| We have audited the attached Balance Sheet of EASTERN SUGAR &
INDUSTRIES LIMITED as at 30th June, 2014, the Statement of Profit &
Loss and the Cash Flow Statement for the year then ended and a summary
of the significant accounting policies and other explanatory
information.
Management's Responsibility for the Financial Statements
The Company's 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 referred to in Section 211(3C)
of the Companies Act, 1956 ("the Act") and in accordance with the
accounting principles generally accepted in India. 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
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 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 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 the accounting policies used and the reasonableness
of the accounting estimates 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 aforesaid 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 30th June, 2014;
b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A)
of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
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 it appears from our examination of those
books.
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 Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
On the basis of the written representations received from the directors
as on 30th June, 2014 taken on record by the Board of Directors, none
of the directors is disqualified as on 30th June, 2014 from being
appointed as a director in terms of Section 274(1)(g) of the Act.
(Referred to in paragraph 7 under 'Report on Other Legal and
Regulatory Requirements' section of our report of even date)
1. The Company has maintained proper records showing full particulars
including quantitative details and situations of fixed assets. We are
informed that all the fixed assets have been physically verified by the
management at the year-end and no material discrepancies have been
noticed on such verification. No disposal of a substantial part of the
fixed assets of the Company has taken place during the reporting
period.
2. The inventories were physically verified during the year by the
Management at reasonable intervals. In our opinion and according to the
information and explanations given to us, the procedures of physical
verification of inventory followed by the Management were reasonable
and adequate in relation to the size of the Company and the nature of
its business. The Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
3. The Company has neither granted nor taken any loans, secured or
unsecured, to / from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956.
4. The Company has adequate internal control procedures commensurate
with the size of the Company and nature of its business with regard to
purchase of trading goods, raw materials including components, plant
and machinery, equipment and other assets and also for the sale of
goods. We have not come across any major weaknesses in internal
control.
5. According to the information & explanation given to us there is no
contract or arrangement that's needs to be entered in the register
required to be maintained under sec 301 of the Companies Act.
6. The company has not accepted any deposits within the meaning of
section 58A, 58AA or any other relevant provisions of Act and the rules
framed there under.
7. In our opinion, the internal audit system of the Company is
commensurate with the size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records in respect of sugar u/s 290(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed account and records have been maintained.
9. The Company is generally regular in depositing undisputed statutory
dues, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty, Cess and other statutory dues.
10. According to the information and explanations given to us, no
disputed amount payable in respect of Income Tax, Wealth Tax, Dividend
Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty and Cess were in
arrears, as at 30th June, 2014 for a period of more than six months
from the date they became payable.
11. The Company has no accumulated losses and has not incurred any cash
loss during the year covered by our audit or in the immediately
preceding financial year.
12. The Company has not defaulted in payment of dues to financial
institution or banks. The company has not issued any debentures.
13. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
14. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi/mutual benefit
fund/societies.
15. In our opinion and according to information and explanations given
to us, the company is not dealing or trading in shares, securities,
debentures and other investments and therefore the provisions of Clause
4(xiv) of the order are not applicable. The securities and other
investments have been held by the company in its own name.
16. The Company has not given any guarantee for loans taken by others
from Banks or Financial Institutions during the reporting period.
17. The Company has not raised any term loans, so the provisions are
not applicable to the Company.
18. 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
investments. No long term funds have been used to finance short term
requirements.
19. During the year the company has not issued and allotted any
Preferential Shares.
20. The Company has not raised any money during the year through any
public issue.
21. Based on the audit procedures adopted and information and
explanations given to us by the management, no fraud on or by the
Company has been noticed or reported during the course of our audit.
For Vivek Jaiswal & Co.
Chartered Accountants
Firm Registrartion No. 323094E
Vivek Jaiswal
Place : Kolkata Partner
Date : 22nd September, 2014 M. No. 057710
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