We have audited the accompanying Standalone financial statements of
K.C.P.SUGAR AND INDUSTRIES CORPORATION LIMITED (the Company),
which comprises the Balance Sheet as at 31stMarch, 2015, the Statement
of Profit and Loss, the Cash Flow Statement for the year then ended and
a summary of the significant accounting policies and other explanatory
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (the Act) with
respect to the preparation of these Standalone 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 principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets of the
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.
Our responsibility is to express an opinion on these Standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 auditor''s judgment, 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 financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, 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 on the Standalone
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid Standalone 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, of the state of affairs of the Company as
at 31stMarch, 2015, and its loss and its cash flows for the year ended
on that date.
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 Act, we give in the Annexure, a
statement on the matters specified in Para 3 and 4 of the said Order.
2) As required by Section143 (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
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 it appears from our examination of
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the afore said standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule7 of the Companies (Accounts) Rules,2014.
(e) On the basis of the written representations received from the
directors as on 31stMarch, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31stMarch, 2015
from being appointed as a director in terms of Section 164(2) of the
(f) With respect to the other matters to be included in the Auditor''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 the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer note 27 to the
ii. The Company did not have any long-term contracts including
derivative contracts for which there is no provision required for
material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
With reference to the Annexure referred to in paragraph 1 under the
heading Report on Other Legal and Regulatory Requirements of the
Independent Auditor''s report to the members of K.C.PSUGAR AND
INDUSTRIES CORPORATION LIMITED on the standalone financial statements
for the year ended 31st March 2015, we report that:
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of all fixed
(b) All the assets have not been physically verified by the Management
during the year but 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. Material discrepancy noticed between book
balance and physical assets of fixed assets have been properly dealt
with in the books of accounts.
(ii) (a) The Management has conducted physical verification of
Inventory at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that 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 and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the register maintained under Section
189 of the Companies Act, 2013. Accordingly, reporting under clauses 3
(iii) (a) and (b) of the Order is not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with
respect to purchase of inventory and fixed assets and for the sale of
goods and services. Further, on the basis of our examination of the
books and records of the Company and according to the information and
explanations given to us, we have neither come across nor have we been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) I n respect of deposits accepted, in our opinion and according to
the information and explanations given to us, directives issued by the
Reserve Bank of India and the provisions of section 73 to 76 or any
other relevant provisions of the Companies Act, 2013 and the rules
framed there under, to the extent applicable, have been complied with.
We are informed by the management that no order has been passed by the
Company Law Board, National Company Law Tribunal or Reserve Bank of
India or any court or any other Tribunal.
(vi) We have broadly reviewed the books of account and records
maintained by the company pursuant to the Rules made by the Central
Government for the maintenance of Cost Records under section 148(1) of
the Companies Act, 2013 and we are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the books and records of the
Company, in respect of undisputed statutory dues including provident
fund, income-tax, sales tax, wealth tax, service tax, duty of customs,
duty of excise, value added tax, cess and other material statutory dues
have been regularly deposited during the year by the Company with
appropriate authorities except Purchase tax - refer Note 43 to the
financial statements. As explained to us, the Company didn''t have any
dues on account of Employee''s State Insurance.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income-tax,
sales tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax, cess and other material statutory dues were in arrears
as at 31st March 2015 for a period of more than six months from the
date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no material dues of
Income tax, sales tax,wealth tax, service tax, duty of customs, duty of
excise,value added tax and cess which have not been deposited on
account of any dispute.
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund within time.
(viii) The Company doesn''t have any accumulated losses at the end of
the financial year and has incurred cash losses in the current
financial year and no such cash losses in the immediately preceding
(ix) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to a financial institution, bank or debenture
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which loans
(xii) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on the Company or any instances of fraud by the Company
noticed or reported during the year, nor have we been informed of such
cases by the management.
For B. Purushottam & Co
Place : Chennai. K.V.N.S Kishore
Date : 29-05-2015 Partner
(M. No. 206734)