To
The Members of
Prudential Sugar Corporation Limited
Report on the Audit of the Standalone Financial Statements Qualified Opinion
1. We have audited the accompanying standalone financial statements of Prudential Sugar
Corporation Limited (the Company), which comprise the Standalone Balance Sheet as at
31st March, 2023, the Standalone Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone Cash Flow Statement and the Standalone Statement of
Changes in Equity for the year ended, and a summary of significant accounting policies and
other explanatory information.
2. In our opinion and to the best of our information and according to the explanations
given to us except for the information referred to in Basis for Qualified opinion of our
report, the aforesaid Consolidated financial statements give the information required by
the Companies Act, 2013 (Act) in the manner so required and give a true and fair view
subject to:
i) The Financial Statements of the company as on 31st March, 2023 have been prepared as
per IND AS. However, this been the first year of adoption of IND AS, we would like to
convey that the company has not followed conversion provisions as per IND AS 101 as on
Transition date and detailed procedure were not made available to us with respect to FMV
of all assets and all liabilities, The impact of the same on these financial statements
are unascertainable;
ii) The Company has various legal cases pending before Honble Courts & other
Government authorities, at various levels, the outcome of these cases cannot be
ascertained;
Deferred tax asset of Rs. 15.25 crores carried forward, detailed calculations of which
were not provided to us, in our opinion it has to be charged to Profit & Loss account
because of which the profit has been over stated to the extent of Rs. 15.25 crores.
The impact of all of the above on the financial statements are unascertainable, gives a
true and fair view in conformity with the generally accepted accounting principles in
India, of the state of affairs of the company as at 31st March, 2023 of its profits and
the cash flows for the year ended 31st March, 2023.
Basis for Qualified Opinion
3. The Balances of Current Assets, Other Non-Current Assets, Non-Current Liabilities,
Other Non-Current Liabilities, Current Liabilities & Other Current Liability are
subject to Confirmation/reconciliations. The Impact of the same is, unascertainable.
4. We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under those standards are further
described in the Auditors Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with
the ethical requirements that are relevant to our audit of the financial statements under
the provisions of the Act and the rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
abasis for our opinion.
Key Audit Matter
5. Key audit matters are those matters that, in our professional judgment, 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 the financial statements asa
whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
6. We have determined the matter described below to be the key audit matters to be
communicated in our report.
| Key Audit Matter |
How our Audit addressed the key audit matter |
| Carrying value of Investment in Subsidiary entity. |
|
| The Company has an investment of Rs. 259.99 lakhs in its subsidiary Prudential Ammana
Sugars ltd |
Review of the disclosures made by the company in the financial statements in this
regard. |
Information other than the Financial Statements and Auditors Report thereon
7. The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual Report, but does not include
the financial statements and our auditors report thereon. Our opinion on the financial
statements does not cover the other information and we will not express any form of
assurance conclusion thereon. In connection with our audit of the financial statements,
our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based
on the work we have performed, we conclude that there is a material misstatement of this
other information; we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of Management for the Standalone financial Statements
8. The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Actwith respect to the preparation of these standalone financial statements
that give a true and fair view of the state of affairs (financial position), profit or
loss (financial performance including other comprehensive income), cash flows and changes
in equity of the Company in accordance with the accounting principles generally accepted
in India, including the Ind AS specified under section 133 of the Act. This responsibility
also includes maintenance of adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets ofthe Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or
error.
9. In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
10. The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the financial Statements
11. Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report on Standalone Financials that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Standards on Auditing will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these
financial statements.
12. As part of an audit in accordance with Standards on Auditing, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or override internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section143(3)(i)
of the Act, we are also responsible for explaining our opinion on whether the company has
adequate internal financial controls system in place and the operating effectiveness of
such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
13. We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
14. We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to communicate
with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
15. From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the financial statements of
the current period and are therefore the key audit matters. We describe these matters in
our auditors report unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
16. As required by the Companies (Auditors Report) Order, 2020 (the Order) issued by
the Central Government of India in terms of section 143(11) ofthe Act, we give in the
Annexure A statement on the matters specified in paragraphs 3 and 4 of the Order.
17. Further to our comments in Annexure A, as requiredby section 143(3) of the Act, we
report that:
a) we have sought and obtained all the information and explanations which 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 been kept by the
Company so far as it appears from our examination of those books;^
c) the standalone financial statements dealtwith by this report are in agreement with
thebooks of account;
d) In our opinion, the aforesaid standalone financial statements comply with Ind AS
specified under section 133 of the Act;
e) on the basis of the written representations received from the directors and taken on
record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2023 from being
appointed as a director in terms of section164(2) of the Act;
f) we have also audited the internal financial controls over financial reporting
(IFCoFR) of the Company as on 31st March, 2023 in conjunction with our audit of the
standalone financial statements of the Company for the year ended on that date and our
report as per Annexure B expressed unmodified opinion; and
g) with respect to the other matters to be included in the Auditors Report in
accordance with rule11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in
our opinion and to the best of our information and according to the explanations given to
us:
i) The Company has disclosed the impact ofpending litigations on its financial position
as at 31st March 2023;
ii) The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses as at 31st March 2023;
iii) There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company during the year ended 31st March
2023; and
As required by section 197(16) of the Act, we report that the Company has paid
remuneration to its directors during the year in accordance with the provisions of and
limits laid down under section 197 read with Schedule V to the Act.
For PPKG& Co
Chartered Accountants
Firms Registration No.: 009655S
Girdhari Lal Toshniwal
Partner
Membership No: 205140
UDIN No: 23205140BGUNHY3510
Place: Hyderabad
Date: 30th May, 2023
ANNEXURE - A TO THE INDEPENDENT AUDITORS REPORT ON THE STANDALONE FINANCIAL STATEMENTS
OF M/S PRUDENTIAL SUGAR CORPORATION UMITED, For THE YEAR ENDED MARCH 31, 2023
Based on the Audit Procedures performed for the purpose of reporting a true and fair
view on the Standalone Financial Statements of the Company and taking into consideration
the information and explanations given to us and the Books of Accounts and other records
examined by us in the normal course of Audit, and to the best of our knowledge and belief,
we report that:
(i)
a) The Company has not maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment.
b) The Company has a regular program of physical verification of its Property, Plant
and Equipment under which all the Assets are verified in a phased manner over a period.
c) The company does not own any Immovable property. However, the company holds a share
in Temple Buildings for which no records are available to ascertain title of the property
d) The Company has not revalued any of its Property, Plant and Equipments during the
year.
e) As per the information given to us there are no proceedings initiated or pending
against the Company for holding any Benami Property under the Benami Transactions
(Prohibition) Act, 1988 and Rules made there under.
(ii)
a) In our opinion and according to the information and explanation give to us, as the
company is engaged in Trading activity, it is not holding any inventory during the year.
Hence this clause is not applicable.
b) The company has not availed any working capital during the year and hence this
clause is not applicable during the year
(iii)
The company has made investments in, provided any guarantee or security or granted any
loans or advances in the nature of loans, secured or unsecured, to companies, firms,
Limited Liability Partnerships
a) (A) Details of loans or advances and guarantees or security to subsidiaries, joint
ventures and associates:
| S.No |
PARTY NAME |
nature of loan |
amount (RS) |
| 1 |
Prudential Ammana Sugars Ltd |
Unsecured |
39,57,65,479 |
(B) Details of loans or advances and guarantees or security to parties other than
subsidiaries, joint ventures and associates:
| S.No |
PARTY NAME |
NATURE OF LOAN |
AMOUNT (RS) |
| 1 |
Anuj Global Homes |
Unsecured |
1,00,04,315 |
| 2 |
Beekay Steels |
Unsecured |
1,15,81,500 |
| 3 |
Reproscan Tech Park |
Unsecured |
60,46,805 |
| 4 |
Sangam Commodities |
Unsecured |
90,76,210 |
| 5 |
Sappers Finance & Consultancy |
Unsecured |
75,04,993 |
| 6 |
Spring Field |
Unsecured |
1,01,92,328 |
| 7 |
Suburban Industries |
Unsecured |
2,18,18,771 |
| 8 |
Utkal Builders |
Unsecured |
89,38,953 |
b) All terms and conditions are as per the benefits of the company and are not
prejudice to companys interest.
c) In respect of loans and advances in the nature of loans, there is no repayment of
principal received during the year whereas accrued interest has been recorded in books but
the same has not been received during the year
d) There is no such amount which is overdue more than 90 Days of above-mentioned loan.
e) No loan or advance in the nature of loan granted which has fallen due during the
year, has been renewed or extended or fresh loans granted to settle the over dues of
existing loans given to the same parties.
f) The company has not granted any loans or advances in the nature of loans, either
repayable on demand or without specifying any terms or period of repayment.
iv) In our opinion and according to the information and explanations given to us, the
Company has notmade any Investments, given Security / Guarantee, which is covered under
the provisions of Section185 and 186 of the Companies Act, 2013. The same is in compliance
with Sections 185 and 186 of the Companies Act, 2013, in respect of Loans.
v) The Company has not accepted any Deposits within the meaning of Sections 73 to 76 of
the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly,
the provisions of Clause 3(v) of the Order are not applicable.
vi) As informed to us that the provisions of Section 148 are not applicable to the
Company.
vii) (a) In our opinion, the Company has been regular in depositing undisputed
statutory dues, including Goods and Services Tax, Income Tax, Sales Tax, Duty of Custom,
Cess and other material statutory dues applicable to it with the appropriate authorities.
There were no undisputed amounts payable in respect of Goods and Service Tax, Income Tax,
Sales Tax, duty of Custom, duty of Excise, Cess and other material statutory dues in
arrears as at March 31, 2023 for a period of more than six months from the date they
become payable. According to the records of the company Rs.26,77,238 is outstanding in
books against TDS liability.
(b) There are no statutory dues referred to in sub-clause (a)above which have not been
deposited as on March 31, 2023 on account of disputes.
viii) There were no transactions relating to previously unrecorded income that have
been surrendered or disclosed as Income during the year in the Tax Assessments under the
Income Tax Act, 1961(43 of 1961).
ix) According to the records of the Company examined by us and as per the information
and explanations given to us, we hereby report that:
a) The Company has not defaulted in repayment of Loans or Borrowings to any Bank during
the Year under review. The Company has No Loans or Borrowings payable to Financial
Institutions or Government and does not have any Outstanding Debentures during the year.
b) The Company is not declared Willful Defaulter by any Bank or Financial Institution
or other Lender.
c) Term loans were applied for the purpose for which the loans were obtained.
d) On an overall examination of the standalone statements of the company, no funds
raised by the Company for short-term has been utilized for long-term purposes.
e) On an overall examination of the standalone statements of the company, the Company
has not taken any funds from any entity or person on account of or to meet the obligations
of its Subsidiaries, Associates or Joint Ventures.
f) The Company has not raised loans during the Year on the Pledge of Securities held in
its Subsidiaries, Joint Ventures or Associate Companies.
(x) a) During the year, the Company has not made any Initial Public Offer during the
year.
b) The Company has not made any Preferential Allotment or Private Placement of Shares
or Convertible Debentures during the year under review.
(xi)
a) In our opinion and according to the information and explanation given to us, no
fraud by the Company or any fraud on the Company has been noticed or reported during the
year under review.
b) No Report under sub-section (12) of Section 143 of the Companies Act has been filed
by the Auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and
Auditors) Rules, 2014 with the Central Government.
c) As represented to us by the Management, no Whistle Blowers Complaints were received
during the year under review.
(xii) The Company is not a Nidhi Company, and accordingly, provisions of Clause 3(xii)
of the Order are not applicable.
(xiii) According to the information and explanation given to us, all transactions with
the related parties are in compliance with Sections 177 and 188 of the Companies Act,
2013, wherever applicable the requisite details have been disclosed in the Financial
Statements.
(xiv) As per the provisions of Companies Act 2013, as the company is a listed entity,
Internal Audit is applicable to it but during the course of audit, Internal Audit Report
was not provided to us.
(xv) (According to the information and explanation given to us, the Company has not
entered in any non-cash transactions with the Directors or persons connected with them
covered under Section 192 of the Act. Accordingly, the provisions of Clause 3(xv) of the
Order are not applicable.
(xvi) According to the information and explanation given to us, the Company is not
required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934 and
the Company has not conducted any NBFC Company during the year.
(xvii) The Company has not incurred cash losses in the Financial Year and in the
immediately preceding Financial Year.
(xviii) There has been no resignation of the Statutory Auditors of the Company during
the year.
(xix) On the basis of the Financial Ratios, ageing and expected dates of realization of
Financial Assets and payment of Financial Liabilities, other information accompanying the
Financial Statements, the Auditors knowledge of the Board of Directors and the
Managements plans, the Auditor is of the opinion that no material uncertainty exists as
on the date of the Audit Report and that the Company is capable of meeting its Liabilities
existing at the Date of Balance Sheet, as and when they fall due within a period of one
year from the Balance Sheet Date. We however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due.
(xx) The Company is not liable to contribute under Section 135 of the Companies Act,
2013.Accordingly, the provisions of Clause 3(xx) of the order are not applicable.
(i) There has been no qualifications and adverse remarks by the respective auditors in
the Companies (Auditors Report) Order (CARO) reports of the companies to be included in
the consolidated financial statements.
For PPKG&Co
Chartered Accountants
Firms Registration No. 009655S
CA Girdhari Lal Toshniwal
Partner
Membership No. 205140
UDIN No: 23205140BGUNHY3510
Date: 30.05.2023 Place: Hyderabad
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE TO THE MEMBERS OF
PRUDENTIAL SUGAR CORPORATION LIMITED, ON THE STANDALONE Financial STATEMENTS For THE YEAR
ENDED 31st MARCH 2023
Independent Auditors Report on the internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Companies act, 2013 (the act)
Opinion
1. In conjunction with our audit of the standalone financial statements of Prudential
Sugar Corporation Limited (the Company) as at and for the year ended 31stMarch 2023, we
have audited the internal financial controls over financial reporting (IFCoFR) of the
Company as at that date.
2) In our opinion, the Company has, in all material respects, adequate internal
financial controls over financial Reporting and such controls were operating effectively
as at 31st March 2023, based on the internal control over financial reporting criteria
established by the company considering the essential components of internal control stated
in the Guidance Note issued by the ICAI.
Managements Responsibility for Internal financialControls
3) The Companys Board of Directors is responsible for establishing and maintaining
internal financial controls based on the internal control over financial reporting
criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls over Financial
Reporting (the Guidance Note) issued by the Institute of Chartered Accountants of
India(ICAI).These responsibilities include the design, implementation and maintenance of
adequate internal financial controls that were operating effectively for ensuring the
orderly and efficient conduct of the Companys business, including adherence to the
Companys policies, the safeguarding of its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Act.
Auditors Responsibility
4. Our responsibility is to express an opinion on the Companys IFCoFR based on our
audit. We conducted our audit in accordance with the Standards on Auditing issued by the
ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent
applicable to an audit of IFCoFR, and the Guidance Note issued by the ICAI. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate IFCoFR were
established and maintained and if such controls operated effectively in all material
respects.
5. Our audit involves performing procedures to obtain auditevidence about the adequacy
of the IFCoFR and their operating effectiveness. Our audit of IFCoFR includes obtaining an
understanding of IFCoFR, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the auditors judgment, including the
assessment of the risks of material misstatement of thefinancial statements, whether due
to fraud or error.
6. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting
7. A companys IFCoFR is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A companys
IFCoFR include those policies and procedures that
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
Inherent Limitations of internal Financial Controls over Financial Reporting
Because of the inherent limitations of IFCoFR, including the possibility of collusion
or improper management override of controls, material misstatements due to error or fraud
may occur and not be detected. Also, projections of any evaluation of the IFCoFR to future
periods are subject to the risk that the IFCoFR may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
For PPKG&Co
Chartered Accountants
FR. No.: 009655S
girdhari lal Toshniwal
Partner
Membership No: 205140
UDIN No: 23205140BGUNHY3510
Place: Hyderabad
Date: 30th May, 2023
+91-9892691696
