Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Financial Statements of BANNARI AMMAN SUGARS LIMITED(âthe Companyâ), which comprise the Balance Sheet as at 31st March2018, 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.
Managementâs Responsibility for the Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act,2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of state of affairs (financial position), profit or loss (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 (âInd ASâ) prescribed under Section 133 of the Act read with Companies (Indian Accounting Standard) Rules, 2015, as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
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 auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence 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 including Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its profit (financial performance including other comprehensive income), its cash flows and changes in equity for the year ended on that date.
Other Matters:
The comparative Financial information of the company for the year ended 31.3.2017 prepared inaccordance with Ind AS included in these Ind AS Financial Statements have been audited by the predecessor Auditor M/s. P N Raghavendra Rao & Co., who had audited the Financial Statements for the relevant period. The report of the predecessor Auditor on the comparative Financial information dated 29.5.2017 expressed an unmodified opinion. The same has been furnished by the management and has been relied upon by us for the purpose of our audit of financial statement. Our audit report is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in exercise of the powers conferred by sub-section (11) of Section 143 of the Companies Act, 2013, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the statement of changes in equity 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 Indian Accounting Standards specified under Section 133 of the Act read with Companies (Indian Accounting Standard) Rules, 2015, as amended.
e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate Report inâAnnexure Bâ; and
g) With respect to 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 financial statements as referred to in Note No.29 to the financial statements.
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii) There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure âAâ to the Independent Auditorsâ Report
The Annexure âAâ referred to in our Independent Auditorsâ Report to the members of the Company on the financial statements for the year ended 31stMarch 2018, we report that :
i. a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b. The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner. In accordance with this programme, certain fixed assets were verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
c. In our opinion and according to the information and explanations given to us and on the basis of examination of the records of the company the title deeds of immovable properties are held in the name of the company.
ii. The inventory has been physically verified by the management at reasonable intervals during the year. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.
iii. In our opinion and according to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans secured or unsecured to companies, firms, Limited Liability partnerships or other parties listed in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ). Consequently, the provisions of Clauses iii (a) iii (b) and iii(c) of the Order are not applicable to the Company.
iv. In our opinion and according to the information and the explanations given to us, the Company has not granted any loans or provided any guarantees or securities to the parties covered under the section 185 of the Act. The Company has complied with the provisions of section 186 of the Act in respect of investments made or loans or guarantee or security provided.
v. The Company has not accepted any deposits from the public.
vi. As per the information and explanation given by the management, maintenance of cost records has been prescribed by the Central Government and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained under section 148(1) of the Act, by the company.
vii. a. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the undisputed statutory dues including provident fund, Employeeâs State Insurance, Income tax, Sales tax, Service tax / GST, duty of customs, duty of excise, value added tax, cess and any other material statutory dues, as applicable, have been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, Employeeâs State Insurance, Income tax, Sales tax, Service tax/GST, duty of customs, duty of excise, value added tax, cess and other material statutory dues were in arrears as at 31st March 2018 for a period of more than six months from the date they became payable.
b. According to the information and explanations given to us, the details of disputed statutory dues of income tax that have not been deposited on account of matters pending before appropriate authority are as under :
Name of the Statue |
Nature of the Dues |
Amount (Rs. In Lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax Act, 1961 |
Income Tax |
1.60 |
Assessment year 2013-14 |
CIT (Appeals), Coimbatore |
viii. According to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks, and Government during the year. The company has not issued any debentures and hence there are no dues to debenture holders.
ix. The Company has not raised any money by way of Initial Public Offer or further public offer (including Debt instruments) during the year. According to the information and explanations given to us, the term loans availed during the year have been applied for the purposes for which those were obtained.
x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on the examination of the records, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, para 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under the Indian Accounting Standard 24 (Related Party Disclosures).
xiv. According to the information and explanations given to us and based on our examination of the records, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
xv. According to the information and explanations given to us and based on our examination of the records, the Company has not entered into non-cash transactions with the Directors or persons connected with them. Accordingly, para 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the para 3(xvi) of the Order are not applicable to the Company.
Annexure Bâ to the Independent Auditorsâ Report of even date on the Ind AS Financial Statements of Bannari Amman Sugars Limited
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of section 143 of the Act.
We have audited the internal financial controls over financial reporting of Bannari Amman Sugars Limited (âthe Companyâ) as of 31stMarch 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Managementâs responsibility for Internal Financial Controls :
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal controls over financial reporting criteria established by the Company considering the essential components of the internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by The Institute of Chartered Accountants of India (ICAI). 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 Companyâs 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.
Auditorâs responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Act 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 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 controls based on the assessed risks. The procedures selected depend on the auditorâs judgment, including the assessment of the risk of material misstatements 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 Companyâs internal financial control system over financial reporting.
Meaning of Internal Financial Control Over Financial Reporting
A Companyâs 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 Companyâs internal financial controls 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 expenditure 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 companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitation 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 internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls over financial reporting may become inadequate because of changes in condition, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31stMarch 2018, based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by ICAI.
For P K NAGARAJAN & Co.,
Chartered Accountants
Firm Reg. No: 016676S
P K Nagarajan
Place : Coimbatore Partner
Date : 25.05.2018 M.No. 25679
Mar 31, 2017
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of BANNARI AMMAN SUGARS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March 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.
Managementâs Responsibility for the Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements that give a true and fair view of state of affairs (financial position), profit or loss (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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these Ind AS 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 of the 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 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 Ind AS financial statements. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Companyâs preparation of the 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 Companyâs Directors, as well as evaluating the overall presentation of the Ind AS 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 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 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 including Ind AS of the state of affairs (financial position) of the Company as at 31st March, 2017, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matters:
The comparative financial information of the Company for the year ended 31st March 2016 and the transition date opening Balance Sheet as at 1st April, 2015 prepared in accordance with Ind AS included in these Ind AS financial statements have been audited by us vide report dated 29.05.2015 and 30.11.2016 with an unmodified opinion.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in exercise of the powers conferred by sub-section (11) of Section 143 of the Companies Act, 2013, we give in the âAnnexure Aâ 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, the Cash Flow Statement and the statement of changes in equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ; and
g) With respect to other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014, in our opinion and to the best of our information and according to the explanations given to us;
i) The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements as referred to in Note No.29 to the financial statements.
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii) There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company; and
iv) The Company has provided requisite disclosure in the Ind AS financial statements as to holding as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016, on the basis of information available with the Company. Based on audit procedures, and relying on managementâs representation, we report that disclosures are in accordance with the books of accounts maintained by the company and as produced to us by the Management. Refer Note no.39
Annexure âAâ to the Independent Auditorsâ Report
The Annexure âAâ referred to in our Independent Auditorsâ Report to the members of the Company on the Ind AS financial statements for the year ended 31st March 2017, we report that:
I. a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b. The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner. In accordance with this programme, certain fixed assets were verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
c. In our opinion and according to the information and explanations given to us and on the basis of examination of the records of the company the title deeds of immovable properties are held in the name of the company.
ii. The inventory has been physically verified by the management at reasonable intervals during the year. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.
iii. In our opinion and according to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans secured or unsecured to companies, firms, Limited Liability partnerships or other parties listed in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ). Consequently, the provisions of Clauses iii (a) iii (b) and iii(c) of the Order are not applicable to the Company.
iv. In our opinion and according to the information and the explanations given to us, the Company has not granted any loans or provided any guarantees or securities to the parties covered under the section 185 of the Act. The Company has complied with the provisions of section 186 of the Act in respect of investments made or loans or guarantee or security provided.
v. The Company has not accepted any deposits from the public.
vi. As per the information and explanation given by the management, maintenance of cost records has been prescribed by the Central Government and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained under section 148(1) of the Act, by the company.
vii. a. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the undisputed statutory dues including provident fund, Employeeâs State Insurance, Income tax, Sales tax, service tax, duty of customs, duty of excise, value added tax, cess, and any other material statutory dues, as applicable, have been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, Employeeâs State Insurance, Income tax, Sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues were in arrears as at 31st March 2017 for a period of more than six months from the date they became payable.
b. According to the information and explanations given to us, the disputed statutory dues of income tax amounting to Rs.1.6 Lakhs that have not been deposited on account of matters pending before appropriate authority are as under :
Name of the Statue |
Nature of the Dues |
Amount (Rs. In Lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax Act, 1961 |
Income Tax |
1.60 |
Assessment year 2013-14 |
CIT (Appeals), Coimbatore |
viii. According to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks, and Government during the year. The company has not issued any debentures and hence there are no dues to debenture holders.
ix. The Company has not raised any money by way of Initial Public Offer or further public offer (including Debt instruments) during the year. According to the information and explanations given to us, the term loans availed during the year have been applied for the purposes for which those were obtained.
x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on the examination of the records, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, para 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under the Indian Accounting Standard 24 (Related Party Disclosures).
xiv. According to the information and explanations given to us and based on our examination of the records, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
xv. According to the information and explanations given to us and based on our examination of the records, the Company has not entered into non-cash transactions with the Directors or persons connected with them. Accordingly, para 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For P.N. RAGHAVENDRA RAO & Co.,
Chartered Accountants
(FRN:003328S)
P R Vittel
Partner
Place : Coimbatore M.No.200/018111
Date : 29.05.2017
Mar 31, 2016
Independent Auditors'' Report to the Members of Bannari Amman Sugars Limited Report on the Financial Statements
We have audited the accompanying financial statements of BANNARI AMMAN SUGARS LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2016 the Statement of Profit and Loss the Cash Flow Statement (Giving effect to the Scheme of Amalgamation sanctioned by the Hon''ble High Court of Madras) for the year then ended, and a summary of the significant accounting policies and other explanatory information
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities selection and application of appropriate accounting policies making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit
We have taken into account the provisions of the Act the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10)of the Act Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements The procedures selected depend on the auditors'' 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 controls 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 of the state of affairs of the Company as at 31st March 2016 and its profit and its cash flows for the year ended on that date
Other Matters
We draw attention to the Note No. 1.19 to the financial statements which, describes the amalgamation of Madras Sugars Limited with the company with effect from the appointed date of 1st January 2016 vide Madras High Court Order dated 15 th November 2016
Our opinion is not modified in respect of the above Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order 2016 ("the Order") issued by the Central Government of India in exercise of the powers conferred by sub-section (11) of Section 143 of the Companies Act 2013 we give in the "Annexure -A" 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) On the basis of the written representations received from the directors as on 31st March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2016 from being appointed as a director in terms of Section 164(2) of the Act
f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls referred to our separate report in "Annexure B" and
g) With respect to 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 as referred to in Note No 28 to the financial statements
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses and
iii) There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company
Annexure - A to the Independent Auditors'' Report
The Annexure ''A'' referred to in our Independent Auditors'' Report to the members of the Company on the financial statements for the year ended 31 March 2016, we report that:
i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets
b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner. In accordance with this programme certain fixed assets were verified by the management during the year and no material discrepancies were noticed on such verification In our opinion this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets
c) In our opinion and according to the information and explanations given to us and on the basis of examination of the records of the company the title deeds of immovable properties are held in the name of the company
ii) The inventory has been physically verified by the management at reasonable intervals during the year No material discrepancy was noticed on physical verification of stocks by the management as compared to book records
iii) In our opinion and according to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans secured or unsecured to companies firms Limited Liability partnerships or other parties listed in the register maintained under section 189 of the Companies Act 2013 (''the Act''). Consequently the provisions of Clauses iii (a) iii (b) and iii(c) of the Order are not applicable to the Company
iv) In our opinion and according to the information and the explanations given to us the Company has not granted any loans or provided any guarantees or securities to the parties covered under the section 185 of the Act The Company has complied with the provisions of section 186 of the Act in respect of investments made or loans or guarantee or security provided
v) The Company has not accepted any deposits from the public
vi) As per the information and explanation given by the management maintenance of cost records has been prescribed by the Central Government and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained under section 148(1) of the Act by the company
vii) a) According to the information and explanation given to us and on the basis of our examination of the records of the
Company, the undisputed statutory dues including provident fund Employee''s State Insurance, income tax sales tax service tax, duty of customs duty of excise value added taxes cess and any other material statutory dues as applicable have been regularly deposited during the year by the Company with the appropriate authorities According to the information and explanations given to us no undisputed amounts payable in respect above dues were in arrears as at 31st March 2016 for a period of more than six months from the date they became payable
b) According to the information and explanations given to us, the disputed statutory dues in case of income tax sales tax wealth tax service tax duty of customs duty of excise value added taxes and cess aggregating to Rs1579.62 Lakhs that have not been deposited on account of matters pending before appropriate authority are as under
Name of the |
Nature of |
Amount |
Period to which the |
Forum where dispute |
Statute |
Dues |
(Rs in Lakhs) |
Amount Relates to |
is pending |
Income Tax Act 1961 |
Income Tax |
1579.62 |
Assessment Year 2012 - 13 |
Commissioner of Income Tax (Appeals) Coimbatore |
viii) According to the information and explanations given to us the Company has not defaulted in repayment of dues to financial institutions banks and Government during the year The company has not issued any debentures and hence there are no dues to debenture holders
ix) The Company has not raised any money by way of Initial Public Offer or further public offer (including Debt instruments) during the year According to the information and explanations given to us the term loans are applied for the purposes for which the loans were obtained
x) According to the information and explanations given to us no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year
xi) According to the information and explanations given to us and based on the examination of the records the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act
xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company Accordingly para 3(xii) of the Order is not applicable
xiii) According to the information and explanations given to us and based on our examination of the records of the Company transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable The details of such related party transactions have been disclosed in the financial statements as required under the Accounting Standard (AS 18 - Related Party Transactions)
xiv) According to the information and explanations given to us and based on our examination of the records the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review
xv) According to the information and explanations given to us and based on our examination of the records the Company has not entered into non-cash transactions with the Directors or persons connected with them Accordingly para 3(xv) of the Order is not applicable
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934 Accordingly the provisions of Clause 3(xvi) of the Order are not applicable to the Company
Annexure ''B'' to the Independent Auditors'' Report of even date on the Financial Statements of Bannari Amman Sugars Limited
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of section 143 of the Act
We have audited the internal financial controls over financial reporting of Bannari Amman Sugars Limited ("the Company") as of 31st March 2016 in conjunction with our audit of the 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 controls over financial reporting criteria established by the Company considering the essential components of the internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by The Institute of Chartered Accountants of India (ICAI) These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to Company''s policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013
Auditor''s responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit We conducted our audit in accordance with Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of Internal Financial Controls, both applicable to an audit of Internal Financial Controls and both issued by the ICAI 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 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 risks The procedures selected depend on the auditor''s judgment including the assessment of the risk of material misstatements 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 controls 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 expenditure 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 limitation 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 internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls over financial reporting may become inadequate because of changes in condition or that the degree of compliance with the policies or procedures may deteriorate
Opinion
In our opinion the Company has in all material respects an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2016 based on the internal controls 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 Control Over Financial Reporting issued by ICAI
For P N RAGHAVENDRA RAO & CO
Chartered Accountants
P R VITTEL
Partner
Place: Coimbatore M No 200/18111
Date ⢠23 11 20! 6 ICAI Firm Regn. No: 003328S
Mar 31, 2015
We have audited the accompanying financial statements of Bannari Amman
Sugars Limited ("the Company") which comprise the Balance Sheet as at
March 31 2015 the Statement of Profit and Loss the Cash Flow Statement
for the year then ended and a summary of the significant accounting
policies and other explanatory information
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India including the Accounting Standards specified under
Section 133 of the Act read with Rule 7 of the Companies (Accounts)
Rules 2014 This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities selection and application of
appropriate accounting policies making judgments and estimates that are
reasonable and prudent and design implementation and maintenance of
adequate internal financial controls that were operating effectively
for ensuring the accuracy and completeness of the accounting records
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement whether due to fraud or error
Auditors' 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 misstatements
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements The procedures
selected depend on the auditor's judgment including the assessment of
the risks of material misstatement of the financial statements whether
due to fraud or error In making those risk assessments the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's directors as well as
evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements
Opinion
In our opinion and to the best of our information and according to the
explanations given to us the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at March 31 2015 and its profit and its 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 2015 ('the
order') issued by the central Government of India in terms of
sub-section 11 of section 143 of the Companies Act 2013 we give in the
Annexure a statement on the matters specified in the 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) On the basis of the written representations received from the
directors as on March 31 2015 taken on record by the Board of Directors
none of the directors is disqualified as on March 31 2015 from being
appointed as a director in terms of Section 164 (2) of the Act
f) With respect to the other matters to be included in the Auditor's
Report in accordance with the 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 as referred to in Note
28 to the financial statements
ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses
iii) There has been no delay in transferring amounts required to be
transferred to the Investor Education and Protection Fund by the
Company
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the company on the financial statements for the
year ended 31 March 2015 we report that:
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets
b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner In
accordance with this programme certain fixed assets were verified
during the year and no material discrepancies were noticed on such
verification In our opinion this periodicity of physical verification
is reasonable having regard to the size of the company and the nature
of its assets
ii) a) Inventories have been physically verified during the year by the
management at reasonable intervals
b) In our opinion and according to the information and explanations
given to us the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business
c) In our opinion and on the basis of our examination of the records
the company is generally maintaining proper records of its inventories
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records
iii) According to the information and explanations given to us and on
the basis of our examination of the books of account the Company has
not granted any loans secured or unsecured to the companies firms or
other parties listed in the register maintained under Section 189 of
the Companies Act 2013 ('the Act') Consequently the provisions of
Clauses iii (a) iii (b) and of the Order are not applicable to the
company
iv) In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory fixed assets and sale of goods and services
During the course of our audit we have not observed any major weakness
in the internal control system
v) The Company has not accepted any deposits from the public
vi) As per information & explanation given by the management
maintenance of cost records has been prescribed by the Central
Government and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained under Section 148(1)
of the Companies Act 2013 by the company
vii) a) According to the information and explanations given to us and
on the basis of our examination of the records of the
company the undisputed statutory dues including provident fund
Employee's State Insurance income tax sales tax wealth tax service tax
duty of customs duty of excise value added taxes cess and any other
material statutory dues have been regularly deposited during the year
by the company with the appropriate authorities According to the
information and explanations given to us no undisputed amounts payable
in respect of the above dues were in arrears as at 31 March 2015 for a
period of more than six months from the date they became payable
b) According to the information and explanations given to us the
disputed statutory dues (in case of income tax sales tax wealth tax
service tax duty of customs duty of excise value added taxes and cess)
aggregating to Rs1579.62 Lakhs that have not been deposited on account
of matters pending before appropriate authority are as under :
Name of the Nature of Amount Period to which the
Statute Dues (Rs in Lakhs) Amount Relates to
Income Tax Income Tax 1579.62 Assessment Year
Act 1961 2012 - 13
Name of the Forum where dispute
Statute is pending
Income Tax Commissioner of Income Tax
Act 1961 (Appeals) Coimbatore
c) According to the information and explanations given to us the
amounts which were required to be transferred to the Investor Education
and Protection Fund in accordance with the relevant provisions of the
Companies Act 1956 (1 of 1956) and rules thereunder has been
transferred to such fund within time
viii) The Company does not have any accumulated losses at the end of
the financial year The Company has not incurred cash losses in the
financial year and in the immediately preceding financial year
ix) The Company did not have any outstanding dues to financial
institutions banks or debenture holders during the year
x) In our opinion and according to the information and the explanations
given to us the company has not given any guarantee for loans taken by
others from banks or financial institutions.
xi) According to the information and explanations given to us the term
loans are applied for the purpose for which the loans were obtained
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
our audit
For P N RAGHAVENDRA RAO & CO
Chartered Accountants
P R VITTEL
Partner
Coimbatore M No 200/18111
29.5.2015 ICAI Firm Regn. No: 003328S
Mar 31, 2014
We have audited the accompanying financial statements of M/s Bannari
Amman Sugars Limited ("the Company") which comprise the Balance Sheet
as at 31st March 2014 the Statement of Profit and Loss and 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 Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act 1956 ("the Act") read with General circular 15/2013 dated 13th
September 2013 of the Ministry of the Corporate Affairs in respect of
Section 133 of the Companies Act 2013 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
Auditors'' responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit We conducted our audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements The procedures
selected depending on the auditors'' judgment including the assessment
of the risks of material misstatement of the financial statements
whether due to fraud or error In making those risk assessments the
auditor considers internal control relevant to the company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances
but not for the purpose of expressing an opinion on the effectiveness
of the Company''s internal control An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Management as well as evaluating the
overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion
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 2014
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
1 As required by the Companies (Auditor''s Report) Order 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the 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 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 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 Balance Sheet Statement of Profit and Loss and the
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act 1956 ("the Act") read with General Circular 15/2013
dated 13th September 2013 of the Ministry of the Corporate Affairs in
respect of Section 133 of the Companies Act 2013
e On the basis of the written representations received from the
directors as on 31st March 2014 taken on record by the Board of
Directors none of the directors is disqualified as on 31st March 2014
from being appointed as a director in terms of Clause (g) of
sub-section (1) of Section 274 of the Act
Annexure to Independent Auditors'' Report
The Annexure referred to in our report to the members of M/s Bannari
Amman Sugars Limited ("the Company") on the accounts of the company for
the year ended 31st March 2014
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit we report that:
i a The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets
b As explained to us fixed assets have been physically verified by the
management at reasonable intervals no material discrepancies were
noticed on such verification
c Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern assumption
ii a As explained to us inventories have been physically verified
during the year by the management at reasonable intervals
b In our opinion and according to the information and explanations
given to us the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business
c. In our opinion and on the basis of our examination of the records
the Company is generally maintaining proper records of its inventories
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records
iii a. According to the information and explanations given to us and on
the basis of our examination of the books of account the Company has
not granted any loans secured or unsecured to companies firms or other
parties listed in the register maintained under Section 301 of the
Companies Act 1956 Consequently the provisions of Clauses iii (b) iii
(c) and iii (d) of the Order are not applicable to the Company
e. According to the information and explanations given to us and on the
basis of our examination of the books of account the Company has not
taken loans from companies firms or other parties listed in the
register maintained under Section 301 of the Companies Act 1956 Thus
Sub Clauses (f) & (g) are not applicable to the company
iv In our opinion and according to the information and explanations
given to us there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business for the purchase of inventories & fixed assets and payment for
expenses & for sale of goods and services During the course of our
audit we have not observed any continuing failure to correct major
weaknesses in internal control system of the company
v a In our opinion and according to the information and explanations
given to us the particulars of all contracts or arrangements 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
furnished to us the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act 1956 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
vi The Company has not accepted any deposits from the public Therefore
the provisions of Clause 4(vi) of the Companies (Auditor''s Report)
Order 2003 are not applicable
vii In our opinion the company has an internal audit system
commensurate with the size and nature of its business
viii As per information & explanation given by the management
maintenance of cost records has been prescribed by the Central
Government under Clause (d) of Sub-Section (1) of Section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained
ix a According to the records 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 Service tax Customs Duty Excise Duty
Cess and other material statutory dues applicable to it. According to
the information and explanations given to us no undisputed amounts
payable in respect of aforesaid dues were outstanding as at 31st March
2014 for a period of more than six months from the date they became
payable
b The disputed statutory dues aggregating to Rs 345.73 Lakhs that have
not been deposited on account of matters pending before appropriate
authority are as under:
Name of the Nature of Amount Period to
which the Forum where dispute
Statute Dues (Rs in
Lakhs) Amount
Relates is pending
Income Tax Income Tax 18.70 Assessment
Year
Act 1961 2011-12 Commissioner of
Income Tax(Appeals)
Income Tax Income Tax 327.03 Assessment
Year
Coimbatore
Act 1961 2007 - 08
x The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year
xi In our opinion and according to the information and explanation
given to us the Company has not defaulted in repayment of dues to
financial institutions or banks
xii According to the information and explanations given to us the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities
xiii In our opinion the Company is not a chit fund/nidhi/mutual benefit
fund/society Therefore the provisions of Clause (xiii) of paragraph 4
of the Order are not applicable to the Company
xiv According to information and explanations given to us the Company
is not dealing or trading in shares securities debentures and other
investments
xv According to the information and explanations given to us the
Company has not given any guarantee for loans taken by others from
banks or financial institutions
xvi In our opinion the term loans have been applied for the purpose for
which they have been raised
xvii According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company we report
that the no funds raised on short term basis have been used for long
term investments
xviii According to the information and explanations given to us the
company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under Section 301 of
the Companies Act 1956
xix The Company has not issued any debentures during the year
xx The Company has not raised any money by way of public issue during
the year
xxi According to the information and explanations given to us no fraud
on or by the company has been noticed or reported during the course of
our audit
For P N RAGHAVENDRA RAO & CO
Chartered Accountants
P R VITTEL
Partner
Coimbatore M No 200/18111
30 5 2014 ICAI Firm Regn. No: 003328S
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. Bannari
Amman Sugars limited ("the Company"), which comprise the Balance sheet
as at 31st March 2013 the Statement of profit and loss and 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 Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act 1956 ("the Act") This
responsibility includes the design implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement whether due to fraud or error
Auditors'' responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit We conducted our audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements The
procedures selected depend on the 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 the internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the Management as well as evaluating the overall
presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion Opinion
In our opinion and to the best of our information and according to the
explanations given to us the financial statements give the information
required by the Act In the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India :
a. In the case of the balance sheet of the state of affairs of the
Company as at 31st March, 2013:
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
1. As required by the Companies (Auditor''s Report) Order, 2003("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the 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 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 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 Balance sheet Statement of profit and loss and
the cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 221 of the Act
e. On the basis of the written representations received from the
directors as on 31st March 2013 taken on record by the Board of
Directors 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 Act
Annexure to Independent Auditors'' Report
The Annexure referred to in our report of the members of M/s. Bannari
Amman Sugars Limited (the Company) on the accounts of the company for
the year ended 31st March, 2013
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit we report that :
1 In respect of its fixed assets :
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets
b. As explained to us fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification
c. Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern assumption
2 a. As explained to us inventories have been physically verified
during the year by the management at reasonable intervals
b. In our opinion and according to the information and explanations
given to us the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business
c. In our opinion and on the basis of our examination of the records
the Company is generally maintaining proper records of its inventories
As explained to us there were no material discrepancy noticed on
physical verification of inventories by the management as compared to
book records
3 a. According to the information and explanations given to us and on
the basis of our examination of the books of account the Company has
not granted any loans secured or unsecured to companies firms or other
parties listed in the register maintained under Section 301 of the
Companies Act 1956
b. According to the information and explanations given to us and on
the basis of our examination of the books of account the Company has
not taken loans from companies firms or other parties listed in the
register maintained under Section 301 of the Companies Act 1956
4 In our opinion and according to the information and explanations
given to us there exists an and adequate internal control procedure
commensurate with the size of the company and the nature of its
business for the purchase of inventories & fixed assets and payment for
expenses & for sale of goods and services During the course of our
audit we have not observed any continuing failure to correct major
weaknesses in internal control system of the company
5 a. In our opinion and according to the information and explanations
given to us the particulars of all contracts or arrangements 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 furnished to us the
transactions made in pursuance of contacts or arrangements entered in
the register maintained under section 301 of the Companies Act 1956 and
exceeding the value of rupees five lakhs in respect of any party during
the year have been made at prices which are reasonable having regard to
the prevailing market prices at the relevant time
6 The Company has not accepted any deposits from the public Therefore
the provisions of clause 4(vi) of the Companies (Auditor''s Report)
Order 2003 are not applicable
7 In our opinion the company has an internal audit system commensurate
with the size and nature of its business
8 We have broadly reviewed the cost records maintained by the company
pursuant of the Companies (Cost Accounting Records) Rules 2011
prescribed by the Central Government under clause (d) of sub-section
(1) of section 209 of the Act and we are of the opinion that prima
facie the prescribed accounts and records have been made and maintained
We have not however made a detailed examination of the same
9 a. According to the records 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 Service tax Customs Duty Excise Duty
Cess and other material statutory dues applicable to it According to
the information and explanations given to us no undisputed amounts
payable in respect of aforesaid dues were outstanding as at 31st March,
2013 for a period of more than six months from the date they became
payable
b. The disputed statutory dues aggregating to Rs.1684.27 lakhs that
have not been deposited on account of matters pending before
appropriate authority are as under :
Name of the Nature of Amount
Statute Dues (Rs in Lakhs)
Income Tax Income Tax 1684.27
Act 1961
Name Period to which the Forum where dispute
Amount Relates is pending
Income Tax
ACT 1961 Assessment Year CIT (Appeals),
2010 - 11 Coimbatore
10 The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year
11 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 or banks
12 According to the information and explanations given to us the
Company has not granted loans and advances on the basis of security by
way of pledge of shares debentures and other securities
13 In our opinion the Company is not a chit fund/nidhi/mutual benefit
fund/society Therefore the provisions of clause (xiii) of paragraph 4
of the order are not applicable to the Company
14 According to information and explanations given to us, the Company
is not dealing or trading in shares securities debentures and other
investments Therefore clause 4(xiv) of the Companies (Auditor''s Report)
order 2003 is not applicable to the company
15 According to the information and explanations given to us the
Company has not given any guarantee for loans taken by others from
banks or financial institutions
16 The company has raised new term loans during the year The term loans
outstanding at the beginning of the year and those raised during the
year have been applied for the purpose for which they have been raised
17 According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company we report that
no funds raised on short term basis have been used for long term
investments
18 According to the information and explanations given to us the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under Section 301 of
the Companies Act 1956
19 The Company has not issued any debentures during the year
20 The Company has not raised any money by way of public issue during
the year
21 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
our audit
For P N RAGHAVENDRA RAO & CO
Chartered Accountants
P R VITTEL
Partner
Coimbatore M No 200/18111
30.5.20T3 ICAI Firm Regn. No: 003328S
Mar 31, 2012
We have audited the attached Balance Sheet of M/s Bannari Amman Sugars
Limited as at 31.3.2012 , Statement of Profit and Loss and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the company s
management. Our responsibility is to express an opinion on these
financial statements based on our audit
We conducted our audit in accordance with 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
I 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 furnish below a statement on the
matters specified in paragraphs 4 and 5 of the said Order
i) In respect of its fixed assets
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets
b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which
in our opinion is reasonable having regard to the size of the company
and nature of its assets. No material discrepancies were noticed on
such verification
c) During the year the Company has not disposed off substantial part of
fixed assets
ii In respect of its inventories
a) The inventories have been physically verified by the management. In
our opinion the frequency of verification is reasonable
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business
c) The Company is maintaining proper records of inventories. As
explained to us there were no material discrepancies noticed on
physical verification of inventory as compared to the book records
iii a) 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
b) The Company has not taken any inter-corporate deposit from a company
covered in the register maintained under section 301 of the Companies
Act, 1956
iv In our opinion and according to the information and explanations
given to us there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory fixed assets and with
regard to the sale of goods and services. During the course of our
audit we have not observed any continuing failure to correct major
weaknesses in internal control system of the company
v a) In our opinion and according to the information and explanations
given to us the particulars of all contracts or arrangements 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
furnished to us the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act 1956 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
vi The Company has not accepted any deposits from the public. Therefore
the provisions of clause 4(vi) of the Companies (Auditors Report)
Order 2003 are not applicable
vii In our opinion the Company has an internal audit system
commensurate with the size and nature of its business
viii We have broadly reviewed the cost records maintained by the
company pursuant of the Companies (Cost Accounting Records) Rules 2011
prescribed by the central government under Section 209 (1) (d) of the
Companies Act 1956 and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have
not however made a detailed examination of the same
ix In respect of statutory dues
a) 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, Service tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it. According to the information
and explanations given to us no undisputed amounts payable in respect
of the aforesaid dues were outstanding as at 31st M arch 2012 for a
period of more than six months from the date they became payable
b) The disputed statutory dues aggregating to Rs 695.40 Lakhs that have
not been deposited on account of matters pending before appropriate
authority are as under .
Name of the Nature of Amount Period to
ststute Due (Rsin lakhs) which the Forum where dispute
Income Tax Income Tax 695.40 April 2008
to The Commissioner of
Act 1961 March 2009 Income Tax (Appeals)
Coimbatore
x The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year
xi In our opinion and according to the information and explanation
given to us the Company has not defaulted in repayment of dues to
financial institutions or banks
xii In our opinion and according to the information and explanation
give to us no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares debentures and other
securities
xiii In our opinion the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore clause 4 (xiii) of the Companies
(Auditor s Report) Order 2003 is not applicable to the Company
xiv In our opinion the Company is not dealing in or trading in shares
securities debentures and other investments. Therefore clause 4(xiv) of
the Companies (Auditor s Report) Order 2003 is not applicable to the
Company
xv According to information and explanations given to us the Company
has not given any guarantee for loans taken by others from banks or
financial institutions
xvi In our opinion the term loans have been applied for the purpose for
which they have been raised
xvii According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company are report
that the no funds raised on short term basis have been used for long
term investment
xviii According to the information and explanations given to us the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act 1956
xix The Company has not issued debentures during the year
xx The Company has not raised any money by way of public issue during
the year
xxi According to the information and explanations given to us no fraud
on or by the Company has been noticed or reported during the course of
our audit
II Further to the above are report that
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account
d) In our opinion the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the 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 31 st M arch
2012 from being appointed as directors 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 the case of the Balance Sheet of the state of affairs of the
Company as at 31st March 2012
(ii) In the case of the Statement of Profit and Loss of the Profit for
the year ended on that date and
(iii) In case of the Cash Flow Statement of the cash flows for the year
ended on that date
For P N RAGHAVENDRA RAO & CO
Chartered Accountants
P R VITTEL
Partner
Coimbatore M No 200/18111
25.5.2012 ICAI Firm Regn. No: 003328S
Mar 31, 2011
We have audited the attached Balance Sheet of M/s Bannari Amman Sugars
Limited as at 31.3.2011, the Profit and Loss Account and also the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit
We conducted our audit in accordance with 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
I 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 furnish
below a statement on the matters specified in paragraphs 4 and 5 of the
said Order
1 In respect of its fixed assets
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets
b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which
in our opinion is reasonable having regard to the size of the company
and nature of its assets. No material discrepancies were noticed on
such verification
c) During the year the Company has not disposed off substantial part of
fixed assets
2 In respect of its inventories
a) The inventories have been physically verified by the management. In
our opinion the frequency of verification is reasonable
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business
c) The Company is maintaining proper records of inventories. As
explained to us there were no material discrepancies noticed on
physical verification of inventory as compared to the book records
3 a) 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
b) The Company has taken inter-corporate deposit of Rs 50 Crores from a
Company covered in the register maintained under section 301 of the
Companies Act 1956. The deposit has been fully repaid. The maximum
amount involved during the year is Rs 50 Crores and the year end
balance of deposit taken from such party was Rs Nil
c) The rate of interest and other terms and conditions of the deposit
are not prima-facie prejudicial to the interest of the company
d) The repayment and payment of interest are regular and there is no
overdue amount
4 In our opinion and according to the information and explanations
given to us there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory fixed assets and with
regard to the sale of goods. During the course of our audit we have not
observed any continuing failure to correct major weaknesses in internal
control system of the company
5 a) In our opinion and according to the information and explanations
given to us the particulars of all contracts or arrangements 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
furnished to us the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act 1956 and exceeding the value of Rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time
6 The Company has not accepted any deposits from the public. Therefore
the provisions of clause (vi) of the Companies (Auditor's Report) Order
2003 are not applicable
7 In our opinion the Company has an internal audit system commensurate
with the size and nature of its business
8 We have broadly reviewed the books of accounts relating to material,
labour and other items of cost maintained by the Company pursuant to
the Rules made by the Central Government for the maintenance of Cost
Records under Section 209 (1) (d) of the Companies Act 1956 and we are
of the opinion that prima facie the prescribed accounts and records
have been made and maintained. We have not however made a detailed
examination of the same
9 In respect of statutory dues
a) The Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Emplyees State Insurace, Income-tax, Sales-tax,
Wealth tax, Service tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it
b) According to the information and explanations given to us no
undisputed amounts payable in respect of Income-tax, Sales-tax,
Wealth-tax, Service-tax, Customs Duty and Excise Duty were in arrears
as at 31st March 2011 for a period of more than six months from the
date they became payable
c) The disputed statutory dues aggregating to Rs 554.84 Lakhs that have
not been deposited on account of matters pending before appropriate
authority are as under
Name of the Nature of Amount Period to
which the Forum where
dispute
Statute the Dues (Rs in
Lakhs) Amount
Relates is pending
Income Tax Income Tax 404.85 April 2007
to The Commissioner
of
Act 1961 March 2008 Income Tax
(Appeals)
Coimbatore
Central
Excise Excise Duty 149.99 20.9.1991
to The Commissioner
of
Act 1944 31.1.1994 Central Excise
Salem
10 The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit and in the
immediately preceding financial year
11 In our opinion and according to the information and explanation
given to us the Company has not defaulted in repayment of dues to
financial institutions or banks
12 In our opinion and according to the information and explanation give
to us no loans and advances have been granted by the Company on the
basis of security by way of pledge of shares debentures and other
securities
13 In our opinion the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor's Report) Order 2003 are not applicable to the
Company
14 In our opinion the Company is not dealing in or trading in shares
securities debentures and other investments. Therefore the provisions
of clause 4(xiv) of the Companies (Auditor's Report) Order 2003 are not
applicable to the Company
15 According to information and explanations given to us the Company
has not given any guarantee for loans taken by others from banks or
financial institutions
16 In our opinion during the year under audit the Company has not
obtained any term loans
17 According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company we report that
the no funds raised on short term basis have been used for long term
investment
18 According to the information and explanations given to us the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under Section 301 of
the Companies Act 1956
19 The Company has not issued debentures during the year
20 The Company has not raised any money by way of public issue during
the year
21 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
our audit
II Further to the above we report that
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
d) In our opinion the Balance Sheet Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Secting 211 of the
Companies Act 1956
e) On the basis of written representations received from the directors
as on 31st March 2011 and taken on record by the Board of Directors we
report that none of the directors is disqualified as on 31st March 2011
from being appointed as directors 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 the case of the Balance Sheet of the state of affairs of the
Company as at 31st 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 case of the Cash Flow Statement of the cash flows for the year
ended on that date
For P N RAGHAVENDRA RAO & CO
Chartered Accountants
P R VITTEL
Partner
Coimbatore M No 200/18111
23.5.2011 ICAI Firm Regn. No: 003328S
Mar 31, 2010
We have audited the attached Balance SheetofM/s Bannari Amman Sugars
Limited as at 31.3.2010, the Profitand Loss Account and Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the compan/s management.
Our responsibility is to express an opinion on these financial
statements based on our audit
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on 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
I As required by the Companies (Auditors Report) Order 2003 issued by
the Government of India in terms of sub-section (4A) of section 227 of
the Companies Act, 1956, we furnish below a statement on the matters
specified in paragraphs 4 and 5 of the said Order
1 In respect of its fixed assets
a The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information
b As explained to us, the fixed assets have been physically verified by
the management during the year in a phased periodical manner, which in
our opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification
c The company has not disposed off substantial part of fixed assets
during the year
2 In respect of its inventories
a As explained to us, inventories have been physically verified by the
management at reasonable intervals during the year
b In our opinion and accordingto the information and explanations given
to us, the procedures of physical verification of inventories followed
by the management are reasonable and adequate in relation to the size
of the company and the nature of its business
c The company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records
3 a 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. The company
has taken inter-corporate deposit of Rs.98 Crores from a company
covered in the register maintained under section 301 of the Companies
Act, 1956. The deposits have been fully repaid before the year end b In
our opinion, the rate of interest and other terms and conditions of the
deposits are not, prima facie, prejudical to the interest of the
company
c The payment of principal amount and interest are regular and there is
no overdue amount in respect of above said deposits
4 In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and also forthe
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal controls
5 a In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act,l 956 have been entered
in the register required to be maintained under that Section: and
b In our opinion and according to the information and explanations
furnished to us, the transactions made in pursuance of such contracts
or arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time
6 The company has not accepted any deposits from the public
7 In our opinion, the internal audit system of the company is
commensurate with its size and nature of its business
8 The Central Government has prescribed maintenance of Cost Records
under Section 209(1 }(d) of the Companies Act, 1956 in respect of
certain manufacturing activities of the company. We have broadly
reviewed the accounts and records of the company in this connection
and are of the opinion, that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however,
made a detailed examination of the same
9 In respect of statutory dues
a According to the records of the company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income-tax, Sales-tax, Wealth tax, Service
tax, Customs Duty, Excise Duty, Cess and other statutory dues have been
generally regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at31st March, 201 0 for a period of more than six months
from the date of becoming payable
b The disputed dues of Excise duty aggregating to Rs 1 49.99 Lakhs,
have not been deposited on account of matters pending before
appropriate authorities is as under
Central Excise , Excise Duty 149.99 20.9.1991 to High Court,
Act, 1944 31.1.1994 Chennai
10 The company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year
11 Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the company has not
defaulted in repayment of dues to financial institutions or banks
12 In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities
13 In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, clause 4(xiii) of the Companies
(Auditors Report) Order 2003 is not applicable to the company
14 The company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, clause 4(xiv) of the
Companies (Auditors Report) Order 2003 is not applicable to the
company
15 According to information and explanations given to us, the company
has not given any guarantee for loans taken by others from banks or
financial institutions
16 To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
company were prima facie, applied by the Company during theyearforthe
purpose for which the loans were obtained
17 According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company, we are of the
opinion that the company has not utilised short-term funds for
long-term investments
18 During the year, the company has not made any preferential allotment
of shares to parties and companies covered in the Register maintained
under Section 301 of the Companies Act, 1 956
19 The company has not issued debentures during the year
20 The company has not raised any money by wayof public issue during
the year
21 In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year that causes the financial statements to be materially
misstated
II Further to the above, we report that
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account, as required by law, have
been kept by the Company, so far as appears from our examination of
those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred in sub-section (3C) of Section 21 1 of
the Companies Act, 1956;
e) In our opinion, and based on information and explanations given to
us, none of the directors are disqualified as on 31st March, 2010 from
being appointed as directors in terms of clause (g) of sub-Section (1)
of section 274 of the Companies Actl956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the Companies Act, 1 956, in the manner so
required, and present a true and fair view, in conformity with the
accounting principles generally accepted in India
(i) In so far as it relates to Balance Sheet, of the state of affairs
of the company as at31st March,2010;
(ii) In so far as it relates to the Profit and Loss Account, of the
Profit of the company for the year ended on that date: and
(iii) In so far as it relates to the Cash Flow Statement, of the cash
flows of the company for the year ended on that date
For P N RAGHAVENDRA RAO & CO
Chartered Accountants
P R VITTEL
Coimbatore Partner
27.5.2010 M No 200/18111