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Bannari Amman Sugars Ltd.

BSE: 500041 Sector: Agri and agri inputs
NSE: BANARISUG ISIN Code: INE459A01010
BSE 15:29 | 19 Jan 2122.00 -25.00
(-1.16%)
OPEN

2138.30

HIGH

2138.30

LOW

2122.00

NSE 15:31 | 19 Jan 2145.35 -5.50
(-0.26%)
OPEN

2150.00

HIGH

2155.05

LOW

2126.35

OPEN 2138.30
PREVIOUS CLOSE 2147.00
VOLUME 41
52-Week high 2625.00
52-Week low 1721.00
P/E 20.65
Mkt Cap.(Rs cr) 2,661
Buy Price 2122.00
Buy Qty 1.00
Sell Price 2163.50
Sell Qty 20.00
OPEN 2138.30
CLOSE 2147.00
VOLUME 41
52-Week high 2625.00
52-Week low 1721.00
P/E 20.65
Mkt Cap.(Rs cr) 2,661
Buy Price 2122.00
Buy Qty 1.00
Sell Price 2163.50
Sell Qty 20.00

Bannari Amman Sugars Ltd. (BANARISUG) - Auditors Report

Company auditors report

To

The Members of BANNARI AMMAN SUGARS LIMITED Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of BANNARI AMMAN SUGARSLIMITED ("the Company") which comprise the Balance Sheet as at 31st March 2017the Statement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS 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 Ind AS financial statements that give a true and fair view of state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; 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 presentation of the Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon 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 of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial controls relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Ind AS of the state of affairs(financial position) of the Company as at 31st March 2017 and its profit (financialperformance including other comprehensive income) its cash flows and the changes inequity for the year ended on that date.

Other Matters:

The comparative financial information of the Company for the year ended 31st March 2016and the transition date opening Balance Sheet as at 1st April 2015 prepared in accordancewith Ind AS included in these Ind AS financial statements have been audited by us videreport dated 29.05.2015 and 30.11.2016 with an unmodified opinion.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in exercise of the powers conferred bysub-section (11) of Section 143 of the Companies Act 2013 we give in the "AnnexureA" a statement on the matters specified in paragraphs 3 and 4 of the Order to theextent applicable.

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 it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement and thestatement of changes in equity dealt with by this Report are in agreement with the booksof account.

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms ofSection 164(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 other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest 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 Ind AS financial statements as referred to in Note No.29 to the financialstatements.

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

iii) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company; and

iv) The Company has provided requisite disclosure in the Ind AS financial statements asto holding as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 on the basis of information available with theCompany. Based on audit procedures and relying on management's representation we reportthat disclosures are in accordance with the books of accounts maintained by the companyand as produced to us by the Management. Refer Note no.39

For P.N. RAGHAVENDRA RAO & Co.
Chartered Accountants
(FRN:003328S)
P R Vittel
Partner
Place : Coimbatore M.No. 200/018111
Date : 29.05.2017

Annexure 'A' to the Independent Auditors' Report

The Annexure 'A' referred to in our Independent Auditors' Report to the members of theCompany on the Ind AS financial statements for the year ended 31st March 2017 we reportthat:

I. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner. In accordance with this programmecertain fixed assets were verified by the management during the year and no materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.

c. In our opinion and according to the information and explanations given to us and onthe basis of examination of the records of the company the title deeds of immovableproperties are held in the name of the company.

ii. The inventory has been physically verified by the management at reasonableintervals during the year. No material discrepancy was noticed on physical verification ofstocks by the management as compared to book records.

iii. In our opinion and according to the information and explanations given to us andon the basis of our examination of the books of account the Company has not granted anyloans secured or unsecured to companies firms Limited Liability partnerships or otherparties listed in the register maintained under section 189 of the Companies Act 2013('the Act'). Consequently the provisions of Clauses iii (a) iii (b) and iii(c) of theOrder are not applicable to the Company.

iv. In our opinion and according to the information and the explanations given to usthe Company has not granted any loans or provided any guarantees or securities to theparties covered under the section 185 of the Act. The Company has complied with theprovisions of section 186 of the Act in respect of investments made or loans or guaranteeor security provided.

v. The Company has not accepted any deposits from the public.

vi. As per the information and explanation given by the management maintenance of costrecords has been prescribed by the Central Government and we are of the opinion that primafacie the prescribed accounts and records have been made and maintained under section148(1) of the Act by the company.

vii. a. According to the information and explanations given to us and on the basis ofour examination of the records of the Company the undisputed statutory dues includingprovident fund Employee's State Insurance Income tax Sales tax service tax duty ofcustoms duty of excise value added tax cess and any other material statutory dues asapplicable have been regularly deposited during the year by the Company with theappropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund Employee's State Insurance Income tax Sales taxservice tax duty of customs duty of excise value added tax cess and other materialstatutory dues were in arrears as at 31st March 2017 for a period of more than six monthsfrom the date they became payable.

b. According to the information and explanations given to us the disputed statutorydues of income tax amounting to Rs.1.6 Lakhs that have not been deposited on account ofmatters pending before appropriate authority are as under :

Name of the Statue Nature of the Dues Amount Period to which the amount relates Forum where the dispute is pending
(Rs. In Lakhs)
Income Tax Act 1961 Income Tax 1.60 Assessment year 2013-14 CIT (Appeals) Coimbatore

viii. According to the information and explanations given to us the Company has notdefaulted in repayment of dues to financial institutions banks and Government during theyear. The company has not issued any debentures and hence there are no dues to debentureholders.

ix. The Company has not raised any money by way of Initial Public Offer or furtherpublic offer (including Debt instruments) during the year. According to the informationand explanations given to us the term loans availed during the year have been applied forthe purposes for which those were obtained.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year.

xi. According to the information and explanations given to us and based on theexamination of the records the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly para 3(xii) of the Order is not applicable.

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. The details of such related partytransactions have been disclosed in the financial statements as required under the IndianAccounting Standard 24 (Related Party Disclosures).

xiv. According to the information and explanations given to us and based on ourexamination of the records the

Company has not made any preferential allotment or private placement of shares or fullyor partly convertible debentures during the year under review.

xv. According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withthe Directors or persons connected with them. Accordingly para 3(xv) of the Order is notapplicable.

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

Accordingly the provisions of Clause 3(xvi) of the Order are not applicable to theCompany.

For P.N. RAGHAVENDRA RAO & Co.
Chartered Accountants
(FRN:003328S)
P R Vittel
Partner
Place : Coimbatore M.No. 200/018111
Date : 29.05.2017

Annexure 'B' to the Independent Auditors' Report of even date on the Ind AS FinancialStatements of Bannari Amman Sugars Limited

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of section143 of the Act

We have audited the internal financial controls over financial reporting of BannariAmman Sugars Limited ("the Company") as of 31st March 2017 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.

Management's responsibility for Internal Financial Controls:

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal controls over financial reporting criteriaestablished by the Company considering the essential components of the internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by The Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

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 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 beprescribed 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 ofinternal 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 controls based on the assessed risks. Theprocedures selected depend on the auditor's judgment including the assessment of the riskof material misstatements 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 control systemover financial reporting.

Meaning of Internal Financial Control 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 controls 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 andexpenditure of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 limitation 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 internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlsover financial reporting may become inadequate because of changes in condition 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 control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by ICAI.

For P.N. RAGHAVENDRA RAO & Co.
Chartered Accountants
(FRN:003328S)
P R Vittel
Partner
Place : Coimbatore M.No. 200/018111
Date : 29.05.2017