We have audited the accompanying standalone financial statements of
Dhampure Speciality Sugars Limited, which comprise the Balance Sheet as
at March 31, 2015, and the Statement of Profit and Loss and Cash Flow
Statement for the year ended, and a summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal 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, 2015;and
(b) in the case of the statement of Profit and Loss , of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the Cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order,
to the extend applicable to the Company.
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 and Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d. in our opinion, the Balance Sheet and Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub- section (3C) of section 211 of the Act read with
the General Circular No. 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013.
e. on the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164 (2) of the Act.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO AUDITORS' REPORT
(As referred to in Paragraph 1 of our report of even date)
(i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets. (b) As explained to us, most of the fixed assets of the
company have been physically verified by the management during the year
and no material discrepancies between the book records and the physical
inventory have been noticed. In our opinion, the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its assets.
(ii) (a) As explained to us, the inventory has been physically verified
at reasonable intervals by the management.
(b) In our opinion, 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 of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) a) According to the information and explanations given to us, the
Company has not granted any loans secured or unsecured to Companies,
firms or other parties covered in the registered maintained under
section 189 of the Act.
b) According to the information and explanations given to us, during
the year, the Company has not taken any fresh loan from Companies,
firms or other parties covered in the registered maintained under
section 301 of the Act.
(iv) In our opinion and according to the information and explanations
explanation given to us, the internal control system are generally
adequate and commensurate with the size of the company and the nature
of its business for the purchase of inventory, fixed assets and for the
sale of goods and services. Further, on the basis of our examinations
of the books and records of the company, and according to the
information and explanations given to us, we have neither come across
nor have been informed of any major weakness in the aforesaid internal
control systems.
(v) As informed to us, during the year, the company has not accepted
any deposits from the public within the meaning of directive issued by
the Reserve Bank of India and the Provisions of section 73 to 76 or any
other relevant provisions of Section 58A and 58AA of the Act and the
rules framed there under.
(vi) We have broadly reviewed the books of accounts maintained by the
company pursuant to rules made by the Central Government under section
209 (1)(d) of the Companies Act, 1956 for maintenance of Cost records
and are of the opinion that, prima facie, the prescribed accounts and
records have been maintained. We have not, however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
(vii) (a) According to the information and explanations given to us and
the records of the company examined by us, in our opinion, the company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor, education and protection fund,
employees' state insurance, income-tax, sales - tax, wealth tax,
service tax, customs duty, excise duty, value added tax, cess and other
material statutory dues, as applicable, with the appropriate
authorities.
(b) According to the information and explanations given to us and the
records of the company examined by us there are no disputes and dues
with Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, value added tax, cess and any other statutory dues which
have remained outstanding as at 31.03.2015 for a period of more than
six months from the date they became payable, however an income tax
demand i.e. assessed U/s 143(3) for the Assessment Year 2009-10 of Rs.
75,967/- and for the Assessment Year 2010-11 of Rs. 47,750/- are yet
to deposit or to be adjust with the Income Tax Refund receivable from
the Income Tax Department and a demand of Central Excise Duty of Rs.
50,76,707/ - (Including interest of Rs. 15,22,721/-) for the period
from F.Y. 2007-08 to 2011-12 The matter is pending with the Customs,
Excise & Service Tax Appellate Tribunal, New Delhi.
(c) According to the information and explanations given to us, there
are no dues of Sales tax, Income tax, Wealth tax, Service tax, Custom
duty, Excise duty, value added tax, cess and any other statutory dues
which have not been deposited on account of any dispute, subject to
Para No.(b) of point No. 9, as above.
(d) As per records of the company, no amount was required to be
transferred to the Investor Education and Protection Fund by the
Company.
(viii) The company has no accumulated losses as at March 31, 2015 and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
(ix) According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in payment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
(x) That the company has taken a cash credit limit of Rs.
4,00,00,000/- from schedule bank which is secured by hypothecation of
stock and debtors.
(xi) In our opinion and according to the information and explanations
given to us the company has not obtained any type of term loan
facility.
(xii) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we have been informed of such case by the management.
For S. Prasad Agarwal & Co.
Chartered Accountants
Firm Regn. No.021425N
Place: New Delhi
Dated: 30.05.2015 S. P. Agarwal
(Proprietor)
M. No. F 092194 |