Mar 31, 2015
We have audited the accompanying financial statements of THE JEYPORE
SUGAR COMPANY LIMITED ('the Company') which comprise the Balance Sheet
as at March 31, 2015, 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
The Company's board of directors is responsible for the matters stated
in section 134(5) of the Companies Act, 2013 ('the Act') with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash fows
of the Company in accordance with the accounting principles generally
accepted in India, including the Accounting standards specified under
section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding the assets of the company and for prevention and detection
of frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; design, implementation and maintenance of
adequate internal financial controls, that are operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors' responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and 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 disclosures in the financial statements. The procedures
selected depend on the auditors' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the company has in place an adequate internal financial controls
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of the
accounting policies used and the reasonableness of the accounting
estimates made by the Company's board of directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
Basis for Disclaimer of Opinion
We are informed that the company has proposed for restructuring by
demerging its Pothavaram sugar unit and same is under process. In view
of this, the company is in the process of reviewing the carrying amount
of its assets in Pothavaram Unit. Pending information about its
recoverable amount, we are at present unable to ascertain the
adjustment, if any, required to be made to the value of the assets
between the carrying amount and its recoverable amount as required to
be made as per AS-28 "Impairment of Assets" and its impact, if any, on
the Loss for the year, fixed assets and reserves of the company.
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 Disclaimer of opinion paragraph, the
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
a) In the case of Balance Sheet, of the state of affairs of the Company
as at March 31, 2015;
b) In the case of Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date; and
c) In the case of Cash Flow Statement, of the cash fows of the Company
for the year ended on that date.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ('the
Order'), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which, to the best of our knowledge and belief were necessary for the
purposes of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the accounting standards specified under
section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014 subject to points noted in para of basis for disclaimer of
opinion;
e) On the basis of written representations received from the directors
as on March 31, 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015 from being
appointed as a director in terms of sub-section (2) of section 164 of
the Act;
f) With respect to the other matters to be included in the Auditor's
Report in accordance with the Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, in our opinion and to the basis of our
information and according to the explanations given to us:
i. The company does not have any pending litigations which would impact
its financial position except those which are disclosed in the notes to
the financial statements and para no.7 in Annexure to our Audit report.
ii. The company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education Protection Fund by the company except an amount of
Rs.4,94,760/- which are held in abeyance due to pending legal cases.
The Annexure referred to in our report to the members of THE JEYPORE
SUGAR COMPANY LIMITED ("Company") for the year ended March 31, 2015.
We report that:
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) According to the information and explanations furnished to us, the
Company has not physically verified its fixed assets during the year.
However, the Company has adopted 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.
2. In respect of its inventories:
a) According to the information and explanations furnished to us, the
Company has physically verified its inventories. In our opinion, the
frequency of such verification to the extent carried out is reasonable.
b) In our opinion, 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) According to the information furnished to us, the Company is
maintaining proper records of inventory. The discrepancies noticed on
verification between the physical stocks and the book records, which
were not material, have been properly dealt with in the books of
account.
3. The Company has not granted any loans, secured or unsecured to
companies, forms or other parties covered in the register maintained
under section 189 of the Act. Consequently, clauses (iii)(a) and(b) of
paragraph 3 of the Order are not applicable.
4. 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 purchase of inventory, fixed assets and for the sale of goods and
services. Further during the course of our audit, we have not come
across any instances of major weaknesses in internal control that in
our opinion, require correction.
5. The Company has not accepted any deposits from the public and
members during the financial year 2014-15. However, in respect of
deposits accepted from public and members prior to 1.4.2014, being the
date of commencement of Companies Act, 2013, an amount of Rs.352.24
lakhs (Public Rs.58.24 lakhs and members Rs.294 lakhs) is outstanding
as on 31.3.2015 which are not due for repayment as per the terms of
deposit. The company has not fled statement of deposits with the
Registrar in Form DPT-4 as required to be fled as per the provisions of
section 74(1)(a) of the Act.
The company has received advances against sale of goods amounting to
Rs.19.47 lakhs which are pending for supply for more than a year and
outstanding as on 31.3.2015. We are informed that all these advances
has arisen in respect of sale of goods for which goods were already
sold and some balances were outstanding against the supplies.
Subject to the above, the company has complied with the directives
issued by Reserve Bank of India and the provisions of sections 73 to 76
or any other relevant provisions of the Act and the rules framed there
under. According to the information furnished to us, no order has been
passed on the Company by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal
for non-compliance with the provisions of sections 73 to 76 of the Act.
6. We have broadly reviewed the books of account and records
maintained by the Company pursuant to the rules made by the Central
Government for the maintenance of cost records under section 148(1) of
the Act and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have
not carried out a detailed audit of the same.
7. a) According to the information furnished to us, the Company made
substantial delays in remitting of its dues such as Provident Fund,
Value added tax, Income-tax, Service tax, Excise duty, Cess and other
statutory dues applicable to it. There were no undisputed statutory
dues in arrears as at the date of the Balance Sheet under report, for a
period of more than six months from the date they became payable except
the following.
Name of the statue Nature of dues Amount (Rs.) Period
AP Non-agricultural Non- Agricultural 2,72,115 1978-79 to
1987-88
land asst. tax land tax
Income-tax Act,
1961 Income-tax 3,72,86,980 Asst. year
2013-14
AP Vat Act VAT TDS 6,20,669 2011-2012
Due date Date of
payment
30th June of -
every year
Various dates -
Various dates -
b) According to the information furnished to us, the following amounts
of Income tax, Value added tax, wealth tax, Entry tax, Excise duty and
Service tax have been disputed by the Company, and hence were not
remitted to the authorities concerned at the date of the Balance Sheet
under report.
S. Nature of the
dues and Name of Statute Disputed
Amount Pending before
No period to
which dispute (amount paid
relates under protest)
1 Sales Tax
1995-96 Orissa Sales
Tax Act. 1947 2,00,21,670 High Court,
Orissa
(80,00,000
paid under
protest)
2 Income Tax
Asst Yr-
2009-10 Income Tax
Act, 1961 7,43,163
(3,32,404 CIT(Appeals),
paid under
protest) Vizag
3 CENVAT
credit for
the period Central
from Dec, Excise
2009 to Act, 1944 7,20,51,702
(Stay CESTAT,
March,2009 granted Bangalore
by CESTAT
for demand)
4 CENVAT
credit
for the
period Central
from july Excise Act,
2007 to 1944 40,48,90 Commissioner
of
March, 2009 Central
Excise,
Guntur
5 Service tax
for the
period
from Finance Act,
Aprial2005 1994 16,10,484 Commissioner
of
to Feb, 2008 Central
Excise,
Guntur
c) Further, an amount of Rs.4,94,761/- related to the years 2004-05 to
2006-07 is pending for remittance into Investor Education Protection
Fund which is kept in abeyance due to pending legal cases.
8) The Company had accumulated losses at the end of the financial year.
The Company has incurred cash losses during the financial year covered
by the audit and also in the immediately preceding financial year.
9) According to the information and explanations given to us and as per
the books and records examined by us, the company made considerable
delays and continuing defaults in repayment of its dues to banks. The
company has not borrowed any amounts from financial institutions and by
way of issue of debentures.
Amounts due in respect of Term loans from banks on account of Principal
and interest aggregating to Rs.9642.57 lakhs during the year ended
31.3.2015 (IDBI Rs.4600.86 lakhs : BOB Rs.1146.90 lakhs: Andhra Bank
Rs.848.53 lakhs: BOI Rs.2230.64 lakhs and ICICI Rs.815.63 lakhs) where
payments were delayed from 1-365 days up to 31.3.2015 and these dues
were cleared up to the close of financial year 31.3.2015, except an
amount of Rs.1966.94 lakhs which is pending for remittance as on
31.3.2015. Of the said amount, an amount of Rs.19.48 Lakhs was remitted
till the date of our report.
10)The Company has given corporate guarantee and also offered its
properties as security for loans taken by its cane growers from banks.
According to the information and explanations given to us, we are of
the opinion that the terms and conditions thereof are not prima facie
prejudicial to the interests of the company.
11)According to the information and explanations given to us, the term
loans obtained by the Company during the year have been applied for the
purpose for which they were obtained.
12)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 not 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 BRAHMAYYA & CO
Chartered Accountants
Firm Regd. No.000513S
Place :Camp : Chennai (Sd.) P.LAKSHMANA RAO
Date : 07-06-2015 Partner
(ICAI Memb No.13254)
Mar 31, 2014
We have audited the accompanying financial statements of THE JEYPORE
SUGAR COMPANY LIMITED ("the Company") which comprise the Balance Sheet
as at March 31, 2014, the Statement of Profit and Loss and its Cash
Flow Statement for the year ended on that date annexed thereto and a
summary of significant accounting policies and other explanatory
information.
Management''s responsibility for the financial statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' responsibility
Our responsibility is to express an opinion on the financial statements
based on our audit. We conducted our audit in accordance with the
standards on Auditing issued by the Institute of Chartered Accountants
of India. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors'' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and 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
Basis for Disclaimer of Opinion
a) We are informed that the company has proposed for restructuring by
demerging its Pothavaram sugar unit and same is under process. In view
of this, the company is in the process of reviewing the carrying amount
of its assets in Pothavaram Unit. Pending information about its
recoverable amount, we are at present unable to ascertain the
provision, if any, required to be made for short fall in vale of the
assets between the carrying amount and its recoverable amount as
required to be made as per AS-28 "Impairment of Assets" and its impact
on the Loss for the year, fixed assets and reserves of the company.
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 Disclaimer of opinion paragraph, the
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the Loss 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"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
As required by section 227(3) of the Act, we report that:
1. 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 except for the effects of the matter described in the basis for
Disclaimer of opinion paragraph;
2. 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;
3. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
4. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Act subject to point noted in
para a of disclaimer of opinion and
5. On the basis of written representations received from the directors,
as on March 31, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014 from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
The Annexure referred to in our report to the members of THE JEYPORE
SUGAR COMPANY LIMITED ("the Company") for the year ended March 31,
2014, we report that:
1. In respect of its fixed assets ;
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets except at
its Rayagada units.
b) According to the information and explanations furnished to us, the
Company has not physically verified its fixed assets during the year.
However, the Company has adopted a phased programme of 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.
c) According to the information and explanations furnished to us, the
Company has not disposed off a substantial part of its fixed assets
during the year and therefore do not affect the going concern
assumption.
2. In respect of its Inventories ;
a) According to the information and explanations furnished to us, the
Company has physically verified its inventories during the year except
at its Rayagada units. In our opinion, the frequency of such
verification to the extent carried out is reasonable.
b) In our opinion, 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) According to the information furnished to us, the Company is
maintaining proper records of inventory. The discrepancies noticed on
verification between the physical stocks and the book records, which
were not material, have been properly dealt with in the books of
account.
3. In respect of its loans ;
a) The Company has not granted any loans secured or unsecured, to/from
companies, firms or other parties covered in the register maintained
under section 301 of the Act at the beginning of the year or during the
year. Consequently, reporting under clauses (iii)(b), (iii)(c) and
(iii)(d) of paragraph 4 of the Order are not applicable.
b) The company has accepted fixed deposits/loans aggregating to at the
date of balance sheet to Rs.1180.80 lakhs from 4 directors, Rs.163.15
lakhs from 3 relatives of directors and Rs.103.63 lakhs from 2
companies covered in the register maintained under section 301 of the
Act.
c) In our opinion, the rate of interest and other terms and conditions
on which fixed deposits/loans have been taken by the Company from
parties covered in the register maintained under section 301 of the Act
are not, prima facie, prejudicial to the interest of the Company.
d) The company has been regular in repaying the principal and interest
amounts as stipulated on the deposits taken by it from the parties
covered in the register maintained under section 301 of the Act.
4. 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 for the sale of goods and
services. Further during the course of our audit, we have not come
across any instances of major weaknesses in internal control system.
5. In respect of the contracts or arrangements referred to in section
301 of the Act:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
section 301 of the Act 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/arrangements entered in the register maintained under section
301 of the Act and exceeding the value of Rs.5 lakhs in respect of each
party during the year have been made at prices which appear reasonable
as per information available with the Company and other terms of
business with such parties, at the relevant time.
6. The Company has complied with the provisions of sections 58A and
58AA or any other relevant provisions of the Act and Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public. According to the information furnished to us,
no order has been passed on the Company by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any Court or
any other Tribunal for noncompliance with the provisions of sections
58A and 58AA of the Act.
7. In our opinion, the company has an Internal audit system
commensurate with its size and nature of its business, except to its
Rayagada Units which needs to be implemented.
8. We have broadly reviewed the books of account and records maintained
by the Company pursuant to the rules made by the Central Government for
the maintenance of cost records under section 209(1)(d) of the Act and
we are of the opinion that prima facie the prescribed accounts and
records have been maintained. However, we have not carried out a
detailed examination of the same with a view to determine whether they
are accurate or complete.
9 a) According to the information furnished and records produced before
us, the Company made delays in remittance of TDS recovered but is
regular in depositing the 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 any other statutory dues applicable to it.
There were no undisputed statutory dues in arrears as at the date of
the Balance Sheet under report, for a period of more than six months
from the date they became payable except the following.
Name of the Nature of Amount Period Due date Date of
statue dues (Rs.) payment
AP Non- Non- 2,72,115 1978-79 30th June ---
agricultural Agricultural to of
land asst. tax land tax 1987-88 every year
Income-tax Act, Income- 3,72,86,980 Asst. Various dates ---
1961 tax year
2013-14
Further, an amount of Rs.3.72 lakhs relating to the years 2004-05 and
2005-06 (Interim and Final) is pending for deposit in Investor
Education Protection Fund which was kept in abeyance due to pending
legal cases.
b) According to the information furnished to us and records of the
Company examined by us, at the date of Balance Sheet, the following
amounts of Income-tax, Sales tax and Excise duty have been disputed by
the Company, and hence were not remitted to the authorities concerned
authorities.
S.No Nature of the dues Name of Statute Disputed Pending before
and period to which Amount
dispute relates (amount
paid
under
protest)
1 Sales Tax 1995-96 Orissa Sales 2,00,21,670 High Court,
Tax Act.1947 (80,00,000 Orissa
paid under
protest)
2 Sales Tax 1995-96 & Orissa Sales 3,11,662 STAT, Orissa
1996-97 Tax Act. (2,10,000
1947 paid under
protest)
3 Entry tax 1.4.05 to Orissa Entry 3,75,947 Joint
30.6.2010 Tax Act, (1,75,089 Commissioner
1999 Paid under of Sales tax,
protest) Jeypore
CST 1.4.07 to CST Act, 1957 6,08,083 -do-
30.6.2010 (1,40,537
Paid under
protest)
VAT 1.4.2005 to Orissa Vat Act, 7,08,405 -do-
30.6.2010 2004 (3,97,227
Paid under
protest)
4 Income Tax Asst Yr Income Tax Act, 7,43,163 CIT(Appeals),
2009-10 1961 (3,32,404 Vizag
paid under
protest)
2010-11 66,14,047 CIT (Appeals),
Vizag
5 CENVAT credit for Central Excise 7,20,51,702 CESTAT,
the period from Act, 1944 (Stay Bangalore
Dec, 2009 to by CESTAT
March, 2011 for demand)
6 CENVAT credit Central Excise 40,48,908 Commissioner
for the period Act, 1944 of Central
from July, 2007 Excise,
to March, 2009 Guntur
7 Service tax for Finance Act, 16,10,484 Commissioner
the period from 1994 of Central
April, 2005 to Excise,
Feb, 2008 Guntur
10. The Company had accumulated losses at the end of the financial
year. The Company has incurred cash losses during the financial year
covered by the audit, but does not incurred in the immediately
preceding financial year.
11. According to the information and explanations given to us and as
per the books and records examined by us, the company made considerable
delays and continuing defaults in repayment of its dues to banks. The
company has not borrowed any amounts from financial institutions and by
way of issue of debentures.
Amounts due in respect of Term loans from banks on account of Principal
and interest aggregating to Rs.9179.72 lakhs during the year ended
31.3.2014 (IDBI Rs.3753.94 lakhs : BOB Rs.1190.60 lakhs: SBH Rs.1042.27
lakhs : Andhra Bank Rs.818.93 lakhs: IFCI Rs.203.24 lakhs: BOI
Rs.1312.20 lakhs and ICICI Rs.858.53 lakhs) where payments were delayed
from 1-365 days up to 31.3.2014 and these dues were cleared up to the
close of financial year 31.3.2014, except an amount of Rs.3540.28 lakhs
which is pending for remittance as on 31.3.2014. Of the said amount, an
amount of Rs.1056.81 Lakhs was remitted till the date of our report.
11. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities.
12. In our opinion and according to the information and explanations
furnished to us, the Company is not a chit fund or a nidhi/mutual
benefit fund/society and hence the requirements of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company during the
year under report.
13. According to the information furnished to us, the Company is not
dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the requirements of clause (xiv) of paragraph
4 of the Order are not applicable to the Company.
14. The Company has given corporate guarantee and also offered its
properties as security for loans taken by its cane growers from banks.
According to the information and explanations given to us, we are of
the opinion that the terms and conditions thereof are not prima facie
prejudicial to the interests of the company.
15. According to the information and explanations given to us, the term
loans obtained by the company during the year have been applied for the
purpose for which they were obtained.
16. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that considering the internal accruals of the Company, no funds
raised on short-term basis have been used for long-term investment or
other investments during the year. However, the company used an amount
of Rs.114 crores approx. over the period of time up to the date of our
report for long term applications being its new projects under
execution.
17. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
Section 301 of the Act.
18. According to the information and explanations given to us, the
Company has not issued any debentures. Hence the clause (xix) of
paragraph 4 of the Order is not applicable.
19. The Company has not raised any money through public issues during
the year. Accordingly, the provisions of clause (xx) of paragraph 4 of
the Order are not applicable to the Company during the year under
report.
20. 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 not 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 BRAHMAYYA & CO
Chartered Accountants
Firm Regn.no.000513S
Place : Camp : Chennai (sd.) P. Lakshmana Rao
Date : 18-06-2014 Partner
ICAI Membership No.13254
Sep 30, 2012
We have audited the attached Balance Sheet of THE JEYPORE SUGAR COMPANY
LIMITED as at 30th September 2012, the Statement of Profit and Loss and
its cash-flow statement for the 18 months period ended on that date
both annexed thereto. These financial statements are the responsibility
of the Company''s management. Our responsibility is to express an
opinion on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in
India. Those Standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
As required by the Companies (Auditors'' Report) Order, 2003 issued by
the Government of India in terms of sub-Section (4A) of Section 227 of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
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 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 such
books;
c. The Balance Sheet, Statement of Profit and Loss and Cash-flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash-flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on 30th September, 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
30th September, 2012 from being appointed as a director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act,
1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 30th September, 2012,
ii. In the case of the Statement of Profit and Loss, of the Loss for
the 18 months period ended on that date, and
iii. In the case of the cash-flow statement, of the cash-flows of the
company for the 18 months period on that date
Annexure referred to in paragraph 3 of our report of even date,
1 According to the information and explanations furnished to us, the
company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets except
at its Rayagada units.
1.1 According to the information and explanations furnished to us, the
company has not physically verified its fixed assets during the year.
We have been informed that the company has adopted a phased programme
of verification of its fixed assets which in our opinion is reasonable
having regard to the size of the company and nature of its assets.
1.2 According to the information and explanations furnished to us, the
company has not disposed of a substantial part of its fixed assets
during the year, as to affect the going concern assumption in preparing
the financial statements under report.
2.1 According to the information and explanations furnished to us, the
company has a perpetual inventory verification programme, physically
verified its inventories at WS Sugars and Distillery units in Chagallu
during the year. In our opinion, the frequency and extent of such
verification is reasonable.
2.2 In our opinion, the procedures of physical verification of
inventories followed by the management, to the extent of the
verification carried out, are reasonable and adequate in relation to
the size of the company and the nature of its business.
2.3 According to the information furnished to us, the company is
maintaining proper records of its inventory, and the discrepancies
noticed on verification between the physical stocks, to the extent
verified during the year, and the book records were not material, and
have been properly dealt with in the books of account.
3.1 According to the information and explanations furnished to us, the
company has not granted any loans to any parties covered by the
register maintained under Section 301 of the Companies Act 1956, and
consequently reporting under sub-clauses b, c and d of clause 4(iii) of
the Order does not arise during the year.
3.2 According to the information and explanations furnished to us, the
company has accepted deposits in terms of Section 58A of the Companies
Act 1956 aggregating to Rs.7,59,00,000/- from 4 directors,
Rs.1,63,15,000/- from 3 relatives of directors and Rs.93,63,000/- from
2 companies controlled by the key managerial personnel, covered by the
register maintained under Section 301 of the Companies Act 1956.
3.3 In our opinion, the rate of interest and other terms and conditions
on which loans have been taken by the company from companies, firms or
other parties covered by the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
3.4 According to the information and explanations furnished to us, the
company has been regular in repaying the principal and interest amounts
as stipulated, on the loans taken by it from the persons covered by the
register maintained under Section 301 of the Companies Act 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. Further, during the course
of our audit, we have not come across any instances of major weaknesses
in internal control that require correction and have so continued
without correction.
5.1 Based on the information and explanations given to us, we are of
the opinion that the transactions that are required to be entered in
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
5.2 In our opinion and according to the information and explanations
given to us where such transaction is in excess of Rs.5 lakhs, the
transaction has been made at prices which is prima facie reasonable
having regard to the prevailing market prices at the relevant time and
they are not prejudicial to the interests of the company. ,
6. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
58A and 58AA and other applicable provisions of the Companies Act, 1956
and Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public. According to the information
furnished to us, no Order has been passed on the company by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal for non-compliance with the provisions
of Sections 58A and 58AA of the Companies Act 1956.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Government has prescribed maintenance of cost records
under Section 209(1 )(d) of the Companies Act, 1956. We have broadly
reviewed these records of the company and we are of the opinion that
prima facie the prescribed accounts and records have been made and
maintained. However, we have not carried out a detailed examination of
such records.
9.1 According to the information furnished to us, the company has been
regular in depositing with the appropriate authorities, the undisputed
statutory dues including Provident Fund, Investor Education 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; and the following undisputed statutory
dues were in arrears, as at the date of the Balance Sheet under report,
for a period of more than six months from the date they became payable.
Name of the
statute Nature of Amount Period to
which the Due date Date of
the dues Rs. amount
relates payment
A.P.Non-
Agricultural Non- 2,72,115 1978-79 to
1987-88 30th June, -
Land
Assessment
Tax Agricultural of each year
Act Land Tax
9.2 According to the information furnished to us, the following amounts
of Sales Tax, Customs Duty, Excise Duty, Cess, Income Tax, Wealth Tax,
Service Tax have been disputed by the company, and hence, were not
remitted to the concerned authorities at the date of the Balance Sheet
under report.
Nature of the
dues and period Disputed Amount
S.
No Name of Statute (amount paid
under protest) Pending before
which dispute
relates
1 Sales Tax
1995-96 Orissa Sales
Tax Act. 1947 2,00,21,670
(80,00,000 paid
under protest) High Court,
Orissa
2 Sales Tax
1995-96 &
1996-97 Orissa Sales
Tax Act. 1947 3,11,662
(2,10,000 paid
under protest) STAT, Orissa
3 Income Tax
Asst Yr Income Tax
Act, 1961 7,43,163
(3,32,404
2009-2010 paid under
protest) CIT(Appeals),
Vizag
4 CENVAT credit
for the period Central Excise
Act, 1944 7,20,51,702
(Stay
from Dec, 2009
to March, 2011 granted by
CESTAT for
demand) CESTAT,
Bangalore
5 CENVAT credit
for the period Central Excise
Act, 1944 40,48,908 Commissioner of
from July, 2007
to March, 2009 Central Excise,
Guntur
6 Service tax for
the period Finance Act, 1994 16,10,484 Pending for
filing appeal
from April, 2005
to Feb, 2008
10 The company has no accumulated losses and has not incurred cash
losses during the financial year . covered under our report but
incurred cash losses in the previous financial year.
11 According to the information and explanations furnished to us by the
company, the company made considerable delays during the period under
report in repayment of its dues to banks to the extent of Rs. 10.68
crores. However, during the period under report, the term loans for
financing Pothavaram sugar unit were restructured. After restructuring
of the terms of repayment, the company is regular in repayment of the
installments and there were no default in repayment except an amount of
Rs.58.13 lakhs as on date of balance sheet. Out of said outstanding, an
amount of Rs.20.66 lakhs was paid before the date of our report.
12 According to the information furnished to us, the company has not
granted any loans or advances on the basis of security by way of pledge
of shares, debentures, and other securities.
13 In our opinion and according to the information and explanations
furnished to us, the company is not a chit fund or a nidhi / mutual
benefit fund/ society and hence, the requirements of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to
the company during the year under report.
14 According to the information furnished to us, the company is not
dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the requirements of clause 4(xiv) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
15 In our opinion based on the information furnished to us, the
guarantees given by the company for loans taken by its cane-growers
from banks are not prima-facie prejudicial to the interests of the
company.
16 In our opinion, and according to the information and explanations
furnished to us, the term loans taken by the company have been applied
for the purposes for which they were raised.
17 According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company, we report that
the company has used part of its short-term funds approx. Rs.83 cores
over the period of time for long term applications being its new
project under execution.
18 According to the information and explanations furnished to us, the
company has not made any preferential allotment of shares during the
period covered under audit to parties and companies covered in the
register maintained under section 301 of the Companies Act, or to any
others.
19 According to the information and explanations given to us, the
company has not issued any debentures during the period covered under
our report.
20 The company has not raised any moneys through public issue of its
securities during the period, and the question of end use of such
moneys does not arise during the period covered under audit.
21 During the course of our examination of the accounts of the company
in accordance with the generally accepted auditing practices, we have
not come across any instances of fraud on or by the company, nor have
we been informed by the management, of any such instance being noticed
or reported during the period covered under audit.
For BRAHMAYYA & CO
Chartered Accountants
Place: Camp : Chennai Firm Regn. No.000513S
Date: 28-11-2012 (Sd.) P. Lakshmana Rao
Partner
Memb. No. 13254
Mar 31, 2011
We have audited the attached Balance Sheet of THE JEYPORE SUGAR COMPANY
LIMITED, as at 31st March 2011, its Profit and Loss Account for the
year ended on that date annexed thereto, and its cash-flow statement
for the year ended on that date. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted ouraudit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors' Report) Order, 2003 issued by
the Government of India in terms of sub-Section (4A) of Section 227 of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
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 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 such
books;
c. The Balance Sheet and 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 and Profit and Loss account and
the Cash-flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
e. On the basis of written representations received from the
directors, as on March 31,2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31,2011 from being appointed as a director in terms of clause (g)
of sub-section (1) of Section 274 of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2011,
ii. In the case of the Profit and Loss Account, of the Loss for the
year ended on that date,
iii. In the case of the cash-flow statement, of the cash-flows of the
company for the year ended on that date
Annexure referred to in paragraph 3 of our report of even date,
1 According to the information and explanations furnished to us, the
company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets except
at its Rayagada units.
1.1 According to the information and explanations furnished to us, the
company has physically verified its fixed assets at WS Sugars and
Distillery units in Chagallu during the year. We have been informed
that the company has adopted a phased programme of verification of its
fixed assets which in our opinion is reasonable having regard to the
size of the company and nature of its assets.
1.2 According to the information and explanations furnished to us, the
company has not disposed of a substantial part of its fixed assets
during the year, as to affect the going concern assumption in preparing
the financial statements under report.
2.1 According to the information and explanations furnished to us, the
company has under a perpetual inventory verification programme,
physically verified its inventories at WS Sugars and Distillery units
in Chagallu during the year. In our opinion, the frequency and extent
of such verification is reasonable.
2.2 In our opinion, the procedures of physical verification of
inventories followed by the management, to the extent of the
verification carried out, are reasonable and adequate in relation to
the size of the company and the nature of its business.
2.3 According to the information furnished to us, the company is
maintaining proper records of its inventory, and the discrepancies
noticed on verification between the physical stocks, to the extent
verified during the year, and the book records were not material, and
have been properly dealt with in the books of account.
3.1 According to the information and explanations furnished to us, the
company has not granted any loans to any parties covered by the
register maintained under Section 301 of the Companies Act 1956, and
consequently reporting under sub-clauses b, c and d of clause 4(iii) of
the Order does not arise during the year.
3.2 According to the information and explanations furnished to us, the
company has accepted deposits in terms of Section 58A of the Companies
Act 1956 aggregating to Rs.7,69,50,0007- from 6 directors and
Rs.1,44,15,000/- from 3 relatives of directors and Rs.93,63,000/- from
2 companies controlled by the key managerial personnel, covered by the
register maintained under Section 301 of the Companies Act 1956.
3.3 In our opinion, the rate of interest and other terms and conditions
on which loans have been taken by the company from companies, firms or
other parties covered by the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
3.4 According to the information and explanations furnished to us, the
company has been regular in repaying the principal and interest amounts
as stipulated, on the loans taken by it from the persons covered by the
register maintained under Section 301 of the Companies Act 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. Further, during the course
of our audit, we have not come across any instances of major weaknesses
in internal control that require correction and have so continued
without correction.
5.1 Based on the information and explanations given to us, we are of
the opinion that the transactions that are required to be entered in
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
5.2 In our opinion and according to the information and explanations
given to us, the transactions which have been entered into, pursuant to
contracts that have been entered in the register maintained under
Section 301 of the Companies Act 1956, have been made at prices and
terms which are reasonable having regard to prevailing market prices at
the relevant time, and other terms and conditions in the context of
such transactions.
6. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
58A and 58AA and other applicable provisions of the Companies Act, 1956
and Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public. According to the information
furnished to us, no Order has been passed on the company by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal for non-compliance with the provisions
of Sections 58A and 58AA of the Companies Act 1956.
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 account and records maintained
by the company at its sugar, Distillery and Electric power
co-generation units pursuant to the Rules made by the Central
Government for the maintenance of Cost Records under section 209 (1)
(d) of the Companies Act, 1956 and we are of the opinion that prima
facie the prescribed accounts and records have been made and
maintained. However, we are not required to and have not carried out a
detailed audit of the same.
9.1 According to the information furnished to us, the company has been
regular in depositing with the appropriate authorities, the undisputed
statutory dues including Provident Fund, Investor Education 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; and the following undisputed statutory
dues were in arrears, as at the date of the Balance Sheet under report,
for a period of more than six months from the date they became payable.
Name of the statue Nature of Amount Period to Due date
the dues Rs. which the
amount
relates
A. P. Non-Agricu Non- 2,72,115 1978-79 to 30th June,
ltural Land Agricultural 1987-88 of each
Assessment Tax Act Land Tax year
Name of the statue Date of
payment
A. P. Non- -
Agricultural Land
Assessment Tax Act
9.2 According to the information furnished to us, the following amounts
of Sales Tax, Customs Duty, Excise Duty, Cess, Income Tax, Wealth Tax,
Service Tax have been disputed by the company, and hence, were not
remitted to the concerned authorities at the date of the Balance Sheet
under report
S. Nature 0f the dues Name of Statute Disputed Pending
No and Period to Amount before
which dispute (amount
relates paid under
protest
1 Sales Tax 1995-96 Orissa Sales Tax 2,00,21,670 High Court
Act.1947 (80,00,000 ,Orissa
paid under
protest)
2 Sales Tax 1995-96 Orissa Sales Tax 3,11,662 STAT,
& 1996-97 , Act. 1947 (2,10,000 Orissa
paid under
protest)
3 Income Tax Asst Income Tax Act, 15,66,243 High Court
Yr 2006-07 1961 (15,66,243 of AP
paid under
protest)
4 Income Tax Asst Income Tax Act, 44,74,986 ITAT,Vizag
Yr 2007-08 1961 (44,74,986
paid under
protest)
10. According to the information and explanations furnished to us, the
company had no accumulated losses at the end of the financial year
under report. However, the company incurred cash losses during the
financial year under report.
11. According to the information and explanations furnished to us by
the company, the company made considerable delays during the year in
repayment of its dues to banks. However, the company made default in
repayment of amounts aggregating to Rs.3.61 crores which are pending
for remittance as on 31.3.2011. Against the said dues, an amount of
Rs.82.34 crores was paid subsequently till the date of our report.
12. According to the information furnished to us, the company has not
granted any loans or advances on the basis of security by way of pledge
of shares, debentures, and other securities.
13. In our opinion and according to the information and explanations
furnished to us, the company is not a chit fund or a nidhi / mutual
benefit fund/ society and hence, the requirements of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company during the year under report.
14. According to the information furnished to us, the company is not
dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the requirements of clause 4(xiv) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
15. In our opinion based on the information furnished to us, the
guarantees given by the company for loans taken by its cane-growers
from banks are not prima-facie prejudicial to the interests of the
company.
16. In our opinion, and according to the information and explanations
furnished to us, the term loans taken by the company have been applied
for the purposes for which they were raised.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company, and the
pattern of application of funds considering the internal accruals of
the company, we report that no funds raised on short term basis have
been used for long term investment.
18. According to the information and explanations furnished to us, the
company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
section 301 of the Companies Act, or to any others.
19. According to the information and explanations given to us, the
company has not issued any debentures during the year under report.
20. The company has not raised any moneys through public issue of its
securities during the year, and the question of end use of such moneys
does not arise during the year.
21. During the course of our examination of the accounts of the company
in accordance with the generally accepted auditing practices, we have
not come across any instances of fraud on or by the company, nor have
we been informed by the management, of any such instance being noticed
or reported during the year.
For BRAHMAYYA & CO
Chartered Accountants
FirmRegn. NO.000513S
(Sd) K. RAJAJ
ICAI Memb. No.202309
Partner
Place : Chennai
Date : 31.5.2011
Mar 31, 2010
We have audited the attached Balance Sheet of THE JEYPORE SUGAR COMPANY
LIMITED, as at 31st March 2010, its Profit and Loss Account for the
year ended on that date annexed thereto, and its cash-flow statement
for the year ended on that date. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Government of India in terms of sub-Section (4A) of Section 227 of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
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 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 such
books;
c. The Balance Sheet and 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 and Profit and Loss account and
the Cash-flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
e. On the basis of written representations received from the
directors, as on March 31,2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2010, ii. In the case of the Profit and Loss
Account, of the profit for the year ended on that date, iii. In the
case of the cash-flow statement, of the cash-flows of the company for
the year ended on that date
Annexure referred to in paragraph 3 of our report of even date,
1 According to the information and explanations furnished to us, the
company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
1.1 According to the information and explanations furnished to us, the
company has physically verified its fixed assets at WS Sugars and
Distillery units in Chagallu during the year. We have been informed
that the company has adopted a phased programme of verification of its
fixed assets which in our opinion is reasonable having regard to the
size of the company and nature of its assets.
1.2 According to the information and explanations furnished to us, the
company has not disposed of a substantial part of its fixed assets
during the year, as to affect the going concern assumption in preparing
the financial statements under report.
2.1 According to the information and explanations furnished to us, the
company has under a perpetual inventory verification programme,
physically verified its inventories at WS Sugars and Distillery units
in Chagallu during the year. In our opinion, the frequency and extent
of such verification is reasonable.
2.2 In our opinion, the procedures of physical verification of
inventories followed by the management, to the extent of the
verification carried out, are reasonable and adequate in relation to
the size of the company and the nature of its business.
2.3 According to the information furnished to us, the company is
maintaining proper records of its inventory, and the discrepancies
noticed on verification between the physical stocks, to the extent
verified during the year, and the book records were not material, and
have been properly dealt with in the books of account.
3.1 According to the information and explanations furnished to us, the
company has not granted any loans to any parties covered by the
register maintained under Section 301 of the Companies Act 1956, and
consequently reporting under sub-clauses b, c and d of clause 4(iii) of
the Order does not arise during the year.
3.2 According to the information and explanations furnished to us, the
company has accepted deposits in terms of Section 58A of the Companies
Act 1956 aggregating to Rs. 58950000 from 6 directors and Rs. 11415000
from 3 relatives of directors and Rs.9363000 from 2 companies
controlled by the key managerial personnel, covered by the register
maintained under Section 301 of the Companies Act 1956.
3.3 In our opinion, the rate of interest and other terms and conditions
on which loans have been taken by the company from companies, firms or
other parties covered by the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
3.4 According to the information and explanations furnished to us, the
company has been regular in repaying the principal and interest amounts
as stipulated, on the loans taken by it from the persons covered by the
register maintained under Section 301 of the Companies Act 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. Further, during the course
of our audit, we have not come across any instances of major weaknesses
in internal control that require correction and have so continued
without correction.
5.1 Based on the information and explanations given to us, we are of
the opinion that the transactions that are required to be entered in
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
5.2 In our opinion and according to the information and explanations
given to us, the transactions which have been entered into, pursuant to
contracts that have been entered in the register maintained under
Section 301 of the Companies Act 1956, have been made at prices and
terms which are reasonable having regard to prevailing market prices at
the relevant time, and other terms and conditions in the context of
such transactions.
6. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
58A and 58AA and other applicable provisions of the Companies Act, 1956
and Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public. According to the information
furnished to us, no Order has been passed on the company by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal for non-compliance with the provisions
of Sections 58A and 58AA of the Companies Act 1956.
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 account and records
maintained by the company at its sugar, Distillery and Electric power
co-generation units pursuant to the Rules made by the Central
Government for the maintenance of Cost Records under section 209 (1)
(d) of the Companies Act, 1956 and we are of the opinion that prima
facie the prescribed accounts and records have been made and
maintained. However, we are not required to and have not carried out a
detailed audit of the same.
9.1 According to the information furnished to us, the company has been
regular in depositing with the appropriate authorities, the undisputed
statutory dues including Provident Fund, Investor Education 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; and the following undisputed statutory
dues were in arrears, as at the date of the Balance Sheet under report,
for a period of more than six months from the date they became payable.
Name of the statue Nature of Amount Period to which the Due date Date
the dues Rs. amount relates of
payment
A. P. Non-
Agricultural Non- 2,72,115 1978-79 to 1987-88 30th June, -
Land Assessment Agricultural of each year
Tax Act Land Tax
9.2 According to the information furnished to us, the following amounts
of Sales Tax, Customs Duty, Excise Duty, Cess, Income Tax, Wealth Tax,
Service Tax have been disputed by the company, and hence, were not
remitted to the concerned authorities at the date of the Balance Sheet
under report
S Nature of the Name of statute Disputed Amount Pending before
No dues and period to (amount paid
which dispule relates under protest)
1 Sales Tax 1995-96 Orissa Sales
Tax Act. 1947 2,00,21,670 High Court,
Orissa
(80,00,000 paid
under protest)
2 Income Tax Asst
Yr 2006-07 Income Tax
Act, 1961 15,66,243(15,66,243 ITAT.Vlzag
paid under protest)
3 Income Tax Asst
Yr 2007-08 Income Tax
Act, 1961 4,47,92,595 CIT(A),
Hyderabad
4 Sales tax 2004-05 APGST Act, 1957 6,92,492(6,92,492 AP High Court
paid under protest)
10 According to the information and explanations furnished to us, the
company had no accumulated losses at the end of the financial year
under report. It did not incur cash losses during the financial year
under report, or in the immediately preceding financial year.
11 According to the information and explanations furnished to us by the
company, the company has not defaulted in repayment of its dues to
financial institutions, banks or debenture holders.
12 According to the information furnished to us, the company has not
granted any loans or advances on the basis of security by way of pledge
of shares, debentures, and other securities.
13 In our opinion and according to the information and explanations
furnished to us, the company is not a chit fund or a nidhi / mutual
benefit fund/ society and hence, the requirements of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company during the year under report.
14 According to the information furnished to us, the company is not
dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the requirements of clause 4(xiv) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
company.
15 In our opinion based on the information furnished to us, the
guarantees given by the company for loans taken by its cane-growers
from banks are not prima-facie prejudicial to the interests of the
company.
16 In our opinion, and according to the information and explanations
furnished to us, the term loans taken by the company have been applied
for the purposes for which they were raised.
17 According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company, and the
pattern of application of funds considering the internal accruals of
the company, we report that no funds raised on short term basis have
been used for long term investment.
18 According to the information and explanations furnished to us, the
company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
section 301 of the Companies Act, or to any others.
19 According to the information and explanations given to us, the
company has not issued any debentures during the year under report.
20 The company has not raised any moneys through public issue of its
securities during the year, and the question of end use of such moneys
does not arise during the year.
21 During the year, some of the employees of the company
misappropriated sugar stocks costing Rs.73.86 lakhs. Investigations are
in progress and the concerned employees has been dismissed and
arrested. The company has withheld their terminal benefits and taking
necessary steps for attachment of their properties.
For BRAHMAYYA & CO
Chartered Accountants
Place: Chennai Firm Regn. NO.000513S
Date : 28.05.2010 (P. LAKSHMANA RAO)
ICAI Membership No. 13254
Partner
Mar 31, 2000
We have audited the attached Balance Sheet of THE JEYPORE SUGAR COMPANY
LTD, CHENNAI, as at 31st March, 2000 and its Profit and Loss Account
for the year ended on that date annexed thereto and Report that:
1. As required by the Manufacturing and other companies (Auditors
Report) order 1988 issued by the Company Law Board 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 the Annexure referred to in paragraph 1
above, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for purpose of our
audit.
(b) Proper books of accounts as required by Law have been kept by the
Company so as appears from our examination of such books.
(c) The Balance Sheet and Profit and Loss Account referred to in this
Report are in agreement with the books of accounts.
(d) In our opinion, and to the best of our information and according to
the explanations given to us, the said Balance Sheet and the Profit and
Loss Account, read together with the statement on accounting policies,
Note No.17 on non availability of information about the dues to small
scale industries as required by Schedule VI to the Companies Act, 1956
and other notes forming part of accounts, comply with the accounting
standards referred to in subsection (3C) of section 211 of the
Companies Act 1956, and give the information required by the said Act,
in the manner so required, and give a true and fair view:
(i) In so far as it relates to the Balance Sheet, of the state of
affairs of the Company as at 31st March, 2000.
and (ii) In so far as it relates to the Profit and Loss Account, of the
profit of the Company for the year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of its Fixed Assets. The
Company has adopted a phased programme of physical verification of its
fixed assets, except furniture and fixtures and office equipment.
According to the information furnished to us, in respect of the fixed
assets verified during the year, no discrepancies between physical
assets and book records have been noticed.
2. None of the fixed assets of the Company has been revalued during
the year.
3. According to the information and explanations given to us, the
stocks of finished goods, stores, spares and raw materials have been
physically verified during the year by the management at reasonable
intervals.
4. In our opinion, the procedures of physical verification of stocks
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
5. According to the information and explanations furnished to us, the
discrepancies noticed on physical verification of stocks as compared to
book records, were not material and have been properly dealt with in
the books of accounts.
6. In our opinion and according to the information made available to
us and the explanations given to us, the method of valuation of stocks
is proper in accordance with the normally accepted accounting
principles and is on the same basis as in the preceeding year except
for changes made in line with AS-2 "valuation of Inventories" as
explained in para No. 7 of notes forming part of accounts and para No.
5(c) of statement significant accounting policies.
7. In our opinion, the rate of interest and the terms and conditions
on which loans have been obtained from parties listed in the register
maintained Under Section 301 or from Companies under the same
management as defined Under Section 370 (1B) of the Companies Act,
1956, are not, Prima facie, prejudicial to the interests of the
Company.
8. According to the information and explanation given to us, the
Company has not granted any loans to parties listed in the register
maintained Under Section 301 and/or to the companies under the same
management as defined Under Section 370 (1B) of the Companies Act,
1956.
9. According to the information and explanations given to us the
parties to whom loans or advances in the nature of loans have been
given by the Company, are repaying the principal amounts and also
interest as stipulated.
10. In our opinion, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business, for the purchase of stores, raw- materials including
components, plant and machinery, equipment and other assets and for the
sale of goods.
11. In our opinion and according to the information and explanations
given to us, the transactions of purchase of goods and materials and
sale of goods, materials and services, made in pursuance of contracts
or arrangements entered in the register maintained Under Section 401 of
the Companies Act, 1956 and aggregating during the period to Rs.
50,000/- or more in respect of each party have been made at prices and
terms which are reasonable, having regard to the prevailing market
prices for such goods, wherever such goods are available in the market,
and the terms and conditions to the transaction.
12. In our opinion, wherever unserviceable or damaged stores, raw
materials and finished goods were determined, provision for loss, if
any, thereon has been made in the accounts.
13. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
58-Aof the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public, except for the deposit of a required shortfall amount of Rs.
5,62,000 in accordance with Rule 3A of the said rules beyond the
specified date thereunder.
14. In our opinion and according to the information and explanations
given to us, the Company is maintaining reasonable records for the sale
and disposal of realisable by products and scrap.
15. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
16. We have broadly reviewed the books of accounts maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act 1956, in respect of Sugar Unit of the Company and are of the
opinion that, prima facie, the prescribed accounts and records have
been maintained. We have not however, conducted a detailed examination
of such records.
17. According to the information and explanations given to us, the
Company has been regular in depositing Provident Fund and Employees
State Insurance dues with appropriate authorities, except in respect of
its Rayagada units, where the monthly deposits have been made beyond
the due dates and in another case where the contribution could not be
made pending transfer of the employers P.F. Account. As at the Balance
Sheet date, there were arrears of Rs.2,94,294/- being the companys and
the employees contribution to Provident Fund. According to the
information furnished to us said amount has been deposited subsequent
to the Balance Sheet date, before the date of our report.
18. According to the records of the Company and information given to
us, there are no undisputed amounts payable in respect of income tax,
wealth tax, sales tax, customs duty and excise duty outstanding as at
the date of the Balance sheet for a period of more than six months from
the date they became payable.
19. According to the information and explanations given to us and the
records of the Company examined by us, no personal expenses have been
charged to revenue account, except those payable under contractual
obligations.
20. The Company is not a sick industrial company within the meaning of
Section 3 (1) (O) of the Sick Industrial Companies (Special Provisions)
Act, 1985, as at the date of the Balance Sheet.
for BRAHMAYYA & CO.,
Chartered Accountants
Place : Chennai (Sd.).
C. MURALIKRISHNA
Date : 30.06.2000 Partner
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