Mar 31, 2015
We have audited the accompanying financial statements of Kay Power And
Paper Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2015, and the Statement of Profit and Loss and Cash Flow
Statement for the year ended as on that date and a summary of
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 accounting principles generally accepted
in India, including the Accounting Standards specified under Section
133 The Act, read with rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting
records in accordance of 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 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 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. These 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 in 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 and fair presentation 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 control system over financial reporting and the operating
effectiveness of such controls. 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 qualified 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 March 31,2015,
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date and
(c) in the case of the 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, 2015 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 paragraphs 3 and 4 of the Order.
2. As required by Section 143(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 purpose 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 and Loss,
and Cash Flow Statement comply with the Accounting Standards specified
under
Section 133 of the Act, read with Rule 7 of Companies (Accounts) Rules,
2014, except AS15 AS15 regarding ''Accounting for retirement benefits''
on account of non-provision for terminal benefits like gratuity payable
to employees as described in the para 9 of Notes to accounts.
(e) On the basis of written representations received from the directors
as on March 31, 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015 from being
appointed as a director in terms of sub-section (2) of Section 164 of
the Companies Act, 2013
(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 did not have any pending litigation having material
impact on its financial position.
ii. The Company did not have any long- term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure Referred to in paragraph 1 under ''Report on Other Legal and
Regulatory Requirements'' Section of our Report of even date to the
Members of Kay Power And Paper Limited for the year ended on 31st
March, 2015
1. a) The Company has maintained proper records showing full particulars
including quantitative details and situation of the fixed assets.
b) As per our information and explanations given to us, fixed assets
have been physically verified by the management during the year and no
material discrepancies were noticed on such verification.
2. a) According to information and explanations given to us, the
inventory has been physically verified by the management during the
year. In our opinion, frequency of verification is reasonable.
b) In our opinion, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the Company and its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of stocks as compared to
books and records were not material.
3. In our opinion and according to the information and explanations
given to us, the Company has not granted any loans, secured or
unsecured to companies, firms and other parties covered in the register
maintained under Section 189 of the Companies Act, 2013.
4. In our opinion and according to information and explanations given to
us there are adequate internal control procedures commensurate with the
size of the Company and nature of business with regard to purchase of
inventory, fixed assets and with regard to sale of goods and services.
During the course of audit, we have not observed any continuing failure
to correct major weakness in internal controls.
5. In our opinion and according to information and explanations given
to us, the Company does not have any deposits accepted from the public
during the year under audit.
6. The Company is maintaining cost records as prescribed under Section
148 (1) of the Companies Act, 2013. However, we have not verified the
same for completeness or accuracy.
7. a. According to records of Company is regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund dues and Profession tax. No amount is outstanding as at 31/3/2015
for a period more than 6 months from the date they become payable.
b. According to information and explanations given to us, no undisputed
amounts payable in respect of income tax, sales tax, excise duty were
in arrears as at 31/3/2015 for a period more that six months from the
date they became payable except net liability of MVAT pertaining to
period from financial year 2007-08 to 2014-15 amounting to Rs.486.92
Lacs which is withheld by the Company in anticipation of grant of
deferral of the same under rehabilitation scheme sanction of which is
awaited.
c. According to information and explanations given to us, there are no
dues of income tax, sales tax, excise duty which have not been
deposited on account of any dispute.
d. The company did not have any 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 during the year.
8. In our opinion, the accumulated loss of the Company is Rs.1443.86
Lakhs as on 31/3/2015 and is more than its total net worth. The Company
has not incurred cash losses during the financial year covered by our
audit and during the immediately preceding financial year. The
accumulated losses have totally eroded the net worth of the Company and
reference has been made to the Board for Industrial and Financial
Reconstruction (BIFR).
9. In our opinion and according to information and explanations given to
us, the Company had defaulted in repayment of dues to IREDA earlier and
it has made agreement for One Time settlement scheme for the repayment
of the loan taken from IREDA. The Company has paid all instalments due
as per scheme of OTS sanctioned by IREDA during the year.
10. As informed to us, the company has not given any guarantee for
loans taken by others from bank or financial institutions.
11. According to information and explanations given to us no term
loans were obtained during the year.
12. According to information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the course of
audit.
For GODBOLE & COMPANY
Chartered Accountants
Place : Satara Ashutosh Godbole
Date : 28th May, 2015 Proprietor
Mem. No. 104822
FRN : 117969W
Mar 31, 2014
We have audited the accompanying financial statements of Kay Power And
Paper Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year ended as on that date and a summary of
significant accounting policies and other explanatory information.
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
accounting principles generally accepted in India, including 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 in 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 March 31, 2014,
(b) in the case of the Statement of Profit and Loss,of the profit for
the year ended on that date and
(c) in the case of the 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 purpose 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 and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956,
except non-compliance AS15 regarding Accounting for retirement benefits
on account of non-provision for terminal benefits like gratuity payable
to employees. (Refer para. (9) in note 1 to the financial statements.)
(e) On the basis of written representations received from the directors
as on March 31, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014 from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
Annexure Referred to in paragraph 1 under ''Report on Other Legal and
Regulatory Requirements'' Section of our Report of even date to the
Members of Kay Power And Paper Limited for the year ended on 31st
March, 2014
1. a) The Company has maintained proper
records showing full particulars including quantitative details and
situation of the fixed assets.
b) As per our information and explanations given to us, fixed assets
have been physically verified by the management during the year and no
material discrepancies were noticed on such verification.
c) During the year, the Company has not disposed off major part of the
fixed assets.
2. a) According to information and
explanations given to us, the inventory has been physically verified by
the management during the year. In our opinion, frequency of
verification is reasonable.
b) In our opinion, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the Company and its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of stocks as compared to
books and records were not material
3. a) In our opinion and according to the
information and explanations given to us, the Company has taken loans
from five parties covered in the register maintained under Section 301
of the Companies Act, 1956. The maximum amount involved during the year
was Rs.1631.12 Lakhs and year-end balance of loans taken from such
parties was Rs.1631.12 Lakhs. The Company has not granted any loans to
parties covered in the register maintained under Section 301 of the
Companies Act, 1956.
b) In our opinion, the terms and conditions subject to which these
loans are taken are not prima facie prejudicial to the Company.
c) The Company is not paying any interest on these loans. We are unable
to comment on the regularity of principal amount, as the repayment
period is not stipulated.
4. In our opinion and according to information and explanations given
to us there are adequate internal control procedures commensurate with
the size of the Company and nature of business with regard to purchase
of inventory, fixed assets and with regard to sale of goods. During
the course of audit, we have not observed any continuing failure to
correct major weakness in internal controls.
5. a. In our opinion and according to information and even to us
transactions that need to be entered into the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five Lacs have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. In our opinion and according to information and explanations given
to us, the Company does not have any deposits accepted from the public
covered u/s 58-A during the year under audit.
7. The Company did not have any formal internal audit system during
the year under review. However, its internal control procedure
involved reasonable checking of its financial records.
8. We have broadly reviewed the accounts and records maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956. We are of the opinion that prime facie the prescribed
accounts and records have been made and maintained.
9. a. According to records of Company is regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund dues and Profession tax. No amount is outstanding as at 31/3/2014
for a period more than 6 months from the date they become payable.
b. According to information and explanations given to us, no
undisputed amounts payable in respect of income tax, sales tax, excise
duty were in arrears as at 31/3/2014 for a period more that six months
from the date they became payable except net liability of VAT
pertaining to period from financial year 2007-08 to 2013-14 amounting
to Rs.353.64 Lacs which is withheld by the Company in anticipation of
grant of deferral of the same under rehabilitation scheme sanction of
which is awaited.
c. According to information and explanations given to us, there are no
dues of income tax, sales tax, excise duty which have not been
deposited on account of any dispute.
10. In our opinion, the accumulated loss of the Company is Rs.1464.61
Lakhs as on 31/3/ 2014 and is more than its total net worth. The
Company has not incurred cash losses during the financial year covered
by our audit and during the immediately preceding financial year. The
accumulated losses have totally eroded the net worth of the Company and
reference has been made to the Board for Industrial and Financial
Reconstruction (BIFR).
11. In our opinion and according to information and explanations given
to us, the Company had defaulted in repayment of dues to IREDA and the
company has reached One Time settlement for the repayment of the loan
taken from IREDA.
12. According to information and explanations given to us the Company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13.In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
14.In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
15.In our opinion, the terms and conditions on which the Company has
given guarantees for loans taken by banks or financial institutions are
not prejudicial to the interests of the Company.
16.According to information and explanations given to us no term loans
were obtained during the year.
17.According to information and explanations given to us and 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
investment. No long term funds have been used to finance short term
assets except permanent working capital.
18.According to information and explanations given to us, the Company
has not made preferential allotment of shares to parties and companies
covered in the register maintained under Section 301 of the Companies
Act 1956.
19.The Company has not issued any debentures during the year under
audit.
20.The Company has not raised money by public issue during the year
under audit.
21.According to information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the course of
audit.
For GODBOLE & COMPANY
Chartered Accountants
Place : Satara Ashutosh Godbole
Date : 28th May, 2014 Proprietor
Mem. No. 104822 FRN : 117969W
Mar 31, 2013
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Kay Power And
Paper Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year ended and a summary of significant accounting
policies and other explanatory information.
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
accounting principles generally accepted in India, including 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 March 31, 2013,
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date and
(c) in the case of the 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 purpose 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 and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956,
except AS15 regarding Accounting for retirement benefits which are not
complied with. (Refer Para. (9) in Note 1 to the Financial Statements)
(e) On the basis of written representations received from the directors
as on March 31, 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 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 Referred to in paragraph 1 under ''Report on Other Legal and
Regulatory Requirements'' Section of our Report of even date to the
Members of Kay Power And Paper Limited for the year ended on 31st
March, 2013
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of the fixed
assets.
b) As per our information and explanations given to us, fixed assets
have been physically verified by the management during the year and no
material discrepancies were noticed on such verification.
c) During the year, the Company has not disposed off major part of the
fixed assets.
2. a) According to information and explanations given to us, the
inventory has been physically verified by the management during the
year. In our opinion, frequency of verification is reasonable.
b) In our opinion, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the Company and its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of stocks as compared to
books and records were not material.
3. a) In our opinion and according to the information and explanations
given to us, the Company has taken loans from five parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs.1536.12 Lakhs and
year-end balance of loans taken from such parties was Rs.1536.12 Lakhs.
The Company has not granted any loans to parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
b) In our opinion, the terms and conditions subject to which these
loans are taken are not prima facie prejudicial to the Company.
c) The Company is not paying any interest on these loans. We are unable
to comment on the regularity of principal amount, as the repayment
period is not stipulated.
4. In our opinion and according to information and explanation given
to us there are adequate internal control procedures commensurate with
the size of the Company and nature of business with regard to purchase
of inventory, fixed assets and with regard to sale of goods. During the
course of audit, we have not observed any continuing failure to correct
major weakness in internal controls.
5. a. In our opinion and according to information and explanation
given to us transactions that need to be entered into the register
maintained under Section 301 of the Companies Act, 1956 have been so
entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five Lacs have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. In our opinion and according to information and explanations given
to us, the Company does not have any deposits accepted from the public
covered u/s 58-A during the year under audit.
7. The Company did not have any formal internal audit system during
the year under review. However, its internal control procedure
involved reasonable checking of its financial records.
8. We have broadly reviewed the accounts and records maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956. We are of the opinion that prime facie the prescribed
accounts and records have been made and maintained.
9. a. According to records, Company is regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund dues and Professional tax. No amount is outstanding as at 31/3/
2013 for a period more than 6 months from the date they become payable.
b. According to information and explanations given to us, no
undisputed amounts payable in respect of income tax, sales tax, excise
duty were in arrears as at 31/3/2013 for a period more than six months
from the date they became payable except net liability of VAT
pertaining to period from financial year 2007-08 to 2011-12 amounting
to Rs.231.38 Lacs which is withheld by the company in anticipation of
grant of deferral of the same under rehabilitation scheme sanction of
which is awaited.
c. According to information and explanation given to us, there are no
dues of income tax, sales tax, excise duty which have not been
deposited on account of any dispute.
10. In our opinion, the accumulated loss of the company is Rs.1471.29
Lakhs as on 31/3/ 2013 and is more than its total net worth. The
Company has not incurred cash losses during the financial year covered
by our audit and during the immediately preceding financial year. The
accumulated losses have totally eroded the net worth of the Company and
reference has been made to the Board for Industrial and Financial
Reconstruction (BIFR).
11. In our opinion and according to information and explanation given
to us, the Company had defaulted in repayment of dues to IREDA and has
reached One Time settlement for the same.
12.According to information and explanation given to us the Company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
14. In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
15. In our opinion, the terms and conditions on which the Company has
given guarantees for loans taken by banks or financial institutions are
not prejudicial to the interests of the Company.
16. According to information and explanations given to us no term loans
were obtained during the year.
17. According to information and explanations given to us and 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
investment. No long term funds have been used to finance short term
assets except permanent working capital.
18. According to information and explanations given to us, the Company
has not made preferential allotment of shares to parties and companies
covered in the register maintained under Section 301 of the Companies
Act, 1956.
19. The Company has not issued any debentures during the year under
audit.
20.The Company has not raised money by public issue during the year
under audit.
21. According to information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the course of
audit.
For GODBOLE & COMPANY
Chartered Accountants
Place : Satara Ashutosh Godbole
Date : 30-5-2013 Proprietor
Mem. No. 104822
FRN : 117969W
Mar 31, 2012
1. We have audited the attached Balance Sheet of Kay Power And Paper
Limited as at 31s1 March, 2012 and the Statement of Profit and Loss and
Cash Flow Statement of the Company for the year ended on that date,
annexed thereto. 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 conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform our audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating one overall financial statement
presentations. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the annexure referred to in paragraph 3
above.:
a) We have obtained all the information and explanation which, to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by the law have
been kept by the Company so far as it appears from our examination of
the books.
c) The Balance Sheet, the 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 and the statement of Profit and
Loss are in compliance with Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956 except AS15
regarding Accounting for retirement benefits which are not complied
with. (Refer sub Note No.9 in Note 1 of the notes to financial
statements.)
e) Based on representations received from Directors of the Company and
the information and explanations given to us, none of the Directors of
the Company are prima facie, as at 31st March 2012, disqualified from
being appointed as directors of the Company in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
explanation given to us, the said account read together with the
Significant Accounting Policies and Notes to Financial Statements and
those appearing elsewhere in the accounts, give information required by
the Companies Act, 1956 in the manner so required and give 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 case of the Statement of Profit and Loss of the profit for the
year ended on that date.
iii) In case of Cash Flow Statement, of cash flows for the year ended
as on that date.
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of the fixed
assets.
b) As per our information and explanations given to us, fixed assets
have been physically verified by the management during the year and no
material discrepancies were noticed on such verification.
c) During the year, the Company has not disposed off major part of the
fixed assets.
2. a) According to information and explanations given to us, the
inventory has been physically verified by the management during the
year. In our opinion, frequency of verification is reasonable.
b) In our opinion, the procedure of physical verification of inventory
followed by the management is 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. The
discrepancies noticed on physical verification of stocks as compared to
books and records were not material.
3. a) In our opinion and according to the information and explanations
given to us, the company has taken loans from five parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs.1358.08 Lac and year
end balance of loans taken from such parties was Rs. 1358.08 Lac. The
company has not granted any loans to parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
b) In our opinion, the terms and conditions subject to which these
loans are taken are not prima facie prejudicial to the company.
c) The company is not paying any interest on these loans. We are unable
to comment on the regularity of principal amount, as the repayment
period is not stipulated.
4. In our opinion and according to information and explanations given
to us there are adequate internal control procedures commensurate with
the size of the company and nature of business with regard to purchase
of inventory, fixed assets and with regard to sale of goods. During the
course of audit, we have not observed any continuing failure to correct
major weakness in internal controls.
5. a. In our opinion and according to information and explanations
given to us transactions that need to be entered into the register
maintained under Section 301 of the Companies Act, 1956 have been so
entered.
b. In our opinion and according to information and explanations given
to us, no transactions were made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lac.
6. In our opinion and according to information and explanations given
to us, the company does not have any deposits accepted from the public
covered u/s 58-A during the year under audit.
7. The company did not have any formal internal audit system during
the year under review. However, it's internal control procedure
involved reasonable checking of it's financial records.
8. We have broadly reviewed the accounts and records maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209(1 )(d) of the Companies
Act, 1956. We are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
9. a. According to records, Company is not regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund dues and Profession Tax. The payment of these dues was made late.
However, no amount is outstanding as at 31/3/2012 fora period more than
6 months from the date they became payable.
b. According to information and explanations given to us, no
undisputed amounts payable in respect of income tax, sales tax, excise
duty were in arrears as at 31/3/2012 for a period more that six months
from the date they became payable except net liability of VAT
pertaining to period from financial year 2007-08 to 2010-11 amounting
to Rs.150.10 Lac which is withheld by the company in anticipation of
grant of deferral of the same under rehabilitation scheme sanction of
which is awaited.
c. According to information and explanations given to us, there are no
dues of income tax, sales tax, excise duty which have not been
deposited on account of any dispute.
10. In our opinion, the accumulated losses of the company are
Rs.1477.32 Lac as on 31/3/2012 is more than its total net worth. The
company has not incurred cash losses during the financial year covered
by our audit and during the immediately preceding financial year. The
accumulated losses have totally eroded the net worth of the company and
reference has been made to the Board for Industrial and Financial
Reconstruction (BIFR).
11. In our opinion and according to information and explanations given
to us, the company had defaulted in repayment of dues to IREDA and has
reached One Time settlement for the same.
12. According to information and explanations given to us the company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society.
Therefore, the provisions of clause 4(xiii) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
15. In our opinion, the terms and conditions on which the Company has
given guarantees for loans taken by others, from banks or financial
institutions are not prejudicial to the interests of the Company.
16. According to information and explanations given to us no term
loans were obtained during the year.
17. According to information and explanations given to us and 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
investment. No long term funds have been used to finance short term
assets except permanent working capital.
18. According to information and explanations given to us, the Company
has not made preferential allotment of shares to parties and companies
covered in the register maintained under Section 301 of the Companies
Act 1956.
19.The Company has not issued any debentures during the year under
audit.
20. The Company has not raised money by public issue during the year
under audit.
21. According to information and explanations given to us, no fraud on
or by the company has been noticed or reported during the course of
audit.
For GODBOLE & COMPANY
Chartered Accountants
Place : Satara Ashutosh Godbole
Date : 30th May, 2012 Proprietor
Mem. No. 104822
FRN: 117969W
Mar 31, 2010
1. We have audited the attached Balance sheet of Kay Power and Paper
Limited as at 31st March, 2010 and the Profit and Loss account and Cash
Flow Statement of the Company for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
CompanyÃs management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform our audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating one overall financial statement
presentations. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (AuditorÃs Report) order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the annexure referred to in paragraph 3.
above,
a) We have obtained all the information and explanation which, to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by the law, have
been kept by the Company so far as it appears from our examination of
the books.
c) The Balance sheet, Profit and loss account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance sheet and the Profit and loss account
are in compliance with Accounting Standards referred to in Sub-section
(3C) of section 211 of the Companies Act, 1956 except AS15 regarding
Accounting for retirement benefits which are not complied with. (Refer
Note No.12(9) in Schedule 19)
e) Based on representations received from Directors of the Company and
the information and explanations given to us, none of the Directors of
the Company are prime-facie, as at 31st March, 2010, disqualified from
being appointed as directors of the Company in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
explanation given to us, the said account read together with the
Significant Accounting Policies and Notes to Accounts in Schedule 19
and those appearing elsewhere in the accounts, give information
required by the Companies Act, 1956 in the manner so required and give
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, 2010
ii) in case of the Profit and loss account of the profit for the year
ended on that date.
iii) In case of Cash Flow Statement, of cash flows for the year ended
as on that date.
Annexure referred to in paragrah (3) of our Report of even date on the
accounts of KAY POWER AND PAPER LTD. for the year ended 31st March,
2010.
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of the fixed
assets.
b) As per our information and explanations given to us, fixed assets
have been physically verified by the management during the year and no
material discrepancies were noticed on such verification.
c) During the year, the Company has not disposed off major part of the
fixed assets.
2. a) According to information and explanations
given to us, the inventory has been physically verified by the
management during the year. In our opinion, frequency of verification
is reasonable.
b) In our opinion, the procedure of physical verification of inventory
followed by the management is 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. The
discrepancies noticed on physical verification of stocks as compared to
books and records were not material.
3. a) In our opinion and according to the information and explanations
given to us, the Company has taken loans from Thirteen parties covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs.1509.87 lac
and year end balance of loans taken from such parties was Rs.928.92
lac. The Company has not granted any loans to parties covered in the
register maintained under section 301 of the Companies Act, 1956.
b) In our opinion, the terms and conditions subject to which these
loans are taken are not prima facie prejudicial to the Company.
c) The Company is not paying any interest on these loans. We are unable
to comment on the regularity of principal amount, as the repayment
period is not stipulated.
4. In our opinion and according to information and explanation given
to us there are adequate internal control procedures commensurate with
the size of the Company and nature of business with regard to purchase
of inventory, fixed assets and with regard to sale of goods. During the
course of audit, we have not observed any continuing failure to correct
major weakness in internal controls.
5. a. In our opinion and according to information and explanation
given to us, we are of the opinion that the particulars of all
contracts or arrangements that need to be entered into the register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
b. In our opinion and according to information and explanations given
to us, no transactions were made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs.
6. The Company has not accepted any deposits from the public, during
the year.
7. The Company did not have any formal internal audit system during
the year under review. However, its internal control procidure
involved reasonable checking of its financial records.
8. We have broadly reviewed the accounts and records maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956. We are of the opinion that prime facie the prescribed
accounts and records have been made and maintained.
9. a. According to records of Company is not regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund dues and Profession tax Following amounts outstanding as at
31/3/2010 for a period more than 6 months from the date they become
payable.
Sr. Nature of Dues Amount
No. Rs. In Lac
1. Provident Fund 2.74
2. Professional Tax 1.44
b. According to information and explanations given to us, no
undisputed amounts payable in respect of income tax, sales tax, excise
duty were in arrears as at 31/3/2010 for a period more that six months
from the date they became payable.
c. According to information and explanation given to us, there are no
dues of income tax, sales tax, excise duty which have not been
deposited on account of any dispute.
10.In our opinion, the accumulated losses of the Company are Rs.1564.79
lac as on 31/3/2010 are more than its total net worth. The Company has
not incurred cash losses during the financial year covered by our audit
and during the immediately preceding financial year. The accumulated
losses have totally eroded the net worth of the Company and reference
has been made to the Board for Industrial and Financial Reconstruction
(BIFR).
11. In our opinion and according to information and explanation given
to us, the Company has defaulted in repayment of dues to MSFC and
IREDA. The amount and period of default are as follows.
Loan of Amount Period
Rs. In Lac months
IREDA 1744.31 96
M.S.F.C. 7.82 -
12.According to information and explanation given to us the Company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13.In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (AuditorÃs Report) Order, 2003 are not applicable to the
Company.
14.In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (AuditorÃs Report) Order,
2003 are not applicable to the Company.
15.In our opinion, the terms and conditions on which the Company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interests of the Company.
16.According to information and explanation given to us no term loans
were obtained during the year.
17.According to information and explanation given to us and 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
investment. No long term funds have been used to finance short term
assets except permanent working capital.
18.According to information and explanation given to us, the Company
has not made preferential allotment of shares to parties and companies
covered in the register maintained under section 301 of the Companies
Act 1956.
19.The Company has not issued any debentures during the year under
audit.
20.The Company has not raised money by public issue during the year
under audit.
21.According to information and explanation given to us, no fraud on or
by the Company has been noticed or reported during the course of audit.
For GODBOLE & COMPANY
Chartered Accountants
Place : Satara Ashutosh Godbole
Date : 30th May, 2010 Proprietor
Mem. No. 104822