Auditor Report of Uttam Sugar Mills Ltd.
Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT
TO THE SHAREHOLDERS OF UTTAM SUGAR MILLS LIMITED
Report on the Ind AS Financial Statements
We have audited the accompanying financial statements of UTTAM SUGAR MILLS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, including the Statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (hereafter referred to as Ind AS Financial Statements").
Management Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the 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 of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and 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 Ind AS 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 Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and Order issued under section 143(11) of the Act.
We conducted our audit of the Ind AS financial statements 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS 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 Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matter
The Comparative financial information of the company for the year ended 31st March 2017 and the transition date opening balance sheet as at 1st April, 2016 included in these Ind AS financial Statements are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules,2006 audited by the predecessor auditors whose report for the year ended 31st March, 2017 and 31st March, 2016 dated 27th April, 2017 and 14th May, 2016 respectively expressed an unmodified opinion on those financial statements, as adjusted for the difference in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Our opinion is not modified in respect of above matter. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of section 143(11) of the Companies Act, 2013, we give in the "Annexure A" statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
e. On the basis of written representations received from the directors as on March 31, 2018 and 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 "Annexure B".
g. 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 Ind AS financial statements - Refer Note 24 to the Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
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For SSVS & Co., |
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Chartered Accountants, |
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Firm Registration No. 021648C |
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Place : Noida |
(Vipul Sharma) F.C.A. Partner |
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Dated: 29th May, 2018 |
M.No. 74437 |
ANNEXURE TO THE AUDITORS'' REPORT Annexure A to the Auditors'' Report
(Referred to in paragraph (1) of our Report on other legal and regulatory requirement of even date to the shareholders of UTTAM SUGAR MILLS LIMITED for the period ended 31st March, 2018)
1. a) The Company has maintained records showing particulars including quantitative details and situation of its principal Property, Plant and Equipment accordingly the Property, Plant and Equipment are physically verified by the management according to a phased programme designed to cover all the items over a period of three years which, in our opinion, is reasonable having regards to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the Property, Plant and Equipment has been physically verified by the management during the year and no material discrepancies have been noticed on such verification.
b) The title deeds of the immovable property as disclosed in the Property, Plant and Equipment (note No.4A to the Ind AS financial statements) are held in the name of the Company, except for the following freehold land:
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S.No. |
Property Description |
Balance Sheet Value |
|
1. |
At Village-Barkatpur,Pudrikhurd. Pargana-Kiratpur, Tehsil-Najibabad, Distt- Bijnor (U.P) |
8.37 |
|
51,53,54,59,74,78,99,100,105,119,124,125,126,142,144,145, 150,153,143, 122 |
However, the Company is in process to transfer this land in name of the Company.
2. (a) The physical verification of inventory has been conducted by the management at reasonable intervals.
(b) On the basis of our examination, in our opinion, discrepancies noticed on such physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account.
3. According to information made available to us, the Company has not granted any loan or advance in the nature of Loan, secured or unsecured to Companies, firm. Limited Liability partnerships or other parties covered in the register maintained under section 189 of the Act, accordingly Para 3(iii)(a) to (c) of the Order are not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, no loan, investment, guarantees and security stated under section185 and 186 of the Companies Act, 2013 have been given /made by the Company therefore, para 3(iv) of the order is not applicable.
5. On the basis of information and explanations given to us and our scrutiny of Company''s records, in our opinion, the Company has not accepted any public deposits within the meaning of section 73 to 76 or any other relevant provisions of the Act and the rules frames there under. The directives issued by the Reserve Bank of India are not applicable to the Company.
6. We have broadly reviewed the books of account maintained by the Company in respect of products pursuant to the order made by the Central Government for the maintenance of the cost records under section 148(1) of the Act and are of the opinion that, prima-facie, the prescribed account and records have been maintained and are being made up. We however as not required have not made a detailed examination of such records with a view to determine whether these are accurate or complete.
7. (a) According to the information and explanations given to us the Company is generally regular in depositing
with appropriate authorities, undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Goods and service tax. Value added Tax, Cess and other statutory dues applicable to it. As explained to us, the provisions of Employees State Insurance are not applicable to the Company. Further, there was no arrears of undisputed statutory dues outstanding as at 31st March, 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the disputed statutory dues of Sales tax. Excise duty and Income Tax aggregating to Rs. 109.78 Lakhs that have not been deposited are given below:-
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Name of Statute |
Nature of Dues |
Amount |
Forum where dispute is pending |
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Commissioner/ Commissioner(Appeal) |
|||
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Sales Tax Laws |
Sales Tax/ Entry Tax |
0.39 |
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11.71 |
Tribunal |
||
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7.45 |
High Court |
||
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Central Excise Act, 1944 |
Excise Duty |
61.36 |
Commissioner(Appeal) |
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Income Tax Act,1 961 |
Income Tax |
28.87 |
Commissioner(Appeal) |
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Total |
109.78 |
Further, in respect of Custom Duty, Service Tax, Value added Tax and Cess, it has been informed that there are no dues, which have not been deposited on account of any dispute.
8. In our opinion and according to the information and explanations given to us, there no delay in repayment of dues to Banks/others except Uttarakhand State Govt. Soft Loan amounting to Rs 1002.71 Lakhs (Refer Note No 18(ii) B), which continues to be unpaid.
The company has not issued any debentures.
9. Based upon the audit procedures performed and the information and explanations given by the management, the Company has not raised moneys by way of initial public offer or further public offer including debt instruments. The term loans were applied for the purpose for which they were taken.
10. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanation given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees noticed or reported during the year nor have we been informed of any such case by the management.
11. Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
12. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13. In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by applicable Indian Accounting Standard.
14. Based upon the audit procedures performed and the information and explanations given by the management, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
15. Based upon the audit procedures performed and the information and explanations given by the management, during the year the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16. In our opinion, the Company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
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For SSVS & Co., |
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Chartered Accountants, |
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Firm Registration No. 021648C |
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(Vipul Sharma) F.C.A. |
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Place |
: Noida |
Partner |
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Dated |
: 29th May, 2018 |
M.No. 74437 |
Annexure - B to the Auditors'' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Uttam Sugar Mills Limited ("the Company") as at 31st March, 2018 in conjunction with our audit of the financial statements of the Company for the period ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s 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 Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, 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 31st March,2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
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For SSVS & Co., |
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Chartered Accountants, |
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Firm Registration No. 021648C |
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(Vipul Sharma) F.C.A. |
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Place |
: Noida |
Partner |
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Dated |
: 29th May, 2018 |
M.No. 74437 |
Jun 30, 2015
We have audited the accompanying financial statements of UTTAM SUGAR
MILLS LIMITED which comprise the Balance Sheet as at 30 June, 2015, the
Profit and Loss Statement and the Cash Flow Statement for the year then
ended and a summary of significant accounting policies and other
explanatory information.
Management Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these fnancial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the fnancial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial Statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 June 30, 2015;
b) In the case of the Proof and Loss Statement, of the Loss for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash fows for the
year ended on that date.
Emphasis of Matter
We draw attention to:- - Note no 29, the State Governments of Uttar
Pradesh and Uttarakhand has announced subsidy for Sugar Industry for
season 2014-2015 which is linked to average selling price of Sugar and
By Products during the period 01.10.2014 to 31.5.2015. Such subsidy as
reduced from the cane cost by the Company is Rs. 6703.96 lacs up to
30.06.2015. - Note no 45, the company has recognized Deferred tax
Assets (DTA) of Rs. 2469 lacs for the year ended 30.6.2015 and Rs.
14103.80 lacs up to 30.6.2015 on unabsorbed business losses and
unabsorbed depreciation. Continuous losses in the last few years
indicate the uncertainty as regards realization of such deferred tax
assets. The Company's Management is of the view that it expects
turnaround of sugar sector by view of expected assistance from
Government and by way of Cane Development Activities carried out by the
company as supported by report issued by Sugar Technical Expert, it has
become reasonable that sufficient taxable income will be available
against which such deferred tax assets can be realized.
- Note no 47, regarding preparation of account on going concern basis
despite substantial erosion of net worth of the company and significant
losses leading to material uncertainty about the company's ability to
continue as going concern and based on mitigating factors as fully
described therein.
Our opinion is not qualified in respect of above matters.
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 in terms of section 143(11) of
the Companies Act, 2013, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a. We have 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, Proof and Loss Statement and Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards referred to in section 133 of the Companies Act,
2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 ;
e. On the basis of written representations received from the directors
as on June 30, 2015, and taken on record by the Board of Directors,
none of the directors is disqualifed as on June 30, 2015, from being
appointed as a director in terms of section 164(2) of the Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed in note no. 17 impact of pending
litigations on fnancial positions in its fnancial statement. 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 Auditors Report
(Referred to in paragraph (1) of our Report on other legal and
regulatory requirement of even date to the shareholders of UTTAM SUGAR
MILLS LIMITED for the year ended 30th June 2015.)
1. The Company has maintained records showing particulars including
quantitative details and situation of its principal fixed assets,
accordingly the fixed assets are physically verified by the management
according to a phased programmer designed to cover all the items over a
period of three years which, in our opinion, is reasonable having
regards to the size of the company and the nature of its assets.
Pursuant to the programmer, a portion of the fxed assets has been
physically verified by the management during the year and no material
discrepancies have been noticed on such verification.
2. (a) The physical verification of inventory has been conducted by
the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, 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) On the basis of our examination, in our opinion, the Company has
maintained proper records of inventory. Discrepancies noticed on such
physical verification of inventory as compared to the book records were
not material.
3. According to information made available to us , the company has not
granted any loan , secured or unsecured to companies , form or other
parties covered in the register maintained under section 189 of the Act
,accordingly Para 3(iii)(a) & (b) of the Order are not applicable to
the company.
4. In our opinion, and according to the information and explanations
given to us, that some of items purchased are of special nature and
suitable alternative sources are not readily available for obtaining
comparative quotations there is an adequate internal control system
commensurate with the size of the Company and nature of its business,
for purchase of inventory and fxed assets and for the sale of goods and
services. Further, on the basis of our examination and according to
the information and explanations given to us, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. On the basis of information and explanations given to us and our
scrutiny of company's records, in our opinion, the company has not
accepted any public deposits within the meaning of section 73 to 76 or
any other relevant provisions of the Act and the rules frames there
under. The directives issued by the Reserve Bank of India are not
applicable to the company.
6. We have broadly reviewed the books of account maintained by the
Company in respect of products pursuant to the order made by the
Central Government for the maintenance of the cost records under
section 148(1) of the Act and are of the opinion that, prima-facie, the
prescribed account and records have been maintained and are being made
up. We however as not required have not made a detailed examination of
such records with a view to determine whether these are accurate or
complete.
7. (a) According to the information and explanations given to us the
Company is generally regular in depositing
with appropriate authorities, undisputed statutory dues including
Provident Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other statutory dues applicable to it. As
explained to us, the provisions of Employees State Insurance are not
applicable to the Company; no amount was due to be deposited under
Investor Education and Protection Fund. Further, there was no arrears
of undisputed statutory dues outstanding as at 30th June 2015 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the
disputed statutory dues of Income Tax , Sales Tax ,Excise duty and
Service Tax aggregating to Rs. 487.54 lacs that have not been deposited
are given below:-
Name of Statue Nature of Dues Amount Forum where dispute is
(Rs. In
lacs) pending
Sales Tax Laws Sales Tax/
Entry Tax 21.20 Commissioner/
Commissioner(Appeal)
17.23 Tribunal
9.22 High Court
Central Excise
Act, 1944 Excise Duty
2.20 Commissioner/
Commissioner(Appeal)
406.81 CESTAT
5.83 High Court
25.05 Commissioner(Appeal)
Income Tax Act TDS
Total 487.54
Further, in respect of Custom Duty, Wealth Tax and Cess, it has been
informed that there are no dues, which have not been deposited on
account of any dispute.
8. The accumulated losses of Rs. 28289.93 lacs after reducing Deferred
Tax assets of Rs. 7198.45 lacs of the company have exceeded fifty
percent of its net worth as at 30th June 2015. The company has incurred
cash losses amounting to Rs. 8815.46 lacs during the financial year
covered by our audit, and Rs. 4932.05 lacs cash losses in the
immediately preceding financial period.
9. In our opinion and according to the information and explanations
given to us, the Company has delayed in repayment of its dues to Banks.
The particulars of delays which relates to interest/ installment during
the year ended 30th June 2015 are as follows :-
Particulars Amount (including Period of Delay
interest) (Days)
(Rs. In lacs)
Banks 5297.03 1 - 30 days
2563.18 31 - 60 days
10304.83 61 - 90 days
Total 18165.04
Out of above dues from Banks of Rs. 14240.29 lacs were paid during the
year and out of balance Rs. 3924.75 lacs outstanding as on 30.06.2015 a
sum of Rs. 2143.75 lacs was paid up to 12.08.2015 The company has not
issued any debentures.
10. According to the information and explanations given to us, the
Company has given corporate guarantees for loans taken by others from
Banks. The term and conditions of the said guarantee are not
prejudicial to the interest of the company
11. In our opinion and on the basis of information and explanations
given to us and on overall basis, term loans availed by the Company
were, applied by the Company for the purposes for which the loans were
raised apart from Rs. 291.98 lacs not utilized up to balance sheet date
12. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the year that causes the financial
statements materially misstated.
For B.K.KAPUR AND CO.,
Chartered Accountants,
Firm Registration No. 000852C
Place : Noida (B.K.KAPUR) F.C.A.
Dated : 19/08/2015 Partner
M.No.4578
Jun 30, 2014
We have audited the accompanying financial statements of UTTAM SUGAR
MILLS LIMITED which comprise the Balance Sheet as at 30th June 2014 and
the Statement of Profit and Loss and Cash Flow Statement for the period
of fifteen months then ended and a summary of significant accounting
policies and other explanatory information.
Management Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 30th June 2014;
b) in the case of the Statement of Profit and Loss, of the loss 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.
Emphasis of Matter
We draw attention to:-
a) Note No 26 regarding change in cost formula for computation of cost
of finished goods from Weighted Average Cost (WAC) method to First in
First Out (FIFO) method. This has resulted in increase in value of
closing stocks of finished goods by Rs1327.11 Lacs and Net loss for the
period is lower by Rs 1327.11 Lacs and Debit balance of Profit and loss
account is lower by same amount. Had the Company followed the WAC
method of valuation of finished goods, value closing stock of finished
goods would have been Rs. 46246.31 lacs, Net Loss for the Period would
have been Rs 6856.92 Lacs and Debit Balance of Profit and loss account
would have been 20797.55 Lacs.
b) Note No 41 of the financial statements regarding recognition of
Deferred Tax Assets in respect of unabsorbed depreciation and
unabsorbed brought forward business losses.
Our Opinion is not qualified in respect of above matters.
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 in terms of sub-section (4A)
of section 227 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
Sub Section (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on 30th June 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 30th June 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the Independent Auditors'' Report
(Referred to in paragraph 1 under'' Report on Other Legal and Regulatory
Requirements'' section of our report of even date to the shareholders of
UTTAM SUGAR MILLS LIMITED for the period ended 30th June 2014.)
1. (a) The Company has maintained records showing particulars
including quantitative details and situation of its principal fixed
assets, accordingly the fixed assets are physically verified by the
management according to a phased programme designed to cover all the
items over a period of three years which, in our opinion, is reasonable
having regards to the size of the company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies have been noticed on such verification.
(b) Fixed Assets disposed off during the period were not substantial
and, therefore, do not effect the going concern assumption.
2. (a) The physical verification of inventory has been conducted by
the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, 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) On the basis of our examination, in our opinion, the Company has
maintained proper records of inventory. Discrepancies noticed on such
physical verification of inventory as compared to the book records were
not material.
3. (a) According to information made available 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 Act, accordingly clause 4(iii) (b) to (d) of the Order are not
applicable to the Company.
(b) According to information made available to us, the Company has
taken interest free unsecured loans from four parties covered in the
register maintained under section 301 of the Act. There was Rs 137.34
Lacs outstanding of principal amount of such loan at the year end and
maximum outstanding during the year amounts to Rs. 137.34 Lacs.
Further, the Company has not taken any secured loan from the aforesaid
referred parties.
(c) The other terms and conditions of the unsecured loans taken by the
Company are prima-facie not prejudicial to the interest of the Company.
(d) As informed to us, at present there is no stipulation regarding the
repayment of the principal amount of unsecured loans.
4. In our opinion, and according to the information and explanations
given to us, that some of items purchased are of special nature and
suitable alternative sources are not readily available for obtaining
comparative quotations there is an adequate internal control system
commensurate with the size of the Company and nature of its business,
for purchase of inventory and fixed assets and for the sale of goods
and services. Further, on the basis of our examination and according to
the information and explanations given to us, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. (a) Based on our examination and 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 Act have
been entered in the register required to be maintained under that
section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees five lakhs in respect of
any party have been made at prices which are reasonable having regard
to prevailing market price at the relevant time.
6. On the basis of information and explanations given to us, the
Company has not accepted any public deposits from the public within the
meaning of Section 58A, 58AA or any other relevant provisions of the
Act, and rules framed there under.
7. The Company has an internal audit system which is commensurate with
the size and nature of the Company''s business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of the cost records under section 209(1)(d) of the Act and
are of the opinion that, prima- facie, the prescribed account and
records have been maintained and are being made up. We however as not
required have not made a detailed examination of such records with a
view to determine whether these are accurate or complete.
9. (a) According to the information and explanations given to us the
Company is generally regular in depositing with appropriate
authorities, undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty,
Cess and other statutory dues applicable to it, except few cases of
delay in deposit of Tax Deducted at Source. As explained to us, the
provisions of Employees State Insurance are not applicable to the
Company; no amount was due to be deposited under Investor Education and
Protection Fund. Further, there was no arrears of undisputed statutory
dues outstanding as at 30th June 2014 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, the
disputed statutory dues of Sales Tax & Excise duty aggregating to Rs.
503.84 Lacs that have not been deposited are given below:-
Name of Statue Nature of Dues Amount Forum where
(Rs.in Lacs) dispute is pending
Sales Tax Laws Sales Tax/ Entry 35.21 Commissioner/
Tax Commissioner
(Appeals)
44.57 Tribunal
9.22 High Court
Central Excise Excise Duty 2.20 Commissioner/
Act, 1944
Commissioner
(Appeals)
406.81 CESTAT
5.83 High Court
Total 503.84
Further, in respect of Custom Duty, Wealth Tax, Service Tax and Cess,
it has been informed that there are no dues, which have not been
deposited on account of any dispute.
10. The accumulated losses of the Company have exceeded fifty percent
of its net worth as at 3Cth June 2014. The company has incurred cash
losses amounting to Rs 4932.05 Lacs during the financial period covered
by our audit, however there was no cash loss in the immediately
preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has delayed in repayment of its dues to Banks.
The particulars of delays which relates to interest/ installment during
the period ended 30th June 2014 are as follows:-
Particulars Amount(including Interest) Period of Delay
(Rs. in lacs) (Days)
Banks 3688.58 1 - 30 days
4948.71 31 - 60 days
4817.48 61 - 90 days
Total 13454.77
Out of above dues from Banks of Rs 13199.21 lacs were paid during the
year and a sum of Rs.255.56 lacs was paid up to 28.08.2014.
The company has not issued any debentures.
12. According to the information and explanations given 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.
13. The Company is not a chit fund or a Nidhi/ mutual benefit fund/
society, therefore provisions of clause 4(xiii) of the order are not
applicable to the Company.
14. In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, provisions
of clause 4(xiv) of the order are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any corporate guarantees for loans taken by other
from Banks.
16. In our opinion and on the basis of information and explanations
given to us and on overall basis, term loans availed by the Company
were, applied by the Company for the purposes for which the loans were
raised.
17. On the basis of overall examinations of the balance sheet of the
Company, in our opinion and according to the informa- tion and
explanations given to us funds raised on the short term basis to the
extent of Rs. 15364 Lacs upto the date of the Balance Sheet have been
used for long term basis primarily for repayment of Loans and financing
of past losses.
18. During the year preferential allotment of 10% cumulative
redeemable preference shares of Rs. 100/- each at a premium of Rs.
100/- per share have been made to parties and companies covered in the
register maintained under section 301 of The Act.
In our opinion, price at which aforesaid shares have been issued is not
prejudicial to the interest of the Company.
19. The Company has not issued any debentures, therefore, no comments
is required under Para 4(xix) of CARO, 2003.
20. The Company has not raised any money by public issues during the
period.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For B.K.Kapur and Co.
Chartered Accountants,
Firm Registration No.000852C
Place : Noida (B.K. KAPUR) F.C.A
Dated : 28.08.2014 Partner
M. No. 4578
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of UTTAM SUGAR
MILLS LIMITED which comprise the Balance Sheet as at March 31, 2013
and the Statement of Profit and Loss and Cash Flow Statement for the
year then ended and a summary of significant accounting policies and
other explanatory information.
Management 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 de-sign, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013,
b) in the case of the Statement of Profit and Loss, 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.
Emphasis of Matter
We draw attention to Note No.43 of the financial statements regarding
recognisation of Deferred Tax Assets in respect of unabsorbed
depreciation. Our opinion is not qualified in respect of this matter.
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 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
Statcrrent 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 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 Auditors'' Report
(Referred to in paragraph (1) of our Report of even date to the
shareholders of UTTAM SUGAR MILLS LIMITED for the year ended 31s1
March, 2013.)
1. (a) The Company has maintained records showing particulars
including quantitative details and situation of its principal fixed
assets, accordingly the fixed assets are physically verified by the
management according to a phased programme designed to cover all the
items over a period of three years which, in our opinion, is reasonable
having regards to the size of the company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies have been noticed on such verification.
(b) Fixed Assets disposed off during the year were not substantial and,
therefore, do not effect the going concern assumption.
2. (a) The physical verification of inventory has been conducted by
the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, 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) On the basis of our examination, in our opinion, the Company has
maintained proper records of inventory. Discrepancies noticed on such
physical verification of inventory as compared to the book records were
not material.
3. (a) According to information made available 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 Act, accordingly clause 4(iii) (b) to (d) of the Order are not
applicable to the Company.
(b) According to information made available to us, the Company has
taken interest free unsecured loans from four parties covered in the
register maintained under section 301 of the Act. There was Rs. 137.34
Lacs outstanding of principal amount of such loan at the year end and
maximum outstanding during the year amounts to Rs. 812.34 Lacs.
Further, the Company has not taken any secured loan from the aforesaid
referred parties.
(c) The other terms and conditions of the unsecured loans taken by the
Company are prima-facie not prejudicial to the interest of the Company.
(d) As informed to us, the repayment of the principal amount of
unsecured loans, wherever there is stipulation as regards the payments,
are regular.
4. In our opinion, and according to the information and explanations
given to us, that some of the items purchased are of special nature and
suitable alternative sources are not readily available for obtaining
comparative quotations, there is an adequate internal control system
commensurate with the size of the Company and nature of its business,
for purchase of inventory and fixed assets and for the sale of goods
and services. Further, on the basis of our examination and according to
the information and explanations given to us, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. (a) Based on our examination and 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 Act have
been entered in the register required to be maintained under that
section.
(b) In our opinion and according to the information and explanations
give to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees five lakhs in respect of
any party have been made at prices which are reasonable having regard
to prevailing market price at the relevant time.
6. On the basis of information and explanations given to us, the
Company has not accepted any public deposits from the public within the
meaning of Section 58A, 58AA or any other relevant provisions of the
Act, and rules framed there under.
7. The Company has an internal audit system which is commensurate with
the size and nature of the Company''s business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of the cost records under section 209(1 )(d) of the Act and
are of the opinion that, prima-facie, the prescribed account and
records have been maintained and are being made up. We however as not
required have not made a detailed examination of such records with a
view to determine whether these are accurate or complete.
9. (a) According to the information and explanations given to us the
Company is generally regular in depositing with appropriate
authorities, undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax. Wealth Tax, Service Tax, Customs Duty, Excise Duty,
Cess and other statutory dues applicable to it, except few cases of
delay in deposit of Tax Deducted at Source, and provident fund. As
explained to us, the provisions of Employees State Insurance are not
applicable to the Company; no amount was due to be deposited under
Investor Education and Protection Fund. Further, there was no arrears
of undisputed statutory dues outstanding as at 31st March, 2013 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the
disputed statutory dues of Sales Tax & Excise duty aggregating to Rs.
513.77 Lacs that have not been deposited are given below:-
Name of Statue Nature of Dues Amount Forum where
(Rs.in Lacs) dispute is
pending
Sales Tax Laws Sales Tax/
Entry Tax 64.30 Commissioner/
Commissioner
(Appeals)
11.65 Tribunal
9.33 High Court
Central Excise Excise Duty 54.23 Commissioner/
Act, 1944 Commissioner
(Appeals)
368.43 CESTAT
5.83 High Court
Total 513.77
Further, in respect of Income Tax, Custom Duty, Wealth Tax, Service Tax
and Cess, it has been informed that there are no dues, which have not
been deposited on account of any dispute.
10. The accumulated losses of the company have not exceeded fifty
percent of its net worth as at 31 st March, 2013. The company has not
incurred any cash losses during the financial year covered by our
audit, however there was a cash loss of Rs. 6423.81 Lacs in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has delayed in repayment of its dues to Banks.
The particulars of delays which relates to interest/ installment during
the year ended 31st March, 2013 are as follows :-
Particulars Amount
(including
Interest) Period of Delay
(Rs. in lacs) (Days)
Banks 2740.24 1-30
2325.71 31-60
3213.72 61-90
41.29 90-more
Total 8320.96*
* Fully paid during the year
The company has not issued any debentures.
12. According to the information and explanations given 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.
13. The Company is not a chit fund or a Nidhi/ mutual benefit fund/
society, therefore provisions of clause 4(xiii) of the order are not
applicable to the Company.
14. In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, provisions
of clause 4(xiv) of the order are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any corporate guarantees for loans taken by
others from Banks.
16. In our opinion and on the basis of information and explanations
given to us and on overall basis, term loans availed by the Company
were, applied by the Company for the purposes for which the loans were
raised apart from Rs. 362.50 lacs pending utilization.
17. On the basis of overall examinations of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us funds raised on the short term basis to the
extent of Rs. 8,003 Lacs upto the date of the Balance Sheet have been
primarily used for repayment of Loans and financing of past losses.
18. During the year preferential allotment of 10% cumulative
redeemable preference shares of Rs. 100/- each at a pre- mium of Rs.
100/- per share have been made to parties and companies covered in the
register maintained under section 301 of The Act.
In our opinion, price at which aforesaid shares have been issued is not
prejudicial to the interest of the Company.
19. The Company has not issued any debentures, therefore, no comment
is required under para 4(xix) of CARO, 2003.
20. The Company has raised monies by way of right issue of equity
shares during the year. We have verified the end use of money raised by
way of the right issue as declared by the management in the letter of
offer filed with the Securities and Exchange Board of India and as
appearing in Note No. 45 forming part of the financial statement.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For B.K.Kapur & Co.
Firm Registration No. 000852C
Chartered Accountants,
Place : Noida (M.S.Kapur) F.C.A.
Dated : May 18th 2013 Partner
M. No.74615
Mar 31, 2012
1. We have audited the attached Balance Sheet of UTTAM SUGAR MILLS
LIMITED as at 31st March 2012, the Profit & Loss Statement and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit also
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003
("The Order"),as issued by the Central Government of India in terms
of Section 227 (4A) of the Companies Act, 1956 ("The Act"), we
enclose in the annexure a statement on the matters specified in
paragraphs 4 & 5 of the said Order.
4. Without qualifying our opinion attention is invited to Note no 44
regarding recognisation of Deferred Tax Assets in respect of unabsorbed
depreciation.
5. Further to our comments in Annexure referred to in paragraph 3
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 such
books;
c) The Balance Sheet, Profit & Loss Statement and Cash Flow Statement
dealt with by this report are in agreement with books of account;
d) In our opinion, Balance Sheet, Profit & Loss Statement and Cash Flow
Statement dealt with by this report comply with Accounting Standards
referred to in Section 211 (3C) of the Act;
e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the Directors are disqualified as on 31st March,2012 from being
appointed as a Director in terms of clause (g) of Sub Section (1) of
Section of 274 of the Act;
f) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and others notes thereon, and attached
thereto, 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: -
i) in the case of Balance Sheet, of the State of affairs of the Company
as at 31st March, 2012;
ii) in the case of Profit & Loss Statement, of the Loss of the Company
for the year ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flows of the
Company for year ended on that date.
Annexure to the Auditors' Report
(Referred to in paragraph (3) of our Report of even date to the
shareholders of UTTAM SUGAR MILLS LIMITED for the year ended 31st
March, 2012.)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its
principal fixed assets, accordingly the fixed assets are physically
verified by the management according to a phased programme designed to
cover all the items over a period which, in our opinion, is reasonable
having regards to the size of the company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies have been noticed on such verification.
(b) In our opinion and according to the information and explanations
given to us , a substantial part of the fixed assets has not been
disposed off by the Company during the year.
2. (a) The physical verification of inventory has been conducted by
the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, 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) On the basis of our examination, in our opinion, the Company has
maintained proper records of inventory. Discrepancies noticed on such
physical verification of inventory as compared to the book records were
not material.
3. (a) According to information made available 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 Act, accordingly clause 4(iii) (b) to (d) of the Order are not
applicable to the Company.
(b) According to information made available to us, the Company has
taken interest free unsecured loans from five parties covered in the
register maintained under section 301 of the Act. There was Rs. 812.34
Lacs outstanding of principal amount of such loan at the year end and
maximum outstanding during the year amounts to Rs 812.34 Lacs. Further,
the Company has not taken any secured loan from the aforesaid referred
parties.
(c) The other terms and conditions of the unsecured loans taken by the
Company are prima- facie not prejudicial to the interest of the
Company.
(d) As informed to us, the repayment of the principal amount of
unsecured loans, wherever there is stipulation as regards the payments,
are regular.
4. In our opinion, and according to the information and explanations
given to us, that some of the items purchased are of special nature and
suitable alternative sources are not readily available for obtaining
comparative quotations there is an adequate internal control system
commensurate with the size of the Company and nature of its business,
for purchase of inventory and fixed assets and for the sale of goods
and services. Further, on the basis of our examination and according to
the information and explanations given to us, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. (a) Based on our examination and 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 Act have
been entered in the register required to be maintained under that
section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees five lakhs in respect of
any party have been made at prices which are prima facie reasonable
having regard to prevailing market price at the relevant time.
6. On the basis of information and explanations given to us, the
Company has not accepted any public deposits from the public within the
meaning of Section 58A, 58AA or any other relevant provisions of the
Act, and rules framed thereunder.
7. The Company has an internal audit system which needs to be
strengthened to make it commensurate with the size and nature of the
Company's business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of the cost records under section 209(1) (d) of the Act and
are of the opinion that, prima-facie, the prescribed account and
records have been maintained and are being made up. We however as not
required have not made a detailed examination of such records with a
view to determine whether these are accurate or complete.
9. (a) According to the information and explanations given to us the
Company is generally regular in depositing with appropriate
authorities, undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty,
Cess and other statutory dues applicable to it, except few cases of
delay in deposit of Income Tax, Tax Deducted at Source and Provident
Fund. As explained to us, the provisions of Employees State Insurance
are not applicable to the Company, no amount was due to be deposited
under investor Education and Protection Fund. Further, there was no
arrears of undisputed statutory dues outstanding as at 31st March, 2012
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the
disputed statutory dues of Sales Tax, Entry Tax & Excise duty
aggregating to Rs 1958.66 Lacs that have not been deposited are given
below: -
Name of Statue Nature of Due Amount Forum where
(Rs.in Lacs) dispute is pending
Sales Tax Laws Sales Tax 22.48 Additional Commissioner
of Trade Tax (Appeal)
Central Excise Excise Duty 392.03 CESTAT/Commissioner
Act, 1944 (Appeal) Asst Commissioner
Entry Tax Act Entry Tax 1544.15 Additional Commissioner
of Trade Tax (Appeal)
Further, in respect of Income Tax .Custom Duty, Wealth Tax, Service Tax
and Cess, it has been informed that there are no dues, which have not
been deposited on account of any dispute.
10. The accumulated losses of the company have exceeded fifty percent
of its net worth as at 31s1 March 2012. The company has incurred cash
loss Rs.6423.81 Lacs during the year ended 31st March, 2012, however
there was no cash loss in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has defaulted in the nature of delays in
repayment of its dues to Banks. The particulars of delays after
considering the effect of reschedulement of repayment terms of
borrowing from Banks, approved by Corporate Debt Restructuring(CDR)
Empowered Group which relates to interest/installment during the year
ended 31st March 2012 are as follows: -
Particulars Amount (including
Interest)* Period of Delay
(Rs. in lacs) (Days)
Banks 5610.06 1-30
425.63 31-60
* Includes Rs. 5599.28 Lacs paid during the year.
There are no dues of debenture holders.
12. According to the information and explanations given 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.
13. The Company is not a chit fund or a Nidhi / mutual benefit fund /
society, therefore provisions of clause 4(xiii) of the order are not
applicable to the Company.
14. In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Ac- cordingly, provisions
of clause 4(xiv) of the order are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any corporate guarantees for loans taken by
others from Banks.
16. In our opinion and on the basis of information and explanations
given to us and on overall basis, term loans availed by the Company
were, applied by the Company for the purposes for which the loans were
raised except Rs 63.50 Lacs pending utilization.
17. On the basis of overall examinations of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us funds raised on the short term basis to the
extent of Rs. 11410 Lacs upto the date of the Balance Sheet have been ,
primarily used for repayment of Loans and financing of losses.
18. During the year the Company has not made preferential share
allotment.
19. The Company has not issued any debenture, therefore, no comment is
required under para 4(xix) of CARO, 2003.
20. The company has not raised any money by way of public issue during
the period under report.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For B.K.Kapur & Co.
Firm Registration No. 000852C
Chartered Accountants,
Place : Noida (M.S.Kapur) F.C.A.
Dated : May 30th 2012 Partner
M. No.74615
Mar 31, 2011
1. We have audited the attached Balance Sheet of UTTAM SUGAR MILLS
LIMITED as at 31st March 2011, the Profit & Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit also
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 ("The
Order"),as issued by the Central Government of India in terms of
Section 227 (4A) of the Companies Act, 1956 ("The Act"), we enclose in
the annexure a statement on the matters specified in paragraphs 4 & 5
of the said Order.
4. Further to our comments in Annexure referred to in paragraph 3
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 such
books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with books of account;
d) In our opinion, Balance Sheet, Profit & Loss Account and Cash Flow
Statement dealt with by this report comply with Accounting Standards
referred to in Section 211(3C) of the Act;
e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the Directors are disqualified as on 31s1 March,2011 from being
appointed as a Director in terms of clause (g) of Sub Section (1) of
Section 274 of the Act;
f) Without qualifying our opinion, we draw your attention to note no.8
(a) of schedule 19 relating to the accounting for sugar cane purchase
liability in respect of units situated in the state of Uttar Pradesh
for the sugar season 2007- 08 at an interim price of Rs.110/- per
quintal which is as per the directions of Hon'ble Supreme Court instead
of State Advisory Prices of Rs.125/- per quintal fixed by the State
Government. Pending the final decision of the Hon'ble Supreme Court in
this matter, the effect thereof presently is not ascertainable;
g) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and others notes thereon, and attached
thereto, 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: -
i) in the case of Balance Sheet, of the State of affairs of the Company
as at 31st March, 2011;
ii) in the case of Profit & Loss Account, of the Loss of the Company
for the year ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flows of the
Company for year ended on that date.
Annexure to the Auditors' Report
(Referred to in paragraph (3) of our Report of even date to the
shareholders of UTTAM SUGAR MILLS LIMITED for the year ended 31st
March,2011.)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its
principal fixed assets, accordingly the fixed assets are physically
verified by the management according to a phased programme designed to
cover all the items over a period of three years which, in our opinion,
is reasonable having regards to the size of the company and the nature
of its assets. Pursuant to the programme, a portion of the fixed assets
has been physically verified by the management during the year and no
material discrepancies have been noticed on such verification.
(b ) In our opinion and according to the information and explanations
given to us, a substantial part of the fixed assets has not been
disposed off by the Company during the year.
2. (a) The physical verification of inventory has been conducted by
the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, 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) On the basis of our examination, in our opinion, the Company has
maintained proper records of inventory. Discrepancies noticed on such
physical verification of inventory as compared to the book records were
not material.
3. (a) According to information made available 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 Act, accordingly clause 4(iii) (b) to (d) of the Order are not
applicable to the Company.
(b) According to information made available to us, the Company has
fully repaid unsecured loans taken by way of conversion into preference
shares from four parties covered in the register maintained under
section 301 of the Act. There was no outstanding of principal amount of
such loan at the year end and maximum outstanding during the year
amounts to Rs 2938 Lacs. Further, the Company has not taken any secured
loan from the aforesaid referred parties.
(c) The rate of interest and other terms and conditions of the
unsecured loans taken by the Company are prima- facie not prejudicial
to the interest of the Company.
(d) As informed to us, the repayment of the principal amount of
unsecured loans and interest thereon, wherever there is stipulation as
regards the payments, are regular.
4. 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 nature of its business, for purchase
of inventory and fixed assets and for the sale of goods and services.
Further, on the basis of our examination and according to the
information and explanations given to us, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. (a) Based on our examination and 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 Act have
been entered in the register required to be maintained under that
section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees five lakhs in respect of
any party have been made at prices which are reasonable having regard
to prevailing market price at the relevant time.
6. On the basis of information and explanations given to us, the
Company has not accepted any public deposits from the public within the
meaning of Section 58A, 58AA or any other relevant provisions of the
Act, and rules framed thereunder.
7. The Company has an internal audit system which needs to be
strengthened to make it commensurate with the size and nature of the
Company's business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of the cost records under section 209(1) (d) of the Act and
are of the opinion that, prima-facie, the prescribed account and
records have been maintained and are being made up. We however as not
required have not made a detailed examination of such records with a
view to determine whether these are accurate or complete.
9. (a) According to the information and explanations given to us the
Company is generally regular in depositing with appropriate
authorities, undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty,
Cess and other statutory dues applicable to it, except few cases of
delay in deposit of Income Tax, Tax Deducted at Source, Wealth Tax and
Service Tax. As explained to us, the provisions of Employees State
Insurance are not applicable to the Company, no amount was due to be
deposited under investor Education and Protection Fund. Further, there
was no arrears of undisputed statutory dues outstanding as at 31st
March, 2011 for a period of more than six months from the date they
became payable except the Income Tax dues of Rs 98.87 Lacs plus
applicable interest thereon relating to the assessment year 2005-2006
and 2006-2007.
(b) According to the information and explanations given to us, the
disputed statutory dues of Sales Tax & Excise duty aggregating to Rs
397.16 Lacs that have not been deposited are given below: -
Name of Statue Nature of Due Amount Forum where
(Rs.in Lacs) dispute is pending
Sales Tax Laws Sales Tax 3.30 Commissioner of
Trade Tax
Central Excise Excise Duty 340.72 CESTAT
Act, 1944 53.14 Commissioner(Appeal)
397.16
Further, in respect of Income Tax ,Custom Duty, Wealth Tax, Service Tax
and Cess, it has been informed that there are no dues, which have not
been deposited on account of any dispute.
10. The company's accumulated losses at the end of the year under
report are less than fifty percent of its Net Worth. The company has
not incurred any cash losses during the year ended 31th March, 2011,
however there was cash losses in the immediately preceding period of
fifteen months ended 31st March, 2010.
11. In our opinion and according to the information and explanations
given to us, the Company has defaulted in the nature of delays in
repayment of its dues to Banks. The particulars of delays after
considering the effect of reschedulement of repayment terms of
borrowing from Banks, approved by Corporate Debt Restructuring(CDR)
Empowered Group which relates to interest/installment during the year
ended 31s' March 2011 are as follows: -
Particulars Amount (including Interest)* Period of Delay
(Rs. in lacs) (Days)
Banks 6462.77 1-30
2362.17 31-60
* Includes Rs. 8458 Lacs paid during the year. There are no dues of
debenture holders.
12. According to the information and explanations given 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.
13. The Company is not a chit fund or a Nidhi / mutual benefit fund /
society, therefore provisions of clause 4(xiii) of the order are not
applicable to the Company.
14. in our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, provisions
of clause 4(xiv) of the order are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has given corporate guarantees for loans taken by others from
Banks. In our opinion, the term & conditions of these guarantees are
not prejudicial to the interest of the company.
16. In our opinion and on the basis of information and explanations
given to us and on overall basis, term loans availed by the Company
were, prima-facie applied by the Company for the purposes for which the
loans were raised.
17. On the basis of overall examinations of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us funds raised on the short term basis to the
extent of Rs.4820 Lacs upto the date of the Balance Sheet have been
used for long-term investment, primarily in the nature of capital
expenditures and repayment of Loans.
18. During the year the Company has made preferential allotment of
840000, 6.5% Cumulative Redeemable Shares Series I @ Rs.100/- each,
redeemable at par and 1675000, 10% Cumulative Redeemable Shares Series
II @ Rs.100/- each, issued at premium of 100/- each, redeemable at
premium of 100/- each to parties and companies covered in the register
maintained under section 301 of the Act. In our opinion, prices at
which shares have been issued is not prejudicial to the interest of the
company.
19. The Company has not issued any debenture, therefore, no comment is
required under para 4(xix) of CARO, 2003.
20. The company has not raised any money by way of public issue during
the period under report.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For B.K.Kapur & Co.
Firm Registration Number 000852C
Chartered Accountants,
Place : Noida (M.S.Kapur) F.C.A.
Dated : May 27th 2011 Partner
M. No.74615
Mar 31, 2010
1. We have audited the attached Balance Sheet of UTTAM SUGAR MILLS
LIMITED as at 31st March 2010, the Profit & Loss Account and also the
Cash Flow Statement for the period of fifteen months ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit also
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 ("The
Order"),as issued by the Central Government of India in terms of
Section 227 (4A) of the Companies Act. 1956 ("The Act"), we enclose in
the annexure a statement on the matters specified in paragraphs 4 & 5
of trie said Order.
4. Further to our comments in Annexure referred to in paragraph 3
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 such
books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with books of account;
d) In our opinion, Balance Sheet, Profit & Loss Account and Cash Flow
Statement dealt with by this report comply with accounting standards
referred to in Section 211 (3C) of the Act.
e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the Directors are disqualified as on 31st March 2010 from being
appointed as a Director in terms of clause (g) of Sub Section (1) of
Section of 274 of the Act.
f) Without qualifying our opinion, we draw your attention to note no.9
(a) of schedule 19 relating to the accounting for sugar cane purchase
liability in respect of units situated in the state of Uttar Pradesh
for the sugar season 2007-08 at an interim price of Rs. 110/- per
quintal which is as per the directions of Honble Supreme Court instead
of State Advisory price of Rs. 125 per quintal fixed by the State
Government. Pending the final decision of the Honble Supreme Court in
this matter, the effect thereof presently is not ascertainable.
g) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts subject to note
no.21(d) regarding managerial remuneration read together with the
significant accounting policies and others notes thereon, remuneration
read and attached thereto, 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: -
i) in the case of Balance Sheet, of the State of affairs of the Company
as at 31st March, 2010.
ii) in the case of Profit & Loss Account, of the Loss of the Company
for the period of fifteen months ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flows of the
Company for the period of fifteen months ended on that datf*
Annexure to the Auditors Report
(Referred to in paragraph (3) of our Report of even date to the
shareholders of UTTAM SUGAR MILLS LIMITED for the period ended 31st
March 2010.)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its
principal fixed assets, other than the situation of furniture and
fixture and office equipments, which are under compilation, accordin
-gly the fixed assets are physically verified by the management
according to a phased programme designed to cover all the items over a
period of three years which, in our opinion, is reasonable having
regards to the size of the company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the management during the period and no material
discrepancies have been noticed on such verification.
(b) In our opinion and according to the information and explanations
given to us , a substantial part of the fixed assets has not been
disposed off by the Company during the period.
2. (a) The physical verification of inventory has been conducted by
the management at reasonable intervals.
(b) In our opinion and ad cording to the information and explanations
given to us, 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) On the basis of our examination, in our opinion, the Company has
maintained proper records of inventory. Discrepancies noticed on such
physical verification of inventory as compared to the book records were
not material.
3. (a) According to information made available 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 Act, accordingly clause 4(iii) (b) to (d) of
the Order are not applicable to the Company.
(b) According to information made available to us, the Company has
taken unsecured loans from seven parties covered in the register
maintained under section 301 of the Act. Total outstanding for such
loans at the period-end amounted to Rs.3253 lacs and maximum
outstanding during the period amounts to Rs.5314.50 lacs. Further, the
Company has not taken any secured loan from the aforesaid referred
parties.
(c) The rate of interest and other terms and conditions of the
unsecured loans taken by the Company are prima- facie not prejudicial
to the interest of the Company.
(d) As informed to us, the repayment of the principal amount of
unsecured loans and interest thereon, wherever there is stipulation as
regards the payments, are regular.
4. 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 nature of its business, for purchase
of inventory and fixed assets and for the sale of goods and services.
Further, on the basis of our examination and according to the
information and explanations given to us, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. (a) Based on our examination and 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 Act
have been entered in the register required to be maintained under that
section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees five lakhs in respect of
any party have been made at prices which are reasonable having regard
to prevailing market price at the relevant time.
6. On the basis of information and explanations given to us, the
Company has not accepted any public deposits from the public within the
meaning of Section 58A, 58AA or any other relevant provisions of the
Act, and rules framed thereunder.
7. The Company has an internal audit system which needs to be
strengthened to make it commensurate with the size and- nature of the
Companys business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of the cost records under section 209(1) (d) of the Act and
are of the opinion that, prima-facie, the prescribed account and
records have been maintained and are being made up. We however as not
required have not made a detailed examination of such records with a
view to determine whether these are accurate or complete.
9. (a) According to the information and explanations given to us the
Company is generally regular in depositing with appropriate authorities,
undisputed statutory dues including Provident Fund, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
statutory dues applicable to it, except few cases of delay in deposit
of Tax Deducted at Source . As explained to us, the provisions of
Employees State Insurance are not applicable to the Company.no amount
was due to be deposited under investor Education and Protection Fund.
Further, there was no arrears of undisputed statutory dues outstanding
as at 31st March,2010 for a period of more than six months from the
date they became payable except the Income Tax dues of Rs. 98.87 lacs
relating to the assessment year 2005-06 and 2006-07
(b) According to the information and explanations given to us, the
disputed statutory dues of Income Tax, Sales Tax & Excise duty
aggregating to Rs.233.99 Lacs that have not been deposited are given
below: -
Name of Nature of Period to Amount Forum where dispute
Statue Due which it (Rs. in lacs) is pending
Pertains
Sales Tax Laws Sales Tax 1999-2000 0.47 Joint Commissioner
(Appeal)
Central Excise
Act 1944 Excise Duty 2004-2005 233.52 CESTAT
233.99
Further, in respect of Custom Duty, Wealth Tax, Service Tax and Cess,
it has been informed that there are no dues, which have not been
deposited on account of any dispute.
10. The companys accumulated losses at the end of the period under
report are less than fifty percent of its Net Worth. The company has
incurred cash losses during the period of fifteen months ended 31sl
March, 2010, and also in the immediately preceding financial period
ended 31st December 2008.
* Includes Rs.7286.29 lacs paid during the period. There are no dues
of debenture holders.
12. According to the information and explanations given 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.
13. The Company is not a chit fund or a Nidhi / mutual benefit fund /
society, therefore provisions of clause 4(xiii) of the order are not
applicable to the Company.
14. In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, provisions
of clause 4(xiv) of the order are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has given corporate guarantees for loans taken by others from
Banks. In our opinion, the terms & conditions of these guarantees are
not prejudicial to the interest of the company.
16. In our opinion and on the basis of information and explanations
given to us and on overall basis, term loans availed by the Company
were, prima-facie applied by the Company for the purposes for which the
loans were raised.
17. On the basis of overall examinations of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us funds raised on the short term basis to the
extent of Rs. 5311.76 Lacs upto the date of the Balance Sheet have been
used for long-term investment, primarily in the nature of capital
expenditures and repayment of Loans.
18. During the period Company has made preferential allotment of
41,60,000, 6.5% Cumulative Redeemable Preference Shares @ Rs.100/- each
to parties and companies covered in the register maintained under
section 301 of the Act. In our opinion, prices at which shares have
been issued is not prejudicial to the interest of the company
19. The Company has not issued any debenture, therefore, no comment is
required under para 4(xix) of CARO, 2003.
20. The company has not raised any money by way of public issue during
the period under report.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For B.K.Kapur & Co.
Firm Registration Number 000852
Chartered Accountants
Place : Noida (M.S.Kapur) F.C.A.
Dated : 29th June, 2010 Partner
M. No.74615
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- Annual Results
-
Uttam Sugar Mills Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
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Uttam Sugar Mills Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
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Uttam Sugar Mills Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
