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Girdharilal Sugar & Allied Industries Ltd.

BSE: 507506 Sector: Industrials
NSE: NARMADASUG ISIN Code: INE310M01010
BSE LIVE 12:33 | 23 Aug 11.36 0
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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 11.36
PREVIOUS CLOSE 11.36
VOLUME 200
52-Week high 15.50
52-Week low 7.60
P/E 14.75
Mkt Cap.(Rs cr) 22
Buy Price 11.36
Buy Qty 100.00
Sell Price 0.00
Sell Qty 0.00
OPEN 11.36
CLOSE 11.36
VOLUME 200
52-Week high 15.50
52-Week low 7.60
P/E 14.75
Mkt Cap.(Rs cr) 22
Buy Price 11.36
Buy Qty 100.00
Sell Price 0.00
Sell Qty 0.00

Girdharilal Sugar & Allied Industries Ltd. (NARMADASUG) - Auditors Report

Company auditors report

TO THE MEMBER OF

GIRDHARILAL SUGAR AND ALLIED INDUSTRIES LIMITED

REPORT ON THE FINANCIAL STATEMEMTS

We have audited the accompanying financial statements of GIRDHARILAL SUGAR ANDALLIED INDUSTRIES LIMITED (The Company) which comprises the Balance sheet as at 31stMarch 2015 and the statement of Profit and Loss and Cash Flow statement for the year thenended and a summary of significant accounting policies and other explanatory information.

MANAGEMENT'S RESPOSIBILITY FOR THE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for matters stated in Section 134(5) ofthe Companies Act 2013 ("The Act") with respect to the preparation of thesesfinancial statements that give a true and fair value of the financial positions financialperformance and cash flows of the company in accordance with the accounting standardsreferred to in section 133 of the Act read with rule 7 of the Companies (Accounts) Rule2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provision of act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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 standalone financial statements.

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 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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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 standalone financial statements.

BASIS OF QUALIFIED OPINION

The company has not provided Rs. 10109852/- towards MAT payable as per Sec115JB ofIncome Tax Act 1961 Refer Note No. 31 of notes to accounts. Had the above liability beenconsidered there would have been a profit of Rs.22416553/- as against the reported profitof Rs. 32526405/- and Reserves & Surplus as the balance sheet date would have beenRs()97789046/-. as against reported figure of Rs. () 87679194/-.

QUALIFIED OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph above the aforesaid 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 March 31 2015 and its Profit and its cash flows for the year ended on that date.EMPHASIS ON MATTERS

We draw attention to the following matters in the Notes to the financial Statement:

Note No. 14 (c) in respect of interest on loans given to related party

Note No. 30 in respect of interest liability on unpaid undisputed statutory dues.

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 2015 ("the order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the annexure a statement on the matters specified inparagraphs 3 and 4 and 5 of the order to the extent applicable.

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 appears from our examination of those books of the Company.

c. The Balance Sheet and statement of Profit and Loss Account and Cash Flow statementdealt with by these reports are in agreement with the books of account of the Company.

d. In our opinion the Balance Sheet and Profit & Loss Account and Cash Flowstatement dealt with by this report comply with the account standards specified undersection 133 of the Act read with rule 7 of Companies (Accounts) Rules 2014.

e. On the basis of written information received from the directors of the Company andtaken on record by the Board of Directors as on 31st March 2015 and the information andexplanations given to us we report that none of the directors is disqualified as on 31stMarch 2015 from being appointed as a director in terms of subsection (2) of section 164of the Act.

f. 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 as referred to in Note No. 42 to the financialstatements.

(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long-term contractsincluding derivative contracts.

(iii) The Company has not transferred a sum of Rs.99.03 lacs to the Investor Educationand Protection Fund. However as per BIFR order dated 15.01.2014 the company was exemptedfrom the provisions of Sec 205C of the Companies Act 1956 and deferred the same paymenttill 2016-17.

Place: Indore For: M.MEHTA & COMPANY
Dated: 31/07/2015 Chartered Accountants
(Firm Regn. No. 000957C)
CA Nitin Bandi
PARTNER
(M. No. 400394)

ANNEXURE TO THE AUDITOR'S REPORT

Annexure referred to in our Independent Auditor's Report to the Members of the Companyon the Financial Statements for the year ended 31st March 2015 we report that:

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

(b) The fixed assets of the Company have been physically verified by the management atreasonable intervals. As informed to us no discrepancies have been noticed on suchverification.

ii. (a) As explained to us the inventory of the company has been physically verifiedduring the year by the management. In our opinion the frequency of the verification isreasonable.

(b) According to the information and explanation given to us in our opinion theprocedures of physical verification of stocks followed by the management are reasonableand adequate in relation of the size of the Company and the nature of its business.

(c) In our opinion and information and explanation given to us the Company ismaintaining proper records of inventory and no material discrepancies were noticed onverification between the physical stocks and book records.

iii. (a) According to the information's and explanations given to us the Company hasgranted unsecured loans to one party covered in the register maintained under section 189of the Companies Act 2013.

(b) In case of loans granted to parties covered in the register maintained undersection 189 of the Companies Act 2013 in our opinion and according to the informationand explanation given to us no interest has been charged on such loans. Interest on loansgiven during the earlier year has been waived off during the year as per directorsresolutions dated 31.01.2014 & Subsequent resolution passed on 31.07.2014. The otherterms and conditions on such loans are not prima facie prejudicial to the interest of thecompany.

(c) There are no overdue amounts of more than rupees one lakh in respect of the loansgranted to parties listed in the register maintained under section 189 of the CompaniesAct 2013.

iv. In our opinion and according to the information and explanation given to us thereare adequate internal control systems commensurate with the size of the Company and thenature of its business. During the course of our audit we have not observed any majorweakness in the internal control system.

v. In our opinion and according to the information and explanations given to us thecompany has not accepted deposit from public with the meaning of Section 73 to 76 or anyother relevant provision of the Companies Act 2013.

vi. According to information and explanations given to us the Central Government hasprescribed maintenance of cost records under sub-section (1) of section 148 of theCompanies Act 2013 and are being maintained for its Soya and Dairy Division however wehave not carried out any detailed examination of such accounts and records with a view todetermine whether they are accurate or 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 regular in depositing statutorydues of Provident Fund Employee state Insurance Income Tax Sales Tax Wealth TaxCustom duty Excise duty cess and any other statutory dues with the appropriateauthorities except in case of Value Added Tax and Service Tax which are being paid late infew cases and is Rs.21423146 for VAT and Rs.95454 for Service Tax which has not been paid.

(b) According to the information and explanations given to us there are no undisputedstatutory dues of Provident Fund Employee state Insurance Income Tax Sales Tax WealthTax Service Tax Custom duty Excise duty Value added Tax cess and any other statutorydues with the appropriate authorities were outstanding for more than six months from thedate they became payable except following Sales Tax Entry Tax Income Tax and Service Taxfor earlier years were due for payment for more than six months.

Sr. No. Name of the Statue Nature of Due Amount Period
1. M.P. Commercial Tax Act 1994 Regular 14256511 2006-07 till 2014-15
2. Income Tax Regular 2213260 2011-12
3. Service Tax Regular 20450 2013-14

(c) According to the Information and explanation given to us there are no dues ofIncome Tax Sales Tax Wealth Tax Custom Duty Excise Duty Value Added Tax and Cesswhich have not been deposited as on 31st March 2015 on account of dispute except as givenbelow:

Name of the Statute Nature of the Dues Forum where dispute is pending Period to which the amount relates Amount
M.P. Commercial Tax Act'1994 Sales Tax CST and Entry Tax High Court/ Commissioner of Sales Tax/ Deputy Commissioner. 1999- 2000 to 2012-13 38635644
Income Tax Act’1961 Income Tax Demand CIT Appeal 2009-10 19517760
Central Excise Act’1944 Excise Duty Commissioner of Central Excise (APPeal) 2005-06 818153

(d) According to the information and explanations given to us there is no amountrequired to be transferred to investor education and protection fund in accordance withthe relevant provisions of the Companies Act 1956 except Rs.99.03 lacs to be transferredon account of unclaimed debenture account. Flowever as per BIFR order dated 15.01.2014the company was exempted from the provisions of Sec 205C of the Companies Act 1956 anddeferred the same payment till 2016-17.

viii. The company has accumulated losses as at 31st March 2015; however the accumulatedlosses are less than 50% of its net worth. The Company has incurred cash profit during thefinancial year covered by our audit however the company has incurred cash loss in theimmediately preceding financial year.

ix. In our opinion and according to the information and explanations given to us theCompany has not made any default in the repayment of dues to financial institutions andbanks. The company has not issued any debenture during the year.

x. According to the information and explanations given to us the company has not givenguarantee for loans taken by others from banks or financial institutions during the year.

xi. In our opinion and according to the information and explanation given to us theterm loans have been applied by the company during the year for the purposes for whichthey were obtained.

xii. To the best of our knowledge and belief and according to the information andexplanations given to us we report that no material fraud on or by the company has beennoticed or reported during the year.

Place: Indore For : M.MEHTA & COMPANY
Dated: 31/07/2015 Chartered Accountants
(Firm Regn. No. 000957C)
CA Nitin Bandi
PARTNER
(M. No. 400394)