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Prudential Sugar Corporation Ltd.

BSE: 500342 Sector: Agri and agri inputs
NSE: PRUDMOULI ISIN Code: INE024D01016
BSE 05:30 | 01 Jan Prudential Sugar Corporation Ltd
NSE 05:30 | 01 Jan Prudential Sugar Corporation Ltd

Prudential Sugar Corporation Ltd. (PRUDMOULI) - Auditors Report

Company auditors report

ON THE AUDIT OF THE STANDALONE FINANCIAL RESULTS

To

The Board of Directors of

Prudential Sugar Corporation Limited

Opinion

We have audited the accompanying financial statements of PRUDENTIALSUGAR CORPORATION LIMITED ("the Company") which comprise the balance sheet asat March 31 2022 and the Statement of Profit and Loss and statement of cash flows forthe year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 (‘Act') in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2022 its profit and cash flows for theyear ended on that date.

Basis for opinion

We conducted our audit in accordance with the Standards on Auditing("SA" s) specified under section 143 (10) of the Act . Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Standalone Financial Results section of our report. We are independent of theCompany in accordance with the code of Ethics issued by the Institute of CharteredAccountants of India("ICAI") together with the ethical requirements that arerelevant to our audit of the Standalone Financial Results under the provisions of the Actand the Rules there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.

Management's Responsibility for the Standalone Financial Results

This statement which is the responsibilities of the Company'sManagement and approved by the Board of Directors has been compiled from the relatedaudited interim condensed standalone financial statements for the year ended March 312021. The company's Board of Directors is responsible for the preparation andpresentation of the standalone financial results that give a true and fair view of the netprofit and other comprehensive income and other financial information in accordance withthe recognition and measurement principles prescribed under Section 133 of the Act readwith relevant rules issued thereunder and other accounting principles generally acceptedin India. This responsibilities 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 standalone financial results that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial results the Board of Directors isresponsible for assessing the Company's ability to continue as going concern.Disclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The board of directors are also responsible for overseeing theCompany's financial reporting process of the Company.

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 standalone financial results. As part of an audit inaccordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of thestandalone financial results whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances but not forpurpose of expressing an opinion on the effectiveness of the Company's internalcontrol.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates made by the Board of Directors.

Conclude on the appropriateness of Board of Directors using of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the ability of the Company's to continue as a going concern. If we concludethat a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the statement or if such disclosuresare inadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thestandalone financial results including the disclosures and whether the standalonefinancial results represent the underlying transactions and events in a manner thatachieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the standalonefinancial results of the Company to express an opinion on the standalone financialresults.

Materiality in the magnitude of misstatement in the standalonefinancial results that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the standalone financial results may beinfluenced. We consider quantitative materiality and qualitative factors in (i) Planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the standalone financial results.We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

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.

Report on other Legal and Regulatory Requirements

As per the information and explanations given to us together withexamination of books of accounts we report that Companies (Auditor's Report) Order2016("The Order") As issued by the Central Government of India in terms ofsubsections (11) of section 143 of the Act is applicable As required by section 143(3) ofthe Act we report to the extent applicable that; we have sort and obtained all theinformation and explanations which to the best of our knowledge and belief were necessaryfor the purposes of our audit. In our opinion proper books of account as required by lawhave been kept by the Company so far as it appears from our examination of those books;The balance sheet the statement of Profit and Loss and Cash Flow Statement dealt with bythis Report are in agreement with the books of account;

In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014;

On the basis of the written representations received from the directorsas on 31 March 2020 taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31 March 2021 from being appointed as a director in termsof Section 164 (2) of the Act;

According to information and explanations given to us together with ourAudit examination reporting with respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols is not applicable on the Company;

with respect to the other matters to be included in the Auditor'sReport under section 197(16) of the Act In our opinion and to the best of our informationand according to the explanations given to us provisions of section 197 are notapplicable on the Company.

with respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 inour opinion and the to the best of our information and according to the explanations tous: the Company does not have any pending litigations which would impact its financialposition the Company did not have any long term contracts including derivatives contractsfor which there were any material foreseeable losses There were no amounts that wererequired to be transferred to the Investor Education and Protection Fund by the Company.As required by the companies ( Auditor's Report ) Order 2020 ( the Order) issued bythe Central Government in terms of Section 143(1) of the Act we give in "AnnexureB" a statement on the matters specified in paragraphs 3 and 4 of the Order.

(Referred to in paragraph 1 under ‘Report on other Legal andRegulatory Requirements' section of our report of even date)

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets (b) The Companyhas a regular programme of physical verification of its fixed by which fixed assets areverified in a phased manner over a period of three years. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets. Pursuant to the programme certain fixed assets physically verifiedduring the year an no material discrepancies were noticed on such verification. (c)According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable propertiesincluded in property plant and equipment are held in the name of the Company.

In respect of immovable properties taken on lease and disclosed asright-of-use-assets in the standalone financial statements the lease agreements or in thename of the Company.

(ii) The Company does not own any closing stock hence reporting under3(i)(a) of the order is not applicable (iii) The Company has made investments inCompanies firms and granted unsecured loans to related and other parties during the yearin respect of which; (a) The Company has not provided any loans or advances in the natureof loans or stood guarantee or provided security to any other entity during the year.

(b) In our opinion the investments made and the terms and conditions ofthe grants of loans during the year or prima facie not pre judicial to the company'sinterest.

(c) In respect of loans granted by the company the schedule ofrepayment of principle and payment of interest has been stipulated and the repayments ofprinciple amounts and receipts of interest are generally been regular as per stipulation.

(d) In respect of loans granted by the company there is no overdueamount remaining outstanding as the balance sheet date.

(e) No loan granted by the company which has fallen due during theyear has been renewed or extended or fresh loan granted to settle the overdues ofexisting loans given to the same parties.

(f) The company has not granted any loans or advances in the nature ofloans either repayable on demand or without specifying any terms or period of repaymentduring the year. Hence reporting under clause 3(iii)(f) is not applicable. The companyhas not provided any guarantee or security or granted any advances in the nature of loanssecured or unsecured to companies firms Limited Liability Partnership or any otherparties.

(iv) The Company has complied with the provisions of Sections 185 and186 of the Companies Act 2013 in respect of loans granted investments made andguarantees and securities provided as applicable

(v) The Company has not accepted any deposits or amounts which aredeemed to the deposits. Hence reporting under clause 3(v) of the order is not applicable.

(vi) The maintenance of cost records not been specified by the centralGovernment under sub section(1) of section 148 of the company's Act 2013 for thebusiness activities carried out by the company. Hence reporting under clause (vi) of theorder is not applicable to the company.

(vii) In respect of statutory dues:

(a) In our opinion the company has generally been regular in depositingundisputed statutory dues including Goods and Services Tax Provident Fund EmployeesState Insurance Income-Tax Sales Tax Service Tax Duty of customs Duty of ExciseValue Added Tax Cess and other material statutory dues applicable to it with theappropriate authorities. There were no undisputed amount payable in respect of Goods andServices Tax Provident Fund Employees State Insurance Income-Tax Sales Tax ServiceTax Duty of customs Duty of Excise Value Added Tax Cess and other material statutorydues in arrears as at March 31 2022 for a period of more than six months from the datethey become payable.

(b) Details of statutory dues referred to in sub clause (a) above whichhave not been deposited as on March 31 2022 on account of disputes are given below;Nature of the status.

(viii) There were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961(43 of 1961).

(ix) (a) The Company has not taken any loans or borrowings from anylender Hence reporting under clause 3(ix)(a) of the order is not applicable.

(b) The company has not been declared will full defaulter by any bankor financial institutions or Government or any government authority.

(c) The company has not taken any term loan during the year and thereare not outstanding term loans at the beginning of the year and hence reporting underclause 3(ix)(c) of the order is not applicable.

(d) On an overall examination of the financial statements of thecompany fund raised on short term basis have prima facie not been used during the yearfor long-term purpose by the company.

(e) On an overall examination of the financial statements of thecompany the company has not taken any funds from any entity or person on account of or tomeet the obligation of its subsideries.

(f) The company has not raised any loans during the year and hencereporting on clause 3(ix)(c) of the order is not applicable.

(x) (a) The Company has not raised money's by way of initialpublic offer or further public offer (including debt instruments) during the year andhence reporting under clause 3 (x)(a) of the Order is not applicable. (b) During the yearthe company has not made any preferential allotment or private placement of shares orconvertible debentures (fully or partly or optionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.

(xi) (a) No fraud by the Company and no material fraud has been noticedor reported during year.

No report under sub section (12) of section 143 of the companies acthas been filed in form ADT-4 as prescribed under rule 13 of companies act(Audit andAuditors) Rules 2014 with the central Government during the year up to date of thisreport.

We have taken in to consideration the Whistle blower complaintsreceived by the company during the year(and up to the date of this report) whiledetermining the nature timing and extent of other audit procedures.

(xii) The company is not a Nidhi company and hence reporting underclause (xii) of the order is not applicable. (xiii) In our opinion the company is incompliance with sections 177 and 188 of the companies Act 2013 with respect to applicabletransactions with the related parties and the details of related parties transactions havebeen disclosed in the standalone financial statements as required by the applicableaccounting standards.

(xiv) (a) In our opinion the company has an adequate internal auditsystem commensurate with the size and the nature of the business.

We have considered the internal audit reports for the year under auditissued to the company during the year and till date in determining the nature timing andextent of our audit procdures.

(xv) In our opinion during the year the Company has not entered intoany non-cash transactions with its directors or persons connected with its directors andhence provision of section 192 of the companies act 2013 are not applicable to thecompany. (xvi) (a) In our opinion the company is registered under section 45-IA of thereserve bank of India Act 1934 In our opinion there is no core investment company withinthe group(as defined in the core investment companies (Reserve Bank) Directors 2016) andaccordingly reporting under clause 3(xvi) (d) of the order is not applicable.

(xvii) The company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.

(xviii) There has been no registration of the statutory auditors of thecompanies during the year.

(xix) On the basis of the financial ratios aging and expected dates ofrealisation of financial assets and payments of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examinations of the evidence supporting the assumptionsnothing has come to our attention which cause us believe that any material un certaintyexists as on the date of the audit report indicating the Company is not capable of meetingits liabilities existing at the date of Balance Sheet as and when they fall due within aperiod of one year from the balance sheet date. We however state that this is not asassurance as to the future viability of the Company. We further state that our report isbased on the facts up to the date of the audit report and we neither give any guaranteenor any assurance that all liabilities falling due within a period of one year from thebalance sheet date will give discharge by the Company as and when they fall due.

(xx) The company is not required to be registered u/s 135 of CompaniesAct 2013 with respect to CSR.

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