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Dalmia Bharat Sugar & Industries Ltd.

BSE: 500097 Sector: Agri and agri inputs
NSE: DALMIASUG ISIN Code: INE495A01022
BSE LIVE 15:40 | 24 Nov 153.15 -2.40
(-1.54%)
OPEN

156.20

HIGH

156.20

LOW

152.55

NSE 15:45 | 24 Nov 153.45 -2.40
(-1.54%)
OPEN

156.65

HIGH

157.40

LOW

153.05

OPEN 156.20
PREVIOUS CLOSE 155.55
VOLUME 19070
52-Week high 202.20
52-Week low 116.40
P/E 6.92
Mkt Cap.(Rs cr) 1,240
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 156.20
CLOSE 155.55
VOLUME 19070
52-Week high 202.20
52-Week low 116.40
P/E 6.92
Mkt Cap.(Rs cr) 1,240
Buy Price 0.00
Buy Qty 0.00
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 2017 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 and the Companies (Accounting Standards) Amendment Rules 2016.

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 of thestandalone financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation 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 2017 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 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3 and 4of 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 and the Companies (Accounting Standards) Amendment Rules2016;

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 aredisqualified as on 31st March 2017 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.

iv. The Company has provided requisite disclosures in note 47 to these financialstatements as to the holding of Specified Bank Notes on 8 November 2016 and 30 December2016 as well as dealing in Specified Bank Notes during the period from 8 November 2016 to30 December 2016. Based on audit procedure and relying on the management representationregarding the holding and nature of cash transactions including Specified Bank Notes wereport that these disclosures are in accordance with the books of accounts maintained bythe Company and as produced to us by the management.

For S S Kothari Mehta & Co.

Chartered Accountants Firm's Registration No. 000756N

Sunil Wahal
Place: New Delhi Partner
Date: May 5 2017 Membership No. 087294

Annexure A to the Independent Auditor's Report to the members of Dalmia Bharat Sugarand Industries Limited dated May 05 2017.

Report on the matters specified in paragraph 3 of the Companies (Auditor's Report)Order 2016 ("the Order') issued by the Central Government of India in terms ofsection 143(11) of the Companies Act 2013 ("the Act") as referred to inparagraph 1 of 'Report on Other Legal and Regulatory Requirements' section.

i. (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 H0.13 Crores) of land at Salem for which alldues for transfer of land in favour of the Company have been paid and transfer of title inthe name of company is awaited.

ii. The Management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

iii. (a) The Company has given interest bearing unsecured demand loans to companiescovered in the register maintained under Section 189 of the Act.

(b) The terms and conditions of the grant of such loans are not prejudicial to theCompany's interest;

(c) The loan given is repayable on demand and hence there is no overdue amount as onthe date and the relevant reporting is 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.

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 is generally regular in depositing its undisputedstatutory dues including Employees' Provident Fund Employees' State Insurance InvestorEducation and Protection Fund Income Tax Wealth Tax Service Tax Custom Duty Exciseduty Cess and any other material statutory dues as applicable with the appropriateauthorities during the year and there are no such undisputed amounts payable which haveremained outstanding as at March 312017 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 Statue Nature of dues Forum where the dispute is pending Period for which the amount relates Amount (in HCrores)
Central Excise Act 1944 Demand of differential duty reversed under Rule 6 (3). Assistant Commissioner LTU Delhi 2012 to 2015 0.29
Central Excise Act 1944 Demand of Excise duty on sale of Multilayer Ceramic Chip Capacitors Assistant Commissioner LTU Delhi 2008-09 to 2013-14 0.02
Central Excise Act 1944 Disallowance of cenvat credit Assistant Commissioner LTU Delhi April 2010 to March 2015 0.96
Name of Statue Nature of dues Forum where the dispute is pending Period for which the amount relates Amount (in HCrores)
Central Excise Act 1944 Demand of duty on Molasses transfer to distillery unit Cestat Delhi July 2012 to March 2015 36.43
Central Excise Act 1944 Demand of duty on sale of Electricity. Cestat Delhi October 2009 to June 2012 11.58
Central Excise Act 1944 Demand on duty of bagasse sale Cestat Delhi April 2008 to March 2010 0.50
Central Excise Act 1944 Demand on Storage Loss of finished goods Cestat Delhi July 2007 to March 2010 0.01
Central Excise Act 1944 Disallowance of cenvat credit Cestat Delhi March 2006 to March 2010 0.15
Central Excise Act 1944 Disallowance of cenvat credit Commissioner (A) LTU December 2009 to August 2013 0.01
Central Excise Act 1944 Demand on duty of bagasse sale Dy. Commissioner LTU April 2010 to June 2010 0.05
Central Excise Act 1944 Disallowance of cenvat credit Dy. Commissioner LTU March 2006 to September 2012 0.24
Central Excise Act 1944 Disallowance of cenvat credit High Court Allahabad June 2005 to September 2005 0.04
Central Sale Tax Entry tax demand Add. Commissioner (Appeal) Sitapur 2006-07 to 2011-12 1.82
Central Sale Tax CST Demand Additional Commissioner (Appeal) Lucknow 2010-11 0.30
Central Sale Tax Entry tax demand Additional Commissioner (Appeal) Lucknow 2012-13 & 2013-14 0.04
Central Sale Tax Entry tax demand Dy. Commissioner (Assessment)-II Sitapur 2007-08 2009-10 1.53
Central Sale Tax Entry tax demand High Court Allahabad 2001-02 0.03
Finance Act 1994 Disallowance of cenvat credit Additional Commissioner LTU August 2014 to May 2016 0.47
Finance Act 1994 Service tax demand on various services Additional Commissioner LTU 2008-09 to 2013-14 0.41
Finance Act 1994 Service tax demand on various services Assistant Commissioner LTU September 2014 to January 2016 0.05
Finance Act 1994 Denial of credit on Service tax paid by Sugar selling agent. Cestat Delhi October 2004 to March 2011 0.43
Finance Act 1994 Disallowance of cenvat credit Cestat Delhi November 2008 to March 2011 0.80
Finance Act 1994 Service tax demand on various services Cestat Delhi January 2003 to September 2009 0.05
Finance Act 1994 Disallowance of cenvat credit Commissioner (A) LTU March 2006 to March 2015 0.68
Finance Act 1994 Disallowance of cenvat credit Dy. Commissioner LTU April 2010 to March 2011 0.04
Finance Act 1994 Disallowance of cenvat credit Dy. Commissioner LTU March 2006 to September 12 0.07
Finance Act 1994 Service tax demand on various services Dy. Commissioner LTU 2006-07 to August 2013 0.16
Finance Act 1994 Disallowance of cenvat credit Suptd. LTU New Delhi November 2010 to March 2012 0.01
Finance Act 1994 Service tax demand on various services Suptd. LTU New Delhi November 2010 to March 2012 0.02

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 loanswere 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 themanagerial 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 yearand 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
Place: New Delhi Partner
Date: May 5 2017 Membership No. 087294

Annexure B to the Independent Auditor's Report to the Members of Dalmia Bharat Sugarand Industries Limited on its standalone financial statements dated May 05 2017

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act as referred to in paragraph 2(f) of 'Report on Other Legal and RegulatoryRequirements' section

We have audited the internal financial controls over financial reporting of the Companyas of March 312017 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 responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required 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 accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about 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 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 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 standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial 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 have amaterial 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 2017 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: May 5 2017 Membership No. 087294