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Sakthi Sugars Ltd.

BSE: 507315 Sector: Agri and agri inputs
NSE: SAKHTISUG ISIN Code: INE623A01011
BSE 16:01 | 27 Mar 2018 Sakthi Sugars Ltd
NSE 05:30 | 01 Jan 1970 Sakthi Sugars Ltd
OPEN 16.55
PREVIOUS CLOSE 16.10
VOLUME 12126
52-Week high 38.10
52-Week low 16.35
P/E
Mkt Cap.(Rs cr) 194
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 16.55
CLOSE 16.10
VOLUME 12126
52-Week high 38.10
52-Week low 16.35
P/E
Mkt Cap.(Rs cr) 194
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sakthi Sugars Ltd. (SAKHTISUG) - Auditors Report

Company auditors report

To The Members of SAKTHI SUGARS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of SAKTHI SUGARS LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2015 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operative effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the financial statements.

Basis for Qualified Opinion

The Company has not provided for the interest and guarantee commission claim ofRs.5444.38 lakhs (Rs. 4410 lakhs) made by its holding company. in our opinion the lossesof the Company are under stated to that extent. This matter was also qualified in ourreport on the financial statements for the year ended 31.03.2014.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effect of the matters stated in the Basis for QualifiedOpinion paragraph the aforesaid financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2015 and its Loss and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to Note No:37 (a) and (b) to the financial statements which specifiesthe claims disputed/challenged by the company.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Companies Act 2013 we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143 (3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinionexcept for the effect of the matter described in the Basis forQualified Opinion paragraph above the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (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 isdisqualified as on 31st March 2015 from being appointed as a director in terms ofSection 164(2) of the Act.

(f) In our opinion the matter described in the Basis for Qualified Opinion paragraphabove may not have an adverse effect on the functioning of the company.

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements- Refer Note 37 (a) and (b) to the financialstatements;

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education Protection Fund by the Company.

For P.N. RAGHAVENDRA RAO & Co.
Chartered Accountants
Firm Registration Number : 003328S
P.R.VITTEL
Place : Coimbatore Partner
Date : 28.05.2015 Membership Number : 018111

Annexure referred to the Independent Auditors' report of even date

Re : SAKTHI SUGARS LIMITED (the "Company")

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) These fixed assets have been physically verified by the management at reasonableintervals. No material discrepancies were noticed on such verification.

ii. (a) Physical verification of the inventory has been conducted at reasonableintervals by the management.

(b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) The Company is maintaining proper records of inventories. No material discrepancieswere noticed on physical verification of inventory.

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under section 189 of the Companies Act.

iv. There is an adequate internal control system commensurate with the size of theCompany and the nature of its business for the purchase of inventory and fixed assets andfor the sale of goods and services. During the course of our audit we have not observedany continuing failure to correct major weakness in internal control system.

v. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from the public.

vi. We have broadly reviewed the cost records maintained by the Company specified undersub-section (1) of Section 148 of the Companies Act and are of the opinion that theprescribed accounts and records have been made and maintained.

vii. (a) According to the information and explanations given to us and the the recordsof the company verified by us undisputed statutory dues including provident fundemployees' state insurance income-tax sales-tax service tax duty of excise duty ofcustoms value added tax cess and other statutory dues have not generally been regularlydeposited with appropriate authorities though the delays in deposit have not been serious.There are no such statutory dues as at the last day of the financial year remaining inarrears for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us and records of theCompany the statutory dues that have not been deposited on account of dispute are asunder:

Name of the Statute Nature of dues Amount (Rs. in lakhs) Period to which the amount relates Forum where the dispute is pending
The Income Tax Act 1961 Income Tax 7.60 AY 2010-11 Commissioner of Income Tax (Appeals) Coimbatore.
Tamilnadu Sales Tax 1119.44 1983-84 to 1995-96 Madras High Court
General Sales Tax Act 1959 28.25 2000-01 Additional Commissioner (CT)/(RP) Chennai.
The Central Excise Act 1944 Excise Duty 1916.49 2002-03 2006-07 Madras High Court Chennai.
804.59 2006-07 2008-2010 CESTAT Chennai.
9.13 2006-07 2009 2009-2011 Commissioner of Central Excise (Appeals).
12.63 1992-93 High Court of Orissa Cuttack.
Finance Act 1994 Service Tax 335.65 2005 2006 2007 2008 & 2009-2011 CESTAT Chennai.
33.52 2006 2009-10 2010-11 & 2011-12 Commissioner of Central Excise (Appeals).

(c) The amount required to be transferred to investor education and protection fund inaccordance with the relevant provisions of the Act and rules made there under has beentransferred to such fund within time.

viii. In our opinion the company's accumulated losses at the end of the financial yearare more than fifty percent of its Networth. The Company has incurred cash losses duringthe financial year covered by our audit and in the immediately preceding financial year.

ix. Defaults by the Company in repayment of dues to financial institutions and banksare as under:

(a) Default in repayment of dues to Banks:

Particulars Amount of Default Period of Default Amount since paid
(Rs. in lakhs) (Rs. in lakhs)
Principal 8414.85 Since April 2012 121.16 (May 15)
Interest 5873.20 Since April 2012 858.84 (May 15)

(b) Default in repayment of dues to an Institution:

Particulars Amount of Default Period of Default Amount since paid
(Rs. in lakhs) (Rs. in lakhs)
Principal 10193.46 Since January 2012 Nil
Interest 5997.58 Since January 2012 483.30 (May 15)

(c) The Company has not accepted any debentures.

x. The Company has given guarantees for loans taken by other corporate. Based on themanagement representation and other details obtained we are of the opinion that the termsand conditions of the guarantees are not prejudicial to the interest of the company.

xi. Term loans availed during the year have been applied for the purpose for which theloans were obtained.

xii. According to the information and explanation given to us no fraud on or by thecompany has been noticed or reported during the course of our audit.

For P.N. RAGHAVENDRA RAO & Co.
Chartered Accountants
Firm Registration Number : 003328S
P.R.VITTEL
Place : Coimbatore Partner
Date : 28.05.2015 Membership Number : 018111