INDEPENDENT AUDITORS
TO THE MEMBERS OF HARINAGAR SUGAR MILLS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Harinagar Sugar Mills
Limited ("the Company"), which comprise the Balance Sheet as at 31st March,
2014, the Statement of Profit and Loss and Cash Flow Statement for the year then ended and
a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the Accounting Standards notified under
Companies Act, 1956 ("the Act") read with General Circular 15/2013 dtd. 13th
September, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design, implementation and
maintenance of internal control 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.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the financial statements. The procedures selected depend on the
auditors judgement, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Companys preparation and fair
presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing opinion on the
effectiveness of the Companys internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting
estimate made by the Management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
a) In case of the Balance Sheet, of the state of affairs of the Company as at 31st
March, 2014;
b) In case of the Statement of Profit and Loss, of the PROFIT for the year ended
on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that
date.
Report On Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003 ("the Order")
issued by the Central Government of India in terms of sub-section (4A) of section 227 of
the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and
5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the best of 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 the
Company so far as appears from our examination of those books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with
by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement comply with the Accounting Standards notified under Companies Act, 1956
("the Act") read with General Circular 15/2013 dtd. 13th September, 2013 of the
Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013;
e. On the basis of written representations received from the Directors as on 31st
March, 2014, and taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2014 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Act.
|
For KULKARNI & KHANOLKAR |
|
Chartered Accountants |
|
(Firm Registration No. 105407W) |
|
P. M. PARULEKAR |
| Place : Mumbai |
Partner |
| Date : 31st August, 2014 |
(Membership No. 36362) |
(Referred to in paragraph 1 under the heading of "Report On Other Legal and
Regulatory Requirements" of our report of even date)
i) (a) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
(b) As informed to us, the fixed assets have been physically verified by the management
at reasonable intervals. No material discrepancies were noticed on such verification.
(c) In our opinion, substantial part of fixed assets has not been disposed off during
the year.
ii) (a) The inventory has been physically verified during the year by the management.
In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of the Company and the
nature of its business.
(c) The Company is maintaining proper records of inventory. The discrepancies noticed
on verification between the physical stocks and the book records were not material.
iii) According to the information given to us, the Company has not granted I taken
any loan, secured or unsecured to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
iv) In our opinion and according to the information and explanations given to us, there
is adequate internal control system commensurate with the size of the Company and the
nature of its business with regard to purchase of inventory, fixed assets and with regard
to the sale of goods and services. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in internal controls.
v) (a) The particulars of contracts or arrangements referred to in section 301 of the
Companies Act, 1956 have been entered in the register required to be maintained under
that section.
(b) As per explanation given to us, we are of the opinion that the transactions made in
pursuance of such contracts & arrangements have been made at prices which are
reasonable.
vi) According to the information and explanations given to us, the Company has not
accepted deposits from public.
vii) In our opinion, the Company has an internal audit system commensurate with its
size and the nature of its business.
viii) We have broadly reviewed the books of account relating to materials, labour and
other items of cost maintained by the Company pursuant to the Rules made by the Central
Government for the maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed accounts and
records have been made and maintained.
ix) (a) The Undisputed Statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income tax, Sales tax, Wealth tax, Service
tax, Custom duty, Excise duty, Cess and other material statutory dues applicable to it
have been regularly deposited with the appropriate authorities.
(b) The dues of Income tax, Sales tax, Wealth tax, Service tax, Custom duty, Excise
duty and Cess which have not been deposited on account of dispute as on the date of
Balance Sheet : NIL
x) In our opinion, the Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the financial year covered
by our audit and in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations given to us, the
Company has not defaulted in repayment of dues to any financial institution, bank or
debenture holders.
xii) As informed to us, the Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable
to the Company.
xiv) In our opinion, the Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the
Order are not applicable to the Company.
xv) The Company has given a guarantee ofRs 55 crores (Rs 30 crores for season 2013-14
and Rs 25 crores for season 2012-13) to the State Bank of India against agricultural loans
granted by the Bank to the cane growers. The terms and conditions of the said loans are
not prejudicial to the interests of the Company.
xvi) In our opinion, the term loans have been applied for the purpose for which they
were raised.
xvii) According to the information and explanations given to us and on an overall
examination of the Balance Sheet of the Company, we report that no funds raised on short
term basis have been used for long-term investment.
xviii) According to the information and explanations given to us, the Company has not
made any preferential allotment of shares. Hence, we are not required to report in terms
of clause 4(xviii) of the said Order.
xix) The Company has not issued any debentures.
xx) The Company has not raised any money by way of public issue.
xxi) According to the information and explanations given to us, no fraud on or by the
Company has been noticed or reported during the year under audit.
|
For KULKARNI & KHANOLKAR |
|
Chartered Accountants |
|
(Firm Registration No. 105407W) |
|
P. M. PARULEKAR |
| Place : Mumbai |
Partner |
| Date : 31st August, 2014 |
(Membership No. 36362) |
+91-9892691696
