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Dalmia Bharat Sugar & Industries Ltd.

BSE: 500097 Sector: Agri and agri inputs
NSE: DALMIASUG ISIN Code: INE495A01022
BSE LIVE 15:44 | 07 Dec 119.85 -1.75
(-1.44%)
OPEN

123.50

HIGH

123.50

LOW

119.40

NSE LIVE 15:58 | 07 Dec 120.15 -1.90
(-1.56%)
OPEN

122.95

HIGH

123.55

LOW

120.00

OPEN 123.50
PREVIOUS CLOSE 121.60
VOLUME 28336
52-Week high 168.40
52-Week low 55.50
P/E 5.72
Mkt Cap.(Rs cr) 970.19
Buy Price 119.85
Buy Qty 1090.00
Sell Price 0.00
Sell Qty 0.00
OPEN 123.50
CLOSE 121.60
VOLUME 28336
52-Week high 168.40
52-Week low 55.50
P/E 5.72
Mkt Cap.(Rs cr) 970.19
Buy Price 119.85
Buy Qty 1090.00
Sell Price 0.00
Sell Qty 0.00

Dalmia Bharat Sugar & Industries Ltd. (DALMIASUG) - Auditors Report

Company auditors report

To the Members of Dalmia Bharat Sugar and Industries Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Dalmia Bharat Sugarand Industries Limited ("the Company") which comprise the balance sheet as at31st March 2016 the statement of profit and loss and the cash flow statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory 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 the Companies (Accounts)Rules 2014.

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 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 standalone financial statements that give a true and fair view and are free frommaterial misstatement 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 standalone financial statements are free from material misstatement. An audit involvesperforming procedures to obtain audit evidence about the amounts and the disclosures inthe standalone financial statements. The procedures selected depend on the auditor’sjudgment including the assessment of the risks of material misstatement of the standalonefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company’s preparation ofthe standalone financial statements that give a true and fair view in order to designaudit 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 standalone 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) Order 2016 ("theOrder") issued by the Central Government of India in terms of Section 143(11) of theAct 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 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 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 terms of Section164 (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 refer to ourseparate Report in "Annexure B".

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 litigation on its financial positionin its financial statements as referred to in Note 30 to the standalone financialstatements.

ii. 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.

For S. S. KOTHARI MEHTA & Co.
Chartered Accountants
Firm’s Registration No. 000756N
Sunil Wahal
Place: New Delhi Partner
Date: 23rd May 2016 Membership No. 087294

Annexure A to the Independent Auditor’s Report to the members of Dalmia BharatSugar and Industries Limited dated May 23 2016

Report on the matters specified in paragrapRs. 3 of the Companies (Auditor’sReport) Order 2016 ("the Order’) issued by the Central Government of India interms of section 143(11) of the Companies Act 2013 ("the Act") as referred toin paragrapRs. 1 of ‘Report on Other Legal and Regulatory Requirements’ section.

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

(b) The fixed assets have been physically verified by the management during the yearthe frequency of which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. No discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us thetitle deeds of immovable properties are held in the name of the company except for 2.79acres (having gross block and net block of Rs. 0.13 Crores) of land at Salem for which alldues for transfer of land in favour of the Company has been paid and transfer of title inthe name of company is awaited.

ii. In respect of the Company’s inventories:

(a) As explained to us the Management has conducted physical verification of inventoryat reasonable intervals during the year except stocks lying with third parties which havebeen verified with reference to correspondence received from third parties.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories. The discrepancies noticed onphysical verification of inventories as compared to book records were not material andhave been properly dealt with in the books of accounts.

iii. The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the Act.Accordingly clauses 3(iii) (a) to (c) of the Order are not applicable.

iv. In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the Act in respect of loans to directors includingentities in which they are interested and in respect of loans and advances giveninvestments made and guarantees and securities given have been complied with by thecompany.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of directivesissued by the Reserve Bank of India and provisions of sections 73 to 76 or any otherrelevant provisions of the Act and the rules framed thereunder are not applicable.

vi. We have broadly reviewed the Cost Accounting records maintained by the Companypursuant to the Rules prescribed by the Central Government for the maintenance of costrecords under sub-section (1) of section 148 of the Act and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We are howevernot required to make a detailed examination of such books and records.

vii. a) According to the records of the Company examined by us and the information andexplanations given to us the Company has generally deposited its statutory dues includingEmployees’ Provident Fund Employees’ State Insurance Investor Education andProtection Fund Income Tax Wealth Tax Service Tax Custom Duty Excise duty Cess andany other material statutory dues within the prescribed time with the appropriateauthorities during the year and there are no such undisputed amounts payable which haveremained outstanding as at March 31 2016 for a period of more than six months from thedate they became payable.

b. According to the records of the Company the details of dues of Income-taxSales-tax Wealth-tax Service-tax Customs Duty Excise Duty and Value added tax whichhave not been deposited on account of any dispute and the forum where the dispute ispending are as follows :

Name of the Statue Period for which the amount relates Nature of Dues Forum where the dispute is pending Amount
(in Rs Crores)
Central Excise Act 1944 2014-15 Cenvat credit on cement & steel Addl. Commissioner LTU New Delhi 0.20
Central Excise Act 1944 2014-15 Cenvat credit on cement & steel Asst. Commissioner LTU Delhi 0.07
Central Excise Act 1944 2013-14 Cenvat credit on cement & steel CESTAT Delhi 0.42
Central Excise Act 1944 March 06 to March 2010 Cenvat credit on cement & steel CESTAT Delhi 5.86
Central Excise Act 1944 March 06 to September 2012 Cenvat credit on cement & steel Dy. Commissioner LTU New Delhi 0.06
Central Excise Act 1944 July 02 to June 2010 Demand of duty on bagasses & electricity sale CESTAT Delhi 16.56
Central Excise Act 1944 2013-14 Demand of duty on molasses CESTAT Delhi 8.33
Central Excise Act 1944 2014-15 Demand of duty on multilayer ceramic chip capacitors Addl. Commissioner LTU New Delhi 0.02
Central Excise Act 1944 2006-07 Till Date Demand of duty on multilayer ceramic chip capacitors Cestat Bangalore. 0.04
Central Excise Act 1944 July 07 to March 2010 Demand on storage loss of finished goods CESTAT Delhi 0.01
Central Excise Act 1944 2009-10 Demand on storage loss of finished goods Dy. Commissioner LTU New Delhi 0.07
Central Excise Act 1944 2013-14 Disallowance of cenvat credit CESTAT Delhi 0.16
Central Excise Act 1944 January 15 to February 15 Disallowance of cenvat credit COMM LTU. 4.01
Central Excise Act 1944 September 2004 to March 2011 Disallowance of cenvat credit Commissioner (A) LTU New Delhi 0.16
Central Excise Act 1944 2014-15 Disallowance of cenvat credit Commissioner LTU New Delhi 24.09
Central Excise Act 1944 April 10 to June 12 Disallowance of cenvat credit Commissioner LTU New Delhi 10.70
Central Excise Act 1944 April 10 to Sept. 12 Disallowance of cenvat credit Dy. Commissioner LTU New Delhi 0.38
Central Excise Act 1944 2014-15 Disallowance of cenvat credit Suptd LTU New Delhi 0.01
Central Excise Act 1944 April 10 to September 2012 Disallowance of cenvat credit Suptd LTU New Delhi 0.05
Central Excise Act 1944 April 10 to September 2012 Loss on reprocessing of finished goods Allahabad High Court 0.03
Central Excise Act 1944 2002-03 2003-04 Loss on reprocessing of finished goods CESTAT Delhi 0.02
Central Sale Tax 2006-07 Entry tax Add. Comm (Appeal) 0.06
Central Sale Tax 2007-2012 Entry tax Add. Comm (Appeal) Sitapur 0.18
Central Sale Tax 2010-11 Entry tax Additional commissioner (A) - Sitapur 0.15
Central Sale Tax 2007-08 Entry tax Dy. Comm (Assessment)-II Sitapur 0.01
Central Sale Tax 2001-02 Entry tax High Court 0.03
Central Sale Tax 2013-14 Entry tax Joint Commissioner Bareily 0.02
Central Sale Tax 2013-14 Entry tax Joint Commissioner Muradabad 0.01
Central Sale Tax 2009-10 Entry tax Dy. Comm (Assessment)-II Sitapur 1.37
Central Sale Tax 2006-07 Entry tax Add. Commissioner (Appeal) - Sitapur 0.11
Finance Act 1994 2013-14 Demand of service tax on Incentive received from HDFC Bank and on import of services. Addl. Commissioner LTU New Delhi 0.36
Finance Act 1994 2014-15 Demand of service tax on Incentive received from HDFC Bank and on import of services. Asst. Commissioner LTU Delhi 0.05
Finance Act 1994 2014-15 Demand of service tax on the amount of air ticket cancelled. Addl. Commissioner LTU New Delhi 0.11
Finance Act 1994 February 2015 to January 2016 Demand of service tax on the amount of air ticket cancelled. Asstt. Comm. 0.04
Finance Act 1994 2013-14 Demand of service tax on the amount of air ticket cancelled. Dy. Comm. 0.08
Finance Act 1994 2013-14 Demand of service tax on the amount of air ticket cancelled. Dy. Commissioner LTU New Delhi 0.05
Finance Act 1994 October 2014 to January 2016 Demand of service tax on the commission Asst. Comm. 0.03
Finance Act 1994 2014-15 Demand of service tax on the commission Asst. Commissioner LTU Delhi 0.02
Finance Act 1994 2013-14 Demand of service tax on the commission Dy. Commissioner LTU New Delhi 0.02
Finance Act 1994 2014-15 Disallowance of service tax credit Asst. Commissioner LTU Delhi 0.19
Finance Act 1994 2013-14 Disallowance of service tax credit CESTAT Delhi 0.08
Finance Act 1994 October 04 to March 2011 Disallowance of service tax credit CESTAT Delhi 1.33
Finance Act 1994 June 05 to March 10 Disallowance of service tax credit Commissioner (A) LTU New Delhi 0.09
Finance Act 1994 MarcRs. 2006 to September 12 Disallowance of service tax credit Dy. Commissioner LTU New Delhi 0.18
Finance Act 1994 April 2010 to March 2012 Disallowance of service tax credit Suptd LTU New Delhi 0.11
Finance Act 1994 March 03 to Oct. 10 Service tax demand on commission CESTAT Delhi 0.05
Finance Act 1994 October 06 to September 2011 Service tax demand on commission Dy. Commissioner LTU New Delhi 0.11
Finance Act 1994 November 2010 to December 2011 Service tax demand on commission Suptd LTU New Delhi 0.02
UP VAT 2007-08 UP VAT Dy. Comm (Assessment)-II Sitapur 0.31

viii. In our opinion and according to the information and explanations given to us weare of the opinion that the Company has not defaulted in repayment of dues to financialinstitution bank or debenture holders.

ix. In our opinion and according to the information and explanations given to us theCompany has not raised any money way of initial public offer / further public offerfurther term loans taken during the year were applied for the purpose for which the loanwere obtained.

x. In our opinion and according to the information and explanations given to us wereport that no fraud by the company or on the company by the officers and employees of theCompany has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to us thatthe managerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

xii. The Company is not a Nidhi company. Therefore the provisions of clause 3(xii) ofthe order are not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to usduring the course of audit transactions with the related parties are in compliance withsection 177 and section 188 of the Act and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us and on an overallexamination of the books of account the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder audit and hence not commented upon.

xv. In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith him.

xvi. According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For S. S. KOTHARI MEHTA & Co.
Chartered Accountants
Firm’s Registration No. 000756N
Sunil Wahal
Partner
Membership No. 087294
Place: New Delhi
Date: 23rd May 2016

Annexure B to the Independent Auditor’s Report to the Members of Dalmia BharatSugar and Industries Limited on its standalone financial statements Report on the InternalFinancial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act as referredto in paragrapRs. 2(f) of ‘Report on Other Legal and Regulatory Requirements’section.

We have audited the internal financial controls over financial reporting of the Companyas of March 31 2016 in conjunction with our audit of the financial statements of theCompany 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". 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 assetsthe prevention 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.

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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgement including the assessment of the risks of materialmisstatement 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of standalone financial statements for external purposes in accordancewith generally accepted accounting principles. A company’s internal financial controlover financial reporting includes those policies and procedures that:

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

b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and

c) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company’s assets that could havea material effect on the standalone 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 31st March 2016 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For S. S. KOTHARI MEHTA & Co.
Chartered Accountants
Firm’s Registration No. 000756N
Sunil Wahal
Place: New Delhi Partner
Date: 23rd May 2016 Membership No. 087294

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