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Dhampur Sugar Mills Ltd.

BSE: 500119 Sector: Agri and agri inputs
NSE: DHAMPURSUG ISIN Code: INE041A01016
BSE LIVE 15:45 | 23 Aug 255.95 8.10
(3.27%)
OPEN

245.15

HIGH

257.00

LOW

245.15

NSE 15:50 | 23 Aug 256.75 9.20
(3.72%)
OPEN

247.55

HIGH

258.00

LOW

247.55

OPEN 245.15
PREVIOUS CLOSE 247.85
VOLUME 78951
52-Week high 289.45
52-Week low 96.05
P/E 6.21
Mkt Cap.(Rs cr) 1,699
Buy Price 0.00
Buy Qty 0.00
Sell Price 255.95
Sell Qty 449.00
OPEN 245.15
CLOSE 247.85
VOLUME 78951
52-Week high 289.45
52-Week low 96.05
P/E 6.21
Mkt Cap.(Rs cr) 1,699
Buy Price 0.00
Buy Qty 0.00
Sell Price 255.95
Sell Qty 449.00

Dhampur Sugar Mills Ltd. (DHAMPURSUG) - Auditors Report

Company auditors report

To

The Members of

Dhampur Sugar Mills Ltd.

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Dhampur Sugar MillsLimited (“the Company”) which comprise the Balance Sheet as at 31st March2016 the Statement of Profit and Loss the Cash Flow Statement and a summary of thesignificant accounting policies and other explanatory information for the year then endedin which are incorporated the financial statements for the year ended on that date of twounits audited by the branch auditors of the Company.

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 recordsin accordance 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 financial 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 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 there under.

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 andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the 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 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 the explanations givento us the aforesaid standalone financial statements give the information required by theAct in the manner so required and give a true fair view in conformity with 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 Matter

We did not audit the financial statements of two units which are included in thestandalone financial statements of the Company whose financial statements reflect totalassets of Rs 846.98 Crores as at 31st March 2016 and total revenues of Rs 434.08 Croresfor the year ended on that date as considered in the standalone financial statements. Thefinancial statements of two units have been audited by the branch auditors whose reportshave been furnished to us and our opinion in so far as it relates to the amounts anddisclosures included in respect of these units is based solely on the report of suchbranch auditors.

Our opinion is not modified in respect of this matter.

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 Section143(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 reports on the accounts of the two units of the Company audited under Section143 (8) of the Act by branch auditors have been sent to us and have been properly dealtwith by us in preparing this report.

(d) 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.

(e) 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.

(f) 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.

(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 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. TheCompany has disclosed the impact of pending litigations

on its financial position in its financial statements.

ii. The Company does not have any long-term contracts including derivative contractsfor which there are any material foreseeable losses.

iii. As explained there has been no amount required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Mittal Gupta & Co.

Chartered Accountants

FRN 01874C

(B. L. Gupta)

Partner

Membership No. 073794

Place: New Delhi

Date: 10th May 2016

Annexure ‘A’ to the Independent Auditors’ Report

The Annexure ‘A’ referred to in our Independent Auditors’ Report of evendate to the members of the Company on the standalone financial statements for the yearended 31st March 2016:

(i) In respect of its fixed assets:

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

(b) The Company has a phased program of physical verification of its fixed assetswhich in our opinion is reasonable having regard to the size of the company and thenature of its assets. The management has verified major fixed assets during the year andas explained there is no material discrepancy on such verification.

(c) The title deeds of the immovable properties as disclosed in the financialstatements are held in the name of the company.

(ii) The inventories except goods in transit have been physically verified by themanagement at reasonable interval during the year. In our opinion and according to theinformation and explanations given to us the frequency of such verification isreasonable. As explained to us no material discrepancies were noticed on physicalverification of inventories as compared to book records.

(iii) According to the information and explanations given to us and based on ourexaminations of the records in our opinion the Company has not granted any loan securedor unsecured to the companies firms limited liability partnership and other partiescovered in the register maintained under section 189 of the Companies Act 2013.Accordingly paragraph 3(iii) of the order is not applicable to the company.

(iv) According to the information and explanations given to us and based on ourexaminations of the records in our opinion the company has not granted any loans orprovided any security or guarantee to the parties covered under Section 185 of theCompanies Act 2013. The Company has complied with the provisions of section 186 of theCompanies Act 2013 in respect of investment made or loans or guarantee or securityprovided to the parties covered under section 186 of the Companies Act 2013.

(v) According to the information and explanations given to us in our opinion theCompany has complied with the directives issued by the Reserve Bank of India and theprovisions of sections 73 to 76 or any other relevant provisions of the Act and rulesframed there under. As informed to us no order has been passed by the Company Law Boardor National Company Law Tribunal or Reserve Bank of India or any court or any otherTribunal in this connection.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost records and Audit) Rules 2014 under section 148 of the Companies Actand are of the opinion that prima facie the prescribed cost record have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and based on ourexaminations of the records in our opinion the Company is generally regular indepositing undisputed statutory dues in respect of provident fund investor education andprotection fund employees’ state insurance income tax sales tax service taxcustoms duty excise duty value added tax cess and other material statutory dues asapplicable with the appropriate authorities except for demand raised by Income TaxAuthorities at the time of processing of TDS return. There are no undisputed statutorydues as referred to above as at 31st March 2016 outstanding for a period of more than sixmonths from the date they become payable except for demand raised by Income TaxAuthorities at the time of processing of TDS return aggregating to Rs 0.25 Crores. We havebeen informed by the Company that they are in process of getting these returns rectifiedand are hopeful that these demands will be substantially reduced after rectification.

(b) According to the information and explanations given to us the particulars ofIncome tax Service-tax Sales-tax Custom Duty Excise Duty Entry tax Value Added Taxwhich have not been deposited on account of any dispute are as referred to Annexure‘A1’.

(viii)According to the information and explanations given to us in our opinion theCompany has not defaulted in repayment of loans and borrowings to any financialinstitution bank and government during the period. The Company has not borrowed any moneyby way of issue of debentures.

(ix) According to the information and explanations given to us and based on ourexaminations of the records in our opinion the money raised by the Company by way ofterm loans during the year have been applied for the purposes for which they wereobtained. The Company has not raised any money by way of Initial Public Offer or furtherpublic offer (including debt instruments) during the year.

(x) To the best of our knowledge and belief and according to the information andexplanations given to us no material fraud on or by the Company was noticed or reportedduring the course of our audit.

(xi) According to the information and explanations given to us and based on ourexaminations of the records in our opinion the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) According to the information and explanations given to us and based on ourexaminations of the records in our opinion the Company is not a Nidhi Company.Accordingly the paragraph 3(xii) of the Order is not applicable to the Company.

(xiii)According to the information and explanations given to us and based on ourexaminations of the records in our opinion the transactions with related parties are incompliance with the provisions of sections 177 and 188 of the Act where applicable. Thedetails of such related party transactions have been disclosed in the financial statementsas required under Accounting Standard (AS) 18 Related Party Disclosures specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(xiv)According to the information and explanations given to us and based on ourexaminations of the records in our opinion during the year the Company has allottedequity shares on conversion of equity share warrants which were issued on preferentialbasis in earlier years. The company has complied with the requirements of section 42 ofthe Companies Act in respect of such allotment and money raised on such allotment has beenused for the purpose for which the funds were raised. The Company has not made any otherpreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

(xv) According to the information and explanations given to us and based on ourexaminations of the records in our opinion the Company has not entered into any non-cashtransactions as specified u/s 192 of the Act with its directors or persons connected tohim. Accordingly the paragraph 3(xv) of the Order is not applicable to the Company.

(xvi) In our opinion the Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934.

For Mittal Gupta & Co.

Chartered Accountants FRN 01874C

(B. L. Gupta)

Partner

Membership No. 073794

Place: New Delhi Date: 10th May 2016

Annexure ‘A1’ to the Independent Auditors’ Report

(The Annexure - 'A1' referred to in our Independent Auditors' Report to the members ofthe Company on the standalone financial statements for the year ended 31st March 2016)

(Rs in crores)

S. No. Name of the Statute Nature of Dues Amount Period to which the amount relates Forum where the dispute is pending
1 Central Excise Act 1944 Excise Duty 0.20 2010-11 CESTAT
2 Central Excise Act 1944 Excise Duty 0.53 2009-10 CESTAT
3 Central Excise Act 1944 Excise Duty 2.89 2010-11 CESTAT
4 Central Excise Act 1944 Excise Duty 4.75 2010-11 CESTAT
5 Central Excise Act 1944 Excise Duty 3.09 2010-11 CESTAT
6 Central Excise Act 1944 Excise Duty 0.23 2010-11 CESTAT
7 Central Excise Act 1944 Excise Duty 0.31 2010-11 CESTAT
8 Central Excise Act 1944 Excise Duty 0.18 2010-11 CESTAT
9 Central Excise Act 1944 Excise Duty 0.40 2010-11 CESTAT
10 Central Excise Act 1944 Excise Duty 0.15 2011-12 CESTAT
11 Central Excise Act 1944 Excise Duty 0.02 2011-12 CESTAT
12 Central Excise Act 1944 Excise Duty 0.15 2011-12 CESTAT
13 Central Excise Act 1944 Excise Duty 0.01 2011-12 CESTAT
14 Central Excise Act 1944 Excise Duty 0.02 2011-12 CESTAT
15 Central Excise Act 1944 Excise Duty 0.18 2011-12 CESTAT
16 Central Excise Act 1944 Excise Duty 2.08 2014-15 CESTAT
17 Central Excise Act 1944 Excise Duty 0.02 2010-11 CESTAT
18 Central Excise Act 1944 Excise Duty 0.02 2010-11 CESTAT
19 Central Excise Act 1944 Excise Duty 0.02 2010-11 CESTAT
20 Central Excise Act 1944 Excise Duty 0.80 2011-12 CESTAT
21 Central Excise Act 1944 Excise Duty 0.02 2011-12 CESTAT
22 Central Excise Act 1944 Excise Duty 0.92 2012-13 CESTAT
23 Central Excise Act 1944 Excise Duty 0.28 2010-11 CESTAT
24 Central Excise Act 1944 Excise Duty 0.17 2010-11 CESTAT
25 Central Excise Act 1944 Excise Duty 0.25 2010-11 CESTAT
26 Central Excise Act 1944 Excise Duty 0.19 2010-11 CESTAT
27 Central Excise Act 1944 Excise Duty 0.14 2010-11 CESTAT
28 Central Excise Act 1944 Excise Duty 0.03 2010-11 CESTAT
29 Central Excise Act 1944 Excise Duty 0.04 2011-12 CESTAT
30 Central Excise Act 1944 Excise Duty 0.07 2012-13 CESTAT
31 Central Excise Act 1944 Excise Duty 0.07 2008-09 CESTAT
32 Central Excise Act 1944 Excise Duty 0.56 2009-10 CESTAT
33 Central Excise Act 1944 Excise Duty 0.71 2008-09 CESTAT
34 Central Excise Act 1944 Excise Duty 1.63 2007-08 CESTAT
35 Central Excise Act 1944 Excise Duty 0.23 2007-08 CESTAT
36 Central Excise Act 1944 Excise Duty 0.17 2007-08 CESTAT
37 Central Excise Act 1944 Excise Duty 2.49 2008-09 CESTAT
38 Central Excise Act 1944 Excise Duty 0.07 2005-06 CESTAT
39 Central Excise Act 1944 Excise Duty 0.04 1995-96 CESTAT
40 Central Excise Act 1944 Excise Duty 0.26 2005-06 CESTAT
41 Central Excise Act 1944 Excise Duty 0.01 1996-97 CESTAT
42 Central Excise Act 1944 Excise Duty 0.03 2008-09 CESTAT
43 Central Excise Act 1944 Excise Duty 0.01 2008-09 CESTAT
44 Central Excise Act 1944 Excise Duty 0.04 2009-10 CESTAT
45 Central Excise Act 1944 Excise Duty 0.04 2009-10 CESTAT
46 Central Excise Act 1944 Excise Duty 8.07 2009-10 CESTAT
Sub-total 32.57
1 Central Excise Act 1944 Excise Duty 0.06 2012-13 High Court
2 Central Excise Act 1944 Excise Duty 0.01 2012-13 High Court
3 Central Excise Act 1944 Excise Duty 0.04 2008-09 High Court
4 Central Excise Act 1944 Excise Duty 10.73 2011-12 High Court
Sub-total 11
1 Central Excise Act 1944 Excise Duty 1.08 2010-11 Supreme Court
2 Central Excise Act 1944 Excise Duty 0.02 2007-08 Supreme Court
Sub-total 1.10
Total Excise duty demands 44.51
1 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 1.32 2005-06 Additional Commissioner (Appeals)
2 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 1.10 2006-07 Additional Commissioner (Appeals)
3 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.47 2008-09 Additional Commissioner (Appeals)
4 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.65 2010-11 Additional Commissioner (Appeals)
5 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 1.94 2011-12 Additional Commissioner (Appeals)
6 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 2.84 2012-13 Additional Commissioner (Appeals)
7 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.43 2013-14 Additional Commissioner (Appeals)
8 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.06 2003-04 Joint Commissioner (Appeals)
9 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.00 2002-03 Joint Commissioner (Appeals)
10 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.88 2004-05 Deputy Commissioner (Appeals)
11 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 1.40 2009-10 Joint Commissioner (Appeals)
Sub-total 11.09
1 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.05 2000-01 Commercial Tax Tribunal
2 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.02 2007-08 Commercial Tax Tribunal
3 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.89 2009-10 Commercial Tax Tribunal
4 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.27 2004-05 Commercial Tax Tribunal
Sub-total 1.23
1 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.88 2001-02 High Court
2 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.39 2002-03 High Court
1.28
1 U.P. Trade Tax Act 1948 Trade Tax 5.51 2005-2006 (U.P) Additional Commissioner (Appeals)
2 U.P. Trade Tax Act 1948 Trade Tax 0.05 2005-2006 (Centre) Additional Commissioner (Appeals)
3 U.P. Trade Tax Act 1948 Trade Tax 2.75 2006-2007 (U.P) Additional Commissioner (Appeals)
4 U.P. Trade Tax Act 1948 Trade Tax 0.04 2006-2007 (Centre) Additional Commissioner (Appeals)
5 U.P. Trade Tax Act 1948 Trade Tax 1.26 2008-2009 (U.P) Additional Commissioner (Appeals)
6 U.P. Trade Tax Act 1948 Trade Tax 1.77 2008-2009 (Centre) Additional Commissioner (Appeals)
7 U.P. Trade Tax Act 1948 Trade Tax 0.84 2010-2011 (U.P) Additional Commissioner (Appeals)
8 U.P. Trade Tax Act 1948 Trade Tax 1.42 2010-2011 (Centre) Additional Commissioner (Appeals)
9 U.P. Trade Tax Act 1948 Trade Tax 0.14 2011-2012 (U.P) Additional Commissioner (Appeals)
10 U.P. Trade Tax Act 1948 Trade Tax 0.28 2011-2012 (Centre) Additional Commissioner (Appeals)
11 U.P. Trade Tax Act 1948 Trade Tax 0.07 2012-2013 (U.P) Additional Commissioner (Appeals)
12 U.P. Trade Tax Act 1948 Trade Tax 0.73 2012-2013 (Centre) Additional Commissioner (Appeals)
13 U.P. Trade Tax Act 1948 Trade Tax 0.10 2013-2014 (U.P) Additional Commissioner (Appeals)
14 U.P. Trade Tax Act 1948 Trade Tax 1.77 2013-2014 (Centre) Additional Commissioner (Appeals)
Sub-total 16.75
1 U.P. Trade Tax Act 1948 Trade Tax 0.94 1998-1999 (U.P) Commercial Tax Tribunal
2 U.P. Trade Tax Act 1948 Trade Tax 1.34 1998-1999 (Centre) Commercial Tax Tribunal
3 U.P. Trade Tax Act 1948 Trade Tax 0.72 1999-2000 (U.P) Commercial Tax Tribunal
4 U.P. Trade Tax Act 1948 Trade Tax 1.12 1999-2000 (Centre) Commercial Tax Tribunal
5 U.P. Trade Tax Act 1948 Trade Tax 0.43 2001-2002 (U.P) Commercial Tax Tribunal
6 U.P. Trade Tax Act 1948 Trade Tax 2.65 2001-2002 (Centre) Commercial Tax Tribunal
7 U.P. Trade Tax Act 1948 Trade Tax 0.63 2007-2008 (U.P) Commercial Tax Tribunal
8 U.P. Trade Tax Act 1948 Trade Tax 0.60 2007-2008 (Centre) Commercial Tax Tribunal
9 U.P. Trade Tax Act 1948 Trade Tax 0.66 2009-2010 (U.P) Commercial Tax Tribunal
10 U.P. Trade Tax Act 1948 Trade Tax 1.08 2009-2010 (Centre) Commercial Tax Tribunal
11 U.P. Trade Tax Act 1948 Trade Tax 2.29 2004-2005 (U.P) Commercial Tax Tribunal
12 U.P. Trade Tax Act 1948 Trade Tax 0.03 2004-2005 (CENTRE) Commercial Tax Tribunal
Sub-total 12.49
1 U.P. Trade Tax Act 1948 Trade Tax 0.26 2011-12 High Court
2 U.P. Trade Tax Act 1948 Trade Tax 0.64 2011-12 High Court
3 U.P. Trade Tax Act 1948 Trade Tax 0.01 1993-94 High Court
4 U.P. Trade Tax Act 1948 Trade Tax 0.04 1995-96 High Court
5 U.P. Trade Tax Act 1948 Trade Tax 0.09 1996-97 High Court
6 U.P. Trade Tax Act 1948 Trade Tax 0.10 1996-97 High Court
7 U.P. Trade Tax Act 1948 Trade Tax 0.18 1997-98 High Court
8 U.P. Trade Tax Act 1948 Trade Tax 0.35 1998-99 High Court
9 U.P. Trade Tax Act 1948 Trade Tax 0.75 1999-00 High Court
10 U.P. Trade Tax Act 1948 Trade Tax 0.04 1999-00 High Court
11 U.P. Trade Tax Act 1948 Trade Tax 0.40 2000-01 High Court
12 U.P. Trade Tax Act 1948 Trade Tax 0.02 2000-01 High Court
13 U.P. Trade Tax Act 1948 Trade Tax 0.41 2001-02 High Court
14 U.P. Trade Tax Act 1948 Trade Tax 0.16 2001-02 High Court
15 U.P. Trade Tax Act 1948 Trade Tax 0.73 2002-03 High Court
16 U.P. Trade Tax Act 1948 Trade Tax 0.15 2002-03 High Court
17 U.P. Trade Tax Act 1948 Trade Tax 0.49 2003-04 High Court
18 U.P. Trade Tax Act 1948 Trade Tax 0.07 2003-04 High Court
19 U.P. Trade Tax Act 1948 Trade Tax 0.59 2004-05 High Court
20 U.P. Trade Tax Act 1948 Trade Tax 1.04 2003-04 High Court
Sub-total 6.51
Total Entry & Trade Tax 49.34

Annexure - ‘B’ to the Independent Auditor’s Report

(The Annexure ‘B’ referred to in our Independent Auditors’ Report to themembers of the Company on the standalone financial statements for the year ended 31stMarch 2016)

Report on the Internal Financial Control 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 DhampurSugar Mills Limited (“the Company”) as of 31 March 2016 in conjunction with ouraudit of the standalone 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 internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (“ICAI”).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company’s polices thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation of reliablefinancial information as required under the Companies Act 2013 (“the Act”).

Auditor‘s Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrol over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Control 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 judgment 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 controlsystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial controls over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statement for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial controlsover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and disposition of the assets of the company; (2) provide reasonableassurance that transaction are recorded as necessary to permit preparation of financialstatement in accordance with generally accepted accounting principles and that receiptand expenditures 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 statement.

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 controlsover 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 control system over financial reporting and such internal financial control overfinancial reporting were operating effectively as at 31 March 2016 based on the internalcontrols over financial reporting criteria established by the Company considering theessential components of internal controls stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by ICAI.

For Mittal Gupta & Co.

Chartered Accountants FRN01874C

(B. L. Gupta )

Partner

Membership No. 073794

Place : New Delhi

Dated : 10th May 2016