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Andhra Sugars Ltd.

BSE: 590062 Sector: Others
NSE: ANDHRSUGAR ISIN Code: INE715B01013
BSE LIVE 12:48 | 29 Mar 305.20 0.65
(0.21%)
OPEN

305.00

HIGH

307.00

LOW

303.30

NSE LIVE 12:58 | 29 Mar 304.85 0.80
(0.26%)
OPEN

305.95

HIGH

307.65

LOW

303.00

OPEN 305.00
PREVIOUS CLOSE 304.55
VOLUME 2188
52-Week high 310.05
52-Week low 130.20
P/E 7.15
Mkt Cap.(Rs cr) 827.40
Buy Price 305.00
Buy Qty 5.00
Sell Price 305.80
Sell Qty 41.00
OPEN 305.00
CLOSE 304.55
VOLUME 2188
52-Week high 310.05
52-Week low 130.20
P/E 7.15
Mkt Cap.(Rs cr) 827.40
Buy Price 305.00
Buy Qty 5.00
Sell Price 305.80
Sell Qty 41.00

Andhra Sugars Ltd. (ANDHRSUGAR) - Auditors Report

Company auditors report

To

The Members of THE ANDHRA SUGARS LIMITED

TANUKU

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of The Andhra SugarsLtd. which comprise the Balance sheet as at 31st March 2016 the Statement of Profit andLoss the Cash Flow Statement for the year then ended and a summary of significantaccounting 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting standardsspecified under section 133 of the Act read with Rule 7 of Companies (Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the companyand for preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation offinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) Order2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the Order to the extent applicable.

2) As required by Section 143(3) of the Companies Act2013 we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164(2) of the Act.

f) With respect to the adequacy of internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer to our separatereport in "Annexure B" and

g) With respect to the other matters to be included in the Auditor's report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements - Refer Note 26 to the financial statements;

ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses; and

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For BRAHMAYYA & Co
Chartered Accountants
Firm Registration No. 000513S
(T. V. Ramana)
Camp : Tanuku Partner
Date : 30th May 2016 (ICAI Membership. No. 200523)

Annexure - A to the Independent Auditor’s Report

The Annexure referred to in Paragraph 1 under the heading of "Report on otherLegal and Regulatory Requirements" of our report of even date to the members of THEANDHRA SUGARS LIMITED TANUKU for the year ended 31st March 2016. We report that:

(i). (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Fixed Assets are physically verified by the management according to a phasedprogram designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and the nature of itsassets. No material discrepancies were noticed on such physical verification.

(c) According to the information and explanations furnished to us the title deeds ofimmovable properties are held in the name of the company.

(ii). According to the information and explanation given to us the inventory has beenphysically verified by the management at reasonable intervals and the discrepanciesnoticed during such physical verification of inventories as compared to books have beenproperly dealt with in the books of account.

(iii). The company has granted loan to its Associate Company for an amount of Rs.1500lacs (Maximum balance Rs.1500 lacs) covered in the register maintained under section 189of the Companies Act 2013

a. The terms and conditions of the grant of such loan to its Associate are not primafacie prejudicial to the interest of the company.

b. As per the stipulations mentioned in the loan agreement Principal is repayable on31-03-2019 and its Associate is paying interest as per the terms of the agreement.

c. There is no amount of overdue on account of Principal and Interest recoverable fromits Associate as at 31st March 2016.

(iv). In our opinion and according to the information and explanations given to us thecompany has not granted any loans guarantees and security in accordance with theprovisions of section 185 of the Companies Act 2013. The company has complied with theprovisions of Section 186 of the Companies Act 2013 in respect of Loans and investmentsmade by the company.

(v). In our opinion the company has complied with the provisions of section 73 to 76and other applicable provisions of the Companies Act 2013 and Companies (Acceptance ofDeposits) Rules 2014 with regard to the deposits accepted from the public. According tothe information furnished to us no Order has been passed on the company by the CompanyLaw Board or National Company Law Tribunal or Reserve Bank of India or any Court or anyother Tribunal for non-compliance with the provisions of Sections 73 to 76 of theCompanies Act 2013.

(vi). We have broadly reviewed the books of account and records maintained by thecompany at its Sugar Units Caustic Soda Division Caustic Potash Division Sulphuric AcidDivisions Superphosphate Division and Rectified Spirit of Distillery Division pursuant tothe Rules made by the Central Government for the maintenance of Cost Records under section148 (1) of the Companies Act 2013 and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained.

(vii). (a) According to the information and explanations given to us and on the basisof our examination of the records of the company in our opinion the company is regularin depositing with the appropriate authorities the undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales Tax Service Tax Duty ofCustoms Duty of Excise Value Added Tax Cess and other material statutory duesapplicable to it.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Income Tax Sales Tax Service Tax Duty of CustomsDuty of Excise Value Added Tax Cess and other material statutory dues applicable to it;and no undisputed statutory dues were outstanding as at the date of Balance sheet underreport for a period of more than six months from the date they became payable.

Sl.No. Name of the statute Period Amount (Rs. in lakhs) Remarks
1. Andhra Pradesh State Excise Act Upto August 1976 3.58 (establishment charges) Pending receipt of demand by the Company
2. Andhra Pradesh State Excise Act August 1976 to March 2015 17.02 (Interest on above) Pending receipt of demand by the Company

(b) According to the information and explanations given to us there were no amounts ofSales Tax Customs Duty Excisee Duty Cess Income Tax Service Tax that have beendisputed by the company and hence wer not remitted to the concerned authorities at thedate of the balance sheet under report except

S.No Nature of dues Name of the statute Period Amount Forum where the dispute is pending
(Rs. In lacs)
1 Water (Prevention and control of Pollution) cess Act 1977 Cess 01-04-78 to 1990-91 0.50 Appellate Committee of the Govt. of A.P.
2 Sales Tax laws in different States Sales Tax 2002-03 to 2011-12 106.77 Different appellate Authorities
3 Income Tax Act 1961 Income Tax 2007-08 to 2014-15 1196.46 Commissioner of Income Tax Appeals
4 Central Excise Act 1944 Excise duty 2002-03 to 2013-14 2748.32 Different departmental appellate authorities
5 Service Tax Law Service Tax 2004-05 to 2011-12 85.29 Commissioner of Service Tax

(b) According to the information and explanations given to us there were no amounts ofSales Tax Customs Duty Excisee Duty Cess Income Tax Service Tax that have beendisputed by the company and hence wer not remitted to the concerned authorities at thedate of the balance sheet under report except

(viii). According to the records of the company examined by us and the information andexplanations given to us there were no defaults in repayment of loans or borrowings tobanks and Government during the year under report.

(ix). The company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) except term loans from banks during the yearunder report and the same were applied for the purposes for which those were raised.

(x). During the course of our examination of the books and records of the companycarried out in accordance with the Generally Accepted Audited Practices in India andaccording to the information and explanations given to us we have neither come across anyinstances of material fraud by the company or any fraud on the company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the management.

(xi). According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act.

(xii). In our opinion and according to the information and explanations furnished tous the company is not a chit fund or a Nidhi / mutual benefit fund/ society and hencethe requirements of clause 3(xii) of the Order is not applicable to the company during theyear under report.

(xiii). According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv).According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him under the provisions of Section192 of Companies Act 2013. Therefore the provisions of clause 3(xv) of the Order are notapplicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For BRAHMAYYA & Co
Chartered Accountants
Firm Registration No. 000513S
(T. V. Ramana)
Camp : Tanuku Partner
Date : 30th May 2016 (ICAI Membership. No. 200523)

Annexure - B to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of The AndhraSugars Limited ("the Company") as of 31 March 2016 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For BRAHMAYYA & Co
Chartered Accountants
Firm Registration No. 000513S
(T. V. Ramana)
Camp : Tanuku Partner
Date : 30th May 2016 (ICAI Membership. No. 200523)