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Dhampur Sugar Mills Ltd.

BSE: 500119 Sector: Agri and agri inputs
NSE: DHAMPURSUG ISIN Code: INE041A01016
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OPEN 214.25
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VOLUME 26571
52-Week high 517.20
52-Week low 198.45
P/E 9.15
Mkt Cap.(Rs cr) 1,404
Buy Price 0.00
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Sell Price 0.00
Sell Qty 0.00
OPEN 214.25
CLOSE 213.85
VOLUME 26571
52-Week high 517.20
52-Week low 198.45
P/E 9.15
Mkt Cap.(Rs cr) 1,404
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dhampur Sugar Mills Ltd. (DHAMPURSUG) - Auditors Report

Company auditors report

To

The Members of

Dhampur Sugar Mills Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of Dhampur Sugar Mills Limited("the Company") which comprise the Standalone Balance Sheet as at March 312021 and the Standalone Statement of Profit and Loss (including other comprehensiveincome) Standalone Statement of Changes in

Equity and Standalone Statement of Cash Flows for the year then ended and notes to thestandalone financialstatements including a summary of the significant accounting policiesand other explanatory information (hereinafter referred to as "Standalone FinancialStatements").

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 required by the Companies Act 2013("the Act") in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 and profit comprehensive income) changes inequity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor’sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (‘ICAI’) read together with theindependence requirements that are relevant to our audit of the Standalone FinancialStatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI’s Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the StandaloneFinancial Statements.

Key Audit Matters

Key audit matters (‘KAM’) are those matters that in our professionaljudgment were of most significance in our audit of the Standalone Financial Statements ofthe current period. These matters were addressed in the context of our audit of theStandalone Financial Statements as a whole and in forming our opinion thereon and we donot provide a(including other separate opinion on these matters. We have determined thematters described below to be the key audit matters to be communicated in our report.

Key Audit Matter Auditor’s Response
1. Determination of NRV of Sugar for comparison with Cost of Production (COP) for valuation of inventory:
As on March 31 2021 the Company has inventory of sugar with a carrying valueofH 1145.78Crore. The inventory of sugar is valued at the lower of cost and net realizable value. We considered the value of the inventory of sugar as a key audit matter given the relative value of inventory in the financial statements and significant judgement the consideration of factors such as minimum sale price and internationalmonthly quota and fluctuation selling prices in valuation of NRV. Principal Audit Procedures
We understood and tested the design and operating effectiveness of controls as established by the management in determination of cost of production and net realizable value of inventory of sugar. We considered various factors including involved the prevailing unit specific domestic selling price during and subsequent to the year end minimum selling price & monthly quota selling price for contracted sugar export and initiatives taken by the Government with respect to sugar industry as a whole.
Based on the above procedures performed the management’s determination of the net realizable value of the inventory of sugar as at the year-end and comparison with cost for valuation of inventory is considered to be reasonable.

 

2. Recognition of Deferred Tax Assets (DTA) relating to minimum alternate tax (MAT) credit entitlement and re-measurement of Deferred Tax
As on March 31 2021 the company has recognised deferred tax asset relating to MAT credit entitlement amounting to H155.36 Crore. Also company has re-measured its deferred tax assets and liabilities based on the expected adoption of lower tax regime u/s 115BAA of Income Tax Act to be applied in future. Principal Audit Procedures
The Company exercises significant the recoverability of DTA relating to MAT credit & reversal of DTL relating to dual income tax rates. In estimating the same management uses inputs such as internal business and tax projections over a 10-year period. We considered relevant notifications/circulars issued by Income tax department and provisions of Income Tax Act 1961 and relevant accounting standard and clarification given by Ind AS Technical Facilitation Group (ITFG).
We considered this matter as key audit matter as it is sensitive to the assumptions used by management in projecting the future taxable income the reversal of deferred tax liabilities which can be scheduled and tax planning strategies. We also understood the various assumptions and judgements made by the management relating to forecast of future profitability projections and future taxable profits for making assessment of utilization of MAT credit entitlement and for migration to new tax regime.
We evaluated the reasonableness and tested the appropriateness of those underlying assumptions and judgements based on the existing parameters and business environment. We performed a sensitivity analysis over the key assumptions to assess their impact on the Company’s determination that the DTA relating to carry forward losses and MAT credit were realizable.
We considered the issue of recognition of deferred tax asset and liabilities based on the tax rates expected to be applied at the time of its reversal and assessed the appropriateness of Company’s accounting policy for recognition of deferred tax assets and liabilities and compliance of the policy with the requirement of prevailing accounting standards.
Based on the above procedures performed the recognition of deferred tax assets relating to the MAT credit entitlement and measurement of deferred tax assets and liabilities using the tax rates applicable at the time of reversal are considered adequate and reasonable.

 

3. Contingent Liabilities- Contingencies related to Regulatory Direct and Indirect tax matters
The Company has material contingencies related to Regulatory Direct and Indirect tax matters which are under dispute with various authorities as more fully described in Note 40 (I) to theStandalone financial statements. The Company exercises significant judgment to determine the possible outcome of these disputes. Thereafter the Company makes a determination for recording/write-back of provisions or alternatively disclosing them as contingencies unless the matters are considered as remote. Principal Audit Procedures
We identifiedthis as a key audit matter because the estimates on which these amounts are based involve a significant degree of management judgement in interpreting the cases and it may be subject to management bias. We have obtained an understanding of the Company’s internal instructions and procedures in respect of estimation and disclosure of contingent liabilities and adopted the following audit procedures:
1) understood and tested the design and operating effectiveness of controls as established by the management for obtaining all relevant information for pending litigation cases;
2) discussing with the management any material developments and latest status of legal matters;
3) read various correspondences and related documents pertaining to litigation cases produced by the management and performed substantive procedures on calculations supporting the disclosure of contingent liabilities; examining management’s judgements and assessments whether provisions are required; considering the management assessments of those matters that are not disclosed as the probability of material outflow is considered to be remote;
4) reviewing the adequacy and completeness of disclosures; Based on the above procedures performed the estimation and disclosures of contingent liabilities are considered to be adequate and reasonable.

Information Other than the Standalone Financial Statements and Auditor’s ReportThereon

The Company’s Board of Directors is responsible for the other information. Theother information comprises the information included in the Company’s annual reportbut does not include the Consolidated Financial Statements Standalone FinancialStatements and our auditor’s reports thereon.The aforesaid report is expected to bemade available to us after the date of this auditor’s report.

Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the StandaloneFinancial Statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated.

When we read the company’s annual report and if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance and shall take appropriate actions if required.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation and presentation of these StandaloneFinancial Statements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.

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 judgements 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.

In preparing the Standalone Financial Statements the Board of Directors is responsiblefor assessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

ThoseBoard of Directors are responsible for overseeing the Company’s financialreporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influencethe economic decisionsof users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Standalone FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial system with reference to Standalone Financial statement inplace and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast continue as significant a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in our auditor’s report to the related disclosures in the StandaloneFinancial Statements or if such disclosures are inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor’sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the

Standalone Financial Statements that individually or in aggregate makes it probablethat the economic decisions of a reasonably knowledgeable user of the financial statementsand may be influenced. qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements.

We communicate with those charged with governance regarding among other matters theplanned scope and including timing of the audit and significant we identify anysignificant during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial

Statements of the current period and are therefore the key audit matters. We describethese matters in our auditor’s report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors’ 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 to the extent applicable.

2. As required by Section 143(3) of the Act based on our report 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 Standalone Balance Sheet the Standalone Statement of Profit and Loss(including comprehensive income) the Standalone Statement of Changes in Equity and theStandalone Statement of Cash Flow dealt with by this report are in agreement with thebooks of account.

(d) In our opinion the aforesaid Standalone Financial Statements comply with the IndAS specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

(e) On the basis of the written representations received from the directors as on March31 2021taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct.

(f) With respect to the adequacy of the internal financial controls over financialreporting with reference to Standalone Financial Statements of the Company and theoperating effectiveness of such controls refer to our separate Report in "AnnexureB". Our report expresses an unmodified opinion on the adequacy and operatingeffectiveness of the Company’s internal financial controls over financial reporting

(g) With respect to the matter to be included in the Auditor’s Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand according to the information and explanation given to us the remuneration paid duringthe current year by the Company to its directors is in accordance with the provisions ofSection 197 of the Act. The remuneration paid to any director is not in excess of thelimit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has notprescribed other details under Section 197(16) of the Act which are required to becommented upon by us.

(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 as at March 31 2021onits financial position in its Standalone Financial Statements. Refer Note - 39 to theStandalone Financial Statements;

ii. The 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 tothe Investor Education and Protection Fund by the Company.

For Atul Garg & Associates For T R Chadha & Co LLP
Chartered Accountants Chartered Accountants
Firm Registration No.001544C Firm Registration No.006711N/N500028
Fiza Gupta Neena Goel
Partner Partner
Membership No. 429196 Membership No. 057986
UDIN: 21429196AAAAAJ5131 UDIN: 21057986AAAAFL2118
Place of signature: Kanpur Place of signature: New Delhi
Date: April 24 2021 Date: April 24 2021

Annexure A to the Independent Auditors’ Report

Referred to in our report of even date to the members of Dhampur Sugar Mills Limited onthe Standalone Financial Statements for the year ended March 31 2021 we report that:

(i) (a) In our opinion and according to the information and explanation given to usduring the course of audit the company has maintained proper records showing fullparticulars including quantitative details and situation of property plant and equipment.

(b) In our opinion and according to the information and explanation given to us duringthe course of audit property plant and equipment have been physically verified by themanagement at reasonable intervals having regard to the size of the company and the natureof its assets and no material discrepancy was to book noticed on such verificationrecords.

(c) According to the information and explanations given to us and on the basis ofrecords examined by us the title deeds of the immovable properties are held in the nameof the company.

(ii) In our opinion and according to the information and explanations given to usinventories have been physically verified by the management at reasonable intervals havingregard to the size of the company and no material compared discrepancy was noticed on suchverification to book records.

(iii) In our opinion and according to the information and explanation given to usduring the course of audit the Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013. Therefore sub clauses (a) (b)& (c) of paragraph 3(iii) the Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanation given to us duringthe course of audit the Company has complied with the provisions of Section 185 and 186of the Act with respect to the loans given investments made guarantees and securitiesgiven.

(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 thereunder in respect of deposits accepted during the year. As informed to us noOrder has been passed by the Company Law Board or National Company Law Tribunal or ReserveBank of India or any court or any other Tribunal 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 records have been made andmaintained.

We have however not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and the books andrecords examined by us we state that the company is generally regular in depositingundisputed statutory dues including provident fund employees’ state insuranceincome-tax sales tax service tax goods and service tax duty of customs duty ofexcise value added tax cess and any other statutory dues as applicable with theappropriate authorities There are no undisputed statutory dues as referred to above as atMarch 31 2021 outstanding for a period of more than six months from the date they becomepayable We have been informed by the Company that they are in process of getting thesereturns rectified and are hopeful that these demands will be substantially reduced afterrectification.

(b) In terms of the information and explanations sought by us and given by the companyand the books and records examined by us in the normal course of audit and to the best ofour knowledge and belief we state that there are no dues of income tax or sale tax orservice tax or goods and service tax or duty of customs or duty of excise or value addedtax or cess which have not been deposited on account of any dispute except mentioned inAnnexure-A1.

(viii) According to the information and explanations given to us and the books andrecords examined by us in our opinion the Company has not defaulted in repayment ofloans and borrowings to any financial institution bank and government during the period.The Company has not borrowed any money by 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 have been applied for the purposes for which they were obtained. The companydid not raise any money by way of initial public offer or further public offer during thecurrent year.

(x) To the best of our knowledge and according to the information and explanation givento us no fraud by the company or on the company by its officers or employees has beennoticed or reported during the year.

(xi) In our opinion and according to the information and explanation given to us duringthe course of audit the company has paid managerial remuneration in accordance with therequisite approvals as mandated by the provisions of Section 197 of the Act read withSchedule V of the Act.

(xii) In our opinion and according to the information and explanation given to usduring the course of audit the company is not a Nidhi company. Therefore clause 3(xii)of the Order are not applicable.

(xiii) In our opinion and according to the information and explanations given to usthe Company is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Standalone Financial Statements as required by theapplicable accounting standards.

(xiv) In terms of the information and explanations sought by us and given by thecompany and the books and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state that the company has not made any preferentialallotment or private placements of shares or fully or partly convertible debentures duringthe year.

(xv) In terms of the information and explanations sought by us and given by the companyand the books and records examined by us in the normal course of audit and to the best ofour knowledge and belief we state that the Company has not entered into non- cashtransaction with directors or persons connected with him. Therefore paragraph 3(xv) Orderis not applicable.

(xvi) In our opinion and according to the information and explanation given to usduring the course of audit the Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934.

For Atul Garg & Associates For T R Chadha & Co LLP
Chartered Accountants Chartered Accountants
Firm Registration No.001544C Firm Registration No.006711N/N500028
Fiza Gupta Neena Goel
Partner Partner
Membership No. 429196 Membership No. 057986
UDIN: 21429196AAAAAJ5131 UDIN: 21057986AAAAFL2118
Place of signature: Kanpur Place of signature: New Delhi
Date: April 24 2021 Date: April 24 2021

Annexure A1 to the Independent Auditors’ Report:

(Referred to in paragraph vii (b) under ‘Annexure A to the Independent AuditorsReport section of our report of even date)

Name of the Statute Nature of Dues Amount in H Crore Period to which the amount relates Forum where the dispute is pending
1 Central Excise Act 1944 Excise Duty 0.01 2003-04 Hon’ble Supreme Court
2 Central Excise Act 1944 Excise Duty 0.02 2005-06 Hon’ble Supreme Court
3 Central Excise Act 1944 Excise Duty 0.01 2012-13 Hon’ble Supreme Court
4 Central Excise Act 1944 Excise Duty # 2012-13 Hon’ble Supreme Court
sub-total 0.04
1 Central Excise Act 1944 Excise Duty # 1998-99 Honorable High Court of Allahabad
2 Central Excise Act 1944 Excise Duty 0.01 2001-02 Honorable High Court of Allahabad
3 Central Excise Act 1944 Excise Duty # 2004-05 Honorable High Court of Allahabad
4 Central Excise Act 1944 Excise Duty # 2004-05 Honorable High Court of Allahabad
5 Central Excise Act 1944 Excise Duty 0.01 2004-05 Honorable High Court of Allahabad
6 Central Excise Act 1944 Excise Duty 0.02 2005-06 Honorable High Court of Allahabad
7 Central Excise Act 1944 Excise Duty 0.04 2010-11 Honorable High Court of Allahabad
sub-total 0. 08
1 Central Excise Act 1944 Excise Duty 0.04 1995-96 CESTAT Allahabad Bench
2 Central Excise Act 1944 Excise Duty # 1996-97 CESTAT Allahabad Bench
3 Central Excise Act 1944 Excise Duty 0.01 2003-04 CESTAT Allahabad Bench
4 Central Excise Act 1944 Excise Duty 0.03 2004-05 CESTAT Allahabad Bench
5 Central Excise Act 1944 Excise Duty 0.03 2004-05 CESTAT Allahabad Bench
6 Central Excise Act 1944 Excise Duty 0.26 2005-06 CESTAT Allahabad Bench
7 Central Excise Act 1944 Excise Duty 0.04 2006-07 CESTAT Allahabad Bench
8 Central Excise Act 1944 Excise Duty 0.04 2009-10 CESTAT Allahabad Bench
9 Central Excise Act 1944 Excise Duty # 2009-10 CESTAT Allahabad Bench
10 Central Excise Act 1944 Excise Duty 2.89 2010-11 CESTAT Allahabad Bench
11 Central Excise Act 1944 Excise Duty 4.75 2010-11 CESTAT Allahabad Bench
12 Central Excise Act 1944 Excise Duty 3.09 2010-11 CESTAT Allahabad Bench
13 Central Excise Act 1944 Excise Duty 2.08 2014-15 CESTAT Allahabad Bench
sub-total 13.25
1 Central Excise Act 1944 Excise Duty # 2001-02 Commissioner Appeal
2 Central Excise Act 1944 Excise Duty # 2004-05 Commissioner Appeal
3 Central Excise Act 1944 Excise Duty # 2004-05 Commissioner Appeal
4 Central Excise Act 1944 Excise Duty 0.05 2009-10 Commissioner Appeal
5 Central Excise Act 1944 Excise Duty 0.31 2011-12 Commissioner Appeal
6 Central Excise Act 1944 Excise Duty 0.14 2015-16 Commissioner Appeal
7 Central Excise Act 1944 Excise Duty 0.38 2016-17 Commissioner Appeal
sub-total 0.88
Total Excise duty demands 14.25
1 Service Tax Law Service Tax 0.56 2009-10 CESTAT Allahabad Bench
2 Service Tax Law Service Tax 0.11 2015-16 CESTAT Allahabad Bench
Total Service tax demands 0.66
Total Excise duty & Service tax demands 14.91

 

Name of the Statute Nature of Dues Amount in H Crore Period to which the amount relates Forum where the dispute is pending
1 U.P. Trade Tax Act 1948 Trade Tax 0.37 2014-15 Additional Commissioner (Appeals)
2 U.P. Trade Tax Act 1948 Trade Tax 0.65 2014-15 Additional Commissioner (Appeals)
3 U.P. Trade Tax Act 1948 Trade Tax 0.51 2015-16 Additional Commissioner (Appeals)
4 U.P. Trade Tax Act 1948 Trade Tax # 2015-16 Additional Commissioner (Appeals)
5 U.P. Trade Tax Act 1948 Trade Tax 0.66 2016-17 Additional Commissioner (Appeals)
6 U.P. Trade Tax Act 1948 Trade Tax 0.07 2016-17 Additional Commissioner (Appeals)
7 U.P. Trade Tax Act 1948 Trade Tax 0.50 2017-18 Additional Commissioner (Appeals)
8 U.P. Trade Tax Act 1948 Trade Tax 0.03 2017-18 Additional Commissioner (Appeals)
Total Trade tax demands 2.81
1 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.82 1994-95 Honorable High Court of Allahabad
2 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 1.06 1994-95 Honorable High Court of Allahabad
3 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 1.25 1995-96 Honorable High Court of Allahabad
4 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.37 1995-96 Honorable High Court of Allahabad
5 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.89 2001-02 Honorable High Court of Allahabad
Sub-total 4.39
1 U.P. Tax on Entry of Goods into Entry Tax 0.02 2000-01 Commercial Tax Tribunal
Local Area Act 2007
Sub-total 0.02
1 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.05 2014-15 Additional Commissioner (Appeals)
2 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.03 2017-18 Additional Commissioner (Appeals)
3 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.07 2015-16 Additional Commissioner (Appeals)
4 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.41 2016-17 Additional Commissioner (Appeals)
5 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.19 2017-18 Additional Commissioner (Appeals)
Sub-total 0.75
1 U.P. Tax on Entry of Goods into Local Area Act 2007 Entry Tax 0.01 2010-11 Additional Commissioner
Sub-total 0.01
Total Entry tax demands 5.17
Total Trade tax and Entry tax demands 7.98

# represents where value is less than H50000/-

Annexure B to the Independent Auditors’ Report on the Standalone FinancialStatements of the Dhampur Sugar Mills Limited for the year ended March 31 2021

Report on the Internal Financial Controls with reference to aforesaid StandaloneFinancial Statementsunder Clause (i) of Subsection 3 of Section 143 of the Companies Act2013 ("the Act") (Referred to in paragraph 2 (f) under ‘Report on OtherLegal and Regulatory Requirements’ section of our report of even date)

Opinion

We have audited the internal financial controls over financial reportingof DhampurSugar Mills Limited ("the Company") as of March 31 2021 in conjunction with ouraudit of the Standalone Financial Statements of the Company for the year ended on thatdate.

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting and such internal financial controls were operatingeffectively as at March 31 2021 based on the internal financial controls over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India (the"Guidance Note").

Management’s Responsibility sufficient and appropriate tofor Internal FinancialControls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal financial controls over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to the 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 the Companies Act 2013 (hereinafter referred to as "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 accordancewith the Guidance Note and the Standards on Auditing prescribed under Section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls withreference to Standalone Financial Statements. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and whether such controls operated effectively inall material respects. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls overfinancial reporting assessing the risk that a material weakness exits and testing andevaluating the design and operating effectiveness of the internal controls based on theassessed risk. The procedures selected depend on the auditor’s judgement includingthe assessment of the risk of misstatement of the Standalone Financial Statements whetherdue to fraud or error. We believe that the audit evidence we have obtained is a basis forour audit opinion on the Company’s internal financial controls over financialreporting.

Meaning of Internal Financial Controls with reference to Standalone FinancialStatements

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 Standalone Financial Statements for external purposes in accordancewith generally accepted accounting principles. A company’s internal financialcontrols over financial reporting include those policies and procedures that

(1) pertain to the maintenance of records that in reasonable transactions and detailaccurately and fairly reflect dispositions of the assets of the company;

(2) 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 authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea material effect on the Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls with reference to StandaloneFinancial Statements Because of the inherent limitations of internal financial controlsover financial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrols over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

For Atul Garg & Associates For T R Chadha & Co LLP
Chartered Accountants Chartered Accountants
Firm Registration No.001544C Firm Registration No.006711N/N500028
Fiza Gupta Neena Goel
Partner Partner
Membership No. 429196 Membership No. 057986
UDIN: 21429196AAAAAJ5131 UDIN: 21057986AAAAFL2118
Place of signature: Kanpur Place of signature: New Delhi
Date: April 24 2021 Date: April 24 2021

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