |
98 |
|
|
High Court of Telangana and Andhra Pradesh |
2010-11 |
7 |
7 |
|||
|
Customs Act, 1962 |
Customs duty |
CESTAT |
2012-13 |
193 |
189 |
|
|
Income Tax Act, 1961 |
Income Tax |
Income Tax Appellate Tribunal |
2005-06 2007-10 |
112 |
112 |
|
|
Commissioner of Income Tax (Appeals) |
2008-09 2011-12 |
1,088 |
924 |
|||
|
Finance Act, 1994 |
Service Tax |
CESTAT |
2014-15 |
13 |
12 |
|
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government, except as under:
|
Amount of default of repayment |
Period of default |
||
|
Particulars |
C in lakhs) |
(in days) |
|
|
Installment |
Interest |
||
|
State Bank of India |
616 |
50 |
1-8 days |
The Company has not issued any debentures.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments). In our opinion and according to the information and explanations given to us, money raised by way of term loans have been applied by the Company during the year for the purposes for which they were raised other than temporary deployment pending application of proceeds.
(x) To the best of our knowledge and according to the information and explanations given to us, no material fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 188 and 177 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us, the Company has made preferential allotment of shares during the year under review.
In respect of the above issue, we further report that:
a) the requirement of Section 42 of the Companies Act, 2013, as applicable, have been complied with; and
b) the amounts raised have been applied by the Company during the year for the purposes for which the funds were raised other than temporary deployment pending application.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm''s Registration No. 008072S)
Ganesh Balakrishnan
Partner
Secunderabad, May 29, 2017 (Membership No. 201193)
Mar 31, 2015
We have audited the accompanying financial statements of M/s. Sagar
Cements Limited, Hyderabad the ("Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India,
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) order, 2015, issued by
the Central Government of India in terms of subsection (11) of Section
143 of the Companies Act, 2013, we give in the Annexure a statement on
the matters specified in paragraphs 3 and 4 of the order, to the extent
applicable.
As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) Based on the Written Representation received from the directors as
on 31st March 2015, and taken on record by the Board of Directors, we
report that none of the directors are disqualified as on 31st March,
2015 from being appointed as a director in terms of Sub-section 2 of
Section 164 of the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer clause No.vii(b)
of CARO,2015 and note no.2.30 to the financial statements;
Annexure referred to in paragraph 1 of Section Report on Other Legal
and Regulatory Requirements of the Independent Auditor's Report of even
date of Sagar Cements Limited, Hyderabad on the financial statements
for the year ended March 31, 2015
i. In respect of fixed assets
(a) The company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets;
(b) As explained to us, all the fixed assets have been physically
verified by the Management during the year. No material discrepancies
were noticed on such verification.
ii. In respect of its inventories:
(a) As explained to us, the inventories excepting in case of goods in
transit, were physically verified during the year by the Management at
reasonable intervals.
(b) In our opinion, procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of records of the inventory, in our
opinion, the Company is maintaining proper records of inventory. No
material discrepancies were noted on such verification.
iii. In respect of loans:
As informed to us, the company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 189 of the Companies Act.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods &
services.
v. The company has not accepted any deposits, and hence clause (v) of
Companies (Auditor's Report) Order, 2015 is not applicable.
vi. We have broadly reviewed the books of account maintained by
company pursuant to rules prescribed by the Central Government of India
for maintenance of cost records under Section 148(1) of the Companies
Act, 2013 in respect of products of the company and are of the opinion
that prima facie, the prescribed accounts and records have been made
and maintained. However, we have not made a detailed examination of the
records.
vii. a) According to the information and explanations given to us and
the records as produced and examined by us, in our opinion, the company
is regular in depositing undisputed statutory dues including Income tax,
Service tax, Customs Duty and other material statutory dues during the
year by the company with the appropriate authorities. As explained to
us, the company did not have any dues on account of Employee's State
Insurance, Sales tax, Excise duty, Wealth tax and Investor Education and
Protection Fund.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Income-tax,
Service tax, Customs duty and other material statutory dues were in
arrears as at 31 March 2015 for a period of more than six months from
the period they became payable.
b) According to the information and explanations given to us, there are
no dues of Income-tax, Service tax and Customs duty which have not been
deposited with the appropriate authorities on account of any dispute.
As informed to us, the company did not have any dues on account of
Wealth tax and Excise duty. However, the company has contingent
liabilities pending before various appellate authorities. Please refer
to note no. 2.30 to the financial statement.
viii. The Company does not have any accumulated losses and has not
incurred cash losses in the current financial year and in the
immediately preceding financial year.
ix. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to its
bankers and financial institutions.
x. According to the information and explanations given to us the
company has not given any guarantee for loans taken by others or banks
or financial institutions. Thus paragraph 3 (x) of the order does not
apply to the company for the year.
xi. In our opinion and according to the information and explanations
given to us, the term loans taken by the company have been applied for
the purpose for which they were raised.
xii. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of audit.
For P.SRINIVASAN & Co.,
Chartered Accountants
Firm's Registration No.004055S
K.RANGANATHAN
Place: Hyderabad Partner
Date: 21st May, 2015 Membership No. 010842
Mar 31, 2014
We have audited the accompanying financial statements of Sagar Cements
Limited (Âthe companyÂ), which comprise the Balance Sheet as at March
31, 2014, the statement of Profit and loss of the Company and the Cash
Flow Statement of the Company for the year then ended and a summary of
significant accounting policies and other explanatory information.
ManagementÂs Responsibility for the Financial Statements
The CompanyÂs Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flow of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 (Âthe ActÂ) read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
AuditorÂs Responsibility
Our responsibility is to express an opinion on these 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 auditorÂs judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the CompanyÂs 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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a. In the case of the Balance sheet, of the state of affairs of the
Company as at March 31, 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.
1. As required by the Companies (AuditorÂs Report) Order, 2003, as
amended (Âthe OrderÂ) issued by the Central Government of India in
terms of Sub-Section (4A) of Section 227 of the Companies Act,1956(Âthe
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 purposes of our
audit;
b. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
those books;
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with Accounting Standards notified under the Act
read with the General Circular 15/2013 dated 13th September, 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013;
e. On the basis of written representations received from the
Directors, as on 31st March, 2014 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2014 from being appointed as a director in terms of Section
274(1)(g) of the Companies Act,1956;
Referred to in Paragraph under the heading of ÂReport on other Legal
and Regulatory Requirements of our report of even date.
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. Some of the fixed assets were physically verified during the year
by the management in accordance with a programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such physical verification.
3. As per information and explanation given by the management during
the year, the company has not disposed off a substantial part of its
fixed assets and going concern assumption of the company is not
affected.
4. As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
5. 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 the nature of its business.
6. In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
7. According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956.
8. As the company has not granted or taken loans to / from companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, the clause relating to rate of interest
and other terms and conditions of loans given or taken by the company,
secured or unsecured, which are prima facie prejudicial to the interest
of the company is not applicable to the company.
9. As the company has not taken loans from / granted to companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, the clause relating to the regular
payment of principal amount and interest is not applicable to the
company.
10. As the company has not taken loans from or granted to companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, the clause relating to steps taken for
recovery / payment of the principal and interest on overdue amount of
more than one lakh, is not applicable to the company.
11. 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 with
regard to the sale of goods. During the course of our audit, no major
weakness has been noticed in the internal control.
12.a) Based on the audit procedure applied by us and according to the
information and explanations provided by the management, we are of
the opinion that the transactions that need to be entered into the
register maintained under Section 301 of the Companies Act, 1956
have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding Rupees five lakhs in respect of any party
during the year, have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
13. The company has not accepted deposits from the public during the
year.
14. In our opinion, the internal audit functions carried out during
the year by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
15. In our opinion and according to the information and explanations
given to us, the company has made and maintained accounts and records
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956. However, we have not carried out any detailed
examination of such records.
16. According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income-Tax, Sales Tax, Wealth-Tax, Customs
Duty, Excise Duty, Cess and other statutory dues applicable to it.
17. According to the information and explanations given to us, the
details of dues on sales tax, excise duty and others which have not
been deposited as on 31st March, 2014 on account of disputes are given
below:
Amount Period to
Sl.Name of the Amount Deposited which the Nature of Dues
No. statute Rs. under protest amount
Rs. relates
1 A.P. TRANSCO 1,73,50,747 1,08,02,441 1999-2000 Voltage
Surcharge & grid
supporting
charges
2 Sales Tax 1,09,40,297 27,35,074 2009-2010 Tax on sale of
Authorities Fixed Assets
19,60,832 4,90,208 1999-2000 Interest on
delayed payment
1,44,25,000 18,03,000 2007-08 Disallowance of
input tax credit
on steel
purchased
75,68,000 9,46,000 2008-09 Disallowance of
input tax
credit on steel
purchased
3 Income Tax 74,98,000 - 2006-2007 Disallowances of
certain
Authorities
expenditure
75,29,000 - 2008-09 Disallowance of
certain
2009-10 and expenditure
U/s.14A
2010-11
4 Central Excise 2,24,95,200 1,95,00,000 2008-2009 Denying the
benefit of
Authorities
Cenvat credit on
capital goods
6,50,80,000 - - Denying the
benefit of
Cenvat credit on
capital goods
59,41,000 Cement has been
cleared to the
contractors at a
rate lesser than
the market rate
1,46,30,000 July 2008 to Denying Cenvat
credit against
February Service Tax
paid on freight
2011 charged incurred
for
transportation
of cement
7,67,000 3,84,000 December Denying Cenvat
credit on
2006 to Input services
such as
March 2010 Advertisement,
audit and
Telephone, Telex
services used in
relation to
trading activity
5 Road
Transport 28,50,000 3,20,000 2006-2007 Life Tax on
dumpers used in
Authority captive mines
6 Customs 67,92,000 - - Imported Coal
was wrongly
Authorities classified under
steam coal
instead of
bituminous coal
Name of the Statute Forum where the dispute is pending
A.P. TRANSCO Filed an appeal with Division Bench,
High Court of A.P
Sales Tax Authorities Contested before the State Appellate
Tribunal
Filed an Appeal before the Appellate
Tribunal
Filed an Appeal before Appellate
Deputy Commissioner
Filed an appeal before Appellate
Deputy Commissioner
Income Tax Authorities Contested before the Commissioner
Contested before the Commissioner
Central Excise Authorities Filed an Appeal with CESTAT, Bangalore
Filed an Appeal with CESTAT, Bangalore
Filed before Commissioner of Central
Excise, Hyderabad III Commissionerate
Filed an appeal with CESTAT, Bangalore
Filed an Appeal with CESTAT, Bangalore
Road Transport Authority Filed an Appeal in High Court of A.P.
Customs Authorities Filed an Appeal before CESTAT,Bangalore
18. The company has no accumulated losses and it has not incurred any
cash losses during the financial year covered by our audit and the
immediately preceding financial year.
19. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
20. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
21. The company is not a chit fund or nidhi or mutual fund / society
and hence the provisions of Clause 4 (xiii) of the Companies (AuditorÂs
Report) Order, 2003 are not applicable to the company.
22. The company is not dealing in or trading in shares, securities,
debentures and other investments and hence the provisions of Clause 4
(xiv) of the Companies (AuditorÂs Report) Order, 2003 are not
applicable to the company.
23. As the company has not given any guarantee for loans taken by
others from banks or financial insitutions, hence the provisions of
Clause 4 (xv) of the Companies (AuditorÂs Report) Order, 2003 are not
applicable to the company.
24. In our opinion, the term loans taken by the company have been
applied for the purpose for which they were raised.
25. According to the information and explanations given to us and on
an over all examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment. No long term funds have been used for short term assets.
26. According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Companies Act, 1956.
27. According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
28. During the year, the company has not raised monies by public
issue.
29. According to the information and explanations given to us and the
books and records examined by us, no fraud on or by the company has
been noticed or reported during the year.
For P. SRINIVASAN & Co.,
Chartered Accountants
FirmÂs Registration No.004055S
K. RANGANATHAN
Hyderabad Partner
May 13, 2014 Membership No. 010842
Mar 31, 2013
We have audited the accompanying financial statements of Sagar Cements
Limited the company, which comprise the Balance Sheet as at 31 st
March, 2013, the Statement of Profit and Loss of the company and the
Cash Flow Statement of the company for the year then ended and a
summary of significant accounting policies and other explanatory
information.
Management''s Responsibility for the Financial Statements
The 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 flow 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 judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal 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 case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2013;
b. in the case of the Statement of Profit and Loss, 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, as
amended ("the Order'') 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.
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 purposes of our
audit;
b. In our opinion, proper books of accounts 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
accounts;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Sub-Section (3C) of Section 211 of
the Companies Act, 1956;
e. On the basis of written representations received from the Directors
as on 31st March, 2013 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2013 from being appointed as a director in terms of Clause (g) of Sub
Section (1) of Section 274 of the Companies Act, 1956;
Annexure to the Independent Auditors'' Report
Referred to in Paragraph under the heading of "Report" on other Legal
and Regulatory Requirements" of our report of even date.
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. Some of the fixed assets were physically verified during the year
by the management in accordance with a programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such physical verification.
3. As per information and explanation given by the management during
the year, the company has not disposed off a substantial part of its
fixed assets and going concern assumption of the company is not
affected.
4. As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
5. 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 the nature of its business.
6. In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
7. According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956. Hence, the provisions of Clause (b),
(c)and (d) of paragraph 4 (iii) of the Companies (Auditors Report)
Order, 2003 are not applicable to the company.
8. According to the information and explanations given to us, the
company has taken loan from a company covered in the register
maintained under Section 301 of the Companies Act, 1956. In our opinion
and to the best of our examination, the terms are not prejudicial to
the interests of the company. The amount outstanding as on 31st March,
2013 is Rs.557.90 lakhs.
9. As the company has not taken loans from / granted to companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, the clause relating to the regular
payment of principal amount and interest is not appl icable to the
company.
10. As the company has not taken loans from or granted to companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, the clause relating to steps taken for
recovery / payment of the principal and interest on overdue amount of
more than one lakh, is not applicable to the company.
11. 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 with
regard to the sale of goods. Duri ng the course of our audit, no major
weakness has been noticed in the internal control.
12. a) Based on the audit procedure applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under Section 301 of the Companies Act, 1956 have been so
entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding Rupees five lakhs in respect of any party
during the year, have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
13. The company has not accepted deposits from the public during the
year.
14. In our opinion, the internal audit functions carried out during
the year by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
15. In our opinion and according to the information and explanations
given to us, the company has made and maintained accounts and records
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956. However, we have not carried out any detailed
examination of such records.
16. According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income- Tax, Sales Tax, Wealth-Tax, Customs
Duty, Excise Duty, Cess and other statutory dues applicable to it.
sale of Contested before the Fixed Assets State Appellate Tribunal
Interest on delayed Filed an Appeal payment before the Appellate
Tribunal Disallowances of certain Contested before the expenditure
Commissioner Disallowance of expenditure U/S.14A Contested before the
Commissioner Denying the benefit of Cenvat Filed an Appeal with credit
on capital Goods CESTAT, Bangalore Denying the benefit of Cenvat Filed
an Appeal with credit on capital oods CESTAT, Bangalore Cement has been
cleared to the Filed before Commi- contractors at a rate lesserthan
ssionerofCentral the market rate Excise, Hyderabad III Commissionerate
Denying Cenvat credit against Filed an appeal with Service Tax paid on
freight CESTAT, Bangalore charged incurred for transportation of cement
Denying Cenvat credit on Filed an Appeal with Input services such as
CESTAT, Bangalore Advertisement, audit and Telephone, Telex services
used in relation to trading activity Life Tax ondumpers used in Filed
anAppeal in captivemines HighCourtofA.P.
18. The company has no accumulated losses and it has not incurred any
cash losses during the financial year covered by our audit and the
immediately preceding financial year.
19. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
20. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
21. The company is not a chit fund or nidhi or mutual fund / society
and hence the provisions of Clause 4 (xiii) of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the company.
22. The company is not dealing in or trading in shares, securities,
debentures and other investments and hence the provisions of Clause 4
(xiv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
23. As the company has not given any guarantee for loans taken by
others from banks or financial institutions, hence the provisions of
Clause 4 (xv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
24. In our opinion, the term loans taken by the company have been
applied forthe purpose for which they were raised.
25. According to the information and explanations given to us and on
an over all examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment. No long term funds have been used for short term assets.
26. According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Companies Act, 1956.
27. According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
28. During the year, the company has not raised monies by public
issue.
29. Accordingto the information and explanations given to us and the
books and records examined by us, no fraud on or by the company has
been noticed or reported during the year.
For P.Srinivasan & Co.,
Chartered Accountants
Hyderabad K.Ranganathan
22nd May 2013 Partner
Membership No. 10842
Mar 31, 2012
We have audited the accompanying financial statements of Sagar Cements
Limited ('the company'), which comprise the Balance Sheet as at 31st
March, 2012, the Statement of Profit and Loss of the company and the
Cash Flow Statement of the company for the year then ended and a
summary of significant accounting policies and other explanatory
information.
Management's Responsibility for the Financial Statements
The 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 flow 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. 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.
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 case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
b. in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2003, as amended
('the Order') issued by the Central Government of India in terms of
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.
As required by Section227 (3) of the Act, we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. In our opinion, proper books of accounts 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
accounts;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Sub-Section (3C) of Section 211 of
the Companies Act, 1956;
e. On the basis of written representations received from the Directors
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2012 from being appointed as a director in terms of Clause (g) of Sub
Section (1) of Section 274 of the Companies Act, 1956;
The Annexure referred to in the Independent Auditors' Report to the
members of Sagar Cements Limited ('the Company') on
the financial statements for the year ended March 31, 2012, we report
that:
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. Some of the fixed assets were physically verified during the year
by the management in accordance with a programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such physical verification.
3. As per information and explanation given by the management during
the year, the company has not disposed off a substantial part of its
fixed assets and going concern assumption of the company is not
affected.
4. As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
5. 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 the nature of its business.
6. In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
7. According to the information and explanations given to us, the
company has not granted or taken any loans, secured or unsecured to /
from companies, firms or other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956.
8. As the company has not granted or taken loans to / from companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, the clause relating to rate of interest
and other terms and conditions of loans given or taken by the company,
secured or unsecured, which are prima facie prejudicial to the interest
of the company is not applicable to the company.
9. As the company has not taken loans from / granted to companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, the clause relating to the regular
payment of principal amount and interest is not applicable to the
company.
10. As the company has not taken loans from or granted to companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, the clause relating to steps taken for
recovery / payment of the principal and interest on overdue amount of
more than one lakh, is not applicable to the company.
11. 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 with
regard to the sale of goods. During the course of our audit, no major
weakness has been noticed in the internal control.
12. a) Based on the audit procedure applied by us and according to the
information and explanations provided by the
management, we are of the opinion that the transactions that need to be
entered into the register maintained under Section 301 of the Companies
Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding Rupees five lakhs in respect of any party
during the year, have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
13. The company has not accepted deposits from the public during the
year.
14. In our opinion, the internal audit functions carried out during
the year by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
15. In our opinion and according to the information and explanations
given to us, the company has made and maintained accounts and records
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956. However, we have not carried out any detailed
examination of such records.
16. According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income- Tax, Sales Tax, Wealth-Tax, Customs
Duty, Excise Duty, Cess and other statutory dues applicable to it.
17. According to the information and explanations given to us, the
details of dues on sales tax, excise duty and others which have not
been deposited as on 31st March, 2012 on account of disputes are given
below:
Sl. Name of the statute Amount Amount
Deposited Period to
No. Rs. under
protest which the
amount
Rs. relates
1 A.P. TRANSCO 1,73,50,747 1,08,02,441 1999-2000
2 Sales Tax 1,09,40,297 27,35,074 2009-2010
Authorities
19,60,832 4,90,208 1999-2000
3 Income Tax 74,98,000 - 2006-2007
Authorities
4 Central Excise 2,24,95,200 1,95,00,000 2008-2009
Authorities
6,50,80,000 - -
5 Road Transport 28,50,000 3,20,000 2006-2007
Authority
Name of the statute Nature of Dues Forum where the dispute is
pending
A.P. TRANSCO Voltage Surcharge & grid Filed an appeal with
supporting charges Division Bench, High
Court of A.P
Sales Tax Tax on sale of Fixed
Assets Contested before the
Authorities State Appellate Tribunal
Interest on delayed Filed an Appeal before
payment the Appellate Tribunal
Income Tax Disallowances of Contested before the
Authorities certain expenditure Commissioner
Central Excise Denying the benefit of Filed an Appeal with
Authorities Cenvat credit on capital goods CESTAT,
Bangalore
Denying the benefit of Filed an Appeal with
Cenvat credit on capital CESTAT, Bangalore
goods
Road Transport Life Tax on dumpers used Filed an Appeal in
Authority in captive mines High Court of A.P.
18. The company has no accumulated losses and it has not incurred any
cash losses during the financial year covered by our audit and the
immediately preceding financial year.
19. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
20. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
21. The company is not a chit fund or nidhi or mutual fund / society
and hence the provisions of Clause 4 (xiii) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the company.
22. The company is not dealing in or trading in shares, securities,
debentures and other investments and hence the provisions of Clause 4
(xiv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
23. As the company has not given any guarantee for loans taken by
others from banks or financial institutions, hence the provisions of
Clause 4 (xv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
24. In our opinion, the term loans taken by the company have been
applied for the purpose for which they were raised.
25. According to the information and explanations given to us and on
an over all examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment. No long term funds have been used for short term assets.
26. According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Companies Act, 1956.
27. According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
28. During the year, the company has not raised monies by public
issue.
29. According to the information and explanations given to us and the
books and records examined by us, no fraud on or by the company has
been noticed or reported during the year.
For P.Srinivasan & Co.,
Chartered Accountants
Hyderabad K.Ranganathan
15th May 2012 Partner
Membership No.10842
Mar 31, 2011
We have audited the attached Balance Sheet of Sagar Cements Limited as
at 31st March, 2011 and the Profit and Loss Account for the year ended
on that date annexed thereto and the 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.
We conduct 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 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.
1. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Sub-Section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
2. Further to our comments in the Annexure referred to in paragraph 1
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 accounts as required by law have
been kept by the company so far as appears from our examination of
those books;
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in Sub-Section (3C) of Section 211 of the
Companies Act, 1956;
e. On the basis of written representations received from the Directors
as on 31' March, 2011 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31' March, 2011
from being appointed as a director in terms of Clause (g) of Sub
Section (1) of Section 274 of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i. in case of the Balance Sheet, of the state of affairs of the
Company as at 31* March, 2011;
ii. in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT Annexure referred to in paragraph 1 of
our Report
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. Some of the fixed assets were physically verified during the year
by the management in accordance with a programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such physical verification.
3. As per information and explanation given by the management during
the year, the company has not disposed off a substantial part of its
fixed assets and going concern assumption of the company is not
affected.
4. As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
5. 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 the nature of its business.
6. In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
7. According to the information and explanations given to us, the
company has not granted or taken any loans, secured or unsecured to /
from companies, firms or other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956.
8. As the company has not granted or taken loans to / from companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, the clause relating to rate of interest
and other terms and conditions of loans given or taken by the company,
secured or unsecured, which are prima facie prejudicial to the interest
of the company is not applicable to the company.
9. As the company has not taken loans from / granted to companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, the clause relating to the regular
payment of principal amount and interest is not applicable to the
company.
10. As the company has not taken loans from or granted to companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, the clause relating to steps taken for
recovery / payment of the principal and interest on overdue amount of
more than one lakh, is not applicable to the company.
11. 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 with
regard to the sale of goods. During the course of our audit, no major
weakness has been noticed in the internal control.
12. a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the transactions that need to be entered into the
register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lakhs in respect of
any party during the year, have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
13. The company has not accepted deposits from the public during the
year.
14. In our opinion, the internal audit functions carried out during the
year by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
1 5. In our opinion and according to the information and explanations
given to us, the company has made and maintained accounts and records
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956. However, we have not carried out any detailed
examination of such records.
16. According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-Tax, Sales Tax, Wealth-Tax, Customs
Duty, Excise Duty, Cess and any other statutory dues applicable to it.
17. According to the information and explanations given to us, the
details of dues on sales tax, excise duty and others which have not
been deposited as on 31 * March, 2011 on account of disputes are given
below:
Sl. Name of the Statute Amount Amount Period to Forum where
No. (Nature of dues) Rs. Deposited which the the dispute
under
protest amount is pending
Rs. Relates
1 A.P. TRANSCO 1,73,50,747 1,08,02,441 1999.00 Voltage
Surcharge &
grid
supporting
charges. Filed
an appeal with
Division Bench,
High Court of
A.P.
2 Sale Tax
Authorities 1,09,40,297 27,35,074 2009-10 Tax on sale of
Fixed Assets,
Contested before
the State
Appellate
Tribunal.
19,60,832 4,90,208 1999-00 Interest on
delayed payment.
Filed an Appeal
before the
Appellate
Tribunal
3 Income Tax
Authorities 74,98,000 2006-07 Disallowances
of certain
expenditure,
contested
before the
Commissioner
11,42,000 - 2008-09 (Appeals)
4 Central Excise 2,24,95,200 1,95,00,000 2008-09 Denying the
benefit of
Cenvat
Authorities credit on
capital good,
Filed an Appeal
with CESTAT,
Bangalore
18. The company has no accumulated losses and it has not incurred any
cash losses during the financial year covered by our audit and the
immediately preceding financial year.
19. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
20. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
21. The company is not a chit fund or nidhi or mutual fund / society
and hence the provisions of Clause 4 (xiii) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the company.
22. The company is not dealing in or trading in shares, securities,
debentures and other investments and hence the provisions of Clause 4
(xiv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
23. As the company has not given any guarantee for loans taken by
others from banks or financial institutions, the provisions of Clause 4
(xv) of the Companies (Auditor's Report) Order, 2003 are not applicable
to the company.
24. In our opinion, the term loans taken by the company have been
applied for the purpose for which they were raised.
25. According to the information and explanations given to us and on
an over all examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment. No long term funds have been used for short term assets.
26. According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Companies Act, 1956.
27. According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
28. During the year, the company has not raised monies by public
issue.
29. According to the information and explanations given to us and the
books and records examined by us, no fraud on or by the company has
been noticed or reported during the year.
For P.Srinivasan & Co.,
Chartered Accountants
Hyderabad K.Ranganathan
12th July, 2011 Partner
M.No.10842
Mar 31, 2010
We have audited the attached Balance Sheet of Sagar Cements Limited as
at 31st March, 2010 and the Profit and Loss Account for the year ended
on that date annexed thereto and the 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.
We conduct 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 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.
1. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Sub- Section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
2. Further to our comments in the Annexure referred to in paragraph I
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 accounts as required by law have
been kept by the company so far as appears from our examination of
those books;
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in Sub-Section (3C) of Section 211 of the
Companies Act, 1956;
e. On the basis of written representations received from the Directors
as on 31" 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 (I) of Section 274 of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i. in case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
ii. in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph I of our Report
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. Some of the fixed assets were physically verified during the year
by the management in accordance with a programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
3. As per information and explanation given by the management during
the year, the company has not disposed off a substantial part of its
fixed assets and going concern assumption of the company is not
affected.
4. As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
5. 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 the nature of its business.
6. In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
7. According to the information and explanations given to us, the
company has not granted or taken any loans, secured or unsecured to /
from companies, firms or other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956.
8. As the company has not granted or taken loans to / from companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, the clause relating to rate of interest
and other terms and conditions of loans given or taken by the company,
secured or unsecured, which are prima facie prejudicial to the interest
of the company is not applicable to the company.
9. As the company has not taken loans from / granted to companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, the clause relating to the regular
payment of principal amount and interest is not applicable to the
company.
10. As the company has not taken loans from or granted to companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, the clause relating to steps taken for
recovery / payment of the principal and interest on overdue amount of
more than one lakh, is not applicable to the company.
11. 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 with
regard to the sale of goods. During the course of our audit, no major
weakness has been noticed in the internal control.
12. a) Based on the audit procedures applied by us and according to
the information and explanations provided by the
management, we are of the opinion that the transactions that need to be
entered into the register maintained under Section 301 of the Companies
Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lakhs in respect of
any party during the year, have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
I 3. The company has not accepted deposits from the public during the
year.
14. In our opinion, the internal audit functions carried out during
the year by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
15. In our opinion and according to the information and explanations
given to us, the company has made and maintained accounts and records
prescribed by the Central Government under Section 209 (I) (d) of the
Companies Act, 1956. However, we have not carried out any detailed
examination of such records.
16. According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income- Tax, Sales Tax, Wealth-Tax, Customs
Duty, Excise Duty, Cess and any other statutory dues applicable to it.
1 7. The company has no accumulated losses and it has not incurred any
cash losses during the financial year covered by our audit and the
immediately preceding financial year.
18. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
19. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
20. The company is not a chit fund or nidhi or mutual fund / society
and hence the provisions of Clause 4 (xiii) of the Companies (Auditors
Report) Order, 2003 are not applicable to the company.
21. The company is not dealing in or trading in shares, securities,
debentures and other investments and hence the provisions of Clause
4 (xiv) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
22. As the company has not given any guarantee for loans taken by
others from banks or financial institutions, hence the provisions of
Clause 4 (xv) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
23. In our opinion, the term loans taken by the company have been
applied for the purpose for which they were raised.
24. According to the information and explanations given to us and on
an over all examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment. No long term funds have been used for short term assets.
25. According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Companies Act, 1956.
26. According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
27. During the year, the company has not raised monies by public
issue.
28. According to the information and explanations given to us and the
books and records examined by us, no fraud on or by the company has
been noticed or reported during the year.
For P.Srinivasan & Co.,
Chartered Accountants
K.Ranganathan
Partner
M.No.10842
Hyderabad
18th May, 2010
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