Mar 31, 2015
We have audited the accompanying financial statements of Upper Ganges
Sugar & Industries Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibitity for The Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgements and estimates that
are reasonable and prudent; and the design, implementation and
maintenance of adequate 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 Responsibitity
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 thereunder. We conducted our
audit in accordance with the Standards on Auditing, issued by the
Institute of Chartered Accountants of India, as 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 judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the effectiveness of such
controls. An audit also includes evaluating the appropriateness of
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 qualified audit opinion on the financial
statements.
Basis for Quatified Opinion
As indicated in Note 14 to the financial statements, the Company has
recognized Deferred Tax Asset (DTA) (net) of Rs. 7217.36 lacs (including
Rs. 3051.62 lacs for the year) up to March 31, 2015, based on the future
profitability projections made by the management. In our opinion, in
the absence of virtual certainty about the above projections, as
required in terms of Accounting Standard - 22, had the above impact
been considered, loss for theyear would have beenRs.12,754.49lacs
(including DTA of Rs. 4036.85 lacs recognised up to March 31,2014) as
against the reported loss of Rs. 5537.13 lacs and Reserves & Surplus as
at the balance sheet date would have been (-) Rs. 8562.06 lacs as against
the reported figure of (-) Rs. 1344.70 lacs.
Our audit opinion on the financial statements for the previous year was
also qualified in respect of the above matter.
Quatified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effect of the matter stated in
the Basis for Qualified Opinion paragraph, the financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at March 31, 2015, of its loss, and its 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, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) Except for the matter described in the Basis for Qualified Opinion
paragraph, 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) Except for the matter described in the Basis for Qualified Opinion
paragraph, 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account ;
(d) Except for the matter stated in the Basis for Qualified opinion
paragraph, in our opinion, the aforesaid 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) The matter discussed in the Basis for Qualified Opinion paragraph
above in our opinion may have an adverse effect on functioning of the
Company.
(f) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2015, from being
appointed as a director in terms of Section 164 (2) of the Act;
(g) The qualification relating to the maintenance of accounts and other
matters connected therewith are as stated in the Basis for Qualified
Opinion paragraph above;
(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 - Refer Note 7 & 35 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 to the independent Auditors' Report (Referred to in our Report
of even date to the Members of Upper Ganges Sugar & industries Limited
as at and for the year ended 31st March, 2015)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As informed, no
material discrepancies were noticed on such verification.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory 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 such physical verification.
(iii) According to the information and explanations given to us, 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. Accordingly, the provisions of clause
3(iii)(a) and (b) of the Order are not applicable to the Company and
hence not commented upon.
(iv) In our opinion and according to the information and explanations
given to us , there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed any major weakness
or continuing failure to correct any major weakness in the internal
control system of the Company in respect of these areas. There is no
sale of services during the year.
(v) In respect of deposits accepted, in our opinion and according to
the information and explanations given to us, directives issued by the
Reserve Bank of India and the provisions of Section 73 to 76 or any
other relevant provisions of the Companies Act, 2013, and the rules
framed there under, to the extent applicable, have been complied with.
We are informed by the management that no order has been passed by the
Company Law Board, National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal.
(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 Section 148(1) of the Companies Act,
2013 in respect of its products and are of the opinion that prima
facie, the specified accounts and records have been made and
maintained. We have not, however, made a detailed examination of the
same.
(vii) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees' state insurance, income-tax, sales-tax, wealth- tax, service
tax, custom duty, excise duty, value added tax, cess and other material
statutory dues applicable to it though there have been slight delays in
few cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, value
added tax, cess and other material statutory dues were outstanding, at
the year end, for a period of more than six months from the date they
became payable.
(c) According to the records of the Company, the dues outstanding in
respect of sales tax, income tax, custom duty, wealth tax, service tax,
excise duty, value added tax& cess on account of any dispute, are as
follows :-
Name of the statute Nature of dues Amount
(Rs. in lacs)
Central Excise and
Customs Disallowance of Cenvat 841.66
Act, 1944 credit on Certain inputs
and capital goods
Excise duty on burnt/ 2.63
waste and loss on storage
of molasses
Disallowance of Service 3.32
Tax on discount to whole
sellers and other items
Prevention of (Water) Water Cess 1.41
Pollution Act
Bihar Sugarcane
(Supply & Interest on Cane cess 3.37
Regulation) Act,1981
Bihar VAT Act, 2005 VAT/CST on exempted 16.64
sale, C Form etc.
Name of the statute Period to
which the Forum where dispute is pending
amount
relates
Central Excise and Customs
Act, 1944 1993-1994 Additional Commissioner/
to 2014-15 Commissioner (Appeals)/ CESTAT/
High Court/Supreme Court_
1987-1988, Commissioner (Appeals)/CESTAT/
1998- 1999, High Court
2000-2001
1997- 1998, Commissioner (Appeals)/CESTAT
1999- 2000,
2005-2006 to
2008-2009
Prevention of (Water)
Pollution Act 1989-1990 High Court, Allahabad
Bihar Sugarcane (Supply &
Regulation) Act,1981 1980-1981 to
1982- Certificate Officer,
Samastipur
1983, 1984-
1985 to
1986-1987,
1991- 1992,
1994-1995 to
1998- 1999,
2003- 2004 &
2004-2005
Bihar VAT Act, 2005 2008-09 &
2009-2010 Joint Commissioner
Commercial Tax (Appeal)
(d) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company in accordance
with the relevant provisions of the Companies Act,1956 (1 of 1956) and
rules made thereunder.
(viii) Without considering the consequential effects of the matter
stated in the Basis for Qualified Opinion paragraph, the Company's
accumulated losses at the end of the financial year are more than fifty
percent of its net worth. The Company has incurred cash loss in the
current year and in the immediately preceding financial year.
(ix) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial
institutions and banks or debenture holders.
(x) According to the information and explanations given to us, the
Company has given guarantees for loans taken by others from a bank, the
terms and conditions whereof, in our opinion, are not prima- facie
prejudicial to the interest of the Company. According to the
information and explanations given to us, the Company has not given any
guarantee for loans taken by others from other financial institutions.
(xi) Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which these
were obtained.
(xii) 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 year.
For S.R.Batliboi & Co. LLP
Chartered Accountants
Firm Registration Number: 301003E
per Kamal Agarwal
Place : Kolkata Partner
Date : 12th May 2015 Membership Number: 58652
Mar 31, 2014
We have audited the accompanying financial statements of Upper Ganges
Sugar & Industries 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 state Ments
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
accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956 read with
General Circular 8/2014 dated 4th April 2014, issued by the Ministry of
Corporate Affairs. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
AuditoR''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financia 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 financia 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 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.
Basis foR qualified opinion
As indicated in Note 14 to the financial statements, the Company has
recognised Deferred Tax Asset (DTA) (net) of f 4036.85 lacs (including
f 1260.08 lacs for the year) up to March 31, 2014, based on the future
profitability projections made by the management. In our opinion, in
the absence of virtual certainty about the above projections, as
required in terms of Accounting Standard - 22, had the above impact
been considered, loss for the year would have been f 5976.23 lacs
(including DTA of f 2776.77 lacs recognised up to March 31, 2013) as
against the reported loss of f 1939.38 lacs and reserves & surplus as
at the balance sheet date would have been f 403.55 lacs as against the
reported figure of f 4440.40 lacs.
Our audit opinion on the financial statements for the previous period
was also qualified in respect of the above matter.
Qualified opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effect of the matter stated in
the Basis for Qualified Opinion paragraph, the financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the oss 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 Centra 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) Except for the matter stated in the Basis for Qualified Opinion
paragraph, in our opinion, the Balance Sheet, the Statement of Profit
and Loss, and the Cash Flow Statement comply with the Accounting
Standards notified under the Companies Act, 1956 read with General
Circular 8/2014 dated 4th April 2014 issued by the Ministry of
Corporate Affairs;
(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 independent auditors'' Report
(Referred to in our Report of even date to the members of Upper Ganges
Sugar & Industries Limited As At And for the year ended 31st March,
2014)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) (a) The management has conducted physica verification of inventory
at reasonable intervals during the year.
(b) The procedures of physical verification of inventory 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.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly the
provisions of clauses 4 (iii) (a) to (d) of the order are not
applicable to the Company and hence not commented upon.
(b) The Company has taken loans from four companies covered in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 4135 lacs and the
year-end balance of loans taken from such parties was Rs. 3135 lacs.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(d) In respect of loans taken, repayment of the principal amount is as
stipulated and payment of interest has been regular.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed any major weakness
or continuing failure to correct any major weakness in the interna
control system of the Company in respect of these areas. There is no
sale of services during the year.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 that need to be
entered into the register maintained under Section 301, have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees five akhs entered into
during the financial year, are at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) In respect of deposits accepted, in our opinion and according to
the information and explanations given to us, the directives issued by
the Reserve Bank of India and the provisions of Sections 58A, 58AA or
other relevant provisions of the Companies Act, 1956 and the rules
framed thereunder, to the extent applicable, have been complied with by
the Company. We are informed by the management that no order has been
passed by the Company Law Board, Nationa Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
(viii) 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 Section 209(1) (d) of the Companies
Act, 1956 in respect of its products and are of the opinion that prima
facie, the prescribed accounts and records have been made and
maintained.
(ix) (a) The Company has generally been regular in depositing
undisputed statutory dues including provident fund, investor education
and protection fund, employees'' state insurance, income-tax, sales-tax,
wealth-tax, service tax, custom duty, excise duty, cess and other
materia statutory dues with appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
sales-tax, wealth-tax, service tax, custom duty, excise duty, cess and
other materia statutory dues were outstanding, at the year-end for a
period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding in
respect of sales tax, income tax, custom duty, wealth tax, service tax,
excise duty and cess on account of any dispute are as follows :-
Name of the statute Nature of dues Amount Period to
(Rs. in lacs) which the
amount
relates
Central Excise and Disallowance of Cenvat 202.49 1993-1994
Customs Act, 1944 credit on Certain inputs to 2013-
and capital goods 14
Excise duty on burnt/ 2.63 1987-1988,
waste and loss on -1998 1999,
storage of molasses 2000-2001
Disallowance of Service 15.88 1997-1998,
Tax on discount to -1999 2000,
wholesellers and other 2005-2006 to
items 2008-2009
Prevention of (Water) Water Cess 1.41 1989-1990
Pollution Act
Bihar Sugarcane Interest on Cane cess 3.37 1980-1981
(Supply & Regulation) to 1982-
Act 1981 1983, 1984-
1985 to
1981 1986-
1987, 1991-
1992, 1994-
1995 to 1998-
1999, 2003-
2004 & 2004-
2005.
Name of the Statute Forum where dispute is pending
Central Excise and Customs Act, 1944 Additiona Commissioner/
Commissioner (Appeals)/
CESTAT/ High Court
Commissioner (Appeals)/
CESTAT/ High Court
Commissioner (Appeals)/CESTAT
Prevention of (Water) Pollution Act High Court, Allahabad
Bihar Sugarcane (Supply & Regulation) Certificate Officer, Samastipur
Act,1981
(x) The Company''s accumulated losses at the end of the financial year
are less than fifty percent of its net worth without considering the
impact of the matter stated in the Basis for Qualified Opinion
paragraph. The Company has incurred cash loss in the current year but
it had not incurred cash loss in the immediately preceding financial
period.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to any bank and
financial institutions. Further, the Company did not have any
outstanding debentures during the year.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, 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) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
(xv) According to the information and explanations given to us, the
Company has given guarantees for loans taken by others from a bank, the
terms and conditions whereof, in our opinion, are not prima-facie
prejudicial to the interest of the Company. According to the
information and explanations given to us, the Company has not given any
guarantee for loans taken by others from financial institutions.
(xvi) Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which these
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that Rs. 10588 lacs raised on short-term basis have been used for
long-term investment (without considering permanent working capital)
mainly towards acquisition of fixed assets and repayment of loans.
(xviii) The Company has not made any preferential allotment of shares
during the year to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) 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 year.
For S. R. Batliboi & co. LLP
Chartered Accountants
Firm Registration Number: 301003E
Per Bhaswar sarkar
Place: Kolkata Partner
Date:15th May, 2014 Membership Number: 55596
Mar 31, 2013
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Upper Ganges
Sugar & Industries 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 nine months period then ended, and a
summary of significant accounting policies and other explanatory
information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The 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
accounting principles generally accepted in India, including 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 the management,
as well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
BASIS FOR QUALIFIED OPINION
As indicated in Note 7 5 to the financial statements, the Company has
recognised Deferred Tax Asset (DTA) (net) of Rs. 2776.77 lacs (after
adjusting reversal of Rs. 529.64 lacs during the period) up to March 31,
2013, based on the future profitability projections made by the
management. In our opinion, in the absence of virtual certainty about
the above projections, as required in terms of Accounting Standard -
22, had the above impact been considered, the reported profit of Rs. 7
264.86 lacs for the period (after adjusting DTA of Rs. 3306.41 lacs
recognised up to June 30, 2012) would turn into a loss ofRs. 757 7.97
lacs and the reserves and surplus balance would be Rs. 3598.69 lacs as
against the reported figure oft 6375.46 lacs as on the balance sheet
date.
Our audit opinion on the financial statements for the previous year was
also qualified in respect of the above matter.
QUALIFIED OPINION
In our opinion and to the best of our information and according to the
explanations given to us, except for the effect of the matter stated in
the Basis for Qualified Opinion paragraph, the financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(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.
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) except for the matter stated in the Basis for Qualified Opinion
paragraph, 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 Companies Act,
1956;
(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 INDEPENDENT AUDITORS'' REPORT
(Referred to in our report of even date to the members of Upper Ganges
Sugar & Industries Limited as at and for the period ended March 31,
2013)
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the period but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the period.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the period.
(b) The procedures of physical verification of inventory 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.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, the
provisions of clauses 4 (iii) (a) to (d) of the order are not
applicable to the Company and hence not commented upon.
(b) The Company has taken loans from four companies covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the period was Rs. 4,135.00 lacs and the
period- end balance of loans taken from such parties wasRs.4,135.00 lacs.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(d) In respect of loans taken, repayment of the principal amount was as
stipulated and payment of interest has also been regular.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed any major weakness
or continuing failure to correct any major weakness in the internal
control system of the company in respect of these areas. There is no
sale of services during the period.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 that need to be
entered into the register maintained under section 301, have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees five lacs entered into
during the financial period, are at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) In respect of deposits accepted, in our opinion and according to
the information and explanations given to us, the directives issued by
the Reserve Bank of India and the provisions of Sections 58A, 58AA or
other relevant provisions of the Companies Act, 1956 and the rules
framed thereunder, to the extent applicable, have been complied with by
the Company. We are informed by the management that no order has been
passed by the Company law Board, National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the 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 Companies
Act, 1956 in respect of its products and are of the opinion that prima
facie, the prescribed accounts and records have been made and
maintained.
(ix) (a) The Company has generally been regular in depositing
undisputed statutory dues including provident fund, investor education
and protection fund, employees'' state insurance, income-tax, sales-tax,
wealth- tax, service tax, custom duty, excise duty, cess and other
material statutory dues with appropriate authorities except for Cane
Purchase Tax of 1142.30 lacs relating to the sugar unit in Bihar which
remains unpaid as on the Balance sheet date, pending disposal by the
State Government of the representation made by the Bihar Sugar Mills
Association for its remission.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
sales-tax, wealth-tax, service tax, custom duty, excise duty, cess and
other material statutory dues were outstanding, at the period-end for
more than six months from the date they became payable.
(x) The Company''s accumulated losses at the end of the financial period
are less than fifty percent of its net worth. The Company has not
incurred cash loss in the current period but it had incurred cash loss
in the immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to any bank and
financial institutions. Further, the Company did not have any
outstanding debentures during the period.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, 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) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Order, are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order, are not applicable to the
Company.
(xv) According to the information and explanations given to us, the
Company has given guarantees for loans taken by others from a bank, the
terms and conditions whereof, in our opinion, are not prima- facie
prejudicial to the interest of the Company. According to the
information and explanations given to us, the Company has not given any
guarantee for loans taken by others from financial institutions.
(xvi) Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which these
loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that Rs. 74,067 lacs, raised on short-term basis have been used for
long-term investment (without considering permanent working capital)
mainly towards acquisition of fixed assets and repayment of loans.
(xviii)The Company has not made any preferential allotment of shares
during the period to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
period.
(xx) The Company has not raised any money through a public issue during
the period.
(xxi) 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.
For S.R. BATLIBOI&CO. LLP
Chartered Accountants
Firm Registration Number: 301003E
per R.K. Agrawal
Place: Kolkata. Partner
Date: 15th May, 2013 Membership Number: 16667
Jun 30, 2012
1. We have audited the attached Balance Sheet of Upper Ganges Sugar &
Industries Limited ("the Company") as at 30th June, 2012 and also 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 the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Attention is drawn to the following notes :-
(i) Note 15 regarding recognition of Deferred Tax Asset (DTA) (net) of
Rs. 3306.41 lacs (including f 1988.57 lacs recognised in earlier years)
up to 30th June, 2012, based on the future profitability projections
made by the management. In our opinion in the absence of virtual
certainty required in terms of Accounting Standard-22 of the aforesaid
projections, had the above impact been considered, there would be a
loss of Rs. 5631.37 lacs as against the reported loss of Rs. 2324.96 lacs
for the year and the reserve and surplus balance would be Rs. 1802.31
lacs as against the reported figure of Rs.5108.72 lacs as on the balance
sheet date.
(ii) Note 39 regarding non-consideration of revenue results of
Cinnatolliah Tea Garden, for the period from 1st April,2012 to the date
of the Balance Sheet, as well as the assets and liabilities as on 30th
June, 2012, in these statements of account, the impact whereof on the
Company's loss, reserves, assets and liabilities has not been
ascertained.
In respect of the above items, the previous year's audit report was
similarly modified.
5. Further to our comments in the Annexure referred 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub- section (3C) of Section 211 of
the Companies Act, 1956, except for our comments in para 4 above:
v. On the basis of written representations received from the directors
as on 30th June, 2012 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 30th June, 2012
from being appointed as a director in terms of Clause (g) of sub
section (1) of Section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, except for the effects of the matters
stated in paragraph 4 above, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :-
(a) in the case of Balance Sheet, of the state of affairs of the
Company as at 30th June, 2012;
(b) in the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to Auditors' Report
(Referred to in our report of even date to the members of Upper Ganges
Sugar & Industries Limited as at and for the year ended 30th June,
2012)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of substantial part of fixed assets during
the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory 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.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly the
provisions of clauses 4 (iii) (a) to (d) of the order are not
applicable to the Company and hence not commented upon.
(b) The Company has taken loans from four companies covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 2,260 lacs and the year-
end balance of loans taken from such parties was Rs. 2,185 lacs.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(d) In respect of loans taken, repayment of the principal amount is as
stipulated and payment of interest have been regular.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed any major weakness
or continuing failure to correct any major weakness in the internal
control system of the company in respect of these areas. There is no
sale of services during the year.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 that need to be
entered into the register maintained under section 301, have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees five lacs entered into
during the financial year, are at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) In respect of deposits accepted, in our opinion and according to
the information and explanations given to us, the directives issued by
the Reserve Bank of India and the provisions of Sections 58A, 58AA or
other relevant provisions of the Companies Act, 1956 and the rules
framed thereunder, to the extent applicable, have been complied with by
the Company. We are informed by the management that no order has been
passed by the Company law Board, National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
(viii) 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 Section 209(1) (d) of the Companies
Act, 1956 in respect of its products and are of the opinion that prima
facie, the prescribed accounts and records have been made and
maintained.
(ix) (a) The Company has generally been regular in depositing
undisputed statutory dues including provident fund, investor education
and protection fund, employees' state insurance, income-tax, sales-tax,
wealth-tax, service tax, custom duty, excise duty, cess and other
material statutory dues with appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income-tax,
sales-tax, wealth-tax, service tax, custom duty, excise duty, cess and
other material statutory dues were outstanding, at the year-end for a
period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding in
respect of sales tax, income tax, custom duty, wealth tax, service tax,
excise duty and cess on account of any dispute are as follows :-
Name of the Nature of dues Amount
statute (Rs.in lacs)
Central Excise and Disallowance of Cenvat credit on 1038.76
Customs Act, 1944 Certain inputs and capital goods
Excise duty on burnt/ waste and 3.31
loss on storage of molasses
Excise Duty for Discrepancy in 6.06
Season Wise stocks of Sugar
Disallowance of Service Tax on 20.51
discount to wholesellers and
other items
Central Sales Tax Entry Tax on Purchase of Goods 98.14
Act, 1956
Work Contract Tax on Purchase 3.00
of Goods
Prevention of (Water) Water Cess 1.41
Pollution Act
Bihar Sugarcane
(Supply & Interest on Cane cess 15.33
Regulation) Act, 1981
Name of the Period to which the Forum where dispute
Statute amount relates is pending
Central Excise and
Customs Act,1944 1993-1994 to Additional Commissioner/
Commissioner
2011-12 (Appeals)/ CESTAT/High Court
1973-1974, 1987-1988, Commissioner (Appeals)/
CESTAT/
1998-1999, 2000-2001 High Court
2000-2001 Commissioner Central
Excise/ CESTAT
1997-1998, 1999-2000, Commissioner (Appeals)/
CESTAT
2005-2006 to 2008-2009
Central Sales Tax
Act,1956 2006-07 to 2008-09 Joint Commissioner/High
Court
2008-09 Joint Commissioner
Prevention of
(water) pollution Act 1989-1990 High Court, Allahabad
Bihar Sugar cane
(supply & Regulation)
Act,1981 1976-1977,
1984-1985 to Certificate Officer,
1989-1990, 2000-2001
to Samastipur/ High Court,
Patna
2004-2005
(x) The Company's accumulated losses at the end of the financial year
are less than fifty percent of its net worth. The Company has incurred
cash losses in the current year but it had not incurred cash loss in
the immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to any bank and
financial institutions. Further, the Company did not have any
outstanding debentures during the year.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, 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) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor's Report) order, 2003 (as amended)
are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) order,
2003 (as amended) are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has given guarantees for loans taken by others from a bank, the
terms and conditions whereof, in our opinion, are not prima-facie
prejudicial to the interest of the Company. According to the
information and explanations given to us, the Company has not given any
guarantee for loans taken by others from financial institutions.
(xvi) Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which these
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that Rs. 12,818 lacs. raised on short-term basis have been used for
long-term investment (without considering permanent working capital)
representing mainly acquisition of fixed assets and repayment of loans.
(xviii) The Company has not made any preferential allotment of shares
during the year to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) 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 year.
For S. R. BATLIBOI & CO.
Firm Registration No. 301003E
CHARTERED ACCOUNTANTS
22 Camac Street
Block 'C, 3rd Floor Per Sanjoy K Gupta
Kolkata - 700 016 a Partner
Dated: 13th August, 2012 Membership No. 54968
Jun 30, 2010
We have audited the attached Balance Sheet of UPPER GANGES SUGAR &
INDUSTIRES LIMITED as at 30th June, 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.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of sub-
section (4A) of Section 227 of the Companies Act, 1956, we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said Order.
Without qualifying our opinion, we draw attention to Note No. 8 on
Schedule 24, regarding accounting of Sugarcane purchases at Seohara
Sugar unit in Uttar Pradesh @ Rs. 110 per quintal for sugar season
2007-2008 as against the State Advised Price (SAP) of Rs. 125 per
quintal in view of the interim order dated 8th September, 2008 of the
Honble Supreme Court. The maximum liability on account of above comes
to Rs. 1891.18 lacs, however, since the matter is subjudice, the actual
impact, if any, is presently undeterminable and hence, no provision
thereof has been made in the accouts.
Further to our comments in the Annexure referred above, we report
that:-
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of 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 as
submitted to us;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956, subject to our comments in para (f) (i) below;
(e) On the basis of written representations received from the directors
as on 30th June, 2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 30th June, 2010
from being appointed as a director in terms of Clause (g) of sub
section (1) of Section 274 of the Companies Act, 1956;
(f) Attention is drawn to the following notes on Schedule - 24:
(i) Note No.9(a) regarding recognition of Deferred Tax Asset (DTA)
(net) of Rs. 1363.27 lacs upto 30th June, 2010, based on the future
profitability projections made by the management. However, we are
unable to express any opinion on the above projections and their
consequent impact, if any, on such recognition of Deferred Tax Asset.
Had the above impact been considered, there would be a loss of Rs.
5269.91 lacs as against the reported loss of Rs. 3906.64 lacs for the
year and the Reserves & Surplus would be Rs. 7295.39 lacs as against
the reported figures of Rs. 8658.66 lacs as on the Balance Sheet date.
(ii) Note No.12 regarding non-consideration of revenue results of
Cinnatolliah Tea Garden, for the period from 1st April,2010 to the date
of the Balance Sheet, as well as the assets and liabilities as on 30th
June,2010, in these statements of account, the impact whereof on the
Companys loss, reserves, assets and liabilities has not been
ascertained.
In respect of the item (ii) above, the previous years audit report was
similarly modified.
In our opinion and to the best of our information and according to the
explanations given to us, the said Statements of Account, subject to
the matters stated in para (f) above, give the information required by
the Companies Act, 1956, in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India:
(a) in the case of Balance Sheet, of the state of affairs of the
Company as at 30th June, 2010;
(b) in the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors Report
(Referred to in our report of even date to the members of Upper Ganges
Sugar & Industries Limited as at and for the year ended 30th June,
2010)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets.
(b) Fixed Assets have been physically verified by the management during
the year based on a phased programme of verifying all the assets over a
period of two years, which in our opinion, is reasonable having regard
to the size of the Company and the nature and value of its assets. As
informed, no material discrepancies were noticed on such verification.
(c) There was no substantial disposal of fixed assets during the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory 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 such physical verification.
(iii) (a) As informed, the Company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956 and
hence the requirements of clauses (iii) (b) to (d) of the order are not
applicable.
(b) The Company has taken loans of Rs. 1185 lacs from Companies covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum outstanding during the year as well as the year-end
balance of such loans were Rs. 1185 lacs.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(d) There are no stipulations for repayment of the above loans but the
same are stated to be repayable on demand. As informed, the lenders
have not demanded repayment of the above loan during the year and thus,
there has been no default on the part of the company. Further, interest
on the above loans, as informed, was regularly paid by the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal controls in respect of these areas and we have
not observed any continuing failure to correct major weakness in
internal control system of the company.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 that need to be
entered into the register maintained under the above section, have been
so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees five lakhs entered into
during the financial year, are at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) In respect of deposits accepted, in our opinion and according to
the information and explanations given to us, directives issued by the
Reserve Bank of India and the provisions of Sections 58A, 58AA or other
relevant provisions of the Companies Act, 1956 and the rules framed
thereunder, to the extent applicable, have been complied with by the
Company. We are informed by the management that no order has been
passed by the Company law Board, National Company Law Tribunal or
Reserve Bank of India or any other Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii)We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Centra Government for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 in respect of its products and are of the opinion that prima
facie, the prescribed accounts and records have been made and
maintained.
(ix) (a) The Company has generally been regular in depositing
undisputed statutory dues including provident fund, investor education
and protection fund, employees state insurance, income-tax, sales-tax,
wealth-tax, service tax, custom duty, excise duty and other material
statutory dues with appropriate authorities except for Cane Purchase
Tax of Rs.60.10 lacs relating to the sugar units in Bihar which has
remained unpaid as on the Balance sheet date.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441 A of the Companies Act,1956,
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees state insurance, income-tax,
sales-tax, wealth-tax, service tax, custom duty, excise duty and other
material statutory dues were outstanding, at the year end for a period
of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding in
respect of sales tax, income tax, custom duty, wealth tax, service tax,
excise duty and cess on account of any dispute are as follows:
Name of the
statute Nature of dues Amount Period to
which Forum where
dispute is
pending
Central
Excise and Disallowance of
Cenvat credit 374.41 1996-97 to
2008-09 Commissioner
(Appeals)/
Customs
Act, 1944 on inputs and
capital goods CESTAT/ High
Court
Excise duty
on burnt/
waste and 5.57 1973-1974,
loss on storage
of molasses 1982-1984,
1987-1988,
2003-2004
Excise Duty for
Discrepancy in 6.06 2000-2001
Seasonwise stocks
of Sugar
Service Tax on
discount to 1.93 1997-98,
wholesellers 1999-2000
Prevention
of (Water) Water Cess 1.41 1989-1990 High Court,
Allahabad
Pollution Act
Bihar
Sales Tax Rejection of
Form F 28.24 1982-84, Jt. Commiss
-ioner/
1992-93, Commissioner
Sales Tax
1995-1997
Bihar
Sugarcane
(Supply Interest on
Cane cess 15.33 1980-81 to
1991-92, Certificate
Officer,
& Regulation)
Act,1981 1994-95 to
1996-99, Samastipur/
High Court,
Patna
2001-2002 to
2004-05
(x) The Company has no accumulated losses at the end of the financial
year and it has incurred cash losses in the current year but it had not
incurred cash loss in the immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to any bank and/or
financial institutions except for Rs. 560.96 Lacs (including interest)
which became due for repayment on 30th June,2010. However, the Company
has applied to the bank for deferment of the above repayment, which is
stated to be under their consideration. There were no debentures
outstanding during the year.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, 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) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society and therefore, the provisions of clause
4(xiii) of the order are not applicable.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments and therefore the
provisions of clause 4(xiv) of the order are not applicable.
(xv) According to the information and explanations given to us, the
Company has given guarantees for loans taken by others from a bank, the
terms and conditions whereof are stated to be not prima-facie
prejudicial to the interest of the Company.
(xvi) Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which these
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that Rs. 6307.00 lacs approx. raised on short-term basis have been used
for long-term investment (without considering permanent working
capital).
(xviii) The Company has not made any preferential allotment of shares
during the year to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) 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 course of our audit.
S. R. Batliboi & Co.
Firm Registration No. 301003E
Chartered Accountants
22, Camac Street
Block C, 3rd Floor Per R. K. Agrawal
Kolkata - 700 016 a Partner
Dated : 25th August, 2010 Membership No. 16667
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