Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of MALU PAPER MILLS LIMITED, which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs 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. 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 auditorâs 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 Companyâs preparation of the financial statements that give true and fair view 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 Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
Opinion
In our Opinion and to the best of our information and according to the explanations given to us and subject to matter described in the Emphasis of Matters, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;
a) In case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2018;
b) In the case of the statement of Profit and Loss (including Other Comprehensive Income), of the profit for the year ended on 31st March 2018;
c) In case of the Statement of Changes in Equity, the changes in equity for the year ended on 31 st March 2018; and
d) In the case of the Cash Flow Statement, of the cash flow for the year ended on 31 st March 2018.
Emphasis of Matters
We draw attention to the following matter:
Balances shown under Loans and Advances, Sundry Debtors, Sundry Creditors and Current Liabilities being subject to confirmations/ reconciliations/settlement and consequential adjustments, if any the impact thereof cannot be ascertained at this stage.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) 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 paragraph 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 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, the Statement of Profit and Loss & the Cash Flow Statements dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards specified under Section 133 of the Actread with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other accounting principles generally accepted in India.
e) On the basis of written representations received from the directors as on 31 March, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2018, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
g) With respect to the other matter to be included in the Auditorâs 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 :
a. The Company does not have any pending litigations which would impact its financial position.
b. The Company did not have any long term contracts including derivatives contracts for which there were any material foreseeable losses;
c. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
ANNEXURE âAâ OF THE INDEPENDENT AUDITIORâS REPORT The Annexure referred to in our report to the members of the Malu Paper Mills Limited for the year Ended on 31st March 2018. We report that:-
(i) a) As per the information and explanation provided to us, the preparation of fixed assets register showing full particulars including quantitative details, coding and situation of Fixed Assets is approaching completion.
b) As per the information and explanation provided to us, the physical verification of the fixed assets has been carried out by the management; and no material discrepancies were noticed on such verification.
c) On examination of the documents provided to us, the title deeds of immovable properties (Freehold land and Leasehold land) are held in the name of company and no material discrepancies were noticed on such verification.
(ii) As per the information and explanation provided to us, the management has physically verified its inventories at reasonable intervals
(iii) The company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act. Hence, Clause (a), (b) & (c) are not applicable.
(iv) The company has not provided any loans, guarantees & security, or made any investment. Thus, the provisions of section 185 and 186 of the Companies Act, 2013 are not applicable.
(v) The company has not accepted deposits from the public. Hence the issue of compliance with the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under does not arise.
(vi) We have broadly reviewed books of accounts maintained by the company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under section 128 of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us and the records examined by us, the company is 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. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding as at 31st March, 2018 for a period of more than six months from the date they became payable.
(viii) During the Financial Year 2011-12, all the credit facilities utilised from banks are restructured under the Corporate Debts Restructure (CDR) mechanism and according to the records of the company examined by us and the information and explanations given to us, we are of the opinion that the company has not defaulted in repayment of dues to any financial institutions or banks. The company does not have any borrowings by way of debentures.
(ix) During the year, no money has been raised either by way of initial public offer or further public offer or by term loans, by the company.
(x) During the course of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the company, noticed or reported during the year, nor have we been informed of such case by the management.
(xi) The provisions of Nidhi Rules, 2014 are not applicable to the company.
(xii) According to the information and explanations provided to us by the management, all transactions with the related parties are in compliance with section 177 & 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements, as required by the applicable accounting standards.
(xiii) The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xiv) The company has not entered into any non-cash transactions with directors or persons connected with him. The provision of section 192 of Companies Act, 2013 are, therefore, not applicable.
(xv) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure - B to the Auditorsâ Report Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of MALU PAPER MILLS LIMITED as of 31 March, 2018, in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
The Company is in process of compiling the documented policies for internal financial controls with respect to maintenance of records, authorization by appropriate authority for material transactions, check against unauthorized, acquisition/use/disposition of companyâs assets, and utilization of equity and borrowed funds, prevention and detection of frauds and errors, the accuracy and completeness of accounting records and the timely completion of reliable financial information etc. The company is streaming to lay down controls with respect to the above.
In view of this, in our opinion the adequacy & effectiveness of the internal control systems over financial reporting as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India needs to be strengthened.
For R.A. Kuvadia & Co
Chartered Accountants
R.A. Kuvadia
Proprietor
Place : NAGPUR Mem No. : 040087
Date : 29-05-2018 FRN : 105487W
Mar 31, 2016
INDEPENDENT AUDITORâS REPORT TO THE MEMBERS OF MALU PAPER MILLS LIMITED Report on the Financial Statements
We have audited the accompanying financial statements of MALU PAPER MILLS LIMITED, which comprise the Balance Sheet as at 31st March 2016, the Statement of Profit and Loss for the year & the cash flow statement for the year then ended on 31st March 2016, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance & 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.
Auditorâs 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. 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 auditorâs 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 Companyâs preparation of the financial statements that give true and fair view 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 Companyâs 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 and subject to matter described in the Emphasis of Matters, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;
a) In case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2016;
b) In the case of the statement of Profit and Loss, of the profit for the year ended on 31st March 2016; and
c) In the case of the Cash Flow Statement, of the cash flow for the year ended on 31st March 2016.
Emphasis of Matters
We draw attention to the following matters:
(1) Balances shown under Loans and Advances, Sundry Debtors, Sundry Creditors and Current Liabilities being subject to confirmations/ reconciliations/settlement and consequential adjustments, if any the impact thereof cannot be ascertained at this stage.
(2) As per the terms of CDR, the company cannot open or maintain any account or avail any type of banking services or facilities from any banks other than CDR member banks/FI without the approval of CDR-EG. But it is observed that the companies maintaining current account with Oriental Bank of Commerce, Nagpur which is a non-lender bank. During the period April 15â to March 16â no transaction in Oriental Bank of Commerce were made. As informed this account is maintained only as additional bank guarantee issued to W.C.L., Nagpur, for execution of Fuel Supply Agreement.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) 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 paragraph 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 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, the Statement of Profit and Loss & the Cash Flow Statements 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 written representations received from the directors as on 31 March, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2016, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
g) With respect to the other matter to be included in the Auditorâs 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 :
a. The Company does not have any pending litigations which would impact its financial position.
b. The Company did not have any long term contracts including derivatives contracts for which there were any material foreseeable losses;
c. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
ANNEXURE âAâ OF THE INDEPENDENT AUDITIORâS REPORT
The Annexure referred to in our report to the members of the Malu Paper Mills Limited for the year Ended on 31st March 2016. We report that:-
(i) a) As per the information and explanation provided to us, the preparation of fixed assets register showing full particulars including quantitative details, coding and situation of Fixed Assets is approaching completion.
b) As per the information and explanation provided to us, the physical verification of the fixed assets has been carried out by the management; and no material discrepancies were noticed on such verification.
c) On examination of the documents provided to us, the title deeds of immovable properties are held in the name of company and no material discrepancies were noticed on such verification.
(ii) As per the information and explanation provided to us, the management has physically verified its inventories at reasonable intervals
(iii) The company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act. Hence, Clause (a), (b) & (c) are not applicable.
(iv) The company has not provided any loans, guarantees & security, or made any investment. Thus, the provisions of section 185 and 186 of the Companies Act, 2013 are not applicable.
(v) The company has not accepted deposits from the public. Hence the issue of compliance with the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed thereunder does not arise.
(vi) We have broadly reviewed books of accounts maintained by the company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under section 128 of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) a) According to the information and explanations given to us and the records examined by us, the company is 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. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding as at 31st March, 2016 for a period of more than six months from the date they became payable.
b) According to the records of the company there are statutory dues, which are outstanding on account of certain disputes at the end of the year
Name of Statute |
Nature of the Dues |
Amount |
Assessment Years |
Forum where dispute is pending |
Central Excise Act. |
Excise Duty |
2.63 Lacs |
2003-04 |
Asstt. Commissioner of CEST (Appeal) |
Central Excise Act. |
Excise Duty |
4.33 Lacs |
2004-05 |
Asstt. Commissioner of CEST (Appeal) |
Central Excise Act. |
Excise Duty |
3.79 Lacs |
2004-05 |
Asstt. Commissioner of CEST (Appeal) |
(viii) During the Financial Year 2011-12, all the credit facilities utilized from banks are restructured under the Corporate Debts Restructure (CDR) mechanism and according to the records of the company examined by us and the information and explanations given to us, we are of the opinion that the company has not defaulted in repayment of dues to any financial institutions or banks. The company does not have any borrowings by way of debentures.
(ix) During the concerned financial year, no money has been raised either by way of initial public offer or further public offer or by term loans, by the company.
(x) During the course of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the company, noticed or reported during the year, nor have we been informed of such case by the management.
(xi) According to the information provided to us the managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) The provisions of Nidhi Rules, 2014 are not applicable to the company.
(xiii) According to the information and explanations provided to us by the management, all transactions with the related parties are in compliance with section 177 & 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements, as required by the applicable accounting standards.
(xiv) The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) The company has not entered into any non-cash transactions with directors or persons connected with him. The provision of section 192 of Companies Act, 2013 are, therefore, not applicable.
(xvi) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of MALU PAPER MILLS LIMITED as of 31 March, 2016, in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
The Company is in process of compiling the policies for internal financial controls with respect to maintenance of records, authorization by appropriate authority for material transactions, check against unauthorized, acquisition/use/disposition of companyâs assets, and utilization of equity and borrowed funds, prevention and detection of frauds and errors, the accuracy and completeness of accounting records and the timely completion of reliable financial information etc. The company is streaming to lay down controls with respect to the above. We further invite attention to the fact that during the concerned financial year the company was not subject to internal audit.
In our opinion, the adequacy & effectiveness of the internal control systems over financial reporting as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India can be evaluated, once the controls have been properly implemented.
For DEMBLE RAMANI & CO.
Chartered Accountants
CA ASHOK RAMANI
Partner
Place : NAGPUR Mem No. : 30537
Date : 30.05.2016 FRN : 102259W
Mar 31, 2015
We have audited the accompanying financial statements of MALU PAPER
MILLS LIMITED, which comprise the Balance Sheet as at 31st March 2015,
the Statement of Profit and Loss & the cash flow statement for the year
then ended on 31st March 2015, 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 and presentation 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 there under. We conducted our
audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and 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 true and fair view 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
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 and subject to matter described in the
Emphasis of Matters, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India;
a) In case of the balance Sheet, of the state of affairs of the Company
as at 31st March 2015;
b) In the case of the statement of Profit and Loss, of the profit for
the year ended on 31st March 2015; and
c) In the case of the Cash Flow Statement, of the cash flow for the
year ended on 31st March 2015.
Emphasis of Matters
We draw attention to the following matters:
(1) Balances shown under Loans and Advances, Sundry Debtors, Sundry
Creditors and Current Liabilities being subject to confirmations/
reconciliations/settlement and consequential adjustments, if any the
impact thereof cannot be ascertained at this stage.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 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
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, 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 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 written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
ANNEXURE OF THE INDEPENDENT AUDITIOR'S REPORT
The Annexure referred to in our report to the members of the Malu Paper
Mills Limited for the year Ended on 31st March 2015.
We report that:-
(i) a) The company has generally maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The management has physically verified all its fixed assets at
reasonable intervals and no material discrepancies were noticed on such
physical verification.
(ii) a) As per the information furnished, the inventories have been
physically verified by the management at reasonable intervals during
the year.
b) In our opinion and according to the information and explanations
given to us, 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) In our opinion, the company is maintaining proper records of
inventory. No discrepancies observed during the verification.
(iii) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act. Hence, Clause (a) and (b) are
not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are generally adequate internal control systems
commensurate with the size of the company and the nature of its
business for purchase of inventory and fixed assets and for the sale of
goods & services. During the course of our audit no major weakness has
been noticed in these internal controls system.
(v) The company has not accepted deposits from the public. Hence the
issue of compliance with the directives issued by the Reserve Bank of
India and the provisions of sections 73 to 76 or any other relevant
provisions of the Companies Act and the rules framed there under does
not arise.
(vi) The Central Government has not prescribed maintenance of Cost
Records under sub section (1) of section 148 of the Companies Act, 2013
in respect of the Company's product.
(vii) a) According to the information and explanations given to us and
the records examined by us, the company is 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. According to the information and
explanations given to us, no undisputed arrears of statutory dues were
outstanding as at 31st March, 2015 for a period of more than six months
from the date they became payable.
b) According to the records of the company there are statutory dues,
which are outstanding on account of certain disputes at the end of the
year.
Amount
Name of Nature of the (Rs. in Assessment Forum where
Statute Dues Lacs) Years dispute is pending
Asstt.
Central Excise Duty 2.63 2003-04 Commissioner of
Excise
Act. CEST (Appeal)
Asstt.
Central Excise Duty 4.33 2004-05 Commissioner of
Excise
Act. CEST (Appeal)
Asstt
Central Excise Duty 3.79 2004-05 Commissioner of
Excise Act. CEST (Appeal)
c) The Company is not required to transfer any amount to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made there
under.
(viii) The Company is having accumulated losses at the end of the
financial year; however the company has not incurred any cash losses in
the current financial year and in the immediately preceding financial
year.
(ix) According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank. The company
does not have any borrowings by way of debentures.
(x) According to the information and explanations given to us by the
management, the company has not given any guarantee for loans taken by
others from banks or financial institutions.
(xi) According to the information and explanations provided to us by
the management, the company has used the funds for the purpose for
which they were taken.
(xii) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
For DEMBLE RAMANI & CO.
Chartered Accountants
CA ASHOK RAMANI
Partner
Place : NAGPUR Mem No. : 30537
Date : 25.05.2015 FRN : 102259W
Mar 31, 2014
We have audited the accompanying financial statements of MALU PAPER
MILLS LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect
of Section 133 of the Companies Act 2013 in terms of General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs.) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
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 the 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 Company''s internal control. An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on 31st March 2014, and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on 31st March 2014.
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 it appears from our examination of those
books.
c. The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet, Statement of Profit and Loss, and
the Cash Flow Statement comply with the Accounting Standards notified
under the Act (which continue to be applicable in respect of Section
133 of Companies Act, 2013 in terms of general circular 15/2013, dated
13th September 2013 of the Ministry of Corporate Affairs).
e. On the basis of the written representations received from the
directors as on 31st March, 2014 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.
ANNEXURE OF THE INDEPENDENT AUDITIOR''S REPORT (Referred to in
Paragraph 1 under the heading of "Report on Other Legal and
Regulatory Requirements" of our report of even date)
(i) a) The Company has generally maintained proper records showing
full particulars, including quantitative details and situation of
fixed assets on the basis of available information.
b) As explained to us, the management has physically verified all its
fixed assets at reasonable intervals and no material discrepancies were
noticed on such physical verification.
c) In our opinion, the Company has not disposed off any substantial
part of its fixed assets during the year and the going concern status
of the Company is not affected.
(ii) a) As per the information furnished, the inventories have been
physically verified by the management at reasonable intervals during
the year.
b) In our opinion and according to the information and explanations
given to us 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) In our opinion, the company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) a) In our opinion and according to the information and
explanations given to us, the company has not granted any secured or
unsecured loans to companies, firms or other parties covered in the
register maintained u/s 301 of Companies Act, 1956. Hence the clause
iii (a), (b), (c) and (d) of the order are not applicable.
e) The company has taken demand loans from companies, firms or other
parties covered in the register maintained u/s 301 of Companies Act,
1956. The maximum amount involved during the year was Rs. 2774.73 lacs
and yearend balance of loans taken from such parties was Rs. 2688.00
lacs.
f) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, firms and other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not prima facie, prejudicial to the interest of the
company.
g) In our opinion and as per the information and explanations given to
us, the company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
(iv) In our opinion and according to the information and explanation
given to us, there is generally an adequate internal control system
commensurate with the size of the company and the nature of its
business for purchase of inventory and fixed assets and for the sale of
goods and services. During the course of our audit no major weakness
has been noticed in the internal control system.
(v) In respect of contracts or arrangements to be entered in the
register maintained in pursuance of section 301 of the Companies Act,
1956, to the best of our knowledge and belief and according to the
information and explanations given to us, there were no particulars of
contracts or arrangements referred to in section 301 of the Act have
been entered in the register required to be maintained under that
section
(vi) According to the information and explanations given to us, the
Company has not accepted deposits in terms of provisions of Sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956.
(vii) In our opinion; the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed books of accounts maintained by the
company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie, the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) a) According to the information and explanations given to us and
the records examined by us, the company is regular in depositing
undisputed statutory dues including Provident Fund, Income Tax, Sales
Tax, Service tax, Customs duty, Excise duty, Cess and any other statutory
dues wherever applicable with the appropriate authorities. According
to the information and explanations given to us, no undisputed arrears
of statutory dues were outstanding as at 31st March, 2014 for a period
of more than six months from the date they became payable.
b) According to the records of the company there are statutory dues,
which are outstanding on account of certain disputes at the end of the
year.
Amount
Nature of (Rs.in Assessment
Name oi Statute
the Dues Lacs) Years
Central Excise Excise Duty 2.63 2003-04
Act.
Cen*T fxcise Excise Duty 4.33 2004-05
Act.
Central Excise Excise Duty 3.79 2004-05
Act.
Name of Statue Forum where dispute is pending
Central Excise Asstt.Commissioner of CEST (Appeal)
Act
Central Excise Asstt. Commissioner of CEST (Appeal)
Act
Central Excise Asstt. Commissioner of CEST (Appeal)
Act
(x) The company has been registered for a period of not less than five
years and it has accumulated losses at the end of the financial year
not more than fifty percent of its net worth. The company has not
incurred cash losses in the financial year. But the company had
incurred cash losses of Rs. 1178.01 lacs in the immediately preceding
financial year.
(xi) During the Financial Year 2011-12, all the credit facilities
utilised from banks are restructured under the Corporate Debts
Restructure (CDR) mechanism and according to the records of the company
examined by us and the information and explanations given to us, we are
of the opinion that the company has not defaulted in repayment of dues
to any financial institutions or banks. The company does not have any
borrowings by way of debentures.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The provisions of any special statute applicable to chit funds/
nidhi / mutual benefits funds/ society do not apply to the company.
(xiv) In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by its subsidiaries
and associates from banks/ financial institutions.
(xvi) In our opinion, term loans have been applied for the purpose for
which they have been raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet to the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The company has not made any preferential allotment of shares
to parties or companies covered in the Register maintained under
Section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
For DEMBLE RAMANI & CO.
Chartered Accountants
ASHOK RAMANI
Partner
Place : NAGPUR Mem No. : 30537
Date : 28.05.2014 FRN : 102259W
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of MALU PAPER
MILLS LIMITED (Âthe Company"), which comprise the Balance Sheet as at
31st March 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the accounting principles generally accepted in India
including Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 (Âthe 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 the
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 the 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 the Management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(b) In the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on 31st March 2013, and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on 31st March 2013.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (Âthe
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 it appears from our examination of
those books.
c. The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and the 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, 2013 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 Act.
ANNEXURE OF THE INDEPENDENT AUDITIOR''S REPORT (Referred to in Paragraph
1 under the heading of ÂReport on Other Legal and Regulatory
Requirements" of our report of even date)
(i) a) The Company has generally maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets on the basis of available information.
b) As explained to us, the management has physically verified all its
fixed assets at reasonable intervals and no material discrepancies were
noticed on such physical verification.
c) In our opinion, the Company has not disposed off any substantial
part of its fixed assets during the year and the going concern status
of the Company is not affected.
(ii) a) As per the information furnished, the inventories have been
physically verified by the management at reasonable intervals during
the year.
b) In our opinion and according to the information and explanations
given to us 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) In our opinion, the company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) a) In our opinion and according to the information and
explanations given to us, the company has not granted any secured or
unsecured loans to companies, firms or other parties covered in the
register maintained u/s 301 of Companies Act, 1956. Hence the clause
iii (a), (b), (c) and (d) of the order are not applicable.
e) The company has taken demand loans from companies, firms or other
parties covered in the register maintained u/s 301 of Companies Act,
1956. The maximum amount involved during the year was Rs. 2106.50 lacs
and year end balance of loans taken from such parties was Rs. 2106.50
lacs.
f) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, firms and other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not prima facie, prejudicial to the interest of the
company.
g) In our opinion and as per the information and explanations given to
us, the company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
(iv) In our opinion and according to the information and explanation
given to us, there is generally an adequate internal control system
commensurate with the size of the company and the nature of its
business for purchase of inventory and fixed assets and for the sale of
goods and services. During the course of our audit no major weakness
has been noticed in the internal control system.
(v) In respect of contracts or arrangements to be entered in the
register maintained in pursuance of section 301 of the Companies Act,
1956, to the best of our knowledge and belief and according to the
information and explanations given to us, there were no particulars of
contracts or arrangements referred to in section 301 of the Act have
been entered in the register required to be maintained under that
section
(vi) According to the information and explanations given to us, the
Company has not accepted deposits in terms of provisions of Sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956.
(vii) In our opinion; the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed books of accounts maintained by the
company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie, the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) a) According to the information and explanations given to us and
the records examined by us, the company is regular in depositing
undisputed statutory dues including Provident Fund, Income Tax, Sales
Tax, Service tax, Customs duty, Excise duty, Cess and any other
statutory dues wherever applicable with the appropriate authorities.
According to the information and explanations given to us, no
undisputed arrears of statutory dues were outstanding as at 31st March,
2013 for a period of more than six months from the date they became
payable.
b) According to the records of the company there are statutory dues,
which are outstanding on account of certain disputes at the end of the
year.
Amount
Nature of the (Rs.in Assessment Forum where
dispute
Name of Statute Dues Lacs) Years is pending
Asstt
Commissioner
Central Excise Act. Excise Duty 2.63 2003-04 of CEST (Appeal)
Asstt.
Commissioner
Central Excise Act. Excise Duty 4.33 2004-05 of CEST (Appeal)
Asstt.
Commissioner
Central Excise Act. Excise Duty 3.79 2004-05 of CEST (Appeal)
(x) The company has been registered for a period of not less than five
years and it has accumulated losses at the end of the financial year
not more than fifty percent of its net worth. The company has incurred
cash losses of Rs. 1178.01 lacs in the financial year. The Company
has also incurred cash losses of Rs. 2315.00 Lacs in the immediate
preceding financial year.
(xi) According to the records of the company examined by us and the
information and explanations given to us, we are of the opinion that
the company has not defaulted in repayment of dues to any financial
institutions or banks. The company does not have any borrowings by way
of debentures.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The provisions of any special statute applicable to chit funds/
nidhi / mutual benefits funds/ society do not apply to the company.
(xiv) In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by its subsidiaries
and associates from banks/ financial institutions.
(xvi) In our opinion, term loans have been applied for the purpose for
which they have been raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet to the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The company has not made any preferential allotment of shares
to parties or companies covered in the Register maintained under
Section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
For DEMBLE RAMANI & CO.
Chartered Accountants
Sd/-
ASHOK RAMANI
Place : NAGPUR Partner
Date : 30.05.2013 Mem. No.: 30537
FRN : 102259W
Mar 31, 2012
We have audited the attached Balance Sheet of MALU PAPER MILLS LIMITED
as at 31st March 2012 and also the Statement of Profit & Loss 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.
We conducted our Audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
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 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 statement
presentation. We believe that our Audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors) Report Order, 2003 read with
the Amendment Order, 2004 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 & 5 of the said order.
Further to our comments in the Annexure referred above, we report that:
1) 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;
2) In our opinion, proper books of accounts as required by law have
been kept by the company so far as it appears from our examination of
the books;
3) The Balance Sheet and the Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the Books of
Accounts;
4) In our opinion, the Balance sheet and the Statement of Profit 8s
Loss and Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Sub-Section (3C) of Section 211 of
the Companies Act, 1956.
5) On the basis of written representations received from the Directors,
as on 31st March, 2012 taken on record by the Board of Directors we
report that none of the Directors are disqualified as on 31st March,
2012 from being appointed as a Director in terms of Clause (g) of
subsection (1) of section 274 of the Companies Act, 1956.
6) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 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 and
ii) In the case of the Statement of Profit 8s Loss of the Loss of the
Company for the year ended on that date.
iii) In the case of Cash Flow Statement of the Cash Flow for the year
ended on that date.
ANNEXURE OF THE AUDITIOR'S REPORT (As referred to in Paragraph 3 of
our report of Even-date)
(i) a) The Company has generally maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The management has physically verified all its fixed assets at
reasonable intervals and no material discrepancies were noticed on such
physical verification.
c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status.
(ii) a) As per the information furnished, the inventories have been
physically verified by the management at reasonable intervals during
the year.
b) In our opinion and according to the information and explanations
given to us 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) In our opinion, the company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) a) In our opinion and according to the information and
explanations given to us, the company has not granted any secured or
unsecured loans to companies, firms or other parties covered in the
register maintained u/s 301 of Companies Act, 1956. Hence the clause
iii (a), (b), (c) and (d) of the order are not applicable.
e) The company has taken demand loans from companies, firms or other
parties covered in the register maintained u/s 301 of Companies Act,
1956. The maximum amount involved during the year was Rs.2735.05 lacs
and yearend balance of loans taken from such parties was Rs. 2735.05
lacs.
f) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, firms and other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not prima facie, prejudicial to the interest of the
company.
g) In our opinion and as per the information and explanations given to
us, the company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
(iv) In our opinion and according to the information and explanation
given to us, there is generally an adequate internal control system
commensurate with the size of the company and the nature of its
business for purchase of inventory and fixed assets and for the sale of
goods and services. During the course of our audit no major weakness
has been noticed in the internal control system.
(v) In respect of contracts or arrangements to be entered in the
register maintained in pursuance of section 301 of the Companies Act,
1956, to the best of our knowledge and belief and according to the
information and explanations given to us, there were no particulars of
contracts or arrangements referred to in section 301 of the Act have
been entered in the register required to be maintained under that
section
(vi) According to the information and explanations given to us, the
Company has not accepted deposits in terms of provisions of Sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956.
(vii) In our opinion; the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed books of accounts maintained by the
company pursuant to the order made by the Central Government for
maintenance of cost records under section 209(l)(d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been maintained.
(ix) a) According to the information and explanations given to us and
the
records examined by us, the company is regular in depositing undisputed
statutory dues including Provident Fund, Income Tax, Sales Tax, Service
tax, Customs duty, Excise duty, Cess and any other statutory dues
wherever applicable with the appropriate authorities. According to the
information and explanations given to us, no undisputed arrears of
statutory dues were outstanding as at 31st March, 2012 for a period of
more than six months from the date they became payable.
b) According to the records of the company there are statutory dues,
which are outstanding on account of certain disputes at the end of the
year.
Amount
Nature of (Rs.in Assessment Forum Where
Name of Statute dispute is
the Dues Lacs) Years pending
Central Excise Excise Duty 14.49 2002-03 Tribunal
Act.
Asstt.
Central Excise Commissi
oner of
Excise Duty 2.63 2003-04
Act. CEST
(Appeal)
Asstt.
Central Excise Commiss
ioner of
Excise Duty 4.33 2004-05
Act. CEST
(Appeal)
Asstt.
Central Excise Commiss
ioner of
Excise Duty 3.79 2004-05
Act. CEST
(Appeal)
(x) The company has registered for a period of not less than five years
and it has accumulated losses at the end of the financial year not more
than fifty percent of its net worth. The company has also incurred cash
loss of Rs.2315.00 Lacs in the financial year however the company has
not incurred any cash loss in the immediate preceding financial year.
(xi) During the financial year all the credit facilities utilized from
banks are restructured under the Corporate Debts Restructure (CDR)
mechanism and according to the records of the company examined by us
and the information and explanations given to us, the company has not
defaulted in repayment of dues to any financial institutions or banks.
The company does not have any borrowings by way of debentures.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The provisions of any special statute applicable to chit funds/
nidhi / mutual benefits funds/ society do not apply to the company.
(xiv) In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by its subsidiaries
and associates from banks/ financial institutions.
(xvi) In our opinion, term loans have been applied for the purpose for
which they have been raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet to the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The company has not made any preferential allotment of shares
to parties or companies covered in the Register maintained under
Section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
For DEMBLE RAMANI & CO.
Chartered Accountants
(ASHOK RAMANI)
Place : NAGPUR Partner
Date : 03.09.2012 Membership No. 30537
Firm Registration No. 102259W
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article