Jun 30, 2014
We have audited the attached Balance Sheet of EASTERN SUGAR &
INDUSTRIES LIMITED as at 30th June, 2014, the Statement of Profit &
Loss and the Cash Flow Statement for the year then ended and a summary
of the significant accounting policies and other explanatory
information.
Management's Responsibility for the Financial Statements
The Company's Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956 ("the Act") and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 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 the accounting policies used and the reasonableness
of the accounting estimates made by the Management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 30th June, 2014;
b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government 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.
As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, 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.
On the basis of the written representations received from the directors
as on 30th June, 2014 taken on record by the Board of Directors, none
of the directors is disqualified as on 30th June, 2014 from being
appointed as a director in terms of Section 274(1)(g) of the Act.
(Referred to in paragraph 7 under 'Report on Other Legal and
Regulatory Requirements' section of our report of even date)
1. The Company has maintained proper records showing full particulars
including quantitative details and situations of fixed assets. We are
informed that all the fixed assets have been physically verified by the
management at the year-end and no material discrepancies have been
noticed on such verification. No disposal of a substantial part of the
fixed assets of the Company has taken place during the reporting
period.
2. The inventories were physically verified during the year by the
Management at reasonable intervals. In our opinion and according to the
information and explanations given to us, the procedures of physical
verification of inventory followed by the Management were reasonable
and adequate in relation to the size of the Company and the nature of
its business. The Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
3. The Company has neither granted nor taken any loans, secured or
unsecured, to / from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956.
4. The Company has adequate internal control procedures commensurate
with the size of the Company and nature of its business with regard to
purchase of trading goods, raw materials including components, plant
and machinery, equipment and other assets and also for the sale of
goods. We have not come across any major weaknesses in internal
control.
5. According to the information & explanation given to us there is no
contract or arrangement that's needs to be entered in the register
required to be maintained under sec 301 of the Companies Act.
6. The company has not accepted any deposits within the meaning of
section 58A, 58AA or any other relevant provisions of Act and the rules
framed there under.
7. In our opinion, the internal audit system of the Company is
commensurate with the size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records in respect of sugar u/s 290(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed account and records have been maintained.
9. The Company is generally regular in depositing undisputed statutory
dues, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty, Cess and other statutory dues.
10. According to the information and explanations given to us, no
disputed amount payable in respect of Income Tax, Wealth Tax, Dividend
Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty and Cess were in
arrears, as at 30th June, 2014 for a period of more than six months
from the date they became payable.
11. The Company has no accumulated losses and has not incurred any cash
loss during the year covered by our audit or in the immediately
preceding financial year.
12. The Company has not defaulted in payment of dues to financial
institution or banks. The company has not issued any debentures.
13. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
14. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi/mutual benefit
fund/societies.
15. In our opinion and according to information and explanations given
to us, the company is not dealing or trading in shares, securities,
debentures and other investments and therefore the provisions of Clause
4(xiv) of the order are not applicable. The securities and other
investments have been held by the company in its own name.
16. The Company has not given any guarantee for loans taken by others
from Banks or Financial Institutions during the reporting period.
17. The Company has not raised any term loans, so the provisions are
not applicable to the Company.
18. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investments. No long term funds have been used to finance short term
requirements.
19. During the year the company has not issued and allotted any
Preferential Shares.
20. The Company has not raised any money during the year through any
public issue.
21. Based on the audit procedures adopted and information and
explanations given to us by the management, no fraud on or by the
Company has been noticed or reported during the course of our audit.
For Vivek Jaiswal & Co.
Chartered Accountants
Firm Registrartion No. 323094E
Vivek Jaiswal
Place : Kolkata Partner
Date : 22nd September, 2014 M. No. 057710
Jun 30, 2013
Report on Financial Statements
We have audited the attached Balance Sheet of EASTERN SUGAR &
INDUSTRIES LIMITED as at 30th June, 2013, the Statement of Profit &
Loss and the Cash Flow Statement for the year then ended and a summary
of the significant accounting policies and other explanatory
information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956 (''the Act'') and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 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
the accounting policies used and the reasonableness of the accounting
estimates made by the Management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Basis for qualified opinion
Non compliance of sections 194-A, 192 & 192-J, of Income Tax Act, 1961
with respect to TDS on interest other than interest on securities ,
salary, & fee for professional & Technical services respectively. The
TDS on above have not been deducted and deposited in time. *
Non compliance of generally accepted accounting principles in
accounting of Gratuity, Leave liabilities towards employees, bonus,
Professional Taxes, Trade License Fees, Interest and penalty
on delayed deposit of TDS & income from interest on securities and
other deposits as they are accounted for on cash basis.*
*The possible loss if any, arising out of above which might have
consequential effect on the year''s Profit & Loss and Net Current Asset
position of the Company at the year end, has neither been ascertained
nor provided for in these accounts.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph the aforesaid
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 30th June, 2013;
b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order'') issued by the Central Government 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.
As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, 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.
On the basis of the written representations received from the directors
as on 30th June, 2013 taken on record by the Board of Directors, none
of the directors is disqualified as on 30th June, 2013 from being
appointed as a director in terms of Section 274(1)(g) of the Act.
Annexure to the Independent Auditors'' Report
(Referred to under ÂReport on Other Legal and Regulatory Requirements''
section of our report of even date)
1. The Company has maintained proper records showing full particulars
including quantitative details and situations of fixed assets. We are
informed that all the fixed assets have been physically verified by the
management at the year-end and no material discrepancies have been
noticed on such verification. No disposal of a substantial part of the
fixed assets of the Company has taken place during the reporting
period.
2. The inventories were physically verified during the year by the
Management at reasonable intervals. In our opinion and according to the
information and explanations given to us, the procedures of physical
verification of inventory followed by the Management were reasonable
and adequate in relation to the size of the Company and the nature of
its business. The Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
3. The Company has neither granted nor taken any loans, secured or
unsecured, to / from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956.
4. The Company has adequate internal control procedures commensurate
with the size of the Company and nature of its business with regard to
purchase of trading goods, raw materials including components, plant
and machinery, equipment and other assets and also for the sale of
goods. We have not come across any major weaknesses in internal
control.
5. According to the information & explanation given to us there is no
contract or arrangement that''s needs to be entered in the register
required to be maintained under sec 301 of the Companies Act.
6. The company has not accepted any deposits within the meaning of
section 58A, 58AA or any other relevant provisions of Act and the rules
framed there under.
7. In our opinion, the internal audit system of the Company is
commensurate with the size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records in respect of sugar u/s 290(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed account and records have been maintained.
9. The Company is generally regular in depositing undisputed statutory
dues, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty, Cess and other statutory dues.
10. According to the information and explanations given to us, no
disputed amount payable in respect of Income Tax, Wealth Tax, Dividend
Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty and Cess were in
arrears, as at 30th June, 2013 for a period of more than six months
from the date they became payable.
11. The Company has no accumulated losses and has not incurred any
cash loss during the year covered by our audit or in the immediately
preceding financial year.
12. The Company has not defaulted in payment of dues to financial
institution or banks. The company has not issued any debentures.
13. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
14. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi/mutual benefit
fund/societies.
15. In our opinion and according to information and explanations given
to us, the company is not dealing or trading in shares, securities,
debentures and other investments and therefore the provisions of Clause
4(xiv) of the order are not applicable. The securities and other
investments have been held by the company in its own name.
16. The Company has not given any guarantee for loans taken by others
from Banks or Financial Institutions during the reporting period.
17. The Company has not raised any term loans, so the provisions are
not applicable to the Company.
18. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investments. No long term funds have been used to finance short term
requirements.
19. During the year the company has issued 49,00,000 bonus equity
shares to the existing Cumulative Convertible Preference Share Holders
out of the General Reserves of the company.
20. The Company has not raised any money during the year through any
public issue.
21. Based on the audit procedures adopted and information and
explanations given to us by the management, no fraud on or by the
Company has been noticed or reported during the ourse of our audit.
For Vivek Jaiswal & Co.
Chartered Accountants
Firm Registrartion No. 0325948E
Vivek Jaiswal
Place : Kolkata Partner
Date : 18th September, 2013 M. No. 057710
Jun 30, 2012
We have audited the attached Balance Sheet of EASTERN SUGAR &
INDUSTRIES LIMITED as at 30th June, 2012 and also the Profit & Loss
Account for the year ended on that date annexed here to and the Cash
Flow Statement for the year ended on that date, which we have signed
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. These 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 of our opinion.
1. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004
issued by Central Government of India, in terms of sub section (4A) of
Section 227 of the Companies Act, 1956, and on the basis of the
information and explanations given to us and the books and records
examined by us in the normal course of our audit and to the best of our
knowledge and belief, we enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
2. Further to our comments in the Annexure referred to above, we
report that:Â
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
b) In our opinion, proper books of accounts, as required by law, have
been kept by the company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account as
submitted to us;
d) In our opinion the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956, subject to the provision for Gratuity which is not
done as prescribed in AS-15.
e) On the basis of written representations received from the individual
directors and taken on record by the Board of Directors, we report that
none of the directors is disqualified as on 30th June, 2012 from being
appointed as a director in terms of clause (g) of Sub- section (1) of
Section 274 of the Companies Act, 1956.
3. In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet, the Profit & Loss
Account and Cash Flow Statement gives the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India: -
i) In the case of Balance sheet, of the state of affairs of the Company
as at 30th June,
2012; ii) In the case of Profit & Loss Account, of the Profit of the
Company for the year ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
(i) FIXED ASSETS
a) The company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) The assets have been physically verified by the management during
the year according to a phased programme of verification which, in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets No material discrepancies were noticed on such
verification.
c) There was no substantial disposal of fixed assets during the year.
(ii) INVENTORIES
a) According to the information and explanations given to us, and in
our opinion, the inventory has been physically verified by the
management at reasonable intervals.
b) According to the information and explanations given to us, the
procedure of inventories followed by the Company are
reasonable and adequate in relation to the size of the Company and
nature of its business.
c) The Company is maintaining proper records of inventory and according
to the information and explanations given to us, discrepancies noticed
on physical verification were not material and the same have been
properly dealt with in the books of account.
(iii) LOANS
a) As informed the Company has neither granted nor taken any loans,
secured or unsecured, form companies, firms or other parties covered
in the register maintained under section 301 of the Companies Act, 1956
during the year.
b) Such loans taken in earlier years are stated to be free of interest
and repayable on demand and in our option, other terms and conditions
on which loans have been taken are not, prima facie prejudicial to the
interest of the company.
c) The Company, as informed, is regular in repaying the principal
amounts.
(vi) In our opinion and according to the information and explanations
given to us, there are adequate Internal control procedures
commensurate with the size of the company and the nature of its bus
ness with regard to purchases of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
(v) According to the information and explanations given to us, we are
of the opinion that particulars of transactions/contracts that need to
be entered into the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
(vi) The company has not accepted any deposits from public during the
year.
(vii) In our opinion, the company has an adequate internal audit system
commensurate w.th the size of the Company and the nature of its
business.
(viii) As informed to us, the Central Government has not prescribed
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 for the business the Company has carried on during the year.
(ix) STATUTORY DUES:
a) Based on our audit procedures and on the basis of books of accounts
and records produced before us and information and explanations given
by the management, the Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
fund, Investor education and protection fund, Employees'' state
insurance, income tax, sales tax, wealth tax., service tax, customs
duty, excise duty, cess and other material statutory dues applicable to
it. No undisputed statutory dues were outstanding as at 30 th June for
more than 6 months from the date they became payable.
b) According to the information and explanations given to us, there are
no disputed dues of income tax, sales tax, wealth tax, service tax,
customs duty, excise duty and cess.
(x) The Company has no accumulated loss at the end of the current
accounting year. Further, the Company has not incurred any cash loss in
the current accounting year as well as in the immediately preceding
accounting year.
(xi) Based on our audit procedure and on the basis of information and
explanations given by the management, the Company has defaulted in
repayment of the Secured Loans from the bank and Financial institution,
but the company is in negotiation with the said banks and Financial
Institution and the matter is expected to be settled soon. There were
no borrowings in the form of Debentures.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi/mutual fund/society.
(xiv) The company is not dealing in or trading in shares, securities,
debentures and other investments.
(xv) According to the information given to us, the Company has not
given guarantees for loans taken by others from banks or financial
institutions during the year.
(xvi) The Company has not taken any term loan during the year and
according to the information and explanations given to us, the
outstanding term loans were applied for the purpose for which the same
were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no new funds have been raised during the year on short-term basis.
(xviii)The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money by public issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For Vivek Jaiswal & Co.
Chartered Accountants
2A, Ganesh Chandra Avenue, Vivek Jaiswal
Kolkata-700 013 Partner
Date: 7th September, 2012 M. No - 057710
Jun 30, 2011
1. We have audited the attached Balance Sheet of EASTERN SUGAR &
INDUSTRIES LIMITED as at 30th June 2011 and also the Profit & Loss
Account and the Cash Fahd Statement for the year ended on that date
annexed thereto, which we have signed uncle reference to this report.
These financial statements are the responsibility of the Company
management. Our responsibility is to express an opinion on these
financial statesman based on our audit.
2. We conducted our audit in accordance with generally accepted
auditing standards in And These Standards require that we plan and
perform the audit to obtain reasonable assurer about whether the
financial statements are free of material mis-statements. An audit
incur examining, on a test basis, evidence supporting the amounts and
disclosure in the finance statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statesman
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003, (as
amended) issued by I Central Government of India, in terms of
sub-section (4A) of section 227 of the Company Act, 1956, we enclose in
the Annexure a statement on the matters specified in paragraph 4 and 5
of the said Order.
4. Further to our comments in the Annexure referred to alcove, we
report that:Â
a) We have obtained all the information and explanations which to the
best of knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of accounts, as required by law have
been kept by I Company, so far as it appears from cur examination of
those books and proper retie adequate for the purposes of our audit have
been received from the branches visited by us.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
referred to in c report are in agreement with the books of accounts as
submitted to us;
d) In our opinion the Balance Sheet, Profit & Loss Account and Cash
Flow Starter dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the Companies
Act, 1956;
e) On the basis of management representations received from the
Directors in write and taken on record by the Board, none of the
directors of the company are disqualify from being appointed as a
Director in terms of clause (g) of sub - section (1) of section 274 of
the Companies Act, 1956;
In our opinion and to the best of our information and according to the
explanations given to us, they said Accounts read together with Note
No.3 in respect of gratuity & leave liability and other NOTES to
Schedule 15 give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India :Â
a) In the case of Balance sheet, of the state of affairs of the Company
as at 30th June, 2011
b) In the case of Profit & Loss Account, of the Profit of the Company
for the year ended on that date; and
c) In the case of Cash Flow Statement, of the Cash Flow of the Company
for the year ended on that date.
(Referred to in paragraph 3 of our report of even date)
(i) a) The company is maintaining proper records showing full
particulars, incur quantitative details and situation of fixed assets.
b) The assets have been physically verified by the management during
the year accord to a phased programme of verification which, in our
opinion, is reasonable ha'' regard to the size of the company and the
nature of its assets. No material discrepant* were noticed on such
verification.
c) There was no substantial disposal of fixed assets during the year.
(ii) a) According to the information and explanations given to us, and
in our opinion, inventory has been physically verified by the
management at reasonable intervals
b) According to the information and explanations given to us, the
procedure of pays verification of inventories followed by the Company
are reasonable and adequate relation to the size of the Company and
nature of its business.
c) The Company is maintaining proper records of inventory and according
to the informs and explanations given to us, discrepancies noticed on
physical verification were material and the same have been properly
dealt with in the books of account.
(iii) a) As informed, the Company has neither granted nor taken any
loans, secured unsecured, to/from companies, firms or other parties
covered in the register maintain under section 301 of the Companies Act,
1956 during the year.
b) Such loans taken in earlier years are stated to be free of interest
and repay demand and in our opinion, other terms and conditions on
which loans have b taken are not, prima facie, prejudicial to the
interest of the company.
c) The Company, as informed, is regular in repaying the principal
amounts.
(iv) In our opinion and according to the information and explanations
given to us, there adequate internal control procedures commensurate
with the size of the company and nature of its business with regard to
purchases of inventory and fixed assets and for sale of goods and
services. During the course of our audit, no major weakness has b
noticed in the internal controls.
(v) According to the information and explanations given to us, we are
of the opinion that partial of transactions/contracts that need to be
entered into the register maintained under Sec 301 of the Companies
Act, 1956 have been so entered.
(vi) The company has not accepted any deposits from public during the
year.
(vii) In our opinion, the company has an adequate internal audit system
commensurate with size of the Company and the nature of its business.
(viii) As informed to us, the Central Government has not prescribed
maintenance of cost reek under section 209(1 )(d) of the Companies Act,
1956 for the business the Company carried on during the year.
(ix) a) Based on our audit procedures and on the basis of books of
accounts and produced before us and information and explanations given
by the management, the Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
fund, Investor education and protection fund, Employees'' state
insurance, income tax, sales tax, wealth tax., service tax, customs
duty, excise duty, cess and other material statutory dues applicable to
it. No undisputed statutory dues were outstanding as at 30 the June for
more than 6 months from the date they became payable.
b) According to the information and explanations given to us, there are
no disputed dues of income tax, sales tax, wealth tax, service tax,
customs duty, excise duty and cess.
(x) The Company has no accumulated loss at the end of the current
accounting year. Further, the Company has not incurred any cash loss in
the current accounting year as well as in the immediately preceding
accounting year.
(xi) Based on our audit procedure and on the basis of information and
explanations given by the management, the Company has defaulted in
repayment of the Secured Loans from the bank and Financial institution,
but the company is in negotiation with the said banks and Financial
Institution and the matter is expected to be settled soon. There were
no borrowings in the form of Debentures.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi/mutual fund/society.
(xiv) The company is not dealing in or trading in shares, securities,
debentures and other investments.
(xv) According to the information given to us, the Company has not
given guarantees for loans taken by others from banks or financial
institutions during the year.
(xvi) The Company has not taken any term loan during the year and
according to the information and explanations given to us, the
outstanding term loans were applied for the purpose for which the same
were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no new funds have been raised during the year on short-term basis.
(xviii) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money by public issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For Vivek Jaiswal & Co.
Chartered Accountants
2A, Ganesh Chandra Avenue, Vivek Jaiswal
Kolkata-700 013 Partner
Date: 26th August, 2011 M. No. 057710
Jun 30, 2010
1. We have audited the attached Balance Sheet of EASTERN SUGAR &
INDUSTRIES LIMITED as at 30th June, 2010 and also the Profit & Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto, which we have signed 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure 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
statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Central Government of India, in terms of Sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of accounts, as required by law have
been kept by the Company, so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us.
c) The Balance Sheet, Profits Loss Account and Cash Flow Statement
referred to in our this report are in agreement with the books of
accounts as submitted to us.
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
e) On the basis of management representations received from the
Directors in writing and taken on record by the Board, we report that
none of the directors is disqualified from being appointed as a
Director in terms of clause (g) of sub - section (1) of section 274 of
the Companies Act, 1956.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India.
a) In the case of Balance sheet, of the state of affairs of the Company
as at 30th June, 2010;
b) In the case of Profit & Loss Account, of the Profit for the year
ended on that date;
c) In the case of Cash Flow Statement, of the Cash Flow of the Company
for the year ended on that date.
ANEXURETOTHE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date)
1) FIXED ASSETS
(a) The company is maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) All the assets have been physically verified by the management
during the year and there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) in our opinion and according to the information and explanations
given to us, no substantial part of fixed assets has been disposed off
by the Company during the year.
2) INVENTORIES
(a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the nature of its business.
(c) On the basis of our examination of the records of inventory, in our
opinion ,the Company is maintaining proper of inventory. The
discrepancies noticed on physical verification of stock as compared to
the book records were not material.
3) LOANS
(a) As informed, the Company has neither granted nor taken any secured
or unsecured loan to/from companies, firms or other parties covered in
the register maintained under Section 301 of the Companies Act, 1956
during the year.
(b) Such loans taken in earlier years are stated to be free of interest
and repayable on demand and in our opinion, other terms and conditions
on which loans have been taken are prima facie, prejudicial to the
interest of the Company.
(c) The Company, as informed, is regular in payment of the the
principal amounts.
(4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and for the sale of
goods. Further, on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weakness in the
aforesaid internal control procedures.
5) RELATED PARTY TRANSACTIONS
a) In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the register
in pursuance to Section 301 of the Companies Act, 1956 have been so
entered.
b) In our opinion and according to the information and explanations
given to us , the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under Section 301 and
exceeding the value of rupees five lacs 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.
(6) In our opinion and according to the information and explanations
given to us, the company has not accepted deposits within the meaning
of the provisions of Sections 58A and 58AA of the Companies Act, 1956
and the Rules made thereunder.
(7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(8) We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records in respect of Sugar under Section 209(1)
(d) of the Companies Act, 1956 are of the opinion that prime facie the
prescribed accounts have been made and maintained . We have however not
made a details examination of the records with view to determine
whether they are accurate and complete.
(9) Statutory Dues:
(a) According to the records of the Company, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth tax, Customs
Duty, Excise Duty, Cess and other statutory dues applicable to it with
the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no undisputed amount
payable in respect of Income Tax, Sales Tax, Wealth Tax, Customs Duty,
Excise Duty and Cess as at 30th June, 2010 for more than 6 months from
the they became payable.
(10) The Company has no accumulated loss at the end of the financial
year ended on 30th June, 2010. The company has not incurred any cash
loss during the financial year year ended on that date as well as in
the immediately preceding financial year.
(11) According to the records of the Company examined by us and the
information and explanations given by the management the Company has
defaulted in repayment of Secured Loans to a Financial institution and
bank as at the Balance Sheet date, but the company is in negotiation
with the said bank and Financial Institution and the matter is expected
to be settled soon. There were no borrowings in the form of Debentures.
(12) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(13) The provisions of any special statute applicable to a chit fund /
nidhi/mutual benefit fund/societies are not applicable to the Company.
(14) In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(16) Based on the information and explanations given to us and on an
overall examination of Balance Sheet of the Company, no new short term
funds have been raised during the year.
(17) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956.
(18) The Company has not raised any money by public issues.
(19) During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company noticed or reported during the year, nor
have we been informed of such case by the management.
For VIVEK JAISWAL & CO.
Chartered Accountants
Place : 2A, Ganesh Chandra Avenue, (Vivek Jaiswal)
Kolkata-700 013. Partner
Date : 28thAugust,2010 (M. No. 057710)