Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of Rana Sugars Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31 2018, and the Statement of Profit and Loss (including Other Comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance inckiding other comprehensive income cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section mTthrAct rTad withThe9 Companies (Indian Accounting Standards) Rules, 2015, as amended, 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 Pohcies making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate interna controls that were operating effectively for ensuring the accuracy and completeness of the accoun mg records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from matenal misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and mailers which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under Section 143(10) ofthe Acl:. 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 procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement o the financial ^eronte. 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 âhe 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 financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting P^ciples 9ener®â ^ accepted in India of the state of affairs of the Company as at March 31, 201S, and its profit and loss, total comprehensive income, the changes in equity and its cash flows for the year ended on that date, read with Annexure âAâ and âBâ of our report.
Report on Other Legal and Regulatory Requirements
1, As required by Section 143(3) of the Act, based on our audit 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 books of account.
d) In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
q) 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 financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Order) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order,
ANNEXURE âAâ TO THE INDEPENDENT AUDITORâS^EPORT
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report to the Members of Rana Sugars Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Rana Sugars Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Board of Directors of the Company 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. 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, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company 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) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of 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 judgement, 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 Infernal 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
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 explanations 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 March 31, 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.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report to the Members of Rana Sugars Limited of even date)
i. In respect of the Companyâs fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a program of verification to cover all the items of fixed assets. Pursuant to the program, fixed assets were physically verified by the management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, the records examined by us and based on the examination of the deeds provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date.
ii. The inventory has been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. As per the management, no discrepancies were noticed on verification between the physical stocks and the book records.
iii. In our opinion and according to information and explanations given to us, 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 169 of the Act. Accordingly, paragraph 3{iii) of the Order is not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, the company has advanced loans to various parties as per Notes-4 to the financial statements, in preference to section 186 of the Companies Act, 2013,
v. The Company has not accepted deposits during the year and does not have any unclaimed deposits a? at March 31, 2018 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.
vi We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under sub-section (1) of section 148 of the Act and are of the opinion that the prescribed accounts and records have been made and maintained. However, we have not vouched for the correctness of the cost records maintained by the Company.
vii. According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, with certain delays, the dues including. Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Value Added Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities. However, as at 31st March 2018, there are no such dues outstanding for a period of more than six months from the date they became payable.
(b) The Department has raised the Purchase Tax demand of INR 140.40 lakhs, 297.22 lakhs, 347.25 lakhs, 227.62 lakhs, 90.52 and 381.98 lakhs for the financial years 2005-06, 2008-09, 2009-10, 2010-11, 2011-12 and 2013-14 respectively.
The Company has preferred appeals against all these orders with the appellate authorities.
Though, the Company has provided purchase tax liability for the years 2005-06 lo 2013-14, the same has not been paid as the above mentioned appeals against assessment orders are pending with the appellate authorities.
(c) Sales tax assessment for Distillery Unit in District Tarn Taran have been completed upto the financial Year 2013-14 and the department has raised demand of INR 348.47 lakhs on account of VAT and CST against which the Company has filed appeal with DETC (Appeals) Amritsar.
viii The Company has defaulted in repayment of loans/borrowing in respect of following banks:
(Rs. In Lakhs)
Particulars |
Amount of Default as at the Balance Sheet Date |
Period of Default |
Remarks |
State Bank of India |
2997.23 |
Since June 2016 |
Classified as doubtful by the Bank. How ever, an amount of Rs. 1321.02 Lakhs has since been deposited with the bank. |
Bank of Baroda |
860.13 |
Since June 2016 |
Classified as doubtful by the Bank. How ever, amount of Rs. 237.47 Lakhs has since been deposited with the bank. |
UCO Bank |
77.26 |
Since December 2017 |
Entire amount has since been deposited by the Company with the Bank. |
ix. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause 3 (ix) of the Order is not applicable to the Company.
x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations give to us, the Company has not paid any managerial remuneration. Accordingly, the provisions of Section 197 are not applicable to the Company.
xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in theâstandalone financial statements as required by the applicable accounting standards.
xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
xvi. The Company is not required to be registered under section 45-1A of the Reserve Bank of India Act, 1934.
For N J & ASSOCIATES
CHARTERED ACCOUNTANTS
(CA. Sahil Arora)
Place : Chandigarh Partner
Date: 30-05-2018 Membership No. 523974
FRN 023083N
Mar 31, 2016
INDEPENDENT AUDITOR''S REPORT
To The Members of
Rana Sugars Limited Chandigarh.
A) Report on the Financial Statements
We have audited the accompanying financial statements of Rana Sugars Limited, which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and Cash Flow Statement for the period then ended along with a summary of significant accounting policies and other explanatory information.
B) Management''s Responsibility for the Financial Statements
The Management and Board of Directors of the Company are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''the Act'') with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and the cash flows of the Company in accordance with the Accounting Principles generally accepted in India, including 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; design, implementation and maintenance of adequate internal financial controls that are operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatements, whether due to fraud or error.
C) Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and operating activities of such control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company''s management and Board of Director, 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.
D) 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, 2016;
b) In the case of the Statement of Profit and Loss, of the Profit for the period ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the period ended on that date.
E) 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 statement on the matters specified in the paragraphs of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 Section 133 of The Act.
e) On the basis of written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of sub-section (2) of Section 164 of The Act.
f) In our opinion, the Company has adequate internal financial control system and the same are operating effectively.
g) In our opinion and to the best of our information and according to the explanations given to us, we report as under, with respect to other matters to be included in the Auditor''s Report, in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:
I. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer note no. 23.1 to the financial statements and Para 7 of the Annexure of our report below.
II. The Company did not have any long-term contracts including derivative contracts.
III. As per information and explanations given to us, the Company was not required to transfer any amount in Investor Education and Protection Fund.
The Annexure referred to in paragraph E-1 of the Our Report of even date to the members of RANA SUGARS LTD. on the accounts of the Company for the period ended 31st March, 2016.
On the basis of such checks as we considered appropriate during the course of our audit and according to the information and explanations given to us, we report that:
1. IN RESPECT OF ITS FIXED ASSETS:
a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b. As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such physical verification.
c. In our opinion, the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected.
d. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company and the same are in the custody of bankers.
2. IN RESPECT OF INVENTORIES:
As explained to us, inventories of sugar have been pledged to the Banks and physically verified during the year by the management at reasonable intervals and also by the stock auditors appointed by the bankers. No material discrepancies were noticed on physical verification. However minor discrepancies noticed on verification between the physical stocks were properly adjusted in the books of accounts.
3. IN RESPECT OF LOANS GIVEN:
According to the information and explanations given to us and on the basis of our examination of the books of accounts, the Company has not granted any loans, secured or unsecured, to Companies, firms or other parties listed in the register maintained under Section 189 of the Act.
4. IN RESPECT OF COMPLAINCE OF SECTION 185 & 186 OF COMPANIES, ACT
In our opinion and according to the information and explanations given to us, the Company has not made loans, investments, guarantees and security in contravention with the provisions of Section 185 and 186 of the Act.
5. IN RESPECT OF DEPOSITS FROM PUBLIC:
According to the information and explanations given to us, the Company has not accepted any deposits from the public covered under sections 73 to 76 of the Act.
6. COST ACCOUNTING RECORDS:
We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under sub-section (1) of section 148 of the Act and are of the opinion that the prescribed accounts and records have been made and maintained. However, we have not vouched for the correctness of the cost records maintained by the Company.
7. IN RESPECT OF STATUTORY DUES:
a) During the year the Company has deposited, with certain delays, the undisputed statutory dues with the appropriate authorities such as Gratuity, EPF, TCS, TDS, Excise Duty, Service Tax and CST. However, as at 31st March 2016, there are no such dues outstanding for a period of more than six months from the date they became payable.
(b) (i) The following are disputed statutory dues which have not been deposited by the Company as at 31st March 2016:
Name of the Statue |
Nature of Dues |
Total Demand (Rs, in lacs) |
Amount Deposited (Rs, in lacs) |
Forum where dispute is pending |
|
U.P. Sales Tax |
Sales Tax and Entry Tax |
170.97 |
60.24 |
Commissioner (Appeals), Moradabad |
(ii) The Department has raised the Purchase Tax demand of Rs.582.74 lakhs, Rs.882.01 lakhs, Rs. 227.62 lacs and Rs.90.52 lakhs for the financial years 2005-06, 2009-10, 2010-11 and 2011-12 respectively. The Company has preferred appeals against all these orders with the appellate authorities.
Though, the Company has provided purchase tax liability of Rs. 2735.86 lakhs (Previous year Rs. 2734.20 lakhs) for the years 2005-06 to 2014-15, the same has not been paid as the above mentioned appeals against assessment orders are pending with the appellate authorities.
8. REPAYMENT OF DUES:
Banks & Financial Institutions dues:
Based on our audit procedures and according to the information and explanations given to us, the Company has paid dues to banks with certain delays. As on 31st March 2016, there were certain amounts overdue in respect of interest and installments of loans, the details of which are as follows
Banks |
Due Date on |
Installment and Interest Overdue (Rs. in Lakhs) |
State Bank of India |
28.02.2016 |
7.84 |
State Bank of Patiala |
28.02.2016 |
14.00 |
State Bank of Bikaner & Jaipur |
28.02.2016 |
9.65 |
State Bank of Hyderabad |
28.02.2016 |
4.30 |
9. END-USE-OF BORROWINGS:
As per the information and explanations given to us, we report that during the year the Company raised term loan (soft loan) amounting to Rs. 5464.00 Lakhs (Amount outstanding as on 31st March 2016 Rs. 5477.34 Lakhs) and one term loan for Distillery division amounting Rs. 580.00 Lakhs (Amount outstanding as on 31st March 2016 Rs. 561.74 Lakhs). The proceeds from these term loans were applied for the purpose for which those were raised.
10. FRAUDS:
According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11. MANAGERIAL REMUNERATION
According to the information and explanations give to us, the Company has not paid any managerial remuneration. Accordingly, the provisions of Section 197 are not applicable to the Company.
12. NIDHI COMPANY
In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company Accordingly, paragraph 3(xii) of the Order is not applicable.
13. TRANSACTIONS WITH RELATED PARTIES
According to the information and explanations given to us and based on our examination of the records of the Company, all transactions with related parties are in compliance with section 177 and 188 of the Act where applicable and the details have been disclosed in the financial statements.
14. PREFERENTIAL ALLOTMENT
During the year, the Company has not made any Preferential Allotment or private placement of shares or fully or partly convertible debentures.
15. NON-CASH TRANSACTIONS
According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. SECTION 45-IA
The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For KANSAL SINGLA & ASSOCIATES
Chartered Accountants
Place: Chandigarh (CA Surinder Kumar)
Date: 30.05.2016 PARTNER
M. No.: 070405 FRN : 003897N
Mar 31, 2015
We have audited the accompanying financial statements of Rana Sugars
Limited, which comprise the Balance Sheet as at March 31,2015, the
Statement of Profit and Loss and Cash Flow Statement for the period
then ended and a summary of significant accounting policies and other
explanatory information.
B) 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 Section 133 of the Companies
Act, 2013 (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 misstatements, whether
due to fraud or error.
C) 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from any 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 the management
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
D) 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 subject to the
Emphasis of Matter paragraph, give a true andfairview 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
period ended on that date; and
c) InthecaseoftheCash Flow Statement, of the cash flows for the period
ended on that date.
E) Emphasis of Matter
We draw your attention to Note No 23.23 to the financial statements
which states that The Govt, of Uttar Pradesh has announced subsidy for
Sugar Industry for the Season 2014-15 linked to average selling price
of sugar and by-products during the period 1st October 2014 to 31st May
2015. The Company has recognized such subsidy of 3186.78 Lacs and
reduced the same from the cane cost and the cane price payable based on
present and expected likely average selling price.
F) Report on other Legal and Regulatory requirements.
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs of the Order.
2. As required by Section 143(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 the 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
Section 133 of The Act.
e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31,2015, from being appointed as a director in
terms of subsection (2) of Section 164 of The Act.
f) In our opinion, the Company has adequate internal financial controls
system and the same are operating effectively.
The Annexure referred to in paragraph F-1 of the Our Report of even date
to the members of Rana Sugars Limited on the accounts of the Company for
the period ended 31 st March, 2015.
On the basis of such checks as we considered appropriate during the
course of our audit and according to the information and explanations
given to us, we report that:
1. IN RESPECT OF ITS FIXED ASSETS:
a. The Company has maintained proper records showing full particulars
including quantitative details and the situation of fixed assets.
b. As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such
physical verification.
2. IN RESPECT OF INVENTORIES:
a. The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b. According to the information and explanations given to us, the
procedure of physical verification of inventories followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories of finished goods as compared to
the book records. However, discrepancies noticed on verification
between the physical stocks of stores and consumables were properly
adjusted in the consumption of the same.
3. IN RESPECT OF LOANS GIVEN:
According to the information and explanations given to us and on the
basis of our examination of the books of accounts, the Company has not
granted any loans, secured or unsecured, to Companies, firms or other
parties listed in the register maintained under Section 189 of The Act.
4. IN RESPECT OF INTERNAL CONTROL:
In our opinion and according to the information and explanations given
to us, there is an adequate internal control system commensurate with
the size of the Company and the nature of its business for the purchase
of inventory and fixed assets and also for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
5. IN RESPECT OF DEPOSITS FROM PUBLIC:
According to the information and explanations given to us, the Company
has not accepted any deposits from the public.
6. COST ACCOUNTING RECORDS:
We have reviewed the books of accounts maintained by the Company
pursuant to the rules made by the Central Government for the
maintenance of cost records under sub-section (1) of Section 148 of the
Act and are of the opinion that the prescribed accounts and records
have been made and maintained. However, we have not vouched the said
records.
7. IN RESPECT OF STATUTORY DUES:
(a) The Company has deposited, with some delays, undisputed statutory
dues such as Income Tax, Wealth Tax, Employees' Provident Fund, Tax
Collected at Source, Tax Deducted at Source, Excise Duty, Service Tax
and Sales Tax with the appropriate authorities.
Further, the following undisputed amounts were payable as at 31st
March, 2015, for a period exceeding six months from the date they
became payable:
Name of the Statue Nature of Dues Amount (Rs. in lacs)
WealthTaxAct WealthTax 4.02
Name of the Statue Period to which the amount relates
WealthTaxAct FinancialYear2013-14
However, the same has since been paid.
(b) The following are the disputed statutory dues which have not been
deposited by the Company as at 31 st March 2015:
Name of the Nature of Dues Total Demand
Statute (Rs. in Lacs)
U.PSalesTax Sales Tax and Entry Tax 170.97
PunjabVAT Central Sales Tax 163.29
Name of the Amount Deposited Forum where dispute
Statute (Rs. in Lacs) is pending
U.PSalesTax 60.24 Commissioner
(Appeals), Moradabad
PunjabVAT - DETC Appeal, Jalandhar
Further, Sales Tax assessments for Sugar unit in District Amritsar and
Distillery Unit in District Tarn Taran have been completed upto
Financial Year 2011-12. The Department has raised the Purchase Tax
demand of Rs.582.74 lacs, Rs. 882.01 lacs and Rs. 90.52 lacs for the
Financial years 2005-06, 2009-10 and 2011-12. The Company has preferred
appeals against all these orders with the Appellate authorities.
Though, the Company has provided purchase tax liability of Rs. 2735.86
lacs for the years 2005-06 to 2014-15, the same has not been paid as
the above mentioned appeals against assessment orders are pending with
the Appellate authorities.
(c) As per information and explanations given to us, the Company was
not required to transfer any amount in Investor Education and
Protection Fund.
8. LOSS MAKING COMPANY:
The Company has accumulated losses of Rs. 11700.36 Lacs at the end of
the financial year which is more than 50% of its net worth. Further,
the Company has incurred a cash loss of Rs. 5504.18 Lacs during the
financial year covered by our audit. However, there was no cash loss in
the immediately preceding financial year.
9. REPAYMENT OF DUES:
During the year, the Company has paid the amounts due to banks and
financial institutions with certain delays. However, as on 31 st March
2015, there were no over dues in respect of Interest and instalments of
loans.
10. GUARANTEES GIVEN:
The Company has given guarantees to various banks for repayment of crop
loans amounting to Rs.5858.34 lacs taken by farmers from banks. The
terms and conditions thereof are not prima facie prejudicial to the
interests of the Company.
11. END-USE-OF BORROWINGS:
As per the information and explanations given to us, we report that the
Company has applied term loans only for the purpose for which they were
obtained.
12. FRAUDS:
Based upon the audit procedures performed for the purpose of reporting
the true and fair view of the financial statements and as per the
information and explanations given by the management, we report that no
fraud on or by the Company has been noticed or reported during the
period under audit.
For KANSAL SINGLA & ASSOCIATES,
Chartered Accountants
Place: Chandigarh (CA.S. K. ARORA)
Date: 30.05.2015 PARTNER
M. No. 070405, FRN 003897N
Mar 31, 2014
We have audited the accompanying financial statements of Rana Sugars
Limited, which comprise the Balance Sheet as at March 31, 2014, the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting 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 misstatements, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s 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, 2014;
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. 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 said
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
subsection (3C) of Section 211 of The Act;
e) on the basis of written representations received from the directors
and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2014, from being appointed as a director
in terms of clause (g) of sub-section (1) of Section 274 of The Act.
The Annexure referred to in paragraph 1 of our report of even date to
the members of Rana Sugars Limited, on the accounts of the Company for
the year ended on 31st March, 2014.
On the basis of such checks as we considered appropriate during the
course of our audit and according to the information and explanations
given to us, we report that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) Fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies were noticed on such
verification
(c) During the year, the Company has not disposed off any substantial
part of the plant and machinery affecting the going concern status of
the Company.
2. (a)The inventories have been physically verified during the year 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) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification. However,
minor discrepancies noticed on verification between the physical stocks
were properly adjusted in the consumption of stores.
3. (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the register maintained
under Section 301 of The Act.
(b) The Company has taken interest free unsecured loans from eighteen
parties covered in the register maintained under Section 301 of The
Act. The balance outstanding as on 31.03.2014 was Mrs. 4694.37 Lacs and
the maximum amount outstanding during the year of such loans was Mrs.
4958.83 lacs.
(c) The terms & conditions on which such loans were accepted are not
prejudicial to the interest of the Company.
(d) No stipulation has been specified for the repayment of these loans.
4. There is generally an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business, for the purchase of inventories & fixed assets, for payment
of expenses and for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) The particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section.
b) In our opinion the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
The Act and exceeding the value of rupees five lakhs in respect of any
party during the year have been made at terms which are reasonable at
the relevant time.
6. In our opinion, the Company has accepted the Deposits covered as per
the provisions of Sections 58A and 58AA or any other provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 in the form of unsecured loans which are within the exempted
categories of the said section.
7. The Company has an in house internal audit system commensurate with
its size and the nature of its business.
8. We have reviewed the books of account maintained by the company
pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Act but not
vouched and are of the opinion that the prescribed accounts and records
have been made and maintained.
9. (a) The Company has deposited, with some delay, undisputed statutory
dues including Provident Fund, Income Tax, Sales Tax, Service Tax,
Custom Duty, Excise Duty, Cess and other material statutory dues
applicable with appropriate authorities.
(b) The following undisputed amounts were payable in respect of Cess on
Sugar Cane, as at 31st March, 2014, for a period exceeding six months
from the date it became payable:
Name of Nature of Amount Financial Year to
the statute Dues (Rs. in lacs) which the
amount relates
Sugar Cane Cess 11.86 Period Ended
Cess Act 31.03.13
Sugar Cane Cess 0.54 Period Ended
Cess Act 30.09.13
(c) The following dispute amounts were not paid by the Company as at
31st March 2014:
Name of the Nature of Total Amount Balance
Statue Dues Demand Paid Amount
U.P Sales Tax Entry tax 163.70 65.00 98.70
Punjab Vat C.S.T. 160.51 _ 160.51
Punjab Vat C.S.T. 2.78 _ 2.78
Name of the Financial Year to Forum where
Statue which the amount relates dispute is pending
U.P Sales Tax Year Ended 31.03.2008, Commissioner (Appeals),
31.03.2009, 31.03.2012 Moradabad
Punjab Vat Year Ended 31.03.2010 DETC Appeal, Jalandhar
Punjab Vat Year Ended 31.03.2012 DETC Appeal, Jalandhar
Further, Sales Tax assessments for the sugar and distillery units in
Punjab have been completed up to financial year 2011-12. The department
has raised the purchase tax demand of Rs. 582.74 lacs, Rs. 882.01 lacs
and Mrs. 90.52 lacs for the year 2005-06, 2009-10 and 2011-12
respectively. The company has preferred appeals against these orders
with the Appellate authority. Though, the company has provided purchase
tax liability of Rs.2734.20 lacs for the years 2005-06 to 2013- 14 but
the same has not been paid as the above mentioned appeals are pending
with the appellate authorities.
10. The accumulated losses of the Company as at the end of the
financial year, do not exceed 50% of its Net worth. Further, the
Company has not incurred cash loss during the financial year covered by
our audit and in the immediately preceding financial year.
11. The Company has paid, during the year, the amounts due to banks and
financial institutions with certain delays. However, as on 31st March
2014, there were no over dues in respect of Interest and instalments of
loans.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidi /mutual benefit
fund/society.
14. The Company is not trading in Shares, Mutual funds & other
Investments.
15. The Company has given guarantees to various banks for repayment of
crop loans amounting to s 5553.06 lacs taken by farmers from banks. The
terms and conditions thereof are not prima facie prejudicial to the
interest of the Company.
16. During the year, the Company raised term loans (SEFASU 2014)
amounting to res. 1694 lacs from Banks, which were utilized for the
purposes for which these were obtained.
17. No funds raised on short-term basis have been used for long-term
investment by the Company.
18. The Company has not made any preferential allotment of shares
during the year.
19. The Company has not issued any debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. No fraud on or by the Company has been noticed or reported during
the year, nor have we been informed of such case by the management.
For KANSAS SINGLE & ASSOCIATES,
(Chartered Accountants)
Place: Chandigarh CA. S.K. AURORA
Date : 30-05-2014 (PARTNER)
MEMBERSHIP N0.070405
FRN:003897N
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Rana Sugars
Limited, which comprise the Balance Sheet as at March 31, 2013, the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended and a summary of significant accounting policies and other
explanatory information.
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 misstatements, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s 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 the Statement of Profit and Loss Account, of 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 said
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
subsection (3C) of Section 211 of The Act;
e) on the basis of written representations received from the directors
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 Act.
The Annexure referred to in paragraph 1 of
our report of even date to the members of Rana Sugars Limited, on the
accounts of the Company for the year ended on 31st March, 2013.
On the basis of such checks as we considered appropriate during the
course of our audit and according to the information and explanations
given to us, we report that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) Fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies were noticed on such
verification
(c) During the year, the Company has not disposed off any part of the
plant and machinery affecting the going concern status of the Company.
2. (a) The inventories have been physically verified during the year
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) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification. However,
minor discrepancies noticed on verification between the physical stocks
were properly adjusted in the consumption of stores.
3. (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the register maintained
under Section 301 of The Act.
(b) The Company has taken interest free unsecured loans from Eighteen
parties covered in the register maintained under Section 301 of The
Act. The balance outstanding as on 31.03.2013 was s4505.53 Lacs and
the maximum amount outstanding during the year of such loans was s
4577.68 lacs.
(c) The terms & conditions on which such loans were accepted are not
prejudicial to the interest of the Company.
(d) No stipulation has been specified for the repayment of these loans.
4. There is generally an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business, for the purchase of inventories & fixed assets, for payment
of expenses and for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) The particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section.
b) In our opinion the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
The Act and exceeding the value of rupees five lakhs in respect of any
party during the year have been made at terms which are reasonable at
the relevant time.
6. In our opinion, the Company has accepted the Deposits covered as
per the provisions of Sections 58A and 58AA or any other provisions of
the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975 in the form of unsecured loans which are within the
exempted categories of the said section.
7. The Company has an in house internal audit system commensurate with
its size and the nature of its business.
8. Cost records prescribed by the Central Government under clause (d)
of sub- section (1) of Section 209 of the Act have been made and
maintained.
9. (a) The Company has deposited, with some delay, undisputed
statutory dues including Provident Fund, Income Tax, Sales Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable with appropriate authorities.
(b) The following undisputed amount was payable in respect of Wealth
Tax, as at 31st March, 2013, for a period exceeding six months from the
date it became payable:
Name of Nature of Amount Financial Year to
the statute Dues (Rs. in lacs) which the
amount relates
Wealth Tax Act Wealth Tax 2.27 Year Ended 31.03.12
However ,the same has since been paid.
(c) The following disputed amounts were not paid by the Company as at
31st March 2013:
Name of Nature of Amount Forum where
the statute Dues (Rs. in lacs) dispute is pending
Income Tax Demand u/s 1.96 CIT (Appeals),
143 (3) Chandigarh
Income Tax Demand u/s 110.78 CIT (Appeals),
271 (1) (c) Chandigarh
Sales Tax U.P. Sales Tax 98.70 Appellant
Commissioner
(Appeals), Moradabad
Punjab Vat Purchase Tax 2248.56 Hon''ble Supreme
Court
10. The accumulated losses of the Company as at the end of the
financial year, do not exceed 50% of its Net worth. Further the Company
has not incurred cash loss during the financial year covered by our
audit and in the immediately preceding financial year.
11. The Company has paid, during the year, the amounts due to banks
and financial institutions with certain delays. The overdues, in
respect of Interest amounting to s 121.16 lacs and instalments of term
loans amounting to s 153.58 lacs as on 31st March 2013 have since been
paid.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society.
14. The Company is not trading in Shares, Mutual funds & other
Investments.
15. The Company has given guarantees for crop loans taken by farmers
from banks. The terms and conditions thereof are not prima facie
prejudicial to the interest of the Company.
16. During the year, the Company raised a term loan amounting to s
9903.92 lacs, which was utilised for repayment of existing term loans
of banks.
17. No funds raised on short-term basis have been used for long-term
investment by the Company.
18. The Company has not made any preferential allotment of shares
during the year.
19. The Company has not issued any debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. No fraud on or by the Company has been noticed or reported during
the year, nor have we been informed of such case by the management.
For KANSAL SINGLA & ASSOCIATES,
(Chartered Accountants)
Place: Chandigarh CA. S.K. ARORA
Date : 30-05-2013 (PARTNER)
MEMBERSHIP NO.070405
FRN:003897N
Mar 31, 2010
1. We have audited the attached Balance Sheet of Rana Sugars Limited
as at 31st March, 2010, Profit & Loss Account and Cash Flow Statement
for the period 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 misstatement. An audit
includes examining on test basis evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order (Amendment),
2004 issued by the Central Government of India in terms of sub-section
(4A) of Section 227 of the Companies Act,1956 (the Act), we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said order.
4. Further to our comments in Annexure referred to in paragraph 3
above, we report that:
(i) 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.
(ii) 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.
(iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books oi account.
(iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub- section (3C) of section 211 of the Act.
(v) On the basis of the written representations received from the
directors, as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Act.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with Significant
Accounting Policies and Notes on Accounts in Schedule XIV, give the
information required by the Act, in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010.
b. In the case of the Profit and Loss Account, of the profit for the
period ended 31st March 2010.
c. In the case of Cash Flow Statement of the Cash Flows for the period
ended 31st March 2010.
Annexure 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 fixed
assets.
(b) All the assets have been physically verified by the management
during the period. In our opinion, the frequency of verification is
reasonable having regard to the size of the Company and the nature of
its fixed assets. No material discrepancies were noticed on such
verification.
(c) During the period, the Company has not disposed off major part of
the plant and machinery affecting the going concern status of the
company.
(ii) (a) The inventory has been physically verified during the period
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the.nature of its business.
(c) The Company is maintaining proper records of inventory. As
explained to us, no material discrepancies were noticed on physical
verification. However minor discrepancies noticed on verification were
properly accounted/ adjusted.
(iii) (a) The company has taken interest free loans from parties as
covered in the register maintained under section 301 of the Act,
pursuant to stipulation imposed by banks/financial institutions at the
time of sanction of loans.
The maximum balance outstanding during the period was Rs. 4065.73 Lacs
and the year-end balance was Rs. 3350.83 Lacs.
(b) As explained to us, terms & conditions of such loans are not
prejudicial to the interest of the Company.
(c) No stipulation has been specified for the repayment of these loans.
(d) The Company has not given any loans to the Companies/Parties
covered in the register maintained under section 301 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and sale
of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(v) 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 maintained under section 301 of the Act, have been so entered.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted the Deposits covered as per
the provisions of sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
{viii)According to the information and explanations given to us, the
Central Government has prescribed the maintenance of cost records under
section 209 (1) (d) of the Act, for the Sugar division & Distillery
division. We have broadly reviewed these accounts and records
maintained by the Company and we are of the opinion that, prima-facie,
the prescribed accounts and records have been made and maintained.
(ix) (a) The company is generally regular in depositing with
appropriate authorities undisputed statutory dues including, investor
education protection fund, employees state insurance, income tax,
wealth tax, custom duty, and other material statutory dues applicable
to it except for TDS, WCT and Cess on sugar cane.
(b) According to the information and explanations given to us,
undisputed statutory dues outstanding as at 31st
March, 2010 for a period of more than six months from the date they
became due:
Name of Nature of Amount Financial Year to
the statute Dues (Rs. in lacs) which the amount
relates
Income Tax Act TDS 3.86 Year ended 31.03.09
Income Tax Act TDS 0.22 Year ended 31.03.10
Work Contract WCT 0.31 Year ended 31.03.08
Tax Act
Work Contract WCT 0.08 Year ended 31.03.09
Tax Act
Cess on Cess 5.61 Year ended 31.03.09
Sugarcane
(x) The Company has incurred cash losses amounting to Nil (PY 2869.28
Lacs)) during the period from 01.10.2008 to 31.03.2010 covered by our
audit.
(xi) As per the information and explanations given to us, the Company
has defaulted in repayment of interest on term loans amounting to Rs
243.55 Lacs for the month of
. March 2010. Further the company has also
defaulted in the repayment of the principal amounting to Rs. 525.43
Lacs and Rs 202. 08 Lacs which was due for payment in March 2010 and
January 2009 respectively.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii)ln our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/ society.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments.
(xv) In our opinion, and according to the information and explanations
given to us, the Company has given guarantees for loans taken for
farmers from banks. In our opinion and according to the information
and
explanations given to us, the terms and conditions thereof are not
prima facie prejudicial to the interest of the Company.
(xvi) During the period, the Company has availed no term loans from
banks/ financial institutions.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no short term funds have been used for long term purposes.
(xviii) According to the information & explanations given to us, During
the period covered by audit the Company has made preferential allotment
of 1,09,00,000 equity shares face value of Rs. 10 each at a premium of
Rs. 1.5 per share to parties covered in the register maintained under
section 301 of the Act.
(xix)According to the information and explanations given to us, during
the period covered by our audit report, the Company has not issued any
debentures.
(xx) According to the information and explanations given to us, during
the period covered by our audit report, the company has issued 1498755
Global Depository Receipts underlying 59950200 equity shares @ Rs. 10
each .
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course oi our audit.
for Kansal Singla & Associates
Chartered Accountants
S.K. KANSAL
PARTNER
Membership No. 80632
Place : Chandigarh FRN 003897N
Date :5th June, 2010