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Parrys Sugar Industries Ltd.

BSE: 500162 Sector: Agri and agri inputs
NSE: PARRYSUGAR ISIN Code: INE353B01021
BSE LIVE 15:41 | 24 May Stock Is Not Traded.
NSE 15:51 | 24 May Stock Is Not Traded.
OPEN 52.40
PREVIOUS CLOSE 54.20
VOLUME 4175
52-Week high 72.40
52-Week low 33.60
P/E 3.04
Mkt Cap.(Rs cr) 95
Buy Price 47.65
Buy Qty 200.00
Sell Price 0.00
Sell Qty 0.00
OPEN 52.40
CLOSE 54.20
VOLUME 4175
52-Week high 72.40
52-Week low 33.60
P/E 3.04
Mkt Cap.(Rs cr) 95
Buy Price 47.65
Buy Qty 200.00
Sell Price 0.00
Sell Qty 0.00

Parrys Sugar Industries Ltd. (PARRYSUGAR) - Auditors Report

Company auditors report

To The Members of M/s. Parrys Sugar Industries Limited Report on the StandaloneFinancial Statements

We have audited the accompanying standalone financial statements of M/s. Parrys SugarIndustries Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

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 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 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 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:

(i) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2016 and

(ii) in the case of Statement of Profit and Loss of the loss for year ended on thatdate and

(iii) in the case of Cash Flow Statement of the cash flows for the year ended on thatdate.

Emphasis of Matter

We draw attention to Note 25(1)(b) to the financial statements with regard to thepreparation of the financial statements on a going concern basis despite erosion in thenet worth of the Company.

Our opinion is not qualified in this matter.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in theAnnexure-A a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) The going concern matter described in sub-paragraph (b) under the Emphasis ofMatters paragraph above in our opinion does not have an adverse effect on thefunctioning of the Company.

(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. The Company has disclosed the impact of pending litigations in Note No. 29 of thefinancial statements.

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

iii. The Company has not delayed in transferring amounts required to be transferredto the Investor Education and Protection Fund.

For R.G.N. Price & Co.
Chartered Accountants
Firm's Registration No: 002785S
Mahesh Krishnan
Chennai Partner
May 2 2016 Membership No. 206520

Annexures to the Independent Auditor's Report

Annexure-A referred to in Paragraph of Report on Other Legal and RegulatoryRequirements of our report of even date on the Accounts of the Company for the year ended31st March 2016.

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) Fixed Assets are physically verified by the Management according to a phasedprogramme designed to cover all items over a period of two years which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. As partof the programme the Company has physically verified the fixed assets during the year andno material discrepancies were noticed.

(c) The title deeds of the immovable properties (land) is in the erstwhile name of theCompany.

(ii) The inventory has been physically verified by the Management during the year. Inour opinion frequency of verification is reasonable no material discrepancies werenoticed during the course of physical verification..

(iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Act.

(iv) The provisions of Section 185 and 186 of the Act are not applicable since theCompany has not granted any loans to Directors nor has granted any loan or guarantee orsecurity to any company body corporate or to any person. The investment made by theCompany is in compliance with Section 185 and 186 of the Act.

(v) The Company has not accepted deposits during the year. Hence Clause 3(v) of theOrder is not applicable.

(vi) Maintenance of cost records has been specified by the Central Government undersub-section (1) of Section 148 of the Act. We have broadly reviewed the books and recordsof the Company in this connection and are of the opinion that prima facie the prescribedaccounts and records have been maintained. We have however not made a detailedexamination of the records to ascertain whether they are accurate and complete.

(vii) (a) According to the information and explanations given to us and records of theCompany examined by us in our opinion the

Company is generally regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues to theappropriate authorities. There are no arrears of undisputed statutory dues outstanding asat March 31 2016 for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income tax or sales tax or service tax orduty of customs or duty of excise or value added tax cess have not been deposited onaccount of any dispute except the following:

Name of Statute Nature of dues Amount (Rs. in Lakh) excluding interest if any Period to which amounts relate Forum where the dispute is pending
The Finance Act 1994 Service Tax 225.38 2012-13 CESTAT
Central Excise Act 1944 Central Excise 2.53 2012-13 Assistant Commissioner Belgaum
Central Excise Act 1944 Central Excise 6.49 2013-14 Additional Commissioner Belgaum

(viii) According to the information and explanations given to us and records of theCompany examined by us the Company has not defaulted in repayment of loans or borrowingto any financial institution or bank or government. The Company has not raised anydebentures.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments). The term loans obtained by the Company wereapplied for the purposes for which these were raised.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given to us we have neither observed anyinstance of fraud by the Company or any fraud on the Company by its officers or employeesof the Company nor have we been informed of such case by the Management during the year.

(xi) The Company has not paid any managerial remuneration and hence the provisions ofSection 197 read with Schedule V to the Act are not applicable.

(xii) The Company is not a Nidhi Company and hence Clause 3(xii) of the Order is notapplicable.

(xiii) All the transactions with the related parties are in compliance with Section 177and 188 of the Act where applicable and the details have been disclosed in the FinancialStatements as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review and henceClause 3(xiv) is not applicable.

(xv) According to the information and explanation provided to us and based on ourexamination of records the Company has not entered into any non-cash transactions withDirectors or persons connected with him and hence Clause 3(xv) is not applicable.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934 and hence Clause 3(xvi) is not applicable.

For R.G.N. Price & Co.
Chartered Accountants
Firm's Registration No: 002785S
Mahesh Krishnan
Chennai Partner
May 2 2016 Membership No. 206520

Annexure-B referred to in Clause (h) of Paragraph of Report on Other Legal andRegulatory Requirements of our report of even date on the Accounts of the Company for theyear ended 31st March 2016.

We have audited the internal financial controls over financial reporting of ParrysSugar Industries Limited ('the Company') as of March 31 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 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 includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's 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 Reportingand the Standards of Auditing to the extent applicable to an audit of internal financialcontrols both issued by the Institute of Chartered Accountants of India. Those Standardsand 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 thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and Directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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

According to the information and explanations given to us and based on our audit havein all material respects an adequate internal financial control over financial reportingand such internal financial control over financial reporting were operating effectively asat March 312016 based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For R.G.N. Price & Co.
Chartered Accountants
Firm's Registration No: 002785S
Mahesh Krishnan
Chennai Partner
May 2 2016 Membership No. 206520