You are here » Home » Companies » Company Overview » Bajaj Hindusthan Sugar Ltd

Bajaj Hindusthan Sugar Ltd.

BSE: 500032 Sector: Agri and agri inputs
NSE: BAJAJHIND ISIN Code: INE306A01021
BSE LIVE 15:56 | 07 Dec 13.73 -0.03
(-0.22%)
OPEN

13.79

HIGH

13.86

LOW

13.65

NSE LIVE 15:41 | 07 Dec 13.70 0
(0.00%)
OPEN

13.80

HIGH

13.85

LOW

13.65

OPEN 13.79
PREVIOUS CLOSE 13.76
VOLUME 310256
52-Week high 24.20
52-Week low 12.65
P/E
Mkt Cap.(Rs cr) 1556.43
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 13.79
CLOSE 13.76
VOLUME 310256
52-Week high 24.20
52-Week low 12.65
P/E
Mkt Cap.(Rs cr) 1556.43
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bajaj Hindusthan Sugar Ltd. (BAJAJHIND) - Auditors Report

Company auditors report

To

The Members of Bajaj Hindusthan Sugar Limited (Formerly Bajaj Hindusthan Limited)

Report on the Financial Statements

We have audited the accompanying financial statements of Bajaj Hindusthan SugarLimited ("the Company") which comprise the Balance Sheet as at March312016 the Statement of Profit and Loss and Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.

Management's responsibility for the 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 the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provision of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofthe appropriate accounting policies; making judgements and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and fair presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2016 and its loss and its cash flows for the year ended on that date.

Emphasis of matter

As stated in Note 41 of the accompanying financial statements the Company carriesinvestment of Rs. 693.72 crore by way of beneficial interest in trust. Also Company hasinvestment of Rs. 720.52 crore in Preference shares and Debentures of Phenil SugarsLimited. The realisable value of these investments has reduced substantially. For thereasons stated in the note and in view of long term nature of these investments in theopinion of the management no provision for permanent diminution in value of theseinvestments is considered necessary.

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 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 inparagraphs 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 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 appears from our examination of those books.

c. The matter described in the Emphasis of Matter paragraph above in our opinion mayhave an adverse effect on the functioning of the Company.

d. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of account.

e. In our opinion the aforesaid financial statements comply with the accountingstandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

f. On the basis of written representations received from the directors as on March312016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312016 from being appointed as a director in terms of Section 164(2) of theAct.

g. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

h. With respect to the other matters to be included in the Auditor's Report inaccordance with Rules 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 35 to the financial statements.

ii. The Company did not have any long term contracts including derivative contractsthat require provision under any law or accounting standards for which there were anymaterial foreseeable losses.

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

For Chaturvedi & Shah
Chartered Accountants
Firm Registration No. 101720W
Jignesh Mehta
Partner
Membership No. 102749
Mumbai
Dated: May 30 2016

Annexure "A" referred to in paragraph 1 under the heading Report on otherlegal and regulatory requirements of our report of even date

i) In respect of its Fixed Assets :

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets on the basis of available information.

b. As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical verification.

c. According to the information and explanations given to us the immovable propertiesof the Company have been mortgaged with the lenders and the original title deeds aredeposited with the lender's trustee. Based on the confirmation given by the trustee andverification of the copies of the title deeds / lease deeds in respect of immovableproperties of free hold land buildings immovable properties of land that have been takenon lease and disclosed as fixed assets in the financial statement are held in theCompany's name or in the Company's erstwhile name or in the name of companies amalgamatedwith the Company in past as at balance sheet date.

ii) In respect of its inventories :

As explained to us physical verification of inventories have been conducted atreasonable intervals by the management which in our opinion is reasonable having regardto the size of the Company and nature of its inventories. No material discrepanciesnoticed on such verification of inventories as compared to the book records.

iii) On the basis of the audit procedures applied by us and according to theinformation and explanations given to us on our enquiries on this behalf and recordsproduced to us for our verification the Company has not given loans and advances tocompanies covered in the register maintained under Section 189 of the Act.

iv) In respect of loans investments guarantees and security the Company has compliedwith the provisions of Sections 185 and 186 of the Act.

v) According to the information and explanations given to us the Company has notaccepted any deposits within the meaning of provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the rules framed thereunder. Therefore the provisionsof Clause (v) of paragraph 3 of the Order are not applicable to the Company.

vi) To the best of our knowledge and as explained the Company has maintained the costrecords specified under Companies (Cost Records and Audit) Rules 2014 issued under subsection (1) of Section 148 of the Act in respect of Company's products to which saidrules are made applicable and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. We have however not made a detailedexamination of the records with a view to determine whether they are accurate.

vii) In respect of Statutory dues :

a. According to the records of the Company undisputed statutory dues includingProvident Fund Income-Tax Sales- Tax Service Tax Duty of Customs Duty of ExciseValue Added Tax Cess and any other statutory dues applicable to it have been regularlydeposited with appropriate authorities. According to the information and explanationsgiven to us no undisputed amounts payable in respect of the aforesaid dues wereoutstanding as at March 31 2016 for a period of more than six months from the date ofbecoming payable.

b. On the basis of our examination of accounts and documents on records of the Companyand information and explanations given to us upon enquiries in this regard the disputedamounts payable in respect of Income Tax Sales Tax Service Tax Customs Duty and ExciseDuty/Cess not deposited with the appropriate authorities are as under:

Name of Statute Nature of Dues Amount (Rs. in Crore) Period Forum where dispute is Pending
Central Sales Tax Act 1956 Sales Tax VAT & Entry 27.26 Various Years from 1997-98 to 2014-15 Deputy/ Joint Commissioner/ Commissioner (Appeals)
and Sales Tax Tax 48.76 Various Years 1982-83 to 2013-14 Sales Tax Appellate Tribunal
Act / VAT Act of various states 1.80 Various Years from 1989-90 to 2010-11 High Court
Central Excise Act 1944 Excise and Service Tax 0.21 Various Years from 2005-06 to 2012-13 Commissioner of Central Excise (Appeals)
126.14 Various Years from 2005-06 to 2012-13 Central Excise and Service Tax Appellate Tribunal
1.03 Various Years from 2005-06 to 2013-14 High Court
5.59 Various Years from 2004-05 to 2005-06 Supreme Court
Income Tax Act 1961 Income Tax 9.59 Assessment Year 2006-07 & 2007-08 Commissioner of Income Tax (Appeal)
Total 220.38

viii) Based on our audit procedures information and explanations given by themanagement and considering the corrective action plan for restructuring of creditfacilities of the Compnay approved under JLF route in accordance with the applicableframework and guidelines issued by RBI we are of the opinion that the Company has notdefaulted in repayment of dues to financial institutions banks and government. TheCompany has not issued debentures.

ix) The Company has not raised money by way of initial public offer or further publicoffer (including debt instruments) or term loan during the year and hence clause (ix) ofparagraph 3 of the Order is not applicable to the Company.

x) Based on the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per information and explanations given to usno fraud by the Company or on the Company by its officers or employees has been noticed orreported during the year.

xi) In our opinion and according to the information and explanations given to usmanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.

xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause (xii) of paragraph 3 of the Order are not applicable to the company.

xiii) In respect of transactions with related parties:

In our opinion and according to the information and explanations given to us alltransactions with related parties are in compliance with Sections 177 and 188 of the Actand their details have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

xiv) In our opinion and according to the information and explanations given to us theCompany has not made any preferential allotment or private placement of fully or partlyconvertible debentures during the year and hence clause (xiv) of paragraph 3 of the Orderis not applicable to the Company.

xv) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transaction with the directors or personsconnected with him and covered under Section 192 of the Act. Hence clause (xv) of theparagraph 3 of the Order is not applicable to the Company.

xvi) To the best of our knowledge and as explained the Company is not required to beregistered under Section 45-IA of the Reserve Bank of India Act 1934.

For Chaturvedi & Shah
Chartered Accountants
Firm Registration No. 101720W
Jignesh Mehta
Partner
Membership No. 102749
Mumbai
Dated: May 30 2016

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 Control over financial reporting of BajajHindusthan Sugar Limited ("the company") as of March 31 2016 in conjunctionwith our audit of the standalone financial statements of the Company for the year thenended.

Management responsibility for the 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 Act.

Auditor's 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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 judgement 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany'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 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 March 31 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 ICAI.

For Chaturvedi & Shah
Chartered Accountants
Firm Registration No. 101720W
Jignesh Mehta
Partner
Membership No. 102749
Mumbai
Dated: May 30 2016

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard