Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Dhampur Sugar Mills Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone 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 standalone Ind AS financial statements that give a true and fair view of the 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 standalone 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 standalone 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 standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone 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 standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at March 31, 2018, and its profit/loss (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 March 2017 and the transition date opening balance sheet as at April 01, 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended March 31, 2017 and March 31, 2016 dated May 25, 2017 and May 10, 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Our opinion is not modified in respect of these matters. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give inâAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order ;
2. As required by Section143(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 Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such Controls, refer to our separate report in Annexure -âBâ
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements.
ii. The Company does not have any long-term contracts including derivative contracts for which there are any material foreseeable losses.
iii. As explained, there has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company.
(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) The Company has a phased program of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. The management has verified major fixed assets during the year and as explained there is no material discrepancy on such verification.
(c) The title deeds of the immovable properties, as disclosed in the financial statements, are held in the name of the company.
(ii) The inventories except goods in transit have been physically verified by the management at reasonable interval during the year. In our opinion and according to the information and explanations given to us, the frequency of such verification is reasonable. As explained to us, no material discrepancies were noticed on physical verification of inventories as compared to book records.
(iii) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the Company has not granted any loan secured or unsecured to the companies, firms, limited liability partnership and other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly paragraph 3(iii) of the order is not applicable to the company.
(iv) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the company has not granted any loans, or provided any security or guarantee to the parties covered under Section 185 of the Companies Act, 2013. The Company has complied with the provisions of section 186 of the Companies Act, 2013 in respect of investment made or loans or guarantee or security provided to the parties covered under section 186 of the Companies Act, 2013.
(v) According to the information and explanations given to us, in our opinion, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and rules framed there under in respect of deposits accepted during the year. As informed to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal in this connection.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost records and Audit) Rules, 2014 under section 148 of the Companies Act and are of the opinion that, prima facie, the prescribed cost record have been made and maintained. We have however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of provident fund, investor education and protection fund, employeesâ state insurance, income tax, sales tax, service tax, customs duty, excise duty, value added tax, cess and other material statutory dues, as applicable, with the appropriate authorities except for demand raised by Income Tax Authorities at the time of processing of TDS return. There are no undisputed statutory dues as referred to above as at March 31, 2018 outstanding for a period of more than six months from the date they become payable except for demand raised by Income Tax Authorities at the time of processing of TDS return aggregating to â 0.06 Crores. We have been informed by the Company that they are in process of getting these returns rectified and are hopeful that these demands will be substantially reduced after rectification.
(b) According to the information and explanations given to us, the particulars of Income tax, Service-tax, Sales-tax, Custom Duty, Excise Duty, Entry tax, Value Added Tax, which have not been deposited on account of any dispute, are as referred to Annexure -âA1â
(viii)According to the information and explanations given to us, in our opinion, the Company has not defaulted in repayment of loans and borrowings to any financial institution, bank and government during the period. The Company has not borrowed any money by way of issue of debentures.
(ix) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the money raised by the Company by way of term loans have been applied for the purposes for which they were obtained.
(x) To the best of our knowledge and belief and according to the information and explanations given to us, no material fraud on or by the Company by its officers or employees was noticed or report during the year.
(xi) According to the information and explanations given to us and based on our examinations of the records, in our opinion, 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) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the Company is not a Nidhi Company. Accordingly, the paragraph 3(xii) of the Order is not applicable to the Company.
(xiii)According to the information and explanations given to us and based on our examinations of the records, in our opinion, the transactions with related parties are in compliance with the provisions of 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 Indian Accounting Standard (IndAS 24), Related Party Disclosures specified under Section 133 of the Act, read with Rule 15 of the Companies (Indian Accounting Standards) Rules, 2015.
(xiv)According to the information and explanations given to us and based on our examinations of the records, in our opinion, the Company has not raised funds by way of Private placement of Preferential Issues during the year.
xv) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the Company has not entered into any non-cash transactions as specified u/s 192 of the Act, with its directors or persons connected to him. Accordingly, the paragraph 3(xv) of the Order is not applicable to the Company.
(xvi)In our opinion, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
(The Annexure - âA1â referred to in our Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended March 31, 2018)
(Rs.in crores)
S. No. |
Name of the Statute |
Nature of Dues |
Amount in Rs. |
Period to which the amount relates |
Forum where the dispute is pending |
1 |
Central Excise Act, 1944 |
Excise Duty |
0.01 |
2003-04 |
Supreme Court |
2 |
Central Excise Act, 1944 |
Excise Duty |
0.02 |
2005-06 |
Supreme Court |
3 |
Central Excise Act, 1944 |
Excise Duty |
0.01 |
2012-13 |
Supreme Court |
4 |
Central Excise Act, 1944 |
Excise Duty |
# |
2012-13 |
Supreme Court |
Sub-total |
0.04 |
||||
1 |
Central Excise Act, 1944 |
Excise Duty |
# |
1998-99 |
High Court |
2 |
Central Excise Act, 1944 |
Excise Duty |
0.01 |
2001-02 |
High Court |
3 |
Central Excise Act, 1944 |
Excise Duty |
# |
2004-05 |
High Court |
4 |
Central Excise Act, 1944 |
Excise Duty |
# |
2004-05 |
High Court |
5 |
Central Excise Act, 1944 |
Excise Duty |
0.01 |
2004-05 |
High Court |
6 |
Central Excise Act, 1944 |
Excise Duty |
0.02 |
2005-06 |
High Court |
7 |
Central Excise Act, 1944 |
Excise Duty |
0.04 |
2010-11 |
High Court |
8 |
Central Excise Act, 1944 |
Excise Duty |
10.73 |
2011-12 |
High Court |
Sub-total |
10.81 |
||||
1 |
Central Excise Act, 1944 |
Excise Duty |
0.04 |
1995-96 |
CESTAT |
2 |
Central Excise Act, 1944 |
Excise Duty |
# |
1996-97 |
CESTAT |
3 |
Central Excise Act, 1944 |
Excise Duty |
0.26 |
2005-06 |
CESTAT |
4 |
Central Excise Act, 1944 |
Excise Duty |
8.59 |
2006-07 |
CESTAT |
5 |
Central Excise Act, 1944 |
Excise Duty |
1.36 |
2007-08 |
CESTAT |
6 |
Central Excise Act, 1944 |
Excise Duty |
0.23 |
2007-08 |
CESTAT |
7 |
Central Excise Act, 1944 |
Excise Duty |
0.17 |
2007-08 |
CESTAT |
8 |
Central Excise Act, 1944 |
Excise Duty |
2.49 |
2008-09 |
CESTAT |
9 |
Central Excise Act, 1944 |
Excise Duty |
0.04 |
2009-10 |
CESTAT |
10 |
Central Excise Act, 1944 |
Excise Duty |
0.04 |
2009-10 |
CESTAT |
11 |
Central Excise Act, 1944 |
Excise Duty |
# |
2009-10 |
CESTAT |
12 |
Central Excise Act, 1944 |
Excise Duty |
2.89 |
2010-11 |
CESTAT |
13 |
Central Excise Act, 1944 |
Excise Duty |
4.75 |
2010-11 |
CESTAT |
14 |
Central Excise Act, 1944 |
Excise Duty |
3.09 |
2010-11 |
CESTAT |
15 |
Central Excise Act, 1944 |
Excise Duty |
0.03 |
2010-11 |
CESTAT |
16 |
Central Excise Act, 1944 |
Excise Duty |
0.02 |
2010-11 |
CESTAT |
17 |
Central Excise Act, 1944 |
Excise Duty |
0.15 |
2011-12 |
CESTAT |
18 |
Central Excise Act, 1944 |
Excise Duty |
0.02 |
2011-12 |
CESTAT |
19 |
Central Excise Act, 1944 |
Excise Duty |
0.05 |
2011-12 |
CESTAT |
20 |
Central Excise Act, 1944 |
Excise Duty |
0.05 |
2011-12 |
CESTAT |
21 |
Central Excise Act, 1944 |
Excise Duty |
2.08 |
2014-15 |
CESTAT |
22 |
Central Excise Act, 1944 |
Excise Duty |
0.65 |
2014-15 |
CESTAT |
23 |
Central Excise Act, 1944 |
Excise Duty |
0.45 |
2015-16 |
CESTAT |
11 |
Central Excise Act, 1944 |
Excise Duty |
0.06 |
2017-18 |
CESTAT |
12 |
Central Excise Act, 1944 |
Excise Duty |
0.33 |
2017-18 |
CESTAT |
3 |
Central Excise Act, 1944 |
Excise Duty |
0.02 |
2017-18 |
CESTAT |
4 |
Central Excise Act, 1944 |
Excise Duty |
0.05 |
2017-18 |
CESTAT |
5 |
Central Excise Act, 1944 |
Excise Duty |
0.02 |
2017-18 |
CESTAT |
6 |
Central Excise Act, 1944 |
Excise Duty |
0.07 |
2017-18 |
CESTAT |
Sub-total |
28.00 |
||||
1 |
Central Excise Act, 1944 |
Excise Duty |
# |
2001-02 |
Commissioner (Appeals) |
2 |
Central Excise Act, 1944 |
Excise Duty |
0.05 |
2001-02 |
Commissioner (Appeals) |
3 |
Central Excise Act, 1944 |
Excise Duty |
# |
2004-05 |
Commissioner (Appeals) |
4 |
Central Excise Act, 1944 |
Excise Duty |
0.05 |
2009-10 |
Commissioner (Appeals) |
5 |
Central Excise Act, 1944 |
Excise Duty |
0.02 |
2011-12 |
Commissioner (Appeals) |
6 |
Central Excise Act, 1944 |
Excise Duty |
0.29 |
2011-12 |
Commissioner (Appeals) |
7 |
Central Excise Act, 1944 |
Excise Duty |
0.13 |
2015-16 |
Commissioner (Appeals) |
8 |
Central Excise Act, 1944 |
Excise Duty |
0.01 |
2015-16 |
Commissioner (Appeals) |
9 |
Central Excise Act, 1944 |
Excise Duty |
0.01 |
2015-16 |
Commissioner (Appeals) |
10 |
Central Excise Act, 1944 |
Excise Duty |
0.13 |
2016-17 |
Commissioner (Appeals) |
Sub-total |
0.69 |
||||
1 |
Central Excise Act, 1944 |
Excise Duty |
1.39 |
2017-18 |
Additional Commissioner (Appeals) |
2 |
Central Excise Act, 1944 |
Excise Duty |
0.45 |
2017-18 |
Additional Commissioner (Appeals) |
1.84 |
|||||
Total Excise duty demands |
41.38 |
||||
1 |
Service Tax Law |
Service Tax |
0.56 |
2009-10 |
CESTAT |
2 |
Service Tax Law |
Service Tax |
0.03 |
2010-11 |
CESTAT |
Total Service tax demands |
0.59 |
||||
Total Excise duty & Service tax demands |
41.97 |
1 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.01 |
1993-94 |
High Court |
2 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.01 |
1994-95 |
High Court |
3 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.04 |
1995-96 |
High Court |
4 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.09 |
1996-97 |
High Court |
5 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.10 |
1996-97 |
High Court |
6 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.18 |
1997-98 |
High Court |
7 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.35 |
1998-99 |
High Court |
8 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.75 |
1999-00 |
High Court |
9 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.04 |
1999-00 |
High Court |
10 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.40 |
2000-01 |
High Court |
11 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.02 |
2000-01 |
High Court |
12 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.41 |
2001-02 |
High Court |
13 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.16 |
2001-02 |
High Court |
14 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.73 |
2002-03 |
High Court |
15 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.15 |
2002-03 |
High Court |
16 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.49 |
2003-04 |
High Court |
17 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.07 |
2003-04 |
High Court |
18 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.59 |
2004-05 |
High Court |
19 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.26 |
2011-12 |
High Court |
20 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.64 |
2011-12 |
High Court |
Sub-total |
5.49 |
||||
1 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.72 |
1999-00 |
Commercial Tax Tribunal |
2 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
1.12 |
1999-00 |
Commercial Tax Tribunal |
3 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.43 |
2001-02 |
Commercial Tax Tribunal |
4 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
2.65 |
2001-02 |
Commercial Tax Tribunal |
5 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
5.49 |
2005-06 |
Commercial Tax Tribunal |
6 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.05 |
2005-06 |
Commercial Tax Tribunal |
7 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
2.75 |
2006-07 |
Commercial Tax Tribunal |
8 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.04 |
2006-07 |
Commercial Tax Tribunal |
5 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.63 |
2007-08 |
Commercial Tax Tribunal |
6 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.60 |
2007-08 |
Commercial Tax Tribunal |
7 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
1.18 |
2008-09 |
Commercial Tax Tribunal |
8 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
1.77 |
2008-09 |
Commercial Tax Tribunal |
9 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.66 |
2009-10 |
Commercial Tax Tribunal |
10 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
1.08 |
2009-10 |
Commercial Tax Tribunal |
Sub-total |
19.17 |
||||
1 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.01 |
2009-10 |
Additional Commissioner (Appeals) |
2 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.07 |
2012-13 |
Additional Commissioner (Appeals) |
3 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.73 |
2012-13 |
Additional Commissioner (Appeals) |
4 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.10 |
2013-14 |
Additional Commissioner (Appeals) |
5 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
1.77 |
2013-14 |
Additional Commissioner (Appeals) |
6 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.35 |
2014-15 |
Additional Commissioner (Appeals) |
7 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.65 |
2014-15 |
Additional Commissioner (Appeals) |
Sub-total |
3.68 |
||||
Total Trade tax demands |
28.34 |
||||
1 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.82 |
1994-95 |
High court |
2 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
1.06 |
1994-95 |
High court |
3 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
1.25 |
1995-96 |
High court |
4 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.37 |
1995-96 |
High court |
5 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.88 |
2001-02 |
High court |
4.38 |
|||||
1 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.02 |
2000-01 |
Commercial Tax Tribunal |
2 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.51 |
2005-06 |
Commercial Tax Tribunal |
3 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.43 |
2006-07 |
Commercial Tax Tribunal |
4 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.02 |
2007-08 |
Commercial Tax Tribunal |
5 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.21 |
2008-09 |
Commercial Tax Tribunal |
6 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.89 |
2009-10 |
Commercial Tax Tribunal |
Sub-total |
2.08 |
||||
1 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.02 |
2010-11 |
Additional Commissioner (Appeals) |
2 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
2.85 |
2012-13 |
Additional Commissioner (Appeals) |
3 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.43 |
2013-14 |
Additional Commissioner (Appeals) |
4 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.05 |
2014-15 |
Additional Commissioner (Appeals) |
Sub-total |
3.35 |
||||
Total Entry Tax demands |
9.81 |
||||
Total Trade Tax and Entry Tax demands |
38.15 |
Report on the Internal Financial Control under clause (i) of subsection 3 of section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial control over financial reporting of Dhampur Sugar Mills Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone 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 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 (âICAIâ). 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 polices, 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 (âthe Actâ).
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial control over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Control 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, 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 the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence, we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial control system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial controls over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statement 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 disposition of the assets of the company; (2) provide reasonable assurance that transaction are recorded as necessary to permit preparation of financial statement in accordance with generally accepted accounting principles, and that receipt and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition , use ,or disposition of the companyâs assets that could have a material effect on the financial statement.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial control over financial reporting were operating effectively as at March 31, 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 Atul Garg & Associates For T R Chadha & Co LLP
Chartered Accountants Chartered Accountants
Firm Registration No.001544C Firm Registration No.006711N/N500028
Atul Garg Neena Goel
Partner Partner
Membership No. 070757 Membership No. 057986
Place: New Delhi Place: New Delhi
Date: May 09, 2018 Date: May 09, 2018
Mar 31, 2017
To
The Members of
Dhampur Sugar Mills Ltd.
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Dhampur Sugar Mills Limited (âthe Company"), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss, the Cash Flow Statement, and a summary of the significant accounting policies and other explanatory information for the year then ended, in which are incorporated the financial statements for the year ended on that date of two units audited by the branch auditors of the Company.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence, we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true fair view in conformity with accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2017 and its Profit and its Cash flows for the year ended on that date.
Other Matter
We did not audit the financial statements of two units which are included in the standalone financial statements of the Company whose financial statements reflect total assets of Rs. 935.86 Crores as at 31st March, 2017 and total revenues of Rs. 601.62 Crores for the year ended on that date, as considered in the standalone financial statements. The financial statements of two units have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these units, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Order"), issued by the Central Government of India in terms of section 143(11) of the Act, we give in the Annexure - ''A'' a statement on the matters specified in paragraphs 3 and 4 of the Order;
2. As required by Section143(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 reports on the accounts of the two units of the Company audited under Section 143 (8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report.
(d) 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.
(e) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(f) 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.
(g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such Controls, refer to our separate report in Annexure -''B''
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements.
ii. The Company does not have any long-term contracts including derivative contracts for which there are any material foreseeable losses.
iii. As explained, there has been no amount required to be transferred to the Investor Education and Protection Fund by the Company.
(h) the Company has provided requisite disclosures in Note 29 to these (standalone) financial statements, as to holdings of Specified Bank Notes on November 8, 2016 and December 30, 2016 as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. Based on the audit procedures performed and relying on the management representation regarding the holding and nature of cash transactions, including Specified Bank Notes, we report that these disclosures are in accordance with the books of accounts maintained by the company and produced to us by the Management.
Annexure - ''A'' to the Independent Auditors'' Report
The Annexure - ''A'' referred to in our Independent Auditors'' Report of even date to the members of the Company on the standalone financial statements for the year ended 31st March, 2017:
(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) The Company has a phased program of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. The management has verified major fixed assets during the year and as explained there is no material discrepancy on such verification.
(c) The title deeds of the immovable properties, as disclosed in the financial statements, are held in the name of the company.
(ii) The inventories except goods in transit have been physically verified by the management at reasonable interval during the year. In our opinion and according to the information and explanations given to us, the frequency of such verification is reasonable. As explained to us, no material discrepancies were noticed on physical verification of inventories as compared to book records.
(iii) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the Company has not granted any loan secured or unsecured to the companies, firms, limited liability partnership and other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly paragraph 3(iii) of the order is not applicable to the company.
(iv) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the company has not granted any loans, or provided any security or guarantee to the parties covered under Section 185 of the Companies Act, 2013. The Company has complied with the provisions of section 186 of the Companies Act, 2013 in respect of investment made or loans or guarantee or security provided to the parties covered under section 186 of the Companies Act, 2013.
(v) According to the information and explanations given to us, in our opinion, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and rules framed there under. As informed to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal in this connection.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost records and Audit) Rules, 2014 under section 148 of the Companies Act and are of the opinion that, prima facie, the prescribed cost record have been made and maintained. We have however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given
to us and based on our examinations of the records, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of provident fund, investor education and protection fund, employees'' state insurance, income tax, sales tax, service tax, customs duty, excise duty, value added tax, cess and other material statutory dues, as applicable, with the appropriate authorities except for demand raised by Income Tax Authorities at the time of processing of TDS return. There are no undisputed statutory dues as referred to above as at 31st March, 2017 outstanding for a period of more than six months from the date they become payable except for demand raised by Income Tax Authorities at the time of processing of TDS return aggregating to Rs. 0.06 Crores. We have been informed by the Company that they are in process of getting these returns rectified and are hopeful that these demands will be substantially reduced after rectification.
(b) According to the information and explanations given to us, the particulars of Income tax, Service-tax, Sales-tax, Custom Duty, Excise Duty, Entry tax, Value Added Tax, which have not been deposited on account of any dispute, are as referred to Annexure -''A1.
(viii)According to the information and explanations given to us, in our opinion, the Company has not defaulted in repayment of loans and borrowings to any financial institution, bank and government during the period. The Company has not borrowed any money by way of issue of debentures.
(ix) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the money raised by the Company by way of term loans and further public offer through qualified institutional placement have been applied for the purposes for which they were obtained.
(x) To the best of our knowledge and belief and according to the information and explanations given to us, no material fraud on or by the Company was noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and based on our examinations of the records, in our opinion, 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) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the Company is not a Nidhi Company. Accordingly, the paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the transactions with related parties are in compliance with the provisions of 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 Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(xiv)According to the information and explanations given to us and based on our examinations of the records, in our opinion, the Company has complied with the requirements of Section 42 of the Companies Act in respect of preferential allotment of equity shares made during the year to qualified institutional investors and money raised on such allotment has been used for the purpose for which the funds were raised.
xv) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the Company has not entered into any non-cash transactions as specified u/s 192 of the Act, with its directors or persons connected to him. Accordingly, the paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) In our opinion, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Annexure - ''A1'' to the Independent Auditors'' Report
(The Annexure - ''A1'' referred to in our Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31st March, 2017)
( Rs. in crores)
S. No. |
Name of the Statute |
Nature of Dues |
Amount in Rs. |
Period to which the amount relates |
Forum where the dispute is pending |
1 |
Central Excise Act, 1944 |
Excise Duty |
1.08 |
2010-11 |
Supreme Court |
2 |
Central Excise Act, 1944 |
Excise Duty |
0.02 |
2015-16 |
Supreme Court |
3 |
Central Excise Act, 1944 |
Excise Duty |
0.01 |
2016-17 |
Supreme Court |
4 |
Central Excise Act, 1944 |
Excise Duty |
0.01 |
2016-17 |
Supreme Court |
Sub-total |
1.12 |
||||
1 |
Central Excise Act, 1944 |
Excise Duty |
0.04 |
2008-09 |
High Court |
2 |
Central Excise Act, 1944 |
Excise Duty |
10.73 |
2011-12 |
High Court |
3 |
Central Excise Act, 1944 |
Excise Duty |
0.06 |
2012-13 |
High Court |
4 |
Central Excise Act, 1944 |
Excise Duty |
0.01 |
2012-13 |
High Court |
Sub-total |
10.84 |
||||
1 |
Central Excise Act, 1944 |
Excise Duty |
0.04 |
1995-96 |
CESTAT |
2 |
Central Excise Act, 1944 |
Excise Duty |
0.01 |
1996-97 |
CESTAT |
3 |
Central Excise Act, 1944 |
Excise Duty |
0.00 |
2001-02 |
CESTAT |
4 |
Central Excise Act, 1944 |
Excise Duty |
0.07 |
2005-06 |
CESTAT |
5 |
Central Excise Act, 1944 |
Excise Duty |
0.26 |
2005-06 |
CESTAT |
6 |
Central Excise Act, 1944 |
Excise Duty |
1.63 |
2007-08 |
CESTAT |
7 |
Central Excise Act, 1944 |
Excise Duty |
0.23 |
2007-08 |
CESTAT |
8 |
Central Excise Act, 1944 |
Excise Duty |
0.17 |
2007-08 |
CESTAT |
9 |
Central Excise Act, 1944 |
Excise Duty |
0.07 |
2008-09 |
CESTAT |
10 |
Central Excise Act, 1944 |
Excise Duty |
0.71 |
2008-09 |
CESTAT |
11 |
Central Excise Act, 1944 |
Excise Duty |
2.49 |
2008-09 |
CESTAT |
12 |
Central Excise Act, 1944 |
Excise Duty |
0.03 |
2008-09 |
CESTAT |
13 |
Central Excise Act, 1944 |
Excise Duty |
0.01 |
2008-09 |
CESTAT |
14 |
Central Excise Act, 1944 |
Excise Duty |
0.53 |
2009-10 |
CESTAT |
15 |
Central Excise Act, 1944 |
Excise Duty |
0.56 |
2009-10 |
CESTAT |
16 |
Central Excise Act, 1944 |
Excise Duty |
0.04 |
2009-10 |
CESTAT |
17 |
Central Excise Act, 1944 |
Excise Duty |
0.04 |
2009-10 |
CESTAT |
18 |
Central Excise Act, 1944 |
Excise Duty |
8.07 |
2009-10 |
CESTAT |
19 |
Central Excise Act, 1944 |
Excise Duty |
0.20 |
2010-11 |
CESTAT |
20 |
Central Excise Act, 1944 |
Excise Duty |
2.89 |
2010-11 |
CESTAT |
21 |
Central Excise Act, 1944 |
Excise Duty |
4.75 |
2010-11 |
CESTAT |
22 |
Central Excise Act, 1944 |
Excise Duty |
3.09 |
2010-11 |
CESTAT |
23 |
Central Excise Act, 1944 |
Excise Duty |
0.23 |
2010-11 |
CESTAT |
24 |
Central Excise Act, 1944 |
Excise Duty |
0.31 |
2010-11 |
CESTAT |
25 |
Central Excise Act, 1944 |
Excise Duty |
0.18 |
2010-11 |
CESTAT |
26 |
Central Excise Act, 1944 |
Excise Duty |
0.40 |
2010-11 |
CESTAT |
27 |
Central Excise Act, 1944 |
Excise Duty |
0.28 |
2010-11 |
CESTAT |
28 |
Central Excise Act, 1944 |
Excise Duty |
0.17 |
2010-11 |
CESTAT |
29 |
Central Excise Act, 1944 |
Excise Duty |
0.25 |
2010-11 |
CESTAT |
30 |
Central Excise Act, 1944 |
Excise Duty |
0.19 |
2010-11 |
CESTAT |
31 |
Central Excise Act, 1944 |
Excise Duty |
0.14 |
2010-11 |
CESTAT |
32 |
Central Excise Act, 1944 |
Excise Duty |
0.03 |
2010-11 |
CESTAT |
33 |
Central Excise Act, 1944 |
Excise Duty |
0.15 |
2011-12 |
CESTAT |
34 |
Central Excise Act, 1944 |
Excise Duty |
0.02 |
2011-12 |
CESTAT |
35 |
Central Excise Act, 1944 |
Excise Duty |
0.15 |
2011-12 |
CESTAT |
36 |
Central Excise Act, 1944 |
Excise Duty |
0.01 |
2011-12 |
CESTAT |
37 |
Central Excise Act, 1944 |
Excise Duty |
0.02 |
2011-12 |
CESTAT |
38 |
Central Excise Act, 1944 |
Excise Duty |
0.00 |
2011-12 |
CESTAT |
39 |
Central Excise Act, 1944 |
Excise Duty |
0.18 |
2011-12 |
CESTAT |
40 |
Central Excise Act, 1944 |
Excise Duty |
0.04 |
2011-12 |
CESTAT |
41 |
Central Excise Act, 1944 |
Excise Duty |
0.07 |
2012-12 |
CESTAT |
42 |
Central Excise Act, 1944 |
Excise Duty |
2.08 |
2014-15 |
CESTAT |
43 |
Central Excise Act, 1944 |
Excise Duty |
0.14 |
2016-17 |
CESTAT |
Sub-total |
30.93 |
||||
Total Excise duty demands |
42.89 |
||||
1 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.27 |
2004-2005 |
Commercial Tax Tribunal |
2 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.02 |
2007-2008 |
Commercial Tax Tribunal |
3 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.89 |
2009-2010 |
Commercial Tax Tribunal |
Sub-total |
1.18 |
||||
1 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
1.32 |
2005-2006 |
Additional Commissioner (Appeals) |
2 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
1.10 |
2006-2007 |
Additional Commissioner (Appeals) |
3 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.47 |
2008-2009 |
Additional Commissioner (Appeals) |
4 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.65 |
2010-2011 |
Additional Commissioner (Appeals) |
5 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
1.94 |
2011-2012 |
Additional Commissioner (Appeals) |
6 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
2.84 |
2012-2013 |
Additional Commissioner (Appeals) |
7 |
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
0.43 |
2013-2014 |
Additional Commissioner (Appeals) |
Sub-total |
8.75 |
||||
1 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.19 |
1993-94 |
High Court |
2 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.01 |
1994-95 |
High Court |
3 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.04 |
1995-96 |
High Court |
4 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.09 |
1996-97 |
High Court |
5 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.10 |
1996-97 |
High Court |
6 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.18 |
1997-98 |
High Court |
7 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.35 |
1998-99 |
High Court |
8 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.75 |
1999-00 |
High Court |
9 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.04 |
1999-00 |
High Court |
10 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.40 |
2000-01 |
High Court |
11 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.02 |
2000-01 |
High Court |
12 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.41 |
2001-02 |
High Court |
13 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.16 |
2001-02 |
High Court |
14 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.73 |
2002-03 |
High Court |
15 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.15 |
2002-03 |
High Court |
16 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.49 |
2003-04 |
High Court |
17 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.07 |
2003-04 |
High Court |
18 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.59 |
2004-05 |
High Court |
19 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.26 |
2011-12 |
High Court |
20 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.64 |
2011-12 |
High Court |
Sub-total |
5.67 |
||||
1 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.94 |
Commercial Tax Tribunal |
|
2 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
1.34 |
Commercial Tax Tribunal |
|
3 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.72 |
Commercial Tax Tribunal |
|
4 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
1.12 |
Commercial Tax Tribunal |
|
5 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.43 |
Commercial Tax Tribunal |
|
6 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
2.65 |
Commercial Tax Tribunal |
|
7 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
2.29 |
Commercial Tax Tribunal |
|
8 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.03 |
Commercial Tax Tribunal |
|
5 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.63 |
Commercial Tax Tribunal |
|
6 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.60 |
Commercial Tax Tribunal |
|
9 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.66 |
Commercial Tax Tribunal |
|
10 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
1.08 |
Commercial Tax Tribunal |
|
Sub-total |
12.49 |
1 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
5.51 |
Additional Commissioner (Appeals) |
|
2 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.05 |
Additional Commissioner (Appeals) |
|
3 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
2.75 |
Additional Commissioner (Appeals) |
|
4 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.04 |
Additional Commissioner (Appeals) |
|
5 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
1.26 |
Additional Commissioner (Appeals) |
|
6 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
1.77 |
Additional Commissioner (Appeals) |
|
7 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.84 |
Additional Commissioner (Appeals) |
|
8 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
1.42 |
Additional Commissioner (Appeals) |
|
9 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.14 |
Additional Commissioner (Appeals) |
|
10 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.28 |
Additional Commissioner (Appeals) |
|
11 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.07 |
Additional Commissioner (Appeals) |
|
12 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.73 |
Additional Commissioner (Appeals) |
|
13 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
0.10 |
Additional Commissioner (Appeals) |
|
14 |
U.P. Trade Tax Act, 1948 |
Trade Tax |
1.77 |
Additional Commissioner (Appeals) |
|
16.73 |
|||||
Total Trade Tax and Entry Tax demands |
44.82 |
Annexure - ''B'' to the Independent Auditor''s Report
(The Annexure - ''B'' referred to in our Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31st March, 2017)
Report on the Internal Financial Control under clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial control over financial reporting of Dhampur Sugar Mills Limited (âthe Company") as of 31 March, 2017 in conjunction with our audit of the standalone financial statements of the company for the year ended on that date.
Management''s Responsibility for internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal 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 the Institute of Chartered Accountants of India (âICAI"). 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 polices, 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 (âthe Act").
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial control over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Control Over Financial Reporting (the âGuidance 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 the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence, we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial control system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial controls over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statement 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 disposition of the assets of the company; (2) provide reasonable assurance that transaction are recorded as necessary to permit preparation of financial statement in accordance with generally accepted accounting principles, and that receipt and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition , use ,or disposition of the company''s assets that could have a material effect on the financial statement.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial control over financial reporting were operating effectively as at 31 March 2017, 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 MITTAL GUPTA & CO.,
Chartered Accountants
FRN01874C
(B. L. GUPTA)
Partner
Membership No. 073794
Place: New Delhi
Date: 25th May, 2017
Mar 31, 2016
To
The Members of Dhampur Sugar Mills Ltd.
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Dhampur Sugar Mills Limited (âthe Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement, and a summary of the significant accounting policies and other explanatory information for the year then ended, in which are incorporated the financial statements for the year ended on that date of two units audited by the branch auditors of the Company.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence, we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true fair view in conformity with 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 Matter
We did not audit the financial statements of two units which are included in the standalone financial statements of the Company whose financial statements reflect total assets of Rs, 846.98 Crores as at 31st March, 2016 and total revenues of Rs, 434.08 Crores for the year ended on that date, as considered in the standalone financial statements. The financial statements of two units have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these units, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditâs Report) Order, 2016 (âthe Order"), issued by the Central Government of India in terms of section 143(11) of the Act, we give in the Annexure - ''A'' a statement on the matters specified in paragraphs 3 and 4 of the Order;
2. As required by Section143(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 reports on the accounts of the two units of the Company audited under Section 143 (8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report.
(d) 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.
(e) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(f) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such Controls, refer to our separate report in Annexure -''B''
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements.
ii. The Company does not have any long-term contracts including derivative contracts for which there are any material foreseeable losses.
iii. As explained, there has been no amount required to be transferred to the Investor Education and Protection Fund by the Company.
The Annexure - ''A'' referred to in our Independent Auditors'' Report of even date to the members of the Company on the standalone financial statements for the year ended 31st March, 2016:
(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) The Company has a phased program of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. The management has verified major fixed assets during the year and as explained there is no material discrepancy on such verification.
(c) The title deeds of the immovable properties, as disclosed in the financial statements, are held in the name of the company.
(ii) The inventories except goods in transit have been physically verified by the management at reasonable interval during the year. In our opinion and according to the information and explanations given to us, the frequency of such verification is reasonable. As explained to us, no material discrepancies were noticed on physical verification of inventories as compared to book records.
(iii) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the Company has not granted any loan secured or unsecured to the companies, firms, limited liability partnership and other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly paragraph 3(iii) of the order is not applicable to the company.
(iv) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the company has not granted any loans, or provided any security or guarantee to the parties covered under Section 185 of the Companies Act, 2013. The Company has complied with the provisions of section 186 of the Companies Act, 2013 in respect of investment made or loans or guarantee or security provided to the parties covered under section 186 of the Companies Act, 2013.
(v) According to the information and explanations given to us, in our opinion, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and rules framed there under. As informed to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal in this connection.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost records and Audit) Rules, 2014 under section 148 of the Companies Act and are of the opinion that, prima facie, the prescribed cost record have been made and maintained. We have however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given
to us and based on our examinations of the records, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of provident fund, investor education and protection fund, employees'' state insurance, income tax, sales tax, service tax, customs duty, excise duty, value added tax, cess and other material statutory dues, as applicable, with the appropriate authorities except for demand raised by Income Tax Authorities at the time of processing of TDS return. There are no undisputed statutory dues as referred to above as at 31st March, 2016 outstanding for a period of more than six months from the date they become payable except for demand raised by Income Tax Authorities at the time of processing of TDS return aggregating to Rs, 0.25 Crores. We have been informed by the Company that they are in process of getting these returns rectified and are hopeful that these demands will be substantially reduced after rectification.
(b) According to the information and explanations given to us, the particulars of Income tax, Service-tax, Sales-tax, Custom Duty, Excise Duty, Entry tax, Value Added Tax, which have not been deposited on account of any dispute, are as referred to Annexure -''A1''
(viii)According to the information and explanations given to us, in our opinion, the Company has not defaulted in repayment of loans and borrowings to any financial institution, bank and government during the period. The Company has not borrowed any money by way of issue of debentures.
(ix) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the money raised by the Company by way of term loans during the year have been applied for the purposes for which they were obtained. The Company has not raised any money by way of Initial Public Offer or further public offer (including debt instruments) during the year.
(x) To the best of our knowledge and belief and according to the information and explanations given to us, no material fraud on or by the Company was noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and based on our examinations of the records, in our opinion, 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) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the Company is not a Nidhi Company. Accordingly the paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the transactions with related parties are in compliance with the provisions of 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 Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(xiv)According to the information and explanations given to us and based on our examinations of the records, in our opinion, during the year, the Company has allotted equity shares on conversion of equity share warrants, which were issued on preferential basis in earlier years. The company has complied with the requirements of section 42 of the Companies Act in respect of such allotment and money raised on such allotment has been used for the purpose for which the funds were raised. The Company has not made any other preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examinations of the records, in our opinion, the Company has not entered into any non-cash transactions as specified u/s 192 of the Act, with its directors or persons connected to him. Accordingly, the paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) In our opinion, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
(The Annexure - ''B'' referred to in our Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31st March, 2016)
Report on the Internal Financial Control under clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial control over financial reporting of Dhampur Sugar Mills Limited (âthe Company") as of 31 March, 2016 in conjunction with our audit of the standalone financial statements of the company for the year ended on that date.
Management''s Responsibility for internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal 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 the Institute of Chartered Accountants of India (âICAI"). 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 polices, 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 (âthe Act").
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial control over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Control Over Financial Reporting (the âGuidance 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 the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence, we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial control system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial controls over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statement 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 disposition of the assets of the company; (2) provide reasonable assurance that transaction are recorded as necessary to permit preparation of financial statement in accordance with generally accepted accounting principles, and that receipt and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition , use ,or disposition of the company''s assets that could have a material effect on the financial statement.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial control over financial reporting were operating effectively as at 31 March 2016, 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 Mittal Gupta & Co., Chartered Accountants FRN01874C
(B. L. Gupta )
Partner
Membership No. 073794
Place : New Delhi
Dated : 10th May, 2016
Mar 31, 2015
We have audited the accompanying standalone financial statements
of Dhampur Sugar Mills Limited ("the Company"), which comprise
the Balance Sheet as at 31st March, 2015, the Statement of Profit
and Loss, the Cash Flow Statement, and a summary of the
significant accounting policies and other explanatory information
for the year then ended,in which are incorporated the Reports for
the year ended on that date audited by the branch auditors of the
Company''s Meerganj Unit.
Management''s Responsibility for the Standalone Financial
Statements
The Company''s Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application
of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors''Responsibility
Our responsibility is to express an opinion on these standalone
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.
ThoseStandards require that we comply withethical 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,
includingthe assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal financial control
relevant to the Company''s preparation of the financial statements
that give a true and fair view in order to design audit procedures that
are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of the accounting policies used and
the reasonableness of the accounting estimates made
bytheCompany''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 ourqualifiedaudit opinionon
the standalone financial statements.
Opinion
In our opinion and to the best of our information and according the
explanations given to us and the standalone financial statements
give the information required by the Act in the manner so required
and give a true fair view in conformity with accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015 and its Loss and its Cash flows for the year ended
on that date.
Emphasis of Matters
We draw attention to the Note No. -"26 (b)" of the annexed financial
statements which explains the reasons for recognition of subsidy
announced by the Government of Uttar Pradesh.
Our opinion is not modified in respect of this matter.
Other Matter
We did not audit the financial statements of Meerganj Unit included
in the standalone financial statements of the Company whose
financial statements reflect total assets of Rs. 274.19 Crores as at 31st
March, 2015 and total revenues of Rs. 114.84 Crores for the year ended
on that date, as considered in the standalone financial statements.
The financial statements of Meerganj Unit have been audited by the
branch auditors whose reports have been furnished to us, and our
opinion in so far as it relates to the amounts and disclosures
included in respect of these branches, is based solely on the report
of such branch auditors.
Our opinion is not modified in respect of this matter.
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 section
143(11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
As required by Section143(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 reports on the accounts of the Meerganj Unit of the Company
audited under Section 143 (8) of the Act by branch auditors have been
sent to us and have been properly dealt with by us in preparing this
report.
(d) 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.
(e) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(f) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements. (Refer Note No. -"38")
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 standalone financial statements for the
year ended 31st March, 2015, we report that:
i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the company and the nature of its assets. The management has
verified major fixed assets during the year and as explained there is
no any material discrepancy on such verification.
ii) (a) The inventories have been physically verified during
the period by the management. In our opinion, the frequency of
verification of inventory 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 has maintained proper records of inventories. As
explained to us, no material discrepancies were noticed on physical
verification of inventories as compared to book records.
iii) (a) The Company had granted unsecured loans to Six companies
covered in the register maintained under section 189 of the Companies
Act,2013 ("the Act").
(b) In the case of the loans granted to companies listed in the
register maintained under section 189 of the Act, the borrowers are
regular in the payment of the interest, as stipulated. The terms of
arrangements do not stipulate any repayment schedule and the loans are
repayable on demand. Accordingly, paragraph 3(iii)(b) of the Order is
not applicable to the Company in respect of repayment of the principal
amount.
(c) There are no overdue amount of more than rupees one lakh in respect
of the loans granted to company listed in the register maintained under
section 189 of the Act.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business with regard to
purchase of inventory and sale of goods and services. We have not
observed any major weakness in the internal control system during the
course of the audit.
v) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of sections 73 to 76 or any
other relevant provisions of the Act and rules framed there under. As
informed to us, no order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any court or
any other Tribunal in this connection.
vi) The company has made and maintained cost records pursuant to
section 148 (1) of the Companies Act, 2013.
vii) (a) As explained to us, the statutory dues payable by the
Company comprises mainly of Provident Fund, Investor Education
Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax
(VAT), Wealth-tax, Service-tax, Custom Duty, Excise Duty, Cess, Entry
tax, Purchase tax and other material statutory dues applicable to it.
According to the records of the Company and information and
explanations given to us, the Company has been generally regularly
depositing the aforesaid undisputed statutory dues with the appropriate authorities. There are no undisputed statutory dues as referred to
above as at 31st March,2015 outstanding for a period of more than six
months from the date they become payable.
(b) According to the information and explanations given to us, the
particulars of Income tax, Service-tax, Sales- tax (VAT), Custom Duty,
Excise Duty, Entry tax, Stamp duty and other statutory material dues,
which have not been deposited on account of any dispute, are as
referred to in the details of Contingent Liabilities in Note No."38"
(c) According to the information and explanations given to us the
amounts which are 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 made thereunder has been
transferred to such fund within time.
viii) The accumulated losses of the company at the end of the financial
year are less than 50% of its net worth.The Company has not incurred
cash losses during the financial year but has incurred cash losses in
the immediately preceding financial year.
ix) In our opinion and according to the information and explanations
given to us, there is no default in repayment of dues to any Financial
Institution and Bank during the period under report, as per the terms
of the respective loans.
x) In our opinion, the terms and conditions of guarantees given the
company for loans taken by others from banks are not prima facie
prejudicial to the interest of the Company.
xi) The term loans obtained by the Company have been applied for the
purposes for which they were obtained.
xii) To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the Company was noticed or reported during the course of our audit.
For S. Vaish & Co., For Mittal Gupta & Co.,
Chartered Accountants Chartered Accountants
FRN00001C FRN01874C
(S.P. Agrawal) (B. L. Gupta )
Partner Partner
Membership No. 07269 Membership No. 073794
Place : Kanpur
Dated : 27th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Dhampur Sugar
Mills Limited (''the Company'') which comprise the Balance Sheet as at
31st March, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information. Management''s
Responsibility for the Financial Statements Management is responsible
for the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India including Accounting Standards referred to
in section 211(3C) of the Companies Act, 1956 ("the Act") [which
continue to be applicable in respect of Section 133 of the Companies
Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013
of the Ministry of Corporate Affairs]. This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error. Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material 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 judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the State of Affairs of the
unit as at 31st March 2014;
(ii) in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of section 227(4A) of the Act, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. The Balance Sheet, 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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in section 211(3C) of the Act;
e. On the basis of the written representations received from the
directors as on March, 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the company.
Other Matter
We did not audit the financial statements of Meerganj Unit whose
financial statements reflect total assets of Rs. 232.20 Crores as at 31st
March, 2014 and total revenue of Rs. 197.97 Crores during the financial
year. The financial statements of Meerganj unit are audited by the
other auditors. In conduct of our audit, we have taken note of accounts
audited by other auditors.
Annexure to the Independent Auditors'' Report
The Annexure referred to in Paragraph 1 under the heading of "Report on
Other Legal and Regulatory Requirements" of our report of even date to
the members of Dhampur Sugar Mills Limited (the Company) for the year
ended 31st March, 2014:
i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management at
the end of the period. In our opinion the frequency of verification is
reasonable considering the size of the Company and nature of its
business.
(c) The Company has not disposed off a substantial part of its fixed
assets during the period and the going concern status of the Company is
not affected.
ii) (a) The inventories have been physically verified during the period
by the management. In our opinion, the frequency of verification of
inventory 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 has maintained proper records of inventories. As
explained to us, no material discrepancies were noticed on physical
verification of inventories as compared to book records.
iii) (a) The Company had granted interest free unsecured loans/advances
to one company covered in the register maintained under section 301 of
the Companies Act, 1956.
- The maximum amount involved during the period is Rs. 0.11 Crores.
- The year end balance due is Rs. 0.11 Crores.
(b) In our opinion, the other terms and conditions on which interest
free unsecured loans/advances have been granted to a company listed in
the register maintained under section 301 of the Companies Act, 1956
are not, prima facie, prejudicial to the interest of the Company.
(c) The payments of principal amount are regular, wherever stipulated.
(d) There is no overdue amount of loans/advances, more than rupee one
lac, granted to company listed in the register maintained under section
301 of the Companies Act, 1956.
(e) The Company had taken interest free unsecured loans/advances from
seven companies covered in the register maintained under section 301 of
the Companies Act, 1956.
- The maximum amount involved during the period is Rs. 2.26 Crores.
- The year end balance due is Rs. 0.12 Crores.
(f) In our opinion, the other terms and conditions on which interest
free loans/advances have been taken from companies listed in the
register maintained under section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the Company.
(g) The payments of principal amount are regular, wherever stipulated.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
controls.
v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contract or arrangements
referred to in Section 301 of the Companies Act, 1956 have been entered
into the register maintained under section 301 of the Companies Act,
1956.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements exceeding the value of rupees five lac in respect of each
party during the period have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and section
58AA of the Companies Act, 1956 or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from public. As informed to
us, no order has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any court or any other
Tribunal.
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 accounting records maintained
by the company pursuant to Companies (Cost Accounting Records) Rules
2011 prescribed by Central Government under section 209 (1) (d) of
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained.
We have, however, not made a detailed examination of cost records with
a view to determine whether they are accurate or complete.
ix) (a) As explained to us, the statutory dues payable by the Company
comprises mainly of Provident Fund, Investor Education Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax (VAT), Wealth-tax,
Service-tax, Custom Duty, Excise Duty, Cess, Entry tax, Purchase tax
and other material statutory dues applicable to it. According to the
records of the Company and information and explanations given to us,
the Company has been generally regularly depositing the aforesaid
undisputed statutory dues with the appropriate authorities. There are
no undisputed statutory dues as referred to above as at 31st March,2014
outstanding for a period of more than six months from the date they
become payable.
(b) According to the information and explanations given to us, there
were no dues on account of Income Tax and Wealth Tax which were not
deposited on account any dispute. However, the particulars of
Service-tax, Sales-tax (VAT), Custom Duty, Excise Duty, Entry tax,
Stamp duty and other statutory material dues, which have not been
deposited on account of any dispute, are as referred to in the details
of Contingent Liabilities in Note No.
"36"
x) The accumulated losses of the company at the end of the financial
year are less than 50% of its net worth. The Company has incurred cash
losses during the financial year covered by the audit but not incurred
any cash loss in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, there is no default in repayment of dues to any Financial
Institution and Bank during the period under report, as per the terms
of the respective loans.
xii) In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/ society; as such the provisions of paragraph 4(xiii) of
the Companies (Auditors'' Report) Order, 2003 are not applicable to the
Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments, accordingly the
provisions of paragraph 4 (xiv) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the Company.
xv) In our opinion, the Company has not given any guarantees for loans
taken by others from banks or financial institutions; as such the
provisions of paragraph 4(xv) of the Companies (Auditors'' Report)
Order, 2003 are not applicable to the Company.
xvi) The term loans obtained by the Company have been applied for the
purposes for which they were obtained.
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 as at 31st March, 2014, short-term funds of Rs. 301.63 Crores have
been used for long term uses.
xviii)In our opinion, the price at which preferential allotment of
30,00,000 Equity share warrants has been made to the parties covered in
the register maintained under section 301 of the Companies Act, 1956 is
not prejudicial to the interest of the company.
xix) The Company has not issued any debentures during the period.
xx) The Company has not raised any money during the period by public
issue.
xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the Company was noticed or reported during the course of our audit.
For S. Vaish & Co., For Mittal Gupta & Co.,
Chartered Accountants Chartered Accountants
FRN 00001C FRN 01874C
(S.P. Agrawal) (B. L. Gupta )
Partner Partner
Membership No. 07269 Membership No. 073794
Place : Kanpur
Dated : 21st May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying revised financial statements of
Dhampur Sugar Mills Limited (Âthe Company'') which comprise the Balance
Sheet as at 31st March, 2013, the Statement of Profit and Loss and Cash
Flow Statement for the year then ended and a summary of significant
accounting policies and other explanatory information. The original
financial statements of the Company for the year ended March 31, 2013
were audited by us and our audit report dated May 21, 2013 expressed an
unqualified opinion in the same. The original financial statements
were prepared without giving effect to the Scheme of Amalgamation of
J.K. Sugar Limited with the company, since the order of the Hon''ble
High Court of Judicature at Calcutta was not received till that date.
In order to give effect to the Scheme of the aforesaid amalgamation,
which has become effective on July 16, 2013 from the appointed date
i.e. April 01,2012 as approved by the Hon''ble High Court of Judicature
at Allahabad vide order dated 18.03.2013 and Hon''ble High Court of
Judicature at Calcutta vide order dated 17.05.2013 as explained and
referred to in Note No. 1.A, these financial accounts have now been
revised by the Company.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India including
Accounting Standards referred to in section 211(3C) of the Companies
Act, 1956 ("the Act"). This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material 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 judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the State of Affairs of the
unit as at 31st March 2013;
(ii) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of section 227(4A) of the Act, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, 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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in section 211(3C) of the Act;
e. On the basis of the written representations received from the
directors as on March, 31, 2013, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2013,
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
Annexure to the Independent Auditors'' Report
The Annexure referred to in Paragraph 1 under the heading of "Report on
Other Legal and Regulatory Requirements" of our report of even date to
the members of Dhampur Sugar Mills Limited (the Company) for the year
ended 31st March, 2013 :
i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management at
the end of the period. In our opinion the frequency of verification is
reasonable considering the size of the Company and nature of its
business.
(c) The Company has not disposed off a substantial part of its fixed
assets during the period and the going concern status of the Company is
not affected.
ii) (a) The inventories, except stores, have been physically verified
during the period by the management. In our opinion, the frequency of
verification of inventory, except stores, 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 has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to book records.
iii) (a) The Company had granted interest free unsecured loans/advances
to two companies covered in the register maintained under section 301
of the Companies Act, 1956.
- The maximum amount involved during the period is Rs. 25.33 crore.
- The year end balance due is Rs. 0.11 crore.
(b) In our opinion, the other terms and conditions on which interest
free unsecured loans/advances have been granted to a company listed in
the register maintained under section 301 of the Companies Act, 1956
are not, prima facie, prejudicial to the interest of the Company.
(c) The payments of principal amount are regular, wherever stipulated.
(d) There is no overdue amount of loans/advances, more than rupee one
lac, granted to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(e) The Company had taken interest free unsecured loans/advances from
five companies covered in the register maintained under section 301 of
the Companies Act, 1956.
- The maximum amount involved during the period is Rs. 17.81 crore.
- The year end balance due is Rs. 0.78 crore.
(f) In our opinion, the other terms and conditions on which
loans/advances have been taken from companies listed in the register
maintained under section 301 of the Companies Act, 1956 are not, prima
facie, prejudicial to the interest of the Company.
(g) The payments of principal amount are regular, wherever stipulated.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
controls.
v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contract or arrangements
referred to in Section 301 of the Companies Act, 1956 have been entered
into the register maintained under section 301 of the Companies Act,
1956.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements exceeding the value of rupees five lac in respect of each
party during the period have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and section
58AA of the Companies Act, 1956 or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from public. As informed to
us, no order has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any court or any other
Tribunal.
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 accounting records maintained
by the company pursuant to Companies (Cost Accounting Records) Rules
2011 prescribed by Central Government under section 209 (1) (d) of
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of cost records with a view to determine
whether they are accurate or complete.
ix) (a) As explained to us, the statutory dues payable by the Company
comprises mainly of Provident Fund, Investor Education Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax (VAT), Wealth- tax,
Service-tax, Custom Duty, Excise Duty, Cess, Entry tax, Purchase tax
and other material statutory dues applicable to it. According to the
records of the Company and information and explanations given to us,
the Company has been generally regularly depositing the aforesaid
undisputed statutory dues with the appropriate authorities. There are
no undisputed statutory dues as referred to above as at 31st March,2013
outstanding for a period of more than six months from the date they
become payable.
(b) According to the information and explanations given to us, there
were no dues on account of Income Tax and Wealth Tax which were not
deposited on account any dispute. However, the particulars of
Service-tax, Sales-tax (VAT), Custom Duty, Excise Duty, Entry tax,
Stamp duty and other statutory material dues, which have not been
deposited on account of any dispute, are as referred to in the details
of Contingent Liabilities in Note No. "35".
x) The Company does not have any accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
xi) In our opinion and according to the information and explanations
given to us, there is no default in repayment of dues to any Financial
Institution and Bank during the period under report, as per the terms
of the respective loans.
xii) In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/ society, as such the provisions of paragraph 4(xiii) of
the Companies (Auditors'' Report) Order, 2003 are not applicable to the
Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments, accordingly the
provisions of paragraph 4 (xiv) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the Company.
xv) In our opinion, the Company has not given any guarantees for loans
taken by others from banks or financial institutions; as such the
provisions of paragraph 4(xv) of the Companies (Auditors'' Report)
Order, 2003 are not applicable to the Company.
xvi) The term loans obtained by the Company have been applied for the
purposes for which they were obtained.
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 investment during the period.
xviii) The Company has not made any preferential allotment of shares
during the period to parties covered in the register maintained under
section 301 of the Companies Act, 1956.
xix) The Company has not issued any debentures during the period .
xx) The Company has not raised any money during the period by public
issue.
xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the course of our audit.
For S. Vaish & Co., For Mittal Gupta & Co.,
Chartered Accountants Chartered Accountants
FRN 00001C FRN 01874C
(S.P. Agrawal) (B. L. Gupta )
Partner Partner
Membership No. 07269 Membership No. 073794
Place : Kanpur Dated : 25th July, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of Dhampur Sugar Mills
Limited (the Company), as at 31st March, 2012 the Profit and Loss
Account and also the Cash Flow Statement for the year ended on that
date annexed thereto and signed by us, this day under reference to this
report. These financial statements are the responsibility of the
Company''s management. Our responsibility is to express an opinion on
these financial statements based on our audit.
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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditor''s Report) Order, 2003, issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in para 1 above, we report that :
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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, the 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 requirements
of the Accounting Standards referred to in section 211(3C) of the
Companies Act, 1956;
e) On the basis of written representation received from the directors
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2012 from being appointed as director under 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 aforesaid Balance Sheet, the Profit
and Loss Account and the Cash Flow Statement together with notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
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 Profit and Loss Account of the Profit for the year
ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management at
the end of the period. In our opinion the frequency of verification is
reasonable considering the size of the Company and nature of its
business.
(c) The Company has not disposed off a substantial part of its fixed
assets during the period and the going concern status of the Company is
not affected.
ii) (a) The inventories, except stores, have been physically verified
during the period by the management. In our opinion, the frequency of
verification of inventory, except stores, 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 has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to book records.
iii) (a) The Company had granted interest free unsecured loans/advances
to two companies covered in the register maintained under section 301
of the Companies Act, 1956.
- The maximum amount involved during the period is Rs. 24.32 crore.
- The year end balance due is Rs. 22.53 crore.
(b) In our opinion, the other terms and conditions on which interest
free unsecured loans/advances have been granted to a company listed in
the register maintained under section 301 of the Companies Act, 1956
are not, prima facie, prejudicial to the interest of the Company.
(c) The payments of principal amount are regular, wherever stipulated.
(d) There is no overdue amount of loans/advances, more than rupee one
lac, granted to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(e) The Company had taken interest free unsecured loans/advances from
four companies covered in the register maintained under section 301 of
the Companies Act, 1956.
- The maximum amount involved during the period is Rs. 3.17 crore.
- The year end balance due is Rs. 0.65 crore.
(f) In our opinion, the other terms and conditions on which
loans/advances have been taken from companies listed in the register
maintained under section 301 of the Companies Act, 1956 are not, prima
facie, prejudicial to the interest of the Company.
(g) The payments of principal amount are regular, wherever stipulated.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
controls.
v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contract or arrangements
referred to in Section 301 of the Companies Act, 1956 have been entered
into the register maintained under section 301 of the Companies Act,
1956.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements exceeding the value of rupees five lac in respect of each
party during the period have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and section
58AA of the Companies Act, 1956 or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from public. As informed to
us, no order has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any court or any other
Tribunal.
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 accounting records maintained
by the company pursuant to Companies (Cost Accounting Records) Rules
2011 prescribed by Central Government under section 209 (1) (d) of
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of cost records with a view to determine
whether they are accurate or complete.
ix) (a) As explained to us, the statutory dues payable by the Company
comprises mainly of Provident Fund, Investor Education Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax (VAT), Wealth- tax,
Service-tax, Custom Duty, Excise Duty, Cess, Entry tax, Purchase tax
and other material statutory dues applicable to it. According to the
records of the Company and information and explanations given to us,
the Company has been generally regularly depositing the aforesaid
undisputed statutory dues with the appropriate authorities. There are
no undisputed statutory dues as referred to above as at 31st March,2012
outstanding for a period of more than six months from the date they
become payable.
(b) According to the information and explanations given to us, there
were no dues on account of Income Tax and Wealth Tax which were not
deposited on account any dispute. However, the particulars of
Service-tax, Sales-tax (VAT), Custom Duty, Excise Duty, Entry tax,
Stamp duty and other statutory material dues, which have not been
deposited on account of any dispute, are as referred to in the details
of Contingent Liabilities in Note No. "35".
x) The Company does not have any accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
xi) In our opinion and according to the information and explanations
given to us, there is no default in repayment of dues to any Financial
Institution and Bank during the period under report, as per the terms
of the respective loans.
xii) In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund/ society, as such the provisions of paragraph
4(xiii) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments, accordingly the
provisions of paragraph 4 (xiv) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the Company.
xv) In our opinion, the Company has not given any guarantees for loans
taken by others from banks or financial institutions; as such the
provisions of paragraph 4(xv) of the Companies (Auditors'' Report)
Order, 2003 are not applicable to the Company.
xvi) The term loans obtained by the Company have been applied for the
purposes for which they were obtained.
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 investment during the period.
xviii)The Company has not made any preferential allotment of shares
during the period to parties covered in the register maintained under
section 301 of the Companies Act, 1956.
xix) The Company has not issued any debentures during the period .
xx) The Company has not raised any money during the period by public
issue.
xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the course of our audit.
For S. Vaish & Co., For Mittal Gupta & Co.,
(S.P. Agrawal) (B. L. Gupta)
Partner Partner
Chartered Accountants Chartered Accountants
Membership No. 07269 Membership No. 073794
FRN 00001C FRN 01874C
Place : Kanpur
Dated : 15th May, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of Dhampur Sugar Mills
Limited (the Company), as at 31 st March,2011, the Profit and Loss
Account and also the Cash Flow Statement for the 18 months ended on
that date annexed thereto and signed by us, this day under reference to
this report. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in para 1 above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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, the 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 requirements
of the Accounting Standards referred to in section 211 (3C) of the
Companies Act, 1956;
e) On the basis of written representation 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 31.03.2011 from
being appointed as director under Clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
f) Attention is drawn to note III-2 of schedule 15 relating to
accounting for cane purchase liability for the sugar season 2007-08 at
Rs. 110 per quintal instead of State Advised Price of Rs. 125 per
quintal fixed by the Uttar Pradesh State Government as the legal
proceedings are pending in the matter.
g) In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid Balance Sheet, the Profit
and Loss Account and the Cash Flow Statement together with notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
accounting principles generally accepted in India:
i) in the case of the Balance Sheet of the state of affairs of the
Company as at 31 st March, 2011;
ii) in the case of Profit and Loss Account of the Profit for the 18
months ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flows for the 18
months ended on that date.
Annexure to the Auditors Report
The Annexure referred to in the Auditors report to the members of
Dhampur Sugar Mills Limited (the Company) for the 18 months ended 31st
March, 2011:
i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management at
the end of the period. In our opinion the frequency of verification is
reasonable considering the size of the Company and nature of its
business.
(c) The Company has not disposed off a substantial part of its fixed
assets during the period and the going concern status of the Company is
not affected.
ii) (a) The inventory except stores, has been physically verified
during the period by the management. In our opinion, the frequency of
verification of inventory, except stores is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii) (a) The Company had granted interest free unsecured loans/advances
to three companies covered in the register maintained under section 301
of the Companies Act, 1956.
- The maximum amount involved during the period is Rs. 26.56 crore.
-The year end balance due is Rs. 24.37 crore.
(b) In our opinion, the other terms and conditions on which interest
free unsecured loans/advances have been granted to a company listed in
the register maintained under section 301 of the Companies Act, 1956
are not, prima facie, prejudicial to the interest of the Company.
(c) The payments of principal amount are regular, wherever stipulated.
(d) There is no overdue amount of loans/advances, more than rupee one
lac, granted to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(e) The Company had taken interest free unsecured loans/advances from
four companies covered in the register maintained under section 301 of
the Companies Act, 1956.
- The maximum amount involved during the period is Rs. 7.60 crore.
-The year end balance due is Rs. 0.36 crore.
(f) In our opinion, the other terms and conditions on which
loans/advances have been taken from companies listed in the register
maintained under section 301 of the Companies Act, 1956 are not, prima
facie, prejudicial to the interest of the Company.
(g) The payments of principal amount are regular, wherever stipulated.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
controls.
v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contract or arrangements
referred to in Section 301 of the Companies Act, 1956 have been entered
into the register maintained under section 301 of the Companies Act,
1956.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements exceeding the value of rupees five lac in respect of any
party during the period have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and section
58AA of the Companies Act, 1956 or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from public. As informed to
us, no order has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any court or any other
Tribunal.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have been informed that the cost records as have been
prescribed under section 209 (1)(d) of the Companies Act, 1956 have
been made and maintained.
ix) (a) As explained to us, the statutory dues payable by the Company
comprises mainly of Provident Fund, Investor Education Protection Fund,
Employees State Insurance, Income-tax, Sales-tax (VAT), Wealth-tax,
Service-tax, Custom Duty, Excise Duty, Cess, Entry tax, Purchase tax
and other material statutory dues applicable to it. According to the
records of the Company and information and explanations given to us,
the Company has been generally regularly depositing the aforesaid
undisputed statutory dues with the appropriate authorities. There are
no undisputed statutory dues as referred to above as at 31st March,2011
outstanding for a period of more than six months from the date they
become payable.
(b) According to the information and explanations given to us, there
were no dues on account of Income Tax and Wealth Tax which were not
deposited on account of any dispute. However, the particulars of
Service-tax, Sales-tax, Custom Duty, Excise Duty, Entry tax. Stamp duty
and other statutory material dues, which have not been deposited on
account of any dispute, are as referred to in the Details of Contingent
Liabilities in Schedule "15".
x) The Company does not have any accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
xi) In our opinion and according to the information and explanations
given to us, there is no default in repayment of dues to any Financial
Institution and Bank during the period under report, as per the terms
of the respective loans.
xii) In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/ society, as such the provisions of paragraph 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments, accordingly the
provisions of paragraph 4 (xiv) of the Companies (Auditors Report)
Order, 2003 are not applicable to the Company.
xv) In our opinion, the Company has not given any guarantees for loans
taken by others from banks or financial institutions, as such the
provisions of paragraph 4(xv) of the Companies (Auditors Report)
Order, 2003 are not applicable to the Company.
xvi) The term loans obtained by the Company have been applied for the
purposes for which they were obtained.
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 investment during the period.
xviii)The Company has not made any preferential allotment of shares
during the period to parties covered in the register maintained under
section 301 of the Companies Act, 1956.
xix) The Company has not issued any debentures during the period.
xx) The Company has not raised any money during the period by public
issue.
xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the course of our audit.
For S. Vaish & Co., For Mittal Gupta & Co.,
(S.P. Agrawal) (B. L Gupta)
Partner Partner
Chartered Accountants Chartered Accountants
Membership No. 07269 Membership No. 073794
FRN 00001C FRN01874C
Place : Kanpur
Dated : 24th May, 2011
Sep 30, 2009
We have audited the attached Balance Sheet of Dhampur Sugar Mills
Limited (the Company), as at 30th September, 2009, the Profit and Loss
Account and also the Cash Flow Statement for the year ended on that
date annexed thereto and signed by us, this day under reference to this
report. These financial statements are the responsibility of the
CompanyÃs 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in para 1 above, we report that :
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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, the 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 requirements
of the Accounting Standards referred to in section 211(3C) of the
Companies Act, 1956;
e) On the basis of written representation received from the directors
as on 30th September, 2009 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
30.09.2009 from being appointed as director under Clause (g) of sub-
section (1) of Section 274 of the Companies Act, 1956.
f) Attention is drawn to note III-2 of schedule 16 relating to
accounting for cane purchase liability for the sugar season 2007-08 at
Rs. 110 per quintal instead of State Advised Price of Rs. 125 per
quintal fixed by the Uttar Pradesh State Government as the legal
proceedings are pending in the matter.
g) In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid Balance Sheet, the Profit
and Loss Account and the Cash Flow Statement together with notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
accounting principles generally accepted in India :
i) in the case of the Balance Sheet of the state of affairs of the
Company as at 30th September, 2009;
ii) in the case of Profit and Loss Account of the Profit for the year
ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditorsà Report
The Annexure referred to in the Auditorsà report to the members of
Dhampur Sugar Mills Limited (the Company) for the year ended 30th
September, 2009:
i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management at
the end of the year. In our opinion the frequency of verification is
reasonable considering the size of the Company and nature of its
business.
(c) The Company has not disposed off a substantial part of its fixed
assets during the year and the going concern status of the Company is
not affected.
ii) (a) The inventory except stores, has been physically verified
during the year by the management. In our opinion, the frequency of
verification of inventory, except stores is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii) (a) The Company had granted interest free unsecured loans/advances
to three companies covered in the register maintained under section 301
of the Companies Act, 1956.
- The maximum amount involved during the year is Rs. 19.47 crore.
- The year end balance due is Rs. 19.47 crore.
(b) In our opinion, the other terms and conditions on which interest
free unsecured loans/advances have been granted to a company listed in
the register maintained under section 301 of the Companies Act, 1956
are not, prima facie, prejudicial to the interest of the Company.
(c) The payments of principal amount are regular, wherever stipulated.
(d) There is no overdue amount of loans/advances, more than rupee one
lac, granted to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(e) The Company had taken interest free unsecured loans/advances from
five companies covered in the register maintained under section 301 of
the Companies Act, 1956.
- The maximum amount involved during the year is Rs. 5.37 crore.
- The year end balance due is Rs. 4.09 crore.
(f) In our opinion, the other terms and conditions on which
loans/advances have been taken from companies listed in the register
maintained under section 301 of the Companies Act, 1956 are not, prima
facie, prejudicial to the interest of the Company.
(g) The payments of principal amount are regular, wherever stipulated.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
controls.
v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contract or arrangements
referred to in Section 301 of the Companies Act, 1956 have been entered
into the register maintained under section 301 of the Companies Act,
1956.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements exceeding the value of rupees five lac in respect of any
party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and section
58AA of the Companies Act, 1956 or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from public. As informed to
us, no order has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any court or any other
Tribunal.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have been informed that the cost records as have been
prescribed under section 209 (1)(d) of the Companies Act, 1956 have
been made and maintained.
ix) (a) As explained to us, the statutory dues payable by the Company
comprises mainly of Provident Fund, Investor Education Protection Fund,
Employeesà State Insurance, Income-tax, Sales-tax (VAT), Wealth-tax,
Service-tax, Custom Duty, Excise Duty, Cess, Entry tax, Purchase tax
and other material statutory dues applicable to it. According to the
records of the Company and information and explanations given to us,
the Company has been generally regularly depositing the aforesaid
undisputed statutory dues with the appropriate authorities. There are
no undisputed statutory dues as referred to above as at 30th September,
2009 outstanding for a period of more than six months from the date
they become payable.
(b) According to the information and explanations given to us, there
were no dues on account of Income Tax and Wealth Tax which were not
deposited on account any dispute. However, the particulars of
Service-tax, Sales-tax, Custom Duty, Excise Duty, Entry tax, Stamp duty
and other statutory material dues, which have not been deposited on
account of any dispute, are as referred to in the Details of Contingent
Liabilities in Schedule Ã16Ã.
x) The Company does not have any accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has repaid the dues to any financial
institution and bank with some delays for a maximum period of 90 days
however there is no default in repayment of dues at the end of the year
as per the terms of the respective term loans.
xii) In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund/ society, as such the provisions of paragraph
4(xiii) of the Companies (Auditorsà Report) Order, 2003 are not
applicable to the Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments, accordingly the
provisions of paragraph 4 (xiv) of the Companies (AuditorÃs Report)
Order, 2003 are not applicable to the Company.
xv) In our opinion, the Company has not given any guarantees for loans
taken by others from banks or financial institutions, as such the
provisions of paragraph 4(xv) of the Companies (AuditorÃs Report)
Order, 2003 are not applicable to the Company.
xvi) The term loans obtained by the Company have been applied for the
purposes for which they were obtained.
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 investment during the year.
xviii) The Company has not made any preferential allotment of shares
during the year to parties 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 during the year by public
issue.
xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the course of our audit.
For S. Vaish & Co., For Mittal Gupta & Co.,
(S.P.Agrawal) (B. L. Gupta )
Partner Partner
Chartered Accountants Chartered Accountants
Membership No. 07269 Membership No. 073794
Place: Kanpur
Dated: 9th November, 2009