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Dwarikesh Sugar Industries Ltd.

BSE: 532610 Sector: Agri and agri inputs
NSE: DWARKESH ISIN Code: INE366A01041
BSE 00:00 | 17 Jan 24.95 -0.50
(-1.96%)
OPEN

25.45

HIGH

25.55

LOW

24.80

NSE 00:00 | 17 Jan 25.00 -0.50
(-1.96%)
OPEN

25.40

HIGH

25.75

LOW

24.90

OPEN 25.45
PREVIOUS CLOSE 25.45
VOLUME 42727
52-Week high 49.70
52-Week low 14.05
P/E 9.24
Mkt Cap.(Rs cr) 470
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 25.45
CLOSE 25.45
VOLUME 42727
52-Week high 49.70
52-Week low 14.05
P/E 9.24
Mkt Cap.(Rs cr) 470
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dwarikesh Sugar Industries Ltd. (DWARKESH) - Auditors Report

Company auditors report

To The Members of

Dwarikesh Sugar Industries Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Dwarikesh SugarIndustries Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2018 Statement of Profit and Loss (including the statement of othercomprehensive income) the Statement of Cash Flow and the Statement of Changes in Equityfor the year then ended and a summary of Significant Accounting Policies and otherexplanatory information (herein after referred to as "Ind AS FinancialStatements").

Management's Responsibility for the Ind AS 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 Ind AS Financial Statements that give a true and fair view of the financialposition financial performance including other comprehensive income Cash Flows andChanges in Equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended thereof.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of assets of the Company andfor preventing 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 of theaccounting records relevant to the preparation and presentation of the Ind AS 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 Ind AS Financial Statements basedon our audit. In conducting our audit we have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made thereunder and theOrder issued under Section 143(11) of the Act.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theI nd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation of the Ind AS financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe 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 2018 its profit including other comprehensive income its cash flows andthe changes in equity for the year ended on that date.

Other Matter

The comparative financial information of the Company for the year ended March 31 2017and the transition date opening balance sheet as at April 01 2016 included in this I ndAS Financial Statements are based on the previously issued statutory financial statementprepared in accordance with the Companies (Accounting Standards)Rules 2006 audited andreported by S.S. Kothari Mehta & Co. having firm registration number 000756N who haveissued an unmodified audit report dated May 18 2017 and May 24 2016 have been furnishedto us by the management and which have been relied upon by us for the purpose of issuingthe report on the financial statement as adjusted for the differences in the accountingprinciples adopted by the Company on transition to Ind AS which has been audited by us.

Our report is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's report) Order 2016 (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 andobtained all the information and explanations which to the best of our knowledge andbelief 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 statement of profit and loss including statement of othercomprehensive income the cash flow statement and statement of changes in equity dealtwith by this Report are in agreement with the books of account;

d. In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended thereof;

e. On the basis of the written representations received from the directors as on March31 2018 taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2018 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 of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B";

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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements – Refer Notes 41 to the Ind AS financialstatements;

ii. The 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 to theInvestor Education and Protection Fund by the Company during the year ended M arch 312018.

For NSBP & CO.
Chartered Accountants
Firm's Registration No. 001075N
Deepak K. Aggarwal
Place: Mumbai Partner
Date: May 7 2018 Membership No: 095541

Annexure A to the Independent Auditor's Report to the members of Dwarikesh SugarIndustries Limited dated May 07 2018.

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 income tax sales tax servicetax customs duty excise duty Value added tax cess and other material statutory duesas applicable with the appropriate authorities. Employees' state insurance is notapplicable on the company. Further there were no undisputed amounts outstanding at theyear-end for a period of more than six months 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 ExciseDuty I ncome Tax Service Tax and Sales Tax along with the forum where dispute ispending:

Name of the statue Nature of dues (Rs. in Lakhs) Period to which the amount pertains Forum where dispute is pending
Central Excise Act 1944 Excise duty and 158.99 penalty Jan-05 to Dec-05Apr-06 to Dec-07June-07 to Nov -07 March 09 CESTAT Mumbai
Central Excise Act 1944 Excise duty and 29.15 penalty Jun-05 to Mar-06Apr-06 to Dec-06Jan-07 to Feb-0701- 03-2007Jun-07 to Aug-08Nov-07 to Aug-08Jan-08 to Dec-08Jan-07 to Oct-07 Transfer to AC/DC from CESTAT Mumbai
Central Excise Act 1944 Excise duty and 39.11 penalty Oct-10 to Mar-11 Apr-10 to Sep-10 Apr-11 to Dec-11 Apr- 11 to Sep-11 Nov-07 to Dec-07Feb-09 to Sep-09 Apr-09 to Sep-09Oct-09 to Mar-10 Oct-13 to Dec 14 Jan-16 to Dec-16 Nov-16 to Dec-16 Apr-16 to Mar-17 Apr-17 to Jun- 17 Jan-17 to Jun-17 Jan-14 to Feb-15 Mar-15 to Jan-16 Commissioner (Appeals) Meerut
Finance Act 1994 Service Tax 0.06 Oct-09 to Mar-10 Commissioner (Appeals) Meerut
Central Excise Act 1944 Excise duty 1.21 Jun-05 to Mar-06 Transfer to AC/DC from CESTAT Delhi
Finance Act 1994 Service Tax duty 31.26 and penalty Sep-14 to Jun-15 Oct-09 to Aug-14 Jul-15 to May-16 CESTAT Allahabad
Finance Act 1994 Service Tax 46.12 Dec-09 to Aug-14 High Court
Uttar Pradesh Tax On Entry tax on Iron 0. 85 2013-14 Additional
Entry of Goods into Local Areas Act 2007 Steel Purchases Commissioner (Appeal) Bijnor (UP)
Uttar Pradesh Tax On Entry tax on Iron 0.49 2015-16 Additional
Entry of Goods into Steel Purchases Commissioner
Local Areas Act 2007 (Appeal) Bijnor (UP)
UP VAT Act VAT on Molasses 14.57 2016-17 Additional
Commissioner
(Appeal) Bijnor (UP)

(viii) According to the information and explanations given to us and as per the booksand records examined by us the Company has not defaulted in repayments of its dues toGovernments banks and financial institution. 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 or termloan during the financial year hence the related reporting requirements of the Order arenot applicable.

(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 N idhi 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 explanations given to us and on an overallexamination of the balance sheet the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe company and not commented upon.

(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 NSBP & CO.
Chartered Accountants
Firm's Registration No. 001075N
Deepak K. Aggarwal
Place: Mumbai Partner
Date: May 7 2018 Membership No: 095541

Annexure B to the Independent Auditor's Report to the members of Dwarikesh SugarIndustries Limited dated May 07 2018.

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 1(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 2018 in conjunctionwith our audit of the Ind AS financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the "Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting 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 theGuidance 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 judgement 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 companys' 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 companys' 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2018 based on "the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India"

For NSBP & CO.
Chartered Accountants
Firm's Registration No. 001075N
Deepak K. Aggarwal
Place: Mumbai Partner
Date: May 7 2018 Membership No: 095541