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Girdharilal Sugar & Allied Industries Ltd.

BSE: 507506 Sector: Industrials
NSE: NARMADASUG ISIN Code: INE310M01010
BSE 00:00 | 25 Feb Girdharilal Sugar & Allied Industries Ltd
NSE 05:30 | 01 Jan Girdharilal Sugar & Allied Industries Ltd
OPEN 10.28
PREVIOUS CLOSE 10.28
VOLUME 100
52-Week high 10.28
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 20
Buy Price 0.00
Buy Qty 0.00
Sell Price 10.28
Sell Qty 500.00
OPEN 10.28
CLOSE 10.28
VOLUME 100
52-Week high 10.28
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 20
Buy Price 0.00
Buy Qty 0.00
Sell Price 10.28
Sell Qty 500.00

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

Company auditors report

TO THE MEMBERS OF

GIRDHARILAL SUGARS AND ALLIED INDUSTRIES LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of GIRDHARILALSUGARS AND ALLIED INDUSTRIES LIMITED (The Company) and the statement of Profit andLoss (including Other Comprehensive Income) the Cash Flow statement and the Statement ofChanges in Equity for the year ended 31st March 2019 and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.

OPINION

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by 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 of aairs of the Company as at March 31 2019 and its total comprehensive income (comprisingof profit and other comprehensive income) its cash flows and the changes in equity forthe year ended on that date.

BASIS FOR OPINION

We concluded our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained as sufficient andappropriate to provide a basis for our opinion subject to Basis of Qualified Opinion givenhereunder :-

BASIS OF QUALIFIED OPINION

The Company has not provided Rs. 74.94 Lacs for the quarter ended31.3.2019 towards interest on loans from Banks.

Had the above liability been considered there would have been a loss ofRs.186.93 Lacs as against the reported loss of Rs. 111.99 Lacs and other equity as at thebalance sheet date would have been Rs. (-) 348.42 Lacs as against reported gure of Rs.(-)273.48 Lacs.

QUALIFIED OPINION

In our opinion and to the best of our information and according to theexplanations given to us except for the the ects of the matter described in the Basis forQualified Opinion paragraph above the aforesaid standalone financial statements give theinformation required by 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 of aairs of the Company as at 31st March 2019 and its pro t/loss and its cash flows for theyear ended on that date.

EMPHASIS ON MATTERS

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

a) Note No. 37 in respect of interest liability on unpaid undisputedstatutory dues if any.

Our opinion is not modified in respect of this matter

b) Note No. 22c in respect of non-deposition of unclaimed debenturesamount to Investors Education and Protection Fund Account.

c) Note No. 36 in respect of non-provision of MAT Liability undersection 115JB of the Income Tax Act of 1961 of Rs.24473898/- for the F.Y. 14-15 to 17-18.

KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgmentwere of the most significance in our audit of the financial statements of the currentperiod. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters except para (2) hereunder:-

Key Audit Matter Description How our Audit addressed the key audit matter
1) Considering the company's business as a going concern and the accounts prepared in accordance with. We understood and tested the controls established by the management and evaluated that the company's soya division business has temporarily been discontinued due to disparity of margin. However the company has continued in doing its dairy business which gives good cash margin. Based on these factors we relied that the company's business is still to be continued as a going concern company.
2) Non-provision of interest of Rs.74.94 Lacs on loan taken from banks for the quarter ended 31.3.2019. We understood and tested the controls established by the management and evaluated that as the company has not made the provision of interest liability of Rs. 74.94 Lacs for the quarter ended 31.3.2019 on the ground that the company's Account has been treated by the bank as a Non-Performing Asset account and also a symbolic possession of the asset taken over by the bank. We do not agree with the reasoning given by the Company and are of the view that the company should have made a provision of interest liability even the bankers have declared the account as a Non-Performing Asset account. We have taken up this matter in our report as our qualified opinion.
3) Non-Provision of the MAT liability for the F.Y. 14-15 TO 17-18 of Rs. 24473898 (Refer Note No. 36) We understood and tested the controls established by the management and evaluated that the non-provision of MAT Liability for the A.Y. 14-15 to 17-18 of Rs. 24473898 is not in the nature of contingent liability but still has to be provided in the books. The total liability which was not provided by the company has been explained fully in Note No. 36 as referred and we are of the view that the company should have provided this liability. We have referred this matter in Emphasis of Matter for the knowledge of the stakeholders.

OTHER INFORMATION

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the annualreport but does not include the financial statements and our auditor's reportthereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit6 or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there ismaterial misstatement of this information we are required to report the fact.

We have nothing to report in this regard.

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FORTHE STANDALONE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone Ind AS financial statements to give a true and fairview of the financial position financial performance (including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standardsspecified in the Companies (Indian Accounting Standards) Rules 2015 (as amended) underSection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone Ind AS financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern basis of accounting unless management eitherintends to liquidate the Company or to cease operations or has no realistic alternativebut to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIALSTATEMENTS

Our objectives are to obtain reasonable assurance about whether thefinancial 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 influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the 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 inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(I) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause theCompany to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant de ciencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements 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 (Auditor's Report) order 2015("the order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the annexure a statement on thematters specified in paragraphs 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 explanationswhich to the best of 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 beenkept by the company so far as appears from our examination of those books of the Company.

c. The Balance Sheet the Statement of Pro t and Loss (including othercomprehensive income) the Cash Flow Statement and the Statement of Changes in Equitydealt with by this Report are in agreement with the books of account.

d. In our opinion the aforesaid Standalone Ind AS financial Statementsdealt with by this repot comply with the account standards specified under section 133 ofthe Act read with rule 7 of Companies (Accounts) Rules 2014.

e. On the basis of written information received from the directors ofthe Company and taken on record by the Board of Directors as on 31st March 2019 and theinformation and explanations given to us we report that none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms ofsubsection (2) of section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls overfinancial reporting of the company and the operating effectiveness of such controls referto our separate report in "Annexure B" and

g. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:-

(i) The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements as referred to in note no.40 to thefinancial statements.

(ii) The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any and as required onlong-term contracts including derivative contracts.

(iii) According to the information and explanations given to us thecompany has not transferred a sum of Rs.80.41 lacs to on account of unclaimed debentureaccount. However as per BIFR order dated 15.01.2014 the company was exempted from theprovisions of Sec 125 of the Companies Act 2013 (erstwhile section 205C of the CompaniesAct 1956) and deferred the same payment till2016-17.

Place: Dewas For SUNIL BANDI & CO.
Date : 28th May 2019 Chartered Accountants
F. R. No. 007419C
CA Sunil Bandi
(Partner)
M. No. 077705

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