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Bannari Amman Sugars Ltd.

BSE: 500041 Sector: Agri and agri inputs
NSE: BANARISUG ISIN Code: INE459A01010
BSE LIVE 15:40 | 23 Jun 1785.15 -54.10
(-2.94%)
OPEN

1899.15

HIGH

1899.15

LOW

1781.00

NSE 15:27 | 23 Jun 1800.00 -23.30
(-1.28%)
OPEN

1857.95

HIGH

1857.95

LOW

1785.10

OPEN 1899.15
PREVIOUS CLOSE 1839.25
VOLUME 118
52-Week high 2325.00
52-Week low 1722.00
P/E 15.42
Mkt Cap.(Rs cr) 2,239
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1899.15
CLOSE 1839.25
VOLUME 118
52-Week high 2325.00
52-Week low 1722.00
P/E 15.42
Mkt Cap.(Rs cr) 2,239
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bannari Amman Sugars Ltd. (BANARISUG) - Auditors Report

Company auditors report

To

The

Members of

Bannari Amman Sugars Limited

Report on the Financial Statements

We have audited the accompanying financial statements of BANNARI AMMAN SUGARSLIMITED("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the Cash Flow Statement (Giving effect to theScheme of Amalgamation sanctioned by the Hon'ble High Court of Madras) for the year thenended and a summary of the significant accounting policies and other explanatoryinformation

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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India induding the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities selection and application of appropriateaccounting policies making ?udgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial Controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror

Auditors' 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 ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether the financialstatements 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 theauditors' ?udgment induding 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 Controls 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 the 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 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 Act inthe 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 31stMarch 2016 and its profit and its cash flows for the year ended on that date

Other Matters

We draw attention to the Note No. 1.19 to the financial statements which describes theamalgamation of Madras Sugars Limited with the company with effect from the appointed dateof 1st January 2016 vide Madras High Court Order dated 15th November2016

Our opinion is not modified in respect of the above

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 "Annexure-A" 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 and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account

d) 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

e) On the basis of the 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 termsof Section 164(2) of the Act

f) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls referred to ourseparate report 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 financial statements as referred to in Note No 28 to the financialstatements

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

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

For P N RAGHAVENDRA RAO & CO
Chartered Accountants
P R VITTEL
Partner
Place: Coimbatore M No 200/18111
Date : 23.11.2016 ICAI Firm Regn. No: 003328S

Annexure - A to the Independent Auditors' Report

The Annexure 'A' referred to in our Independent Auditors' Report to the members of theCompany on the financial statements for the year ended 31 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 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 explanation given to us and on the basis ofour examination of the records of the Company the undisputed statutory dues indudingprovident fund Employee's State Insurance income tax sales tax service tax duty ofcustoms duty of excise value added taxes 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 noundisputed amounts payable in respect above dues were in arrears as at 31stMarch 2016 for a period of more than six months from the date they became payable

b) According to the information and explanations given to us the disputed statutorydues in case of income tax sales tax wealth tax service tax duty of customs duty of excisevalue added taxes and cess aggregating to Rs1579.62 Lakhs that have not been deposited onaccount of matters pending before appropriate authority are as under

Name of the Statute Nature of Dues Amount (Rs in Lakhs) Period to which the Amount Relates to Forum where dispute is pending
Income Tax Act 1961 Income Tax 1579.62 Assessment Year 2012 - 13 Commissioner of Income Tax (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 (induding Debt instruments) during the year According to the information andexplanations given to us the term loans are applied for the purposes for which the loanswere 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 where applicable The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder the Accounting Standard (AS 18 - Related Party Transactions)

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 privateplacement of shares or fully or 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 with theDirectors 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 notapplicable to the Company

For P N RAGHAVENDRA RAO & CO
Chartered Accountants
P R VITTEL
Partner
Place: Coimbatore M No 200/18111
Date : 23.11.2016 ICAI Firm Regn. No: 003328S

Annexure 'B' to the Independent Auditors' Report of even date on the 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 2016 incon?unction with our audit of the financial statements of the Company for the year endedon 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 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 induding adherence to Company's poliCies the safeguarding of itsassets the prevention and deteCtion of frauds and errors the aCCuraCy and Completeness ofthe aCCounting reCords and the timely preparation of reliable finanal information asrequired under the Companies ACt 2013

Auditor's responsibility

Our responsibility is to express an opinion on the Company's internal finanalControls over finanal reporting based on our audit We ConduCted our audit in aCCordanCewith GuidanCe Note on Audit of Internal Finanal 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 Finanal Controls both appliCable to an audit of Internal Finanal 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 finanal 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 finanal reporting and their operatingeffeCtiveness Our audit of internal finanCial Controls over finanal reporting indudedobtaining an understanding of internal finanCial Controls over finandal reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effeCtiveness of internal Control based on the assessed risks The proCeduresseleCted depend on the auditor's ?udgment induding the assessment of the risk of materialmisstatements of the finanCial statements whether due to fraud or error

We believe that the audit evidenCe we have obtained is suffident and appropriate toprovide a basis for our audit opinion on the Company's internal finandal Controls systemover finanCial reporting

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal finanCial Control over finandal reporting is a proCess designed toprovide reasonable assuranCe regarding the reliability of finanCial reporting and thepreparation of finandal statements for external purposes in aCCordanCe with generallyaCCepted aCCounting prinCiples A Company's internal finandal Controls over finanCialreporting indudes 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 finandal statements inaCCordanCe with generally aCCepted aCCounting prinCiples and that reCeipts and expenditureof the Company are being made only in aCCordanCe with authorizations of management anddireCtors of the Company and (3) provide reasonable assuranCe regarding prevention ortimely deteCtion of unauthorized aCquisition use or disposition of the Company's assetsthat Could have a material effeCt on the finandal 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 Alsopro?ections of any evaluation of internal financial Controls over financial reporting tofuture periods are sub?ect to the risk that the internal financial Controls over financialreporting may become inadequate because of changes in condition or that the degree ofcompliance with the policies or procedures may deteriorate

Opinion

In our opinion the Company has in all material respects an adequate internal financialcontrol system over financial reporting and such internal financial Controls overfinancial reporting were operating effectively as at 31st March 2016 based onthe internal Controls over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Control Over Financial Reporting issued by ICAI

For P N RAGHAVENDRA RAO & CO
Chartered Accountants
P R VITTEL
Partner
Place: Coimbatore M No 200/18111
Date : 23.11.2016 ICAI Firm Regn. No: 003328S