Riga Sugar Company Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2015

We have audited the accompanying financial statements of RIGA SUGAR COMPANY LIMITED ("the company"), which comprise the Balance Sheet as at 31 st March, 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 information,.

Management's Responsibility for the 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 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 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these 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 thereunder.

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 financial statements.

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 I ndia, of the state of affairs of the Company as at 31 st March, 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 (Auditors 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 the paragraphs 3 and 4 of the order, to the extent applicable.

2. 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 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 aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

(e) On the basis of the written representations received from the directors as on 31 st March, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015 from being appointed as a director in terms of Section 164 (2) of the Act; and

(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 31 to the financial statements;

(ii) The Company did not have any long-term contracts including derivative contracts for which there were any 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 Company.

Annexure

(i) (a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;

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

(ii) (a) Physical verification of inventory has been conducted at reasonable intervals by the management;

(b) The procedures of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and nature of its business;

(c) The company is maintaining proper records of inventory. No material discrepancies were noticed on physical verification;

(iii) The company has granted loans, secured or unsecured, to companies covered in the register maintained under section 189 of the Companies Act:

(a) The receipt of the principal amount and interest are also regular; and

(b) There is no overdue amount of more than rupees one lakh;

(iv) There is an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. There is no major weaknesses in internal control system;

(v) The company has not accepted deposits from the public;

(vi) Maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Act and such accounts and records have been made and maintained;

(vii) (a) The company is generally regular in depositing undisputed statutory dues including provident fund, employees' state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities;

No undisputed amount payable in respect of provident fund, employees' state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues were in arrears as at 31st March, 2015 for a period of more than six months from the date they become payable.

(b) There is no dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of any dispute other than those mentioned in Annexure I to the report.

(c) The amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder has been transferred to such fund within time;

(viii) The accumulated losses of the company at the end of the financial year are not less than fifty percent of its net worth and it has incurred cash losses in such financial year but not in the immediately preceding financial year;

(ix) The company has not defaulted in repayment of dues to bank;

(x) The company has given guarantee for loans taken by others from bank and the terms and conditions thereof are not prejudicial to the interest of the company;

(xi) Term loans were applied for the purpose for which such loans were obtained;

(xii) According to information and explanations given to us, no instance of material fraud on or by the company has been noticed or reported during the course of our audit.

For K. N. Gutgutia & Co. Chartered Accountants (ICAI Firm Registration No. 304153E)

CA SUBHASISH PORE Kolkata Partner 29th May, 2015 Membership No. 55862

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Mar 31, 2014

We have audited the accompanying financial statements of Riga Sugar Company Limited ("the Company"), which comprises the Balance sheet as at March 31,2014, and 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, all of which we have signed this day under reference to this report.

Management''s Responsibility for the Financial Statements

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 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

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 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, but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. 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.

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 the case of the Balance Sheet of the state of affairs of the Company as at 31st March, 2014;

(b) in the case of Statement of Profit and Loss, of the Loss for the year ended on that date ; and

(c) in the case of 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 (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.

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 & Loss and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Act.

(e) On the basis of the 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.

(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.

Annexure

As referred to in paragraph no. 1 under the heading "Report on Other Legal and Regulatory Requirements" of our report of even date.

(i) (a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

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

(c) No substantial part of fixed assets has been disposed off during the year.

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

(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) The company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) (a) The company has granted unsecured loans to companies covered under register maintained under section 301 of the Act; as detailed in note no. 33 of financial statement; and

(b) the rate of interest and other terms and conditions of loans given by the company are not prime- facie prejudicial to the interest of the company;

(c) receipt of the principal amount and interest are also regular;

(d) there is no overdue amount.

(e) the company has taken unsecured loans from companies covered in the register maintained under section 301 of the Act; as detailed in note no. 33 of financial statement;

(f) the rate of interest and other terms and conditions of loan taken by the company are not prima facie prejudicial to the interest of the company;

(g) payment of the principle amount and interest are also regular.

(iv) There is an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory, fixed assets and for the sale of goods. We have not observed any continuing failure to correct major weaknesses in internal control system.

(v) (a) The particulars of contracts or arrangement referred to in section 301 of the Act have been entered in the register required to be maintained under that section; and

(b) save and except the transactions reported in clause (iii) above no transaction has been made.

(vi) In respect of deposit accepted in our opinion and according to the information and explanations given to us, directives issued by Reserve Bank of India and the provisions of Sections 58A, 58AA or any other relevant provisions of the Act, and the rules made thereunder, to the extent applicable, have been complied with. We have been informed by the management that no order has been passed by the Company Law Board, National Company Law Board Tribunal or Reserve Bank of India or any court or any other Tribunal.

(vii) The company has an internal audit system commensurate with its size and nature of its business.

(viii) Maintenance of cost records has been prescribed by the Central Government under clause (d) of sub- section (1) of section 209 of the Act and such accounts and records have been made and maintained.

(ix) (a) The company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income-Tax, Sales-Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues with appropriate authorities.

(b) There are no dues of sales tax, income tax, customs duty, wealth tax, excise duty, service tax and cess which have not been deposited on account of any dispute.

(x) The company has accumulated loss balance at the end of the financial year but it has not incurred any cash loss in the current and immediately preceding financial year.

(xi) The company has not defaulted in repayment of dues to bank.

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

(xiii) The company is neither a chit fund nor a nidhi/mutual benefit fund/society.

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

(xv) The company has given guarantees for loan taken by others from banks or financial institutions. The terms and conditions thereof are not prejudicial to the interest of the company.

(xvi) The term loans were applied, by and large, for the purposes for which they were obtained.

(xvii) No fund raised on short- term basis have been used for long-term investment.

(xviii) The company has made preferential allotment of equity shares to parties and companies covered in the register maintained under section 301 of the Act as per SEBI Regulations and the price of shares issued is not prejudicial to the interest of the company.

(xix) No debentures have been issued.

(xx) No money has been raised by public issues during the year.

(xxi) During the course of our examination of the books of accounts carried out in accordance with the generally accepted auditing practices in India, no fraud on or by the company has been noticed or reported.

For K. N. Gutgutia & Co.

Chartered Accountants (ICAI Firm Registration No. 304153E)

CA. SUBHASISH PORE

Kolkata Partner

29th May, 2014 Membership No. 55862

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Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statement of Riga Sugar Company Limited ("the Company"), which comprises the Balance sheet as at March 31, 2013, and the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information, all of which we have signed this day under reference to this report.

Management''s Responsibility for the Financial Statements

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 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

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 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 accounting policies used and the reasonableness of the accounting estimates made by 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 the case of the Balance Sheet of the state of affairs of the Company as at 31st March, 2013;

(b) in the case of Statement of Profit and Loss, of the Loss for the year ended on that date; and

(c) in the case of 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 (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.

2. As required by section 227(3) of the Act, we report that

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;

a) 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;(and proper returns adequate for the purpose of our audit have been received from branches not visited by us)

b) 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; (and with the returns received from the branches not visited by us).

c) In our opinion, the Balance Sheet, Statement of Profit & Loss, and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

d) On the basis of the written representations received from the Directors as on 31st March, 2013, 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 Companies Act, 1956;

Annexure

As referred to in paragraph no. 1 under the heading of ''''Report on other Legal and Regulatory Requirements'''' of

our report of even date

(i) (a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

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

(c) No substantial part of fixed assets has been disposed off during the year.

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

(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) The company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) (a) The company has granted unsecured loans to companies covered under register maintained under section 301 of the Act; as detailed in note no. 33 of financial statement; and

(b) The rate of interest and other terms and conditions of loans given by the company are not prime- facie prejudicial to the interest of the company; and

(c) Receipt of the principal amount and interest are also regular; and

(d) There is no overdue amount.

(e) The company has taken unsecured loans from companies covered in the register maintained under section 301 of the Act; as detailed in note no. 33 of financial statement; and

(f) The rate of interest and other terms and conditions of loan taken by the company are not prima facie prejudicial to the interest of the company; and

(g) Payment of the principle amount and interest are also regular.

(iv) There is an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory, fixed assets and for the sale of goods. We have not observed any continuing failure to correct major weaknesses in internal control system.

(v) (a) The particulars of contracts or arrangement referred to in section 301 of the Act have been entered in the register required to be maintained under that section; and

(b) Save and except the transactions reported in clause (iii) above no transaction has been made.

(vi) In respect of deposit accepted , in our opinion and according to the information and explanations given to us, directives issued by Reserve Bank of India and the provisions of Sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules made thereunder, 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 Board Tribunal or Reserve Bank of India or any court or any other Tribunal.

(vii) The company has an internal audit system commensurate with its size and nature of its business.

(viii) Maintenance of cost records has been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act and such accounts and records have been made and maintained.

(ix) (a) The company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income-tax, Sales-tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues with appropriate authorities.

(b) There are no dues of sales tax, income tax, customs duty, wealth tax, excise duty, service tax and cess which have not been deposited on account of any dispute, except the following :- Sl. No. Nature Amount Forum where

(Rs.in Lac) dispute is pending

1. Excise Duty 17.76 Commissioner of Excise (Appeal)

2. VAT 8.83 Jt. Commissioner of Commercial

Taxes (Appeal)

(x) The company has accumulated loss balance at the end of the financial year but it has not incurred any cash loss in the current and immediately preceding financial year.

(xi) The company has not defaulted in repayment of dues to bank.

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

(xiii) The company is neither a chit fund nor a nidhi/mutual benefit fund/society.

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

(xv) The company has not given any guarantees for loan taken by others from banks or financial institutions. The terms and conditions thereof are not prejudicial to the interest of the company.

(xvi) The term loans were applied, by and large, for the purposes for which they were obtained.

(xvii) No funds raised on short- term basis have been used for long-term investment.

(xviii) The company has made preferential allotment of equity shares warrants to parties and companies covered in the register maintained under section 301 of the Act as per SEBI Regulations and the price of shares issued is not prejudicial to the interest of the company.

(xix) No debentures have been issued.

(xx) No money has been raised by public issues during the year.

(xxi) During the course of our examination of the books of accounts carried out in accordance with the generally accepted auditing practices in India, no fraud on or by the company has been noticed or reported.

For K. N. Gutgutia & Co.

Chartered Accountants

(ICAI Firm Registration No. 304153E)

6C, Middleton Street

Kolkata-700 071

31st May, 2013 (SUBHASISH PORE)

Partner

Membership No. 55862

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Mar 31, 2012

1. We have audited the attached balance sheet of RIGA SUGAR COMPANY LIMITED (hereinafter referred to as "the company"), as at 31st March, 2012 and also the statement of profit and loss and the cash flow statement for the year ended on that date annexed thereto, all of which we have signed this day under reference to this report. 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.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform our audit to obtain reasonable assurance as to whether the aforesaid financial statements are free from material misstatements. An audit includes examining, on a test basis, evidences supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for expressing our opinion on the aforesaid financial statements of the company.

3. As required by the Companies (Auditor's Report) Order,2003 as amended by the Companies (Auditors Report Amendment) Order, 2004 ("the Order") made by the Central Government of India in exercise of power conferred by sub-section (4A) of section 227 of the Companies Act, 1956 (hereinafter referred to "the Act"), and, on the basis of such checks as we have considered appropriate and according to the information and explanations given to us during the course of our audit, we enclose in the Annexure a statement containing the matters specified in paragraph nos. 4 and 5 of the Order.

4. Further to our statement in the Annexure referred to in paragraph no. 3 above, we report that :

(i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

(ii) 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.

(iii) The company's balance sheet, statement of profit and loss and cash flow statement dealt with by this report are in agreement with the books of account.

(iv) In our opinion, the statement of profit and loss, balance sheet and the cash flow statement comply with the applicable accounting standards referred to in sub-section (3C) of section 211 of the Act.

(v) Based on written representations received from the directors as on 31st March, 2012 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

In our opinion and to the best of our information and according to the explanations given to us, the said accounts of the company 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 -

(i) in the case of the balance sheet, of the state of affairs of the company as at 31st March, 2012;

(ii) in the case of the statement of profit & loss, of the loss of the company for the year ended on that date; and

(iii) in the case of the cash flow statement, of the cash flows for the year ended on that date.

Annexure

As referred to in paragraph no. 3 of our report of even date

(i) (a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

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

(c) No substantial part of fixed assets has been disposed off during the year.

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

(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) The company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) (a) The company has granted unsecured loans to companies covered under register maintained under section 301 of the Act; as detailed in note no. 35 of financial statement; and

(b) the rate of interest and other terms and conditions of loans given by the company are not prima-facie prejudicial to the interest of the company ; and

(c) Receipt of the principal amount and interest are also regular; and

(d) there is no overdue amount.

(e) The company has taken unsecured loans from companies covered in the register maintained under section 301 of the Act; as detailed in note no. 35 of Financial Statement; and

(f) the rate of interest and other terms and conditions of loan taken by the company are not prima facie prejudicial to the interest of the company; and

(g) Payment of the principle amount and interest are also regular.

(iv) There is an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory, fixed assets and for the sale of goods. We have not observed any continuing failure to correct major weaknesses in internal control system.

(v) (a) The particulars of contracts or arrangement referred to in section 301 of the Act have been entered in the register required to be maintained under that section; and

(b) save and except the transactions reported in clause (iii) above no transaction has been made.

(vi) In respect of deposit accepted, in our opinion and according to the information and explanations given to us, directives issued by Reserve Bank of India and the provisions of Sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules made thereunder, 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 Board Tribunal or Reserve Bank of India or any court or any other Tribunal.

(vii) The company has an internal audit system commensurate with its size and nature of its business.

(viii) Maintenance of cost records has been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act and such accounts and records have been made and maintained.

(ix) (a) The company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income-tax, Sales-tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues with appropriate authorities.

(b) There are no dues of sales tax, income tax, customs duty, wealth tax, excise duty, service tax and cess which have not been deposited on account of any dispute, except the following :-

Sl. No. Nature Amount Forum where (Rs.in Lac) dispute is pending

1. Excise Duty 5.50 Commissioner of Excise (Appeal)

2. VAT 34.63 Jt. Commissioner of Commercial Taxex (Appeal)

(x) The company has accumulated loss balance at the end of the financial year but it has not incurred any cash losses in current and immediately preceding financial year.

(xi) The company has not defaulted in repayment of dues to bank.

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

(xiii) The company is neither a chit fund nor a nidhi/mutual benefit fund/society.

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

(xv) The company has not given any guarantees for loan taken by others from banks or financial institutions except as disclosed in note no. 36.8 of financial statement. The terms and conditions thereof are not prejudicial to the interest of the company.

(xvi) The term loans were applied, by and large, for the purposes for which they were obtained.

(xvii) No funds raised on short-term basis have been used for long-term investment.

(xviii) The company has made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act as per SEBI Regulations and the price of shares issued is not prejudicial to the interest of the company.

(xix) No debentures have been issued.

(xx) No money has been raised by public issues during the year.

(xxi) During the course of our examination of the books of accounts carried out in accordance with the generally accepted auditing practices in India, no fraud on or by the company has been noticed or reported.

For K. N. Gutgutia & Co.

Chartered Accountants

(ICAI Firm Registration No. 304153E)

6C, Middleton Street

Kolkata-700 071

30th May, 2012

(SUBHASISH PORE)

Partner

Membership No. 55862

---

Sep 30, 2009

1. We have audited the attached balance sheet of RIGA SUGAR COMPANY LIMITED (hereinafter referred to as "the company"), as at 30th September, 2009 and also the profit and loss account and the cash flow statement for the year ended on that date annexed thereto, all of which we have signed this day under reference to this report. These financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform our audit to obtain reasonable assurance as to whether the aforesaid financial statements are free from material misstatements. An audit includes examining, on a test basis, evidences supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for expressing our opinion on the aforesaid financial statements of the company.

3. As required by the Companies (Auditors Report) Order,2003 as amended by the Companies (Auditors Report Amendment) Order, 2004 ("the Order") made by the Central Government of India in exercise of power conferred by sub- section (4A) of section 227 of the Companies Act, 1956 (hereinafter referred to "the Act"), and, on the basis of such checks as we have considered appropriate and according to the information and explanations given to us during the course of our audit, we enclose in the Annexure a statement containing the matters specified in paragraph nos. 4 and 5 of the Order.

4. Further to our statement in the Annexure referred to in paragraph no. 3 above, we report that :-

(i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

(ii) In our opinion, except non-maintenance of accounts on accrual basis as referred to in paragraph 4 of "Notes on Accounts" in schedule 14 proper books of account as required by law have been kept by the company so far as appears from our examination of those books.

(iii) The companys balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account.

(iv) In our opinion, the profit and loss account, balance sheet and the cash flow statement comply with the applicable accounting standards referred to sub-section (3C) of section 211 of the Act, except accounting standards 15 as disclosed in paragraph No. 4 of "Notes on Accounts" in Schedule-14.

(v) Based on written representations received from the directors as on 30th September, 2009 and taken on record by the Board of Directors, none of the directors is disqualified as on 30th September, 2009 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

(vi) Had liabilities for gratuity and encashment of unavailed leave amounting to Rs. 85.35 Lacs been provided for as disclosed in paragraph No. 4 of Notes on Accounts is schedule-14, the profit for the year would have been lesser to that extent. Subject to these in our opinion and to the best of our information and according to the explanations given to us, the said accounts of the company give read together with the notes thereon 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—

(i) in the case of the balance sheet, of the state of affairs of the company as at 30th September, 2009;

(ii) in the case of the profit & loss account, of the profit of the company for the year ended on that date; and

(iii) in the case of the cash flow statement, of the cash flows for the year ended on that date.

Annexure As referred to in paragraph 3 of our report of even date

(i) (a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

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

(c) No substantial part of fixed assets has been disposed off during the year.

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

(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) The company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) (a) The company has granted unsecured loans to companies covered under register maintained under section 301 of the Act; as detailed in paragraph no.22 of notes on accounts in schedule-14; and

(b) the rate of interest and other terms and conditions of loans given by the company are not prima- facie prejudicial to the interest of the company ; and

(c) Receipt of the principal amount and interest are also regular; and

(d) there is no overdue amount.

(e) The company has taken unsecured loans from companies covered in the register maintained under section 301 of the Act; as detailed in paragraph no. 22 of notes on schedule 14; and

(f) the rate of interest and other terms and conditions of loan taken by the company are not prima facie prejudicial to the interest of the company; and

(g) Payment of the principle amount and interest are also regular.

(iv) There is an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory, fixed assets and for the sale of goods. We have not observed any continuing failure to correct major weaknesses in internal control system.

(v) (a) The particulars of contracts or arrangement referred to in section 301 of the Act have been entered in the register required to be maintained under that section; and

(b) save and except the transactions reported in clause (iii) above no transaction has been made.

(vi) In respect of Fixed Deposit accepted from the public during the year under the meaning of section 58A of the Companies Act, 1956 and Companies (Acceptance of Deposit) Rules, 1975, the provisions of section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 including the Companies (Acceptance of Deposit) Rules, 1975 have been complied.

(vii) The company has an internal audit system commensurate with its size and nature of its business.

(viii) Maintenance of cost records has been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act and such accounts and records have been made and maintained.

(ix) (a) The company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income-tax, Sales-tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues with appropriate authorities.

(b) There are no dues of sales tax, income tax, customs duty, wealth tax, excise duty, service tax and cess which have not been deposited on account of any dispute, except the following :-

Sl. No. Nature Amount Forum where (Rs.in Lac) dispute is pending

1. Excise Duty 1.10 CESTAT, Kolkata

2. Administrative 131.17 High Court, Charge on Molasses Patna

(x) The company do not have accumulated losses as at 30th September, 2009 and it has not incurred cash losses during current financial year and in the immediately preceding financial year.

(xi) The company has not defaulted in repayment of dues to a bank.

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

(xiii) The company is neither a chit fund nor a nidhi/mutual benefit fund/society.

(xiv) The company is not dealing or trading in shares, securities, debentures and other investments. The investments in shares are held by the company in its own name.

(xv) The company has not given any guarantees for loan taken by others from banks or financial institutions except as disclosed in paragraph no.3 (e) of notes on accounts in schedule 14. The terms and conditions thereof are not prejudicial to the interest of the company.

(xvi) The term loans were applied, by and large, for the purposes for which they were obtained.

(xvii) No funds raised on short-term basis have been used for long-term investment.

(xviii) The company has made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act as per SEBI Guidelines and the price of shares have been issued is not prejudicial to the interest of the company.

(xix) No debentures have been issued.

(xx) No money has been raised by public issues.

(xxi) During the course of our examination of the books of accounts carried out in accordance with the generally accepted auditing practices in India, no fraud on or by the company has been noticed or reported.

For K. N. Gutgutia & Co. Chartered Accountants

6C, Middleton Street Kolkata-700 071 30th December, 2009

(SUBHASISH PORE)

Partner Membership No. 55862