Vishnu Sugar Mills Ltd Auditor Reports

TO THE MEMBERS OF

VISHNU SUGAR MILLS LIMITED

Report on the Financial Statements

1. We have audited the accompanying financial statements of Vishnu Sugar Mills Limited, ("the Company"), which comprising the Balance Sheet as at 31st March, 2013, the related Statement of Profit and Loss for the year then ended which we have signed under reference to this report and a summary of significant accounting policies and other explanatory information. These financial statements are the responsibility of the company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

Management’s Responsibility for the Financial Statements

2. Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). 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.

Auditor’s Responsibility

3. 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 perforin the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s 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 Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

6. 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 the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2013;

(b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; (c) in the case of Cash Flow Statement of the cash flows of the Company for the year ended on that day.

Report on Other Legal and Regulatory Requirements

7. As required by the Companies (Auditor’s 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.

8. 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 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 comply with the accounting standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

(e) On the basis of 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 2013 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act;

(f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Act, nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

Place : Kolkata	For L. B. JHA & CO.
Dated : 20th July, 2013	Chartered Accountants
	Registration No. 301088E
	B. N. Jha
	(Partner)
	Membership No. 51508

ANNEXURE TO AUDITORS REPORT

TO THE MEMBERS OF VISHNU SUGAR MILLS LIMITED

1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) All the assets have been physically verified by the management during the year and there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) Substantial part of fixed assets has not been disposed off so as to affect the going concern.

2. (a) The management has during the year physically verified the stock of finished goods, stores and raw materials.

(b) In our opinion, the procedures followed by the management in the conduct of physical verification of stock are reasonable and adequate to the size of the company and the nature of its business.

(c) The company is maintaining proper records of inventory. The discrepancies noticed between the physical stocks and book stocks, were not material and have been properly dealt with in the books of account.

3. The company has neither granted nor taken any loans, secured or unsecured to/from any Companies, firms or other parties, covered in the register maintained under section 301 of the Companies Act 1956. Consequently the other clauses in paragraph 4 of the Order are not applicable.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures 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. During the course of our audit, no major weakness has been noticed in the internal controls.

5. According to the information and explanations given by the management, there are no transactions relating to contracts or arrangements that need to be entered into the register under section 301 of the Act.

6. The company has not accepted any deposit from public under section 58A and 58AA of the Companies Act, 1956.

7. The company has conducted internal audit from a firm of Chartered Accountants and the same is commensurate with the size and nature of business of the company.

8. We have broadly reviewed the books of account maintained by the company pursuant to the Order of 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.

9. a) According to the records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, income-tax, sales-tax, wealth-tax, custom duty, excise duty, cess and other statutory dues applicable to it. Employees State Insurance is not applicable to this company as per Section 1(4) of E.S.I.C. Act, 1948.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty and excise duty and cess were outstanding, as at 31.03.2013 for a period of more than six months from the date they became payable.

c) According to the records of the company there are no dues of sales tax, income tax, customs duty and cess etc, which have not been deposited on account of any dispute.

10. The company has no accumulated losses. The company has not incurred any cash loss during the financial year covered by our audit and in the immediately preceding financial year.

11. The Company has not defaulted in repayment of dues to Financial Institutions/Banks/ Debenture holders.

12. The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. According to the information and explanations given to us the company is not a chit fund/ nidhi/mutual fund/society.

14. The company is not dealing or trading in shares, securities, debentures and other investments.

15. The Company has not given any guarantee for loans taken by others from bank or financial institution.

16. The Company has not taken any term loan during the year.

17. On the basis of an overall examination of the balance sheet of the Company, in our opinion, and according to the information and explanations given to us, there are no funds raised on a short-term basis, which have been used for long-term investment, and vice versa.

18. The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act.

19. The company does not have any outstanding debentures during the year.

20. The Company has not raised any money by any fresh issue of shares during the year.

21. Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the Company has been noticed by us or reported to us during the course of our audit.

	For L. B. JHA & CO.
Place : Kolkata	Chartered Accountants
Date : 20th July, 2013	Registration No. 301088E
	B. N. Jha
	Partner
	Membership No. 51508