Mar 31, 2023
Rajshree Sugars & Chemicals Limited
Report on the Financial Statements
We have audited the Financial Statements of RAJSHREE SUGARS & CHEMICALS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the Financial Statements").
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 Companies Act,2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023, its loss, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the Financial Statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. 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.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter |
How our Audit Addressed the Key Audit Matter |
1) Restructuring of loans from Sugar Development Fund (SDF) The company has entered into restructuring its debt with Sugar Development Fund. Pursuant to the restructuring, all legal formalities, except perfection of existing charge, have been completed. The interest provided is as per the restructuring agreement. |
- We have read the Restructuring Agreement executed by the Company with SDF. The charge created for the purpose has been verified and found that perfection of existing charge is under process. The interest is accounted as per the Restructuring agreement. - Interest accounted from the date of agreement to 31.03.2023 has been converted to Funded Interest Term Loan for which separate repayment schedule has been prescribed as per the Restructuring agreement. (Refer Note 39(2)) |
Key Audit Matter |
How our Audit Addressed the Key Audit Matter |
2) Reversal of Minimum Alternate Tax Credit u/s 115JB of the Income Tax Act, 1961 The Company has opted for payment on Income Tax under section 115BAA of the Income Tax Act at the time of filing the Return of Income for the Assessment year 2022-23 on 27-09-2022. Consequent thereto excess MAT credit not available for setoff has been reversed under deferred tax. |
- We have verified the forms filed with respect to opting for taxation under Section 115BAA. (Form 10-IC). Minimum Alternate Tax u/s 115JB of the Income Tax Act, 1961 is not applicable when opted for taxation under Section 115BAA. - The excess MAT credit amounting to ''1634.76 lakhs has been reversed as the same is not available for set off. |
Information Other than the Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the preparation of other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Corporate Governance and Shareholder''s Information, but does not include the Financial Statements and our auditor''s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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 Act with respect to the preparation of these Financial Statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report that :
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid Financial Statements comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2023 from being appointed as a director in terms of Section 164(2) of the Act. However, it is noticed from MCA portal that director Mr.Pethinaidu Narayanasami Suruli (DIN: 01468527) stands disqualified under Section 164(2)(a) with effect from 31.10.2022 as a result of nonfiling of annual return and financial statements for a continuous period of three years by one of the companies in which he is a director.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure âAâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanation given to us, the remuneration paid by the company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company except unpaid dividend of '' 39,729/- for the Financial Year 2009-10 as per the stay orders issued by the Court.
iv. a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material
either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or
otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. a) The company has not declared or paid any dividend during the year.
2. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure âBâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Rajshree Sugars & Chemicals Limited (âthe Companyâ), which comprise the balance sheet as at 31 March 2018, the statement of profit and loss (including Other Comprehensive Income), the Statement of Changes in Equity and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including Other Comprehensive income , cash flows and Changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the Standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ins AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2018, its loss, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) 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, a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
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 it appears from our examination of those books;
(c) The Balance sheet, the statement of Profit and loss including Other Comprehensive Income, Statement of Changes in Equity and the Cash flow statement dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with the relevant Rules issued thereunder.
(e) On the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, a separate report has been given in âAnnexure Bâ; and
(g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended,in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its Standalone Ind AS financial statements - Refer Note No. 44(10) to the standalone Ind AS financial statements;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company except unpaid dividend of Rs. 39,729/- for the financial year 2009-10 as per the stay orders issued by the Court.
According to the information and explanations sought by us and given by the Company and the books and records examined by us during the course of our Audit and to the best of our knowledge and belief we report the following:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets
(b) The fixed assets have been physically verified in a phased periodical manner, by the management, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies have been noticed on such physical verification.
(c) The title deeds of all the immovable properties of land and building which are freehold, are held in the name of the company as at the Balance Sheet date. In respect of building that has been taken on lease and disclosed as fixed assets in the Standalone Ind AS financial statements, the lease Agreements are in the name of the Company.
(ii) The physical verification of inventory has been conducted by the management at reasonable intervals. The Company has maintained proper record of inventory and no material discrepancies were noticed on the physical verification of inventories as compared to the book records.
(iii) The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act.
(iv) The Company has not advanced any loans to its directors or any other person in whom the directors are interested or given any guarantee or provided any security in connection with any loan taken by the directors or such other person as contemplated under section 185 of the Act.
(v) The Company has not accepted any deposits from the public. Therefore the provisions of clause(v) of para 3 of the order are not applicable to the company.
(vi) The Central Government has prescribed the maintenance of cost records under section 148(1) of the Act, in respect of manufacture of sugar and alcohol as well as generation and transmission of electricity by the company. We have broadly reviewed the accounts and records of the company in this connection and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however carried out a detailed examination of the same.
(vii) (a) The Company is regular in depositing undisputed statutory dues including provident fund, employeeâs state insurance, income-tax, sales tax, service tax, goods and service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. There are no undisputed arrears of statutory dues which were outstanding as at 31 March 2018 for a period of more than six months from the date they became payable.
(b) The details of disputed statutory dues which have not been deposited by the Company are as given below:
Name of the Statute |
Nature of Demand |
Amount (Rs. in Lakhs) |
Period to which the Amount Relates |
Forum where dispute is pending |
Central Excise |
Excise Duty |
550.50 |
April 2013- March 2014 |
CESTAT |
476.55 |
January 2012-December 2014 |
Commissioner of Central Excise |
||
TNVAT |
Tax |
56.89 |
2011-12 & 2012-13 |
Asst. Commissioner Appeals |
(viii) The Company has not borrowed from any financial institution and has not issued any debentures till date. In respect of borrowings from Banks and Sugar development fund, the details of default in repayment is as given in Note No. 44(1) of notes to financial statements.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. The Company has not availed any new term loans during the year.
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) In our opinion the managerial remuneration has been paid in accordance with the requisite approval mandated by the provisions of section 197, read with schedule V of the Act.
(xii) The Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) In our opinion the transactions with the related parties are in compliance with sections 177 and 188 of the Act and details of such transactions have been disclosed in the Standalone Ind AS financial statements as required by the applicable accounting standards.
(xiv) The Company has not made preferential allotment or private placement of shares or fully or partly paid convertible debentures during the year and hence reporting under paragraph 3 clause (xiv) of the Order is not applicable to the Company.
(xv) The Company has not entered into non-cash transactions with directors or persons connected with the directors and hence provisions of section 192 of the Act is not applicable to the Company.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Rajshree Sugars & Chemicals Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion to the best of our information and according to the explanation given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For S. KRISHNAMOORTHY& CO.
Chartered Accountants
Regn.No.004009S
K.Raghu
Place : Coimbatore Partner, Auditor
Date : 14th May 2018 Membership No.011178
Mar 31, 2016
INDEPENDENT AUDITOR''S REPORT
To the Members of Rajshree Sugars & Chemicals Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Rajshree Sugars & Chemicals Limited (''the Company''), which comprise the balance sheet as at 31 March 2016, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India,
a) In the case of the Balance Sheet, the state of affairs of the Company as at 31 March 2016
b) In the case of the Statement of Profit and Loss, of the loss for the year ended on that date and
c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) 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, a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
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 it appears from our examination of those books;
(c) The Balance sheet, the statement of Profit and loss and the Cash flow statement dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the directors as on 31 March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, separate report has been given in âAnnexure Bâ; and
(f) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements -Refer Note No.Y 16 to the financial statements;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
ANNEXURE ''A'' TO AUDITOR''S REPORT
Referred to in paragraph 1 of Report on Other Legal and Regulatory Requirements)
According to the information and explanations sought by us and given by the Company and the books and records examined by us during the course of our Audit and to the best of our knowledge and belief we report the following:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets
(b) The fixed assets have been physically verified in a phased periodical manner, by the management, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies have been noticed on such physical verification.
(c) The title deeds of all the immovable properties of the company shown under the Fixed Assets schedule are held in the name of the company.
(ii) The physical verification of inventory has been conducted by the management at reasonable intervals. The Company has maintained proper record of inventory and no material discrepancies were noticed on the physical verification of inventories as compared to the book records.
(iii) The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act, excepting to its wholly owned subsidiary company.
In respect of loan given to Subsidiary company, in our opinion,
A) The terms and conditions of the grant of such loans are not prejudicial to the company''s interest.
B) No schedule of repayment of principal and payment of interest has been stipulated. However, interest is being received regularly.
C) No amount is overdue warranting taking steps for recovery of principal and interest.
(iv) The Company has not advanced any loans to its directors or any other person in whom the directors are interested or given any guarantee or provided any security in connection with any loan taken by the directors or such other person as contemplated under section 185 of the Act.
The loan given to subsidiary company and investment made in the capital of the subsidiary company is within the overall limit prescribed under section186 of the Act.
(v) The Company has not accepted any deposits.
(vi) The Central Government has prescribed the maintenance of cost records under section 148(1) of the Act, in respect of manufacture of sugar and alcohol as well as generation and transmission of electricity by the company. We have broadly reviewed the accounts and records of the company in this connection and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however carried out a detailed examination of the same.
(vii) (a) The Company is regular in depositing undisputed statutory dues including provident fund, employee''s state insurance, income-tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
There are no undisputed arrears of statutory dues which were outstanding as at 31 March 2016 for a period of more than six months from the date they became payable.
(b) The details of disputed statutory dues which have not been deposited by the Company are as given below:
Name of the statute |
Nature of demand |
Amount disputed (Rs. in lakhs) |
Period to which amount relates |
Forum where dispute is pending |
Service Tax |
Penalty |
21.92 |
2006-2007 |
Commissioner (Appeals) |
Central Excise |
Excise duty Excise duty |
550.50 476.55 |
April 2013- March 2014 January 2012 -December 2014 |
CESTAT Commissioner of Central Excise |
TNVAT |
Tax |
56.89 |
2011-12 & 2012-13 |
Asst. Commissioner Appeals |
(viii) The Company has not borrowed from any financial institution and has not issued any debentures till date. In respect of borrowings from Banks and Sugar development fund, the details of default in repayment is as given in Note No. Y (1)(7) of notes to financial statements.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. The Company has raised Term loan during the year from banks and the same has been utilized for the purpose for which it was availed.
(x) No fraud by the Company has been reported during the year. However, there has been a fraud on the company in respect of cane purchases which had been identified / detected by the management and was reported to the Audit Committee.
(xi) In our opinion the managerial remuneration has been paid in accordance with the requisite approval mandated by the provisions of section 197, read with schedule V of the Act.
(xii) The Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) In our opinion the transactions with the related parties are in compliance with sections 177 and 188 of the Act and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) The Company has made preferential allotment of shares during the year to one of the promoters. The allotment of such shares to Smt. Rajshree Pathy, by conversion of part of Promoters contribution under CDR Scheme in terms of the resolution passed at the EGM held on 10.02.2016 is in compliance with the provisions of the Act. The funds received during the year 31.03.2014 were utilized as specified under the CDR Scheme (Approval letter - CDR(SSA)No.1181/2013-14 dated 24.03.2014).
(xv) The Company has not entered into non-cash transactions with directors or persons connected with him.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
For SRIKISHEN & CO.
Chartered Accountants Firm
Regn. No.: 004009S
K.Murali Mohan
Place : Coimbatore Auditor, Proprietor
Date : 28.05.2016 Membership No.14328
Mar 31, 2015
We have audited the accompanying standalone financial statements of
RAJSHREE SUGARS & CHEMICALS LIMITED ("the company"), which comprise the
Balance Sheet as at 31 March 2015, the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes the
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding of the assets of the Company and
for preventing and detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of internal financial control, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company''s
preparation of the financial statements that give 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 Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial
statements, give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
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 31,2015
b) in the case of the Statement of Profit and Loss, of the Loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
As required by the Companies ( Auditor''s Report) Order, 2015 (" the
order"), issued by the Central Government of India in terms of the
sub-section (11) of section 143 of the Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
1. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) the Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules 2014, in our opinion and to the best of our information and
according to the explanations given to us :
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note Y14 to the
Notes to financial statements.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITORS'' REPORT (Referred to in paragraph 1 of our
report on Other Legal and Regulatory Requirements)
i) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its
fixed assets.
b. As explained to us, all the fixed assets have been physically
verified in a phased periodical manner, by the management, which in our
opinion is reasonable having regard to the size of the company and
nature of its assets. No material discrepancies have been noticed on
such physical verification.
ii) a. The physical verification of inventory has been conducted by the
management at reasonable intervals.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. On the basis of our examination of records of inventory, in our
opinion, the Company has maintained proper record of inventory and no
material discrepancies were noticed on the physical verification of
inventories as compared to the book records.
iii) The Company has not granted any loans secured or unsecured to
companies firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
iv) In our opinion and according to the information and explanations
given to us there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, with
regard to purchase of inventory and fixed assets and for the sale of
goods and services. There is no continuing failure to correct major
weaknesses in the internal control system.
v) The Company has not accepted any deposits from the public during the
year.
vi) The Central Government has prescribed maintenance of cost records
under sub section (1) of section 148 of the Companies Act, 2013 in
respect of certain products manufactured by the company. We have
broadly reviewed the accounts and records of the Company in this
connection and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however carried out a detailed examination of the same.
vii) a. The Company is regular in depositing undisputed
statutory dues including Provident Fund, Employees'' State
Insurance, Income tax, Sales tax, Wealth tax, duty of Customs,
duty of Excise ,Value added tax , cess and other statutory dues
with the appropriate authorities. According to the information
and explanation given to us no undisputed arrears of statutory
dues were outstanding as at 31.03.2015 for a period of more than
six months from the date they became payable.
b. According to the information and explanations given to us, the
details of disputed statutory dues which have not been deposited is as
given below:
Name of Nature of demand Period to which Amount disputed
the statute amount relates (Rs. in lakhs)
Service Tax Penalty 2006-2007 21.92
Central Excise Excise duty April 2013- March 2014 550.50
Excise duty January 2012 - 476.55
December 2014
Name of the Statute Forum where dispute is pending
Service Tax Commissioner (Appeals)
Central Excise CESTAT Commissioner of Central Excise
c. The amount required to be transferred to Investor Education and
protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956 ) and rules made thereunder has been
transferred to such fund within time .
viii) There are no accumulated losses at the end of the financial year
31.03.2015. The Company has incurred cash loss during the financial
year covered by our audit and in the immediately preceding financial
year.
ix) The Company has not defaulted in repayment of dues to financial
institutions or banks. The Company has not issued any debentures till
date.
x) The Company has given corporate guarantee for loans taken from bank
by its wholly owned subsidiary Company. According to the information
and explanations given to us, the terms & conditions of the guarantee
given are not prejudicial to the interests of the company.
xi) The Company has applied term loans for the purpose for which the
loans were obtained during the year.
xii) To the best of our knowledge and belief and according to the
information and explanations given to us, no frauds on or by the
Company has been noticed or reported during the year.
For SRIKISHEN & CO.
Registration No. 004009S
Chartered Accountants
K.Murali Mohan
Place : Coimbatore Auditors Propritor
Date : 27th May 2015 Membership No.14328
Mar 31, 2014
We have audited the accompanying financial statements of Rajshree
Sugars and Chemicals Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2014, and the Statement of Profit and
Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity''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 the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of Statement of Profit and Loss, the loss for the year
ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, 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 referred to in
sub section (3C) of section 211 of the Companies Act, 1956; and
e) 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 Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in paragraph 1 of our report on Other Legal and Regulatory
Requirements)
(i) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b. As explained to us, all the fixed assets have been physically
verified in a phased periodical manner, by the management, which in our
opinion is reasonable having regard to the size of the company and
nature of its assets. No material discrepancies have been noticed on
such physical verification.
c. The company has not disposed off substantial part of its fixed
assets during the year.
(ii) a. The physical verification of inventory has been conducted by
the management at reasonable intervals.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. On the basis of our examination of records of inventory, in our
opinion, the Company has maintained proper record of inventory and no
material discrepancies were noticed on the physical verification of
inventories as compared to the book records.
(iii) a. The Company has not taken any loans, secured or unsecured from
Companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act 1956, other than Promoters
contribution of Rs. 1,225 lacs in terms of CDR scheme entered into by
the Company with the lenders. No interest is payable on this loan.
b. The Company has granted unsecured loan to its wholly owned
subsidiary company. The maximum amount involved in the above
transaction net of periodical repayments is Rs. 3,201.22 lacs and the
year ended balance is Rs. 2,419.56 lacs. In our opinion and according
to the information and explanations given to us, the rate of interest &
other terms and conditions of the loan are not prima facie prejudicial
to the interests of the company. In respect of said loan, the said
principal and interest are payable on demand and therefore the question
of overdue amounts does not arise.
iv) In our opinion and according to the information and explanations
given to us there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, with
regard to purchase of inventory and fixed assets and for the sale of
goods and services. During the course of our audit, no major weaknesses
have been noticed in the internal control systems.
v) a. To the best of our knowledge and belief, and according to the
information and explanations given to us, we are of the opinion that
the transactions that need to be entered into the register in pursuance
of section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations,
such transactions have been made at prices, which are reasonable having
regard to the prevailing market prices at the relevant time.
vi) In our opinion, the Company has complied with the provisions of
Section 58A of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business;
viii) The Central Government has prescribed maintenance of cost records
under section 209 (1) (d) of the Companies Act, 1956 in respect of
certain products manufactured by the company. We have broadly reviewed
the accounts and records of the Company in this connection and are of
the opinion that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however carried out a detailed
examination of the same.
ix) a. The Company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income tax, Sales tax, Wealth tax, Customs
duty, Excise duty, service tax, cess and any other statutory dues with
the appropriate authorities. According to the information and
explanation given to us no undisputed arrears of statutory dues were
outstanding as at 31.03.2014 for a period of more than six months from
the date they became payable.
b. According to the information and explanations given to us, the
details of disputed statutory dues which have not been deposited is as
given below:
Name of Period Nature of Amount disputed Forum where
the statute to which demand dispute
amount (Rs.in lakhs) is pending
relates
Service Tax 2006-2007 Penalty 21.92 Commissioner
(Appeals)
Central 2010-2011 Excise 27.80 CESTAT
Excise duty
2012-2013 Excise 397.78 CESTAT
duty
2012-2013 Excise 252.25 Commissioner
duty (Appeals)
x) There are no accumulated losses at the end of the financial year
31.03.2014.The Company has incurred cash loss during the financial year
covered by our audit. The Company has not incurred cash loss in the
immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, subject to the CDR Scheme entered into by the Company with
the lenders during the year, the Company has not defaulted in repayment
of dues to financial institutions or banks. The company has not issued
any debentures till date.
xii) During the year, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) The provisions of special statute applicable to Chit fund, nidhi
/ mutual Benefit fund/societies are not applicable to the Company.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
xv) The Company has given corporate guarantee for loans taken from bank
by its wholly owned subsidiary Company. According to the information
and explanations given to us, the terms and conditions of the guarantee
given are not prejudicial to the interests of the company.
xvi) The Company has applied term loans for the purpose for which the
loans were obtained during the year.
xvii) According to the information and explanations given to us and on
an overall examination of the source and application of funds of the
Company, we report that no funds raised on short term basis has been
used for long term investments during the year.
xviii) The Company has not made any preferential allotment of shares to
parties and Companies covered in the Register maintained under section
301 of the Companies Act, 1956.
xix) The Company has not issued any secured debentures during the year.
xx) The Company has not raised any money by way of public issues during
the year.
xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no frauds on or by the
Company has been noticed or reported during the year.
For SRIKISHEN & CO.
Registration No. 004009S
Chartered Accountants
K.Murali Mohan
Place:Coimbatore Auditors, Proprietor
Date : 14th May 2014 Membership No.14328
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Rajshree
Sugars & Chemicals Limited (" the Company"), which comprise the Balance
Sheet as at March 31, 2013, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of Statement of Profit and Loss , the profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India
in terms of sub-section (4A) of section 227 of the Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, 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 referred to in
sub section (3C) of section 211 of the Companies Act, 1956; and
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in paragraph 1 of our report on Other Legal and Regulatory
Requirements )
(i) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b. As explained to us, all the fixed assets have been physically
verified in a phased periodical manner, by the management, which in our
opinion is reasonable having regard to the size of the company and
nature of its assets. No material discrepancies have been noticed on
such physical verification.
c. The company has not disposed off substantial part of its fixed
assets during the year.
(ii) a. The physical verification of inventory has been conducted by
the management at reasonable intervals.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. On the basis of our examination of records of inventory, in our
opinion, the Company has maintained proper record of inventory and no
material discrepancies were noticed on the physical verification of
inventories as compared to the book records.
(iii) a. The Company has not taken any loans, secured or unsecured
from Companies, firms or other parties covered in the register
maintained under section 301 of the Act.
b. The Company has granted unsecured loan to its wholly owned
subsidiary company. The maximum amount involved in the above
transaction net of periodical repayments is Rs. 2,351.58 lakhs and the
year end balance is Rs.1,210.32 lakhs. In our opinion and according to
the information and explanations given to us, the rate of interest &
other terms and conditions of the loan are not prima facie prejudicial
to the interests of the company.
c. In respect of said loan, the said principal and interest are
payable on demand and therefore the question of overdue amounts does
not arise.
iv) In our opinion and according to the information and explanations
given to us there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, with
regard to purchase of inventory and fixed assets and for the sale of
goods and services. During the course of our audit, no major weaknesses
have been noticed in the internal control systems.
v) a. To the best of our knowledge and belief, and according to the
information and explanations given to us, we are of the opinion that
the transactions that need to be entered into the register in pursuance
of section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations,
such transactions have been made at prices, which are reasonable having
regard to the prevailing market prices at the relevant time.
vi) In our opinion, the Company has complied with the provisions of
Section 58A of the Companies Act,1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business;
viii) The Central Government has prescribed maintenance of cost records
under section 209 (1) (d) of the Companies Act,1956 in respect of
certain products manufactured by the company. We have broadly reviewed
the accounts and records of the Company in this connection and are of
the opinion that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however carried out a detailed
examination of the same.
ix) a. The Company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income tax, Sales tax, Wealth tax, Customs
duty, Excise duty, service tax, cess and any other statutory dues with
the appropriate authorities. According to the information and
explanation given to us no undisputed arrears of statutory dues were
outstanding as at 31.3.2013 for a period of more than six months from
the date they became payable.
x) There are no accumulated losses at the end of the financial year
31.03.2013. The Company has not incurred cash loss during the financial
year covered by our audit and in the immediately preceding financial
year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.The company has not issued any
debentures till date.
xii) During the year, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) The provisions of special statute applicable to Chit fund,
nidhi/mutual Benefit fund/ societies are not applicable to the Company.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
xv) The Company has given corporate guarantee for loans taken from bank
by its wholly owned subsidiary Company. According to the information
and explanations given to us, the terms & conditions of the guarantee
given are not prejudicial to the interests of the company.
xvi) The Company has applied term loans for the purpose for which the
loans were obtained during the year.
xvii) According to the information and explanations given to us and on
an overall examination of the source and application of funds of the
Company, we report that funds raised to the tune of Rs. 5,318.82 lakhs on
short term basis has been used for repayment of current maturities of
long term loans during the year.
xviii) The Company has not made any preferential allotment of shares to
parties and Companies covered in the Register maintained under section
301 of the Companies Act, 1956 .
xix) The Company has not issued any secured debentures during the year.
xx) The Company has not raised any money by way of public issues during
the year.
xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no frauds on or by the
Company has been noticed or reported during the year.
For SRIKISHEN & CO.
Registration No. 004009S
Chartered Accountants
K.Murali Mohan
Place:Coimbatore Auditors, Proprietor
Date: 25th May 2013 Membership No.14328
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s Rajshree Sugars &
Chemicals Limited as at 31st March 2012, the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended, 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 to the extent applicable.
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 purposes of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company, so far as appears from our examination of those
books;
c) The Balance Sheet, the 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 dealt with by this report are in compliance
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
e) On the basis of written representation received from the Directors
as on 31st March 2012, and taken on record by the Board of Directors,
in our opinion none of the Directors is disqualified as on that date,
from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956, and
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012
ii. in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date)
i) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b. As explained to us, all the fixed assets have been physically
verified in a phased periodical manner, by the management, which in our
opinion is reasonable having regard to the size of the company and
nature of its assets. No material discrepancies have been noticed on
such physical verification.
c. The company has not disposed off substantial part of its fixed
assets during the year.
ii) a. The physical verification of inventory has been conducted by the
management at reasonable intervals.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. On the basis of our examination of records of inventory, in our
opinion, the Company has maintained proper record of inventory and no
material discrepancies were noticed on the physical verification of
inventories as compared to the book records.
iii) a. The Company has not taken any loans, secured or unsecured from
Companies, firms or other parties covered in the register maintained
under section 301 of the Act.
b. The Company has granted unsecured loan to its wholly owned
subsidiary company. The maximum amount involved in the above
transaction net of periodical repayments is Rs 3,076.13 lakhs and the
year end balance is Rs 1,505.61 lakhs. In our opinion and according to
the information and explanations given to us, the rate of interest and
other terms & conditions of the loan are not prima facie prejudicial to
the interests of the company.
c. In respect of said loan, the said principal and interest are
payable on demand and therefore the question of overdue amounts does
not arise.
iv) In our opinion and according to the information and explanations
given to us there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, with
regard to purchase of inventory and fixed assets and for the sale of
goods and services. During the course of our audit, no major weaknesses
have been noticed in the internal control systems.
v) a. To the best of our knowledge and belief, and according to the
information and explanations given to us, we are of the opinion that
the transactions that need to be entered into the register in pursuance
of section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations,
such transactions have been made at prices, which are reasonable having
regard to the prevailing market prices at the relevant time.
vi) In our opinion, the Company has complied with the provisions of
Section 58A of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business;
viii) The Central Government has prescribed maintenance of cost records
under section 209 (1) (d) of the Companies Act, 1956 in respect of
certain products manufactured by the company. We have broadly reviewed
the accounts and records of the Company in this connection and are of
the opinion that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however carried out a detailed
examination of the same.
ix) a. The Company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income tax, Sales tax, Wealth tax, Customs
duty, Excise duty, Service tax, Cess and any other statutory dues with
the appropriate authorities. According to the information and
explanation given to us no undisputed arrears of statutory dues were
outstanding as at 31.03.2012 for a period of more than six months from
the date they became payable.
b. According to the information and explanations given to us, the
details of disputed statutory dues which have not been deposited is as
given below:
Name of the
statute Period to
which Nature of
demand Amount
disputed Forum where
dispute
amount relates (Rs in
lakhs) is pending
TNGST 1995-96 to
1997-98 Interest on
sales tax 42.50 High Court,
Chennai
Service Tax 2006 -2007 Penalty 21.00 Commissioner
(Appeals)
TNGST 2000-01 to
2004-05 Sales tax 256.82 1st
Appellate
Authority
x) There are no accumulated losses at the end of the financial year
31.03.2012.The Company has not incurred cash loss during the financial
year covered by our audit and has incurred cash loss in the immediately
preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks. The company has not issued any
debentures till date.
xii) During the year, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) The provisions of special statute applicable to Chit fund,
nidhi/mutual benefit fund / societies are not applicable to the
Company.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
xv) The Company has given corporate guarantee for loans taken from bank
by its wholly owned subsidiary Company. According to the information
and explanations given to us, the terms & conditions of the guarantee
given are not prejudicial to the interests of the company.
xvi) The Company has applied term loans for the purpose for which the
loans were obtained during the year.
xvii) According to the information and explanations given to us and on
an overall examination of the source and application of funds of the
Company, we report that out of the funds raised on short term basis
during the year, an amount of Rs 1871.84 lakhs has been used for long
term investments by way of part financing the acquisition of fixed
assets.
xviii) The Company has not made any preferential allotment of shares to
parties and Companies covered in the Register maintained under section
301 of the Companies Act, 1956 .
xix) The Company has not issued any secured debentures during the year.
xx) The Company has not raised any money by way of public issues during
the year.
xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no frauds on or by the
Company has been noticed or reported during the year.
For SRIKISHEN & CO.
Chartered Accountants
Reg No. 004009 S
K.Murali Mohan
Place: Coimbatore Membership No.14328
Date: 19th May 2012 Auditors, Proprietor
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s Rajshree Sugars &
Chemicals Limited as at 31st March 2011 and also the Profit and Loss
Account and the Cash flow statement for the year ended on that date
annexed thereto. 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.
2. 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended, 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 to the extent applicable.
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 purposes of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company, so far as appears from our examination of those
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion the Balance Sheet, Profit and Loss Account and the
Cash Flow Statement dealt with by this report are in compliance with
the Accounting standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956;
e) On the basis of written representation received from the directors
as on 31st March 2011, and taken on record by the board of directors,
in our opinion none of the directors is disqualified as on that date,
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956, and
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011
ii. in the case of the Profit and Loss Account, of the Loss for the
year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date)
(i) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b. As explained to us, all the fixed assets have been physically
verified in a phased periodical manner, by the management, which in our
opinion is reasonable having regard to the size of the company and
nature of its assets. No material discrepancies have been noticed on
such physical verification.
c. The company has not disposed off substantial part of its fixed
assets during the year.
(ii) a. The physical verification of inventory has been conducted by
the management at reasonable intervals.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. On the basis of our examination of records of inventory, in our
opinion, the Company has maintained proper record of inventory and no
material discrepancies were noticed on the physical verification of
inventories as compared to the book records.
(iii) a. The Company has not taken any loans, secured or unsecured
from Companies, firms or other parties covered in the register
maintained under section 301 of the Act.
b. The Company has granted unsecured loan to its wholly owned
subsidiary company. The maximum amount involved in the above
transaction net of periodical repayments is Rs.331,236,611/- and the
year end balance is Rs.301,549,832/-. In our opinion and according to
the information and explanations given to us, the rate of interest &
other terms and conditions of the loan are not prima facie prejudicial
to the interests of the company.
c. In respect of said loan, the said principal and interest are
payable on demand and therefore the question of overdue amounts does
not arise.
iv) In our opinion and according to the information and explanations
given to us there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, with
regard to purchase of inventory and fixed assets and for the sale of
goods and services. During the course of our audit, no major weaknesses
have been noticed in the internal control systems.
v) a. To the best of our knowledge and belief, and according to the
information and explanations given to us, we are of the opinion that
the transactions that need to be entered into the register in pursuance
of section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations,
such transactions have been made at prices, which are reasonable having
regard to the prevailing market prices at the relevant time.
vi) In our opinion, the Company has complied with the provisions of
Section 58A of the Companies Act ,1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business;
viii) The Central Government has prescribed maintenance of cost records
under section 209 (1) (d) of the Companies Act,1956 in respect of
certain products manufactured by the company. We have broadly reviewed
the accounts and records of the Company in this connection and are of
the opinion that prima facie , the prescribed accounts and records have
been made and maintained. We have not, however carried out a detailed
examination of the same.
ix) a. The Company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income tax, Sales tax, Wealth tax, Customs
duty, Excise duty, service tax, cess and any other statutory dues with
the appropriate authorities. According to the information and
explanation given to us no undisputed arrears of statutory dues were
outstanding as at 31.03.2011 for a period of more than six months from
the date they became payable.
b. According to the information and explanations given to us, the
details of disputed statutory dues which have not been deposited is as
given below:
Name of the
statute Period to which Nature of demand Amount
disputed Forum where
dispute
amount relates (Rs. in
lakhs) is pending
TNGST 1995-96 to 1997-98 Interest on sales
tax 42.50 High Court,
Chennai
Service
Tax Penalty 21.00 Commissioner
(Appeals)
TNGST 2000-01 to 2004 - 05 Sales tax 256.82 1st Appellate
Authority
x) There are no accumulated losses at the end of the financial year
31.03.2011.The Company has incurred cash loss during the financial year
covered by our audit. The Company has not incurred cash loss in the
immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks. The company has not issued any
debentures till date.
xii) During the year, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) The provisions of special statute applicable to Chit fund,
nidhi/mutual Benefit fund/ societies are not applicable to the Company.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
xv) The Company has given corporate guarantee for loans taken from bank
by its wholly owned subsidiary Company. According to the information
and explanations given to us, the terms & conditions of the guarantee
given are not prejudicial to the interests of the company.
xvi) The Company has applied term loans for the purpose for which the
loans were obtained during the year.
xvii) According to the information and explanations given to us and on
an overall examination of the source and application of funds of the
Company, we report that out of the funds raised on short term basis
during the year, an amount of Rs.17,283,291/- has been used for long
term investments by way of part financing the acquisition of fixed
assets.
xviii) The Company has made preferential allotment of shares to one
party covered in the Register maintained under section 301 of the
Companies Act, 1956 .The price at which such shares have been issued is
not prejudicial to the interest of the Company.
xix) The Company has not issued any secured debentures during the year.
xx) The Company has not raised any money by way of public issues during
the year.
xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no frauds on or by the
Company has been noticed or reported during the year
For SRIKISHEN & CO. (004009 S)
Chartered Accountants
K.Murali Mohan
Place : Coimbatore Auditors, Proprietor
Date : 18th May 2011 Membership No.14328
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s Rajshree Sugars &
Chemicals Limited as at 31st March 2010 and also the Profit and Loss
Account and the Cash flow statement for the year ended on that date
annexed thereto. 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.
2. 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended, 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 to the extent applicable.
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 purposes of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company, so far as appears from our examination of those
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion and subject to Note No.33 of notes on accounts,
regarding non accounting of loss on forex derivative contracts
(disputed), the Balance Sheet, Profit and Loss Account and the Cash
Flow Statement dealt with by this report are in compliance with the
Accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
e) On the basis of written representation received from the directors
as on 31st March 2010, and taken on record by the board of directors,
in our opinion none of the directors is disqualified as on that date,
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956, and
f) In our opinion and to the best of our information and according to
the explanations given to us, subject to the non recognition of mark to
market loss ofRs.40.28 crores as claimed by the bank on forex
derivative contract (disputed), resulting in the profit for the year
being overstated to the extent of the said loss not accounted and
overstatement of reserves and surplus to the extent of the said
disputed loss of Rs. 40.28 crores, 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 31 st March 2010
ii. in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date)
(i) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b. As explained to us, all the fixed assets have been physically
verified in a phased periodical manner, by the management, which in our
opinion is reasonable having regard to the size of the company and
nature of its assets. No material discrepancies have been noticed on
such physical verification.
c. The company has not disposed off substantial part of its fixed
assets during the year.
(ii) a. The physical verification of inventory has been conducted by
the management at reasonable intervals.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. On the basis of our examination of records of inventory, in our
opinion, the Company has maintained proper record of inventory and no
material discrepancies were noticed on the physical verification of
inventories as compared to the book records.
(iii) a. The Company has not taken any loans, secured or unsecured from
Companies, firms or other parties covered in the register maintained
under section 301 of the Act.
b. The Company has granted unsecured loan to its wholly owned
subsidiary company. The maximum amount involved in the above
transaction net of periodical repayments is Rs.384,929,102/- and the
year end balance is Rs.311,236,611/-. In our opinion and according to
the information and explanations given to us, the rate of interest &
other terms and conditions of the loan are not prima facie prejudicial
to the interests of the company.
c. In respect of said loan, the said principal and interest are
payable on demand and therefore the question of overdue amounts does
not arise.
iv) In our opinion and according to the information and explanations
given to us there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, with
regard to purchase of inventory and fixed assets and for the sale of
goods and services. During the course of our audit, no major weaknesses
have been noticed in the internal control systems.
v) a. To the best of our knowledge and belief, and according to the
information and explanations given to us, we are of the opinion that
the transactions that need to be entered into the register in pursuance
of section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations,
such transactions have been made at prices, which are reasonable having
regard to the prevailing market prices at the relevant time.
vi) In our opinion, the Company has complied with the provisions of
Section 58A of the Companies Act ,1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business;
viii) The Central Government has prescribed maintenance of cost records
under section 209 (1) (d) of the Companies Act, 1956, in respect of
certain products manufactured by the company. We have broadly reviewed
the accounts and records of the Company in this connection and are of
the opinion that prima facie , the prescribed accounts and records have
been made and maintained. We have not, however carried out a detailed
examination of the same.
ix) a. The Company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income tax, Sales tax, Wealth tax, Customs
duty, Excise duty, service tax, cess and any other statutory dues with
the appropriate authorities. According to the information and
explanation given to us no undisputed arrears of statutory dues were
outstanding as at 31.03.2010 for a period of more than six months from
the date they became payable.
b. According to the information and explanations given to us, the
details of disputed statutory dues which have not been deposited is as
given below:
Name of the
statute Period to which Nature of
demand Amount
disputed
Forum where
dispute
amount relates (Rs. in
lakhs) is pending
Tamil Nadu
General 1995-96 to 1997-98 Interest on
sales tax 42.50 High
Court,
Chennai
Sales Tax
Service Tax Penalty 21.00 Commissioner
(Appeals)
x) There are no accumulated losses at the end of the financial year
31.03.2010.The Company has not incurred any cash loss during the
financial year covered by our audit and in the immediately preceding
financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks. The company has not issued any
debentures till date.
xii) During the year, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) The provisions of special statute applicable to Chit fund,
nidhi/mutual Benefit fund/ societies are not applicable to the Company.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
xv) The Company has given corporate guarantee for loans taken from bank
by its wholly owned subsidiary Company. According to the information
and explanations given to us, the terms & conditions of the guarantee
given are not prejudicial to the interests of the company.
xvi) The Company has applied term loans for the purpose for which the
loans were obtained during the year.
xvii) According to the information and explanations given to us and on
an overall examination of the source and application of funds of the
Company, we report that no funds raised on short-term basis have been
used for long term investments during the year.
xviii)The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956 during the year.
xix) The Company has not issued any secured debentures during the year.
xx) The Company has not raised any money by way of public issues during
the year.
xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no frauds on or by the
Company has been noticed or reported during the year.
For SRIKISHEN & CO. (004009 S)
Chartered Accountants
K.Murali Mohan
Place:Coimbatore Auditors,Proprietor
Date:17thMay2010 Membership No: 14328
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