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Dwarikesh Sugar Industries Ltd.

BSE: 532610 Sector: Agri and agri inputs
NSE: DWARKESH ISIN Code: INE366A01041
BSE LIVE 14:38 | 26 Sep 64.50 -0.05
(-0.08%)
OPEN

65.40

HIGH

66.35

LOW

64.30

NSE 14:25 | 26 Sep 64.70 0.10
(0.15%)
OPEN

65.00

HIGH

66.30

LOW

64.10

OPEN 65.40
PREVIOUS CLOSE 64.55
VOLUME 116032
52-Week high 75.92
52-Week low 20.70
P/E 6.65
Mkt Cap.(Rs cr) 1,215
Buy Price 64.40
Buy Qty 368.00
Sell Price 64.60
Sell Qty 579.00
OPEN 65.40
CLOSE 64.55
VOLUME 116032
52-Week high 75.92
52-Week low 20.70
P/E 6.65
Mkt Cap.(Rs cr) 1,215
Buy Price 64.40
Buy Qty 368.00
Sell Price 64.60
Sell Qty 579.00

Dwarikesh Sugar Industries Ltd. (DWARKESH) - Auditors Report

Company auditors report

To The Members of

Dwarikesh Sugar Industries Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Dwarikesh Sugar IndustriesLimited ("the Company") which comprise the balance sheet as at 31st March2017 the statement of profit and loss the cash flow statement for the year then endedand a summary of the significant accounting policies and other explanatory information.

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 including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 and theCompanies (Accounting Standards) Amendment Rules 2016 as amended.

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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's 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 ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of the material misstatement of the financial statements whetherdue to fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall 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 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 Actin the 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 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 purpose 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 and the Companies (Accounting Standards) Amendment Rules 2016 asamended;

e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms 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" to this report.

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 litigations on its financialposition in its financial statements – Refer Note 28 B to the financial statements;

ii. Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses; and

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

iv. The Company has provided requisite disclosures in Note no. 12 of 28 B to thesefinancial statements as to the holding of Specified Bank Notes on November 8 2016 andDecember 30 2016 as well as dealings in Specified Bank Notes during the period fromNovember 8 2016 to December 30 2016. Based on our audit procedures and relying on themanagement representation regarding the holding and nature of cash transactions includingSpecified Bank Notes we report that these disclosures are in accordance with the books ofaccounts maintained by the Company and as produced to us by the Management.

For S. S. Kothari Mehta & Co
Chartered Accountants
Firm's Registration No. 000756N
Kamal Kishore
Place: New Delhi Partner
Date: May 18 2017 Membership No: 078017

Annexure A to the Independent Auditor's Report to the members of Dwarikesh SugarIndustries Limited dated May 18 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 are physically verified by the management according to a phasedprogram designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the program the fixed assets has been physically verified by themanagement during the year and no material discrepancies were noticed on suchverification discrepancies has duly been adjusted in the financials.

(c) According to the information and explanation given to us and on the basis of ourexamination of the records of the Company the title deed of immovable properties are heldin the name of the company.

(ii) 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. The discrepancies noticed on verification between the physical stocks and thebook records were not material and have been properly dealt with in the books of account.

(iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnership or other parties covered in the registered maintained undersection 189 of the Act. Accordingly clauses 3 (iii) (a) to (c) of the Order are notapplicable.

(iv) As per the information and explanation given to us and on the basis of ourexamination of the records the company has complied with provision of section 185 and 186of the Act with respect to the loans and investment made .

(v) In our opinion and according to explanation given to us As the company has notaccepted deposits as per directives issued by the Reserve Bank of India and provisions ofsections 73 to 76 or any other provisions of the companies Act and rules framed thereunder.

(vi) We have broadly reviewed the books of account relating to materials labor andother items of cost maintained by the Company as specified by the Central Government ofIndia under section 148(1) of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have not however madea detailed examination of the records with a view to determine whether they are accurateand complete.

(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of provident fund employees' state insurance incometax sales tax service tax customs duty excise duty Value added tax cess and othermaterial statutory dues as applicable with the appropriate authorities. Further therewere no undisputed amounts outstanding at the year-end for a period of more than sixmonths from the date they became payable.

(b) According to the information and explanations given to us and as per the books andrecords examined by us there are no dues of Custom Duty and Cess which have not beendeposited on account of any dispute except the following in respect of disputed IncomeTax Excise Duty Service Tax and Sales Tax along with the forum where dispute is pending:

Name of the statue Nature of dues Amount (in Rs.) Period to which the amount pertains Forum where dispute is pending
Central Excise Act 1944 Excise duty and penalty 18831735 Jan-05 to Dec-05 Apr-06 to Dec-06 Apr-06 to Dec-07 Jan-07 to Feb-07 Mar-07 Jun-07 to Nov-07 Jun-07 to Aug-08 Nov-07 to Aug-08 Jan-08 to Dec-08 Jan-07 to Oct-07 Oct-10 to Mar-11 Apr-10 to Sep-10 June-07 to Nov -07 CESTAT Mumbai
Central Excise Act 1944 Excise duty 121211 Jun-05 to Mar-06 CESTAT Delhi
Central Excise Act 1944 Excise duty 223982 Apr-14 to Mar-15 Commissioner (Appeals) Meerut
Finance Act 1994 Service Tax duty and penalty 16149123 Jun-07 to Jan-09 CESTAT Delhi
Finance Act 1994 Service tax 2866157 Jan-14 to Aug-14 Apr-09 to Dec-13 CESTAT Allahabad
Finance Act 1994 Service Tax 821071 Sep-12 to Dec-13 Sep-14 to Jun-15 Commissioner (Appeals) Meerut
Uttar Pradesh Tax On Entry of Goods into Local Areas Act 2007 Entry tax on Iron Steel Purchases 85000 2013-14 Additional Commissioner (Appeal) Bijnor (U.P)

The Company does not have any debenture.

(ix) According to the information and explanations given by the management the Companyhas not raised any monies by way of initial public offer or further public offer duringthe financial year and the terms loans raised by the Company have been applied for thepurpose for which they are were obtained. Where such end use has been stipulated by thelender(s).

(x) In our opinion and on the basis of information and explanations given to us nocases of fraud by the Company or fraud on the Company by its officers or employees hasbeen noticed or reported during the year.

(xi) According to the information and explanations given to us the managerialremuneration has been paid and provided in accordance with the requisite approvals asmandated by the provisions of section 197 read with Schedule V to the Act.

(xii) As the Company is not a Nidhi Company hence clause (xii) of the Order is notapplicable to the Company.

(xiii) According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Act as applicable andthe details have been disclosed in these financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanation given to us and as per ourverification of records of the company the company has issued the shares to qualifiedinstitutional buyers on private placement basis on September 28 2016 and the requirementof section 42 of the Act have been complied with. The company has raised the funds for thepurpose of repayment/ prepayment in full/ part of existing loans and for general corporatepurpose and utilize for the same.

(xv) In our opinion and on the basis of information and explanations given to us theCompany has not entered into non-cash transactions with directors and persons connectedwith him. Hence the provisions of section 192 of Act are not applicable.

(xvi) In our opinion and on the basis of information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For S. S. Kothari Mehta & Co
Chartered Accountants
Firm's Registration No. 000756N
Kamal Kishore
Place: New Delhi Partner
Date: May 18 2017 Membership No: 078017

Annexure B to the Independent Auditor's Report to the members of Dwarikesh SugarIndustries Limited dated May 18 2017.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 2(f) of‘Report on Other Legal and Regulatory Requirements' section

We have audited the internal financial controls over financial reporting of DwarikeshSugar Industries Limited ("the Company") as of March 31 2017 in conjunctionwith our audit of the financial statements of the Company 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 FinancialReporting issued by the Institute of Chartered Accountants of India". Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the 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 as specified under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

An 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 judgment 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting 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 financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

c) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the 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 March 31 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
Kamal Kishore
Place: New Delhi Partner
Date: May 18 2017 Membership No: 078017