The Members of The Andhra Sugars Limited Tanuku
Report on the Standalone Financial Statements :
We have audited the accompanying standalone financial statements of The AndhraSugars Ltd. which comprise the Balance sheet as at 31st March 2015 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary ofsignificant 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 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 judgements 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.
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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions 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.
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 theAct 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 2015 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) Order2015("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 statement on the matters specified in the paragraph 3and 4 of the Order to the extent applicable.
2) As required by Section 143(3) of the Companies Act 2013 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 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms of Section164(2) of the Act.
f) 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 Number: 000513S |
| ||(T.V. Ramana) |
|Camp : Hyderabad ||Partner |
|Date : 26th May 2015 ||ICAI Membership Number: 200523 |
Annexure to the Independent Auditors 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 2015. 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. Pursuant to the program of physical verification of fixed assets during the yearthe management has verified all fixed assets of divisions located at Saggonda and Kovvuruexcept furniture and fixtures. No material discrepancies were noticed on such physicalverification.
(ii) (a) The inventory has been physically verified by the management at reasonableintervals during the year under report. In our opinion the frequency of such verificationis reasonable.
(b) In our opinion the procedures of physical verification of inventories followed bythe Management are reasonable and adequate in relation to the size of the company and thenature of its business.
(c) On the basis of our examination of the inventory records in our opinion thecompany is maintaining proper records of its inventory. The discrepancies noticed onphysical verification of inventories as compared to book records were not material.
(iii) (a) The Company has granted loan to its Associate company for an amount of Rs.1500 lacs (Maximum balance Rs. 1500 lacs) covered in the register maintained under section189 of the Companies Act.
(b) The loan granted to the Associate Company covered in the register maintained undersection 189 of the Act the borrower has been regular in the payment of the interest asstipulated. The terms of arrangement stipulates that the repayment of principal is on orbefore 31st March 2016.
(c) There are no overdue amounts of more than rupees one lac in respect of the loangranted to its Associate Company covered in the register maintained under section 189 ofthe Act.
(iv) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the company andthe nature of its business with regard to purchases of inventory fixed assets and withregard to the sale of goods and services. Further during the course of our audit we havenot come across any instances of major weaknesses in internal control that requirecorrection and have so continued without correction.
(v) In our opinion the company has complied with the provisions of section 73 to 76 andother 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 and Superphosphate division pursuant to the Rules made by the CentralGovernment for the maintenance of Cost Records under section 148 of the Companies Act2013 and we are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have not however made a detailed examination of the recordswith a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and the basis ofour examination of the records of the company in our opinion the company is regular indepositing with the appropriate authorities the undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales Tax Wealth Tax ServiceTax duty of Customs duty of Excise Value added tax cess and other material statutorydues applicable to it.
According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Income Tax Sales Tax Wealth Tax Service Tax dutyof customs or duty of excise or value added tax or cess and other material statutory duesapplicable to it; and the following undisputed statutory dues were outstanding as at thedate of Balance Sheet under report for a period of more than six months from the datethey became payable.
|Sl.No. ||Name of the statute ||Period ||Amount ||Remarks |
| || || ||(Rs. in lakhs) || |
|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 ||16.59 (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 Cess Income Tax Wealth Tax Service Tax that have been disputedby the company and hence were not remitted to the concerned authorities at the date ofthe 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 ||4274.14 ||Different departmental appellate authorities |
|5 ||Service Tax Law ||Service Tax ||2004-05 to 2011-12 ||85.29 ||Commissioner of Service Tax |
(c) According to the information and explanations given to us the amounts which wererequired to be transferred to the Investor Education and Protection Fund in accordancewith relevant provisions of the Companies Act 1956 and rules there under have beentransferred to such fund within time.
(viii) The company had no accumulated losses at the end of the financial year and itdid not incur cash losses during the financial year covered by our audit and in theimmediately preceding financial year.
(ix) According to the records of the company examined by us and the information andexplanations given to us there were no defaults in repayment of dues to banks at the dateof the Balance Sheet.
(x) In our opinion and according to the information and the explanations given to usthe company has not given any guarantee for loans taken by others from banks or financialinstitutions except in respect of repayment out of its cane price due to its sugar canesuppliers agricultural loans taken by them from banks the terms and conditions of whichin our opinion are not prima facie prejudicial to the interest of the company.
(xi) In our opinion and according to the information and explanations given to us theterm loans taken by the company have been applied for the purpose for which they wereraised.
(xii) 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 anyinstance of material fraud on or by the company noticed or reported during the year norhave we been informed of any such case by the management.
| ||For BRAHMAYYA & CO. |
| ||Chartered Accountants |
| ||Firm Registration Number: 000513S |
| ||(T.V. Ramana) |
|Camp : Hyderabad ||Partner |
|Date : 26th May 2015 ||(ICAI Membership Number: 200523) |