Mar 31, 2023
Report on the audit of Standalone Financial StatementsOpinion
We have audited the accompanying Standalone Financial Statements of SESHASAYEE PAPER AND BOARDS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31,2023 and the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and Notes to the Financial Statements, including a summary of the Significant Accounting Policies and other explanatory information hereinafter referred to as Financial Statements
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (âActâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, the Profit (Including Other Comprehensive Income), the Statement of changes in Equity, and its cash flows for the year ended on that date.
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under section 143 (10) of the Companies Act, 2013.Our responsibilities under those Standards are further described in the Auditorsâ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional j udgement, were of most significance in our audit of the Financial Statements of the current period. These matters were addressed in the context of our audit of Financial Statements as a whole, and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key audit Matters |
Response to Key audit Matters & Conclusion |
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1. As on 31st March 2023, the company carries cash and bank balances of '' 558.17 crores (Excluding unpaid dividend). We considered the amount of cash and bank balance as a key audit matter given the relative size of the balance in the financial statements. |
0 We have verified and tested the design and operating effectiveness of controls with regard to maintenance of cash balances and preparation of bank reconciliation statements. |
Key audit Matters |
Response to Key audit Matters & Conclusion |
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0 We have verified the cash balance at the end of the year as well as the bank reconciliation statements. 0 We have also received confirmation of balances from banks directly which corroborates with the results of our audit procedures |
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2. Inventory at the reporting date '' 240.89 crores includes '' 18.44 crores pulp (raw materials) and coal '' 50.40 crores (chemicals Fuels and others) lying with the companyâs agents in Tuticorin Port. This being a significant balance to the total inventories held is considered a key audit matter |
0 We have understood and verified design and operating effectiveness of the controls established by the management with respect to the receipt and issue of the said materials. 0 We have also verified the relevant records for the receipt and issue of the materials and the confirmation received from the agents for the quantity of the inventories held at the year end. 0 We have also cross-checked the quantities by visual and measurement checks conducted by our consultant which corroborates with the quantity confirmed by the agents |
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3. Other financial assets includes '' 105 crores deposited with Resolution Professional under E-Auction Bid in full for Purchase of M/s. Servalakshmi Paper Ltd., corporate debtor, on a Going Concern basis in liquidation. The application filed by the company for confirmation of the sale and handing over possession has been challenged before the NCLT, Chennai Bench and the Honâble Tribunal reserved the matter for orders. |
0 We have verified the resolution passed by the Board of Directors for Investments and participation in the E-Auction for acquisition of M/s.Servalakshmi Paper Ltd., corporate debtor in liquidation. 0 We have verified the E-Auction documents, Receipts / Confirmation for the deposit of Rs.105 crores, Petition for confirmation of the sale by NCLT and the papers relating to the further proceedings before NCLT. 0 In our opinion the company has complied with the provision of the Sec.185 of the Companies Act, 2013 and the deposit is confirmed and subject to NCLT Orders |
Information Other Than the Financial Statements and Auditorâs Report Thereon
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Directors Report and Business Responsibility Report, but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that if there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard..
Management Responsibility and Those Charged with Governance for the Standalone 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), Changes in Equity 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. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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.
In preparing the Financial Statements, the Board of Directors is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companyâs financial reporting process
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Auditorsâ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorsâ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
0 Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
0 Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)
(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the Company has adequate Internal Financial Controls system in place and the operating effectiveness of such controls.
0 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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0 Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorsâ report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorsâ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
0 Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings including any significant deficiencies in Internal Control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with V___
them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorsâ Report) Order, 2020 (âthe Orderâ) issued by the Central Government of India in terms of Section 143 (11) of the Companies Act, 2013, we give in Annexure âBâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report, that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Indian AccountingStandards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the Directors as on 31st March, 2023 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March 2023 from being appointed as a Director in terms of Section 164(2) of the Act.
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(f) With respect to the adequacy of the Internal Financial Controls with reference to the financial statements of the Company, and the operating effectiveness of such controls, refer to our separate Report in Annexure âAâ.
(g) With respect to the other matters to be included in the Auditorsâ Report in accordance with the requirements of Section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.
(h) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements. Refer note 36 (a) to the Financial Statement
ii. The Company did not have any longterm contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the company
iv. (a) The management has represented
that, to the best of the knowledge and belief,as disclosed in the note 35E(b)(i) to the financial statements no funds have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities Identified in any manner whatsoever by or on behalf of the company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The management has represented that, to the best of its knowledge and belief, as disclosed in the note 35E(b)(ii) to financial statements no funds have been received by the company from any persons or entities, including foreign entities (âfunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the division shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures we have considered reasonable and appropriate in the circumstances, nothing has come to the notice that has caused us to believe that the representations under sub-clause
(i) and (ii) of Rule 11 (e) contain any material mis-statement.
v. (a) The final dividend paid by the company during the year in respect of the same declared for
the previous year is in accordance with Section 123 of the Act.
(b) As stated in the Note 37 E to the financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend proposed is in accordance with Section 123 of the Act as applicable.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31,2023.
Mar 31, 2022
We have audited the accompanying Standalone Financial Statements of SESHASAYEE PAPER AND BOARDS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31,2022 and the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and Notes to the Financial Statements, including a summary of the Significant Accounting Policies and other explanatory information hereinafter referred to as Financial Statements.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (âActâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022, the Profit Including Other Comprehensive Income, the Statement of changes in Equity, and its cash flows for the year ended on that date.
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under section 143 (10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditors'' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professionaljudgement, were of most significance in our audit of the Financial Statements of the current period. These matters were addressed in the context of our audit of Financial Statements as a whole, and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matters |
Response to Key Audit Matters & Conclusion |
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1. As on 31st March 2022, the company carries cash and bank balances of '' 362.98 crores (Excluding unpaid dividend). We considered the amount of cash and bank balance as a key audit matter given the relative size of the balance in the financial statements. |
â We have verified and tested the design and operating effectiveness of controls with regard to maintenance of cash balances and preparation of bank reconciliation statements. |
Key Audit Matters |
Response to Key Audit Matters & Conclusion |
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â We have verified the cash balance at the end of the year as well as the bank reconciliation statements. â We have also received confirmation of balances from banks directly which corroborates with the results of our audit procedures |
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2. The addition to Property, Plant and Equipment (PPE), during the year, is ''122.59 crores. The additions being significant to the total carrying value of PPE, we have considered this as a key audit matter. |
â We have verified the project report as approved by the Board. â We have tested the internal control procedures for purchases, receipts, issues of capital items, direct and indirect expenditure, technical certification on âready for useâ. â Based on the test checks and audit procedures applied by us, we are satisfied on the additions to PPE. |
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Directors Report and Business Responsibility Report, but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that if there is a material misstatement of this ''other information'', we are required to report that fact. We have nothing to report in this regard.
Management Responsibility and Those Charged with Governance for the Standalone Financial Statements
The Company''s 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), Changes in Equity 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. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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.
In preparing the Financial Statements, the Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors'' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also
â Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
â Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)
(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the Company has adequate Internal Financial Controls system in place and the operating effectiveness of such controls.
â Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
â Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors'' report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors'' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
â Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Financial Statements may be influenced. We consider quantitative
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materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings including any significant deficiencies in Internal Control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
1 As required by the Companies (Auditors'' Report) Order, 2020 (âthe Orderâ) issued by the Central Government of India in terms of Section 143 (11) of the Companies Act, 2013, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report, that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
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(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the Directors as on 31st March, 2022 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March 2022 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 with reference to the financial statements of the Company, and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ.
(g) With respect to the other matters to be included in the Auditors'' Report in accordance with the requirements of Section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.
(h) With respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements. Refer note 38 (a) to the Financial Statements.
ii. The Company did not have any longterm contracts including derivative
contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company.
iv. (a) The management has represented
that, to the best of the knowledge and belief,as disclosed in the note 37E(b) (i) to the financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities Identified in any manner whatsoever by or on behalf of the company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The management has represented that, to the best of its knowledge and belief, as disclosed in the note 37E(b)(ii) to financial statements, no funds have been received by the company from any persons or entities, including foreign entities
(âfunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures we
have considered reasonable and appropriate in the circumstances, nothing has come to the notice that has caused us to believe that the representations under sub-clause
(i) and (ii) of Rule 11 (e) of the Companies (Audit and Auditors) Rules, 2014, contain any material mis-statement.
v. (a) The final dividend paid by the company during the year, in respect of the same declared for the previous year, is in accordance with Section 123 of the Act.
(b) As stated in the Note 39E to the financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend proposed is in accordance with Section 123 of the Act as applicable.
Mar 31, 2019
MAHARAJ N R SURESH AND CO.,
CHARTERED ACCOUNTANTS
R SUBRAMANIAN AND COMPANY LLP
CHARTERED ACCOUNTANTS
INDEPENDENT AUDITORS'' REPORT TO THE MEMBERS OF M/s SESHASAYEE PAPER AND BOARDS LIMITED
Report on the audit of Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial Statements of SESHASAYEE PAPER AND BOARDS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2019 and the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date and Notes to the Financial Statements, including a summary of the Significant Accounting Policies and other explanatory information hereinafter referred to as Financial Statements
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 ("Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019, the Profit (Including Other Comprehensive Income), the changes in Equity, and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under Section 143 (10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements of the current period. These matters were addressed in the context of our audit of Financial Statements as a whole, and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matters
0 Purchase of Bagasse - Raw material from related party.
During the year, the company has purchased Bagasse from a related party (Associate) for an aggregate purchase value of Rs 19.16 crores, pursuant to a long-term agreement with the related party.
We considered the purchase of Bagaasse from a related party as a key audit matter as it constitutes a significant percentage of bagasse purchases, a key raw material.
The price of Bagasse is fixed for the year pursuant to the terms of the agreement, taking into account the quantities of Bagasse supplied, the calorific value of fuel supplied by the company and the calorific value of Bagasse determined by the both the parties.
0 As on 31st March 2019, the company carries cash and bank balances of Rs 310.57 crores. We considered the amount of cash and bank balance as a key audit matter given the relative size of the balance in the financial statements
Provision for Income-tax has been made considering the deduction under Section 80-IA in respect of the captive power plant as well as MAT credit [Refer Note No. 35 (B)]. We consider this as a key audit matter given the relative significance of the tax provision in the Statement of Profit and Loss.
Response to Key Audit Matters & Conclusion
0 We understood and tested the design and operating effectiveness of controls as established by the management in determining the various parameters and the ultimate price determination.
0 We have also tested the relevant records and found the price determination to be in accordance with the agreement. Based on the above procedures, in or opinion the management''s determination of the price of Bagasse for the year is considered to be reasonable.
0 The price of Bagasse is fixed for the year pursuant to the terms of the agreement, taking into account the calorific value of fuel supplied to the related party and the calorific value of Bagasse determined by both the parties.
0 We have verified and tested the design and operating effectiveness of controls with regard to maintenance of cash balances and preparation of bank reconciliation statements.
0 We have verified the cash balance at the end of the year as well as the bank reconciliation statements.
0 We have also received confirmation of balances from banks directly which corroborates with the results of our audit procedures.
0 We have verified the estimates and judgements made by the management in computing the income for the year as well as the deduction under Section 80-IA and found them to be consistent with the basis adopted in the earlier years and accepted by the Income-tax Department.
0 We have also verified the MAT credit available with the income-tax returns filed for the financial year 2017-18.
0 Based on these procedures, the management''s estimate of provision for tax is found reasonable.
Management Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134 (5) of the Act 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), Changes in Equity and Cash Flows of the Company in accordance with Ind AS 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 of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of 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.
In preparing the Financial Statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due
to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also :
0 Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
0 Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143 (3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate Internal Financial Controls system in place and the operating effectiveness of such controls.
0 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
0 Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
0 Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii)to evaluate the effect of any identified misstatements in the Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings including any significant deficiencies in Internal Control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, we report, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the Directors as on 31st March, 2019 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March 2019 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 "Annexure A".
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of Section 197 (16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.
h) With respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the company.
As required by the Companies (Auditors'' Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143 (11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
MAHARAJ N R SURESH AND CO., |
R SUBRAMANIAN AND COMPANY LLP |
Firm Regn. No. 001931S |
Firm Regn. No. S200041 |
N R Suresh Membership No. 021661 Partner |
N Krishnamurthy Membership No. 019339 Partner |
Chartered Accountants |
Chartered Accountants |
Place : Chennai |
|
Date : May 25, 2019 |
ANNEXURE ''A'' TO THE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF SESHASAYEE PAPER AND BOARDS LIMITED.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act").
We have audited the Internal Financial Controls over Financial Reporting of SESHASAYEE PAPER AND BOARDS LIMITED ("the Company") as of March 31, 2019 in conjunction with our audit of the Standalone Ind AS Financial Statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s 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 (ICAI). 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 Company''s 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.
Auditors'' 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 "Guidance Note") 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 ICAI. 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 Auditors'' judgement, 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 Company''s 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:
(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(ii) 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 authorisations of Management and Directors of the Company; and
(iii) provide reasonable assurance regarding prevention or timely detection of unauthorised 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
In our opinion, the Company has, in all material respects, an adequate Internal Financial Controls System over Financial Reporting and such Internal Financial Controls over Financial Reporting were operating effectively as at March 31, 2019, 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 ICAI.
MAHARAJ N R SURESH AND CO., |
R SUBRAMANIAN AND COMPANY LLP |
Firm Regn. No. 001931S |
Firm Regn. No. S200041 |
N R Suresh Membership No. 021661 Partner |
N Krishnamurthy Membership No. 019339 Partner |
Chartered Accountants |
Chartered Accountants |
Place : Chennai |
|
Date : May 25, 2019 |
ANNEXURE ''B'' TO THE INDEPENDENT AUDITORS'' REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF SESHASAYEE PAPER AND BOARDS LIMITED.
The Annexure referred to in Paragraph 2 under the heading ''Report on Other Legal and Regulatory Requirements'' of our Report of even date :
(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) These fixed assets have been physically verified by the Management at reasonable intervals and no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the Company.
(ii) The Management has conducted physical verification of inventory at reasonable intervals and no material discrepancies were noticed.
(iii) The Company has granted a loan of Rs 60 lakhs to a party covered in the register maintained under Section 189 of the Companies Act, 2013. The terms and conditions of the loan are not prejudicial to the interests of the Company. Schedule of repayment of principal and payment of interest has been stipulated. However, repayment of principal and payment of interest have not fallen due during the year. There are no amounts which are overdue.
(iv) The Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013, in respect of loans,
investments, provided by the Company. The Company has not provided any guarantee or security to any company covered under Section 185.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has prescribed maintenance of Cost Records under Sub-section (1) of Section 148 of the Companies Act, 2013 and such accounts and records have been made and maintained.
(vii) According to the information and explanations given to us in respect of Statutory dues :
(a) The Company is regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess, Goods and Service Tax and any other Statutory Dues to the appropriate authorities and there were no undisputed amounts payable which were in arrears as at 31st March 2019 for a period of more than six months from the date they became payable.
(b) Details of dues of Income Tax or Sales Tax or Service Tax or Duty of Customs or Duty of Excise or Value Added Tax, Cess and Goods and Service Tax have not been deposited as on 31st March 2019 on account of disputes are given below:
Name of the Statute |
Nature of dues |
Amount Rs crores |
Forum where the dispute is pending |
Period to which the dues belong |
Central Excise Act, 1944 |
Excise Duty |
0.21 |
CESTAT |
February 2008 -December 2012 |
-do- |
-do- |
0.08 |
-do- |
December 2005 -June 2007 |
-do- |
-do- |
0.41 |
-do- |
April 2007 -March 2011 |
-do- |
-do- |
0.02 |
Hon''ble High Court of Madras |
07 12 2008 |
-do- |
-do- |
0.05 |
-do- |
October -November 1996 |
Cenvat Credit Rules, 2004 |
Service Tax |
1.17 |
Commissioner (Appeals) |
September 2004 -February 2015, June 2015, October 2015 |
Income Tax Act, 1961 |
TDS |
0.03 |
Commissioner of Income Tax (Appeals) |
2013-14 |
Customs Act, 1962 |
Customs Duty |
6.24 |
CESTAT |
March 2012 -January 2013 |
-do- |
-do- |
0.19 |
-do- |
13122002 |
-do- |
Cenvat |
3.71 |
- do- |
April 2012 -January 2016 |
(viii) The Company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government.
(ix) The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year.
(x) The Company has not noticed any fraud by the Company or any fraud on the Company by its Officers or employees or reported during the year.
(xi) The managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of Section 197, read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence complying with the provisions of the Nidhi Rules, 2014 does not arise.
All transactions with the related parties are in compliance with Sections 177 and 188 of the Companies Act, 2013, where applicable and the details have been disclosed in the Financial Statements, etc., 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 under review.
(xv) The Company has not entered into any non-cash transactions with Directors or persons connected with him.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
MAHARAJ N R SURESH AND CO., |
R SUBRAMANIAN AND COMPANY LLP |
Firm Regn. No. 001931S |
Firm Regn. No. S200041 |
N R Suresh |
N Krishnamurthy |
Membership No. 021661 |
Membership No. 019339 |
Partner |
Partner |
Chartered Accountants |
Chartered Accountants |
Place : Chennai |
|
Date : May 25, 2019 |
Mar 31, 2018
INDEPENDENT AUDITORSâ REPORT TO THE MEMBERS OF M/s SESHASAYEE PAPER AND BOARDS LIMITED
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS Financial Statements of SESHASAYEE PAPER AND BOARDS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement, the Statement of Changes in Equity for the year then ended and a summary of the Significant Accounting Policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS 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 Ind AS 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 accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.
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 Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS Financial Statements based on our audit.
In conducting 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 of the Standalone Ind AS Financial Statements 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 Standalone Ind AS Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Ind AS Financial Statements. The procedures selected depend on the Auditorsâ judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS Financial Statements, whether due to fraud or error. In making those risk assessments, the Auditor considers internal financial controls relevant to the Companyâs preparation of the Standalone Ind AS Financial
Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Standalone Ind AS Financial Statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS 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, of the state of affairs of the Company as at 31st March 2018, and its Profit, total Comprehensive Income, its cash flows and the Changes in Equity for the year ended on that date.
Other Matters
The comparative financial information of the Company for the year ended 31st March 2017 and the transition date opening Balance Sheet as at 1st April 2016 included in these Standalone Ind AS Financial Statements, are based on the statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006, audited by one of us whose report for the year ended 31st March 2017 and 31st March 2016, dated 30th May 2017 and 28th May 2016 respectively, expressed an unmodified opinion on those Standalone Financial Statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS which have been audited by us.
Our opinion on the Standalone Ind AS Financial Statements and our report on Other Legal and Regulatory Requirements below is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit, we report, to the extent applicable, that :
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act.
e) On the basis of the written representations received from the Directors as on 31st March 2018, taken on record by the Board of Directors, none of the Directors is disqualified as on 31st 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 Aâ. Our Report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs Internal Financial Controls Over Financial Reporting.
g) With respect to the Other Matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us :
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Ind AS Financial Statements.
ii. The Company did not have any long-term contracts, including derivative contracts, for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund.
2. As required by the Companies (Auditorsâ Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 SESHASAYEE PAPER AND BOARDS LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Standalone Ind AS 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 (ICAI). 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 ICAI. 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 Auditorsâ 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 _s principles. A companyâs Internal Financial Control Over Financial Reporting includes those policies and procedures that:
(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(ii) 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
(iii) 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
In our opinion, the Company has, in all material respects, an adequate Internal Financial Controls System Over Financial Reporting and such Internal Financial Controls Over Financial Reporting were operating effectively as at March 31, 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 ICAI.
The Annexure referred to in Paragraph 2 under the heading âReport on Other Legal and Regulatory Requirementsâ of our Report of even date :
(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) These fixed assets have been physically verified by the Management at reasonable intervals and no material discrepancies were noticed on such verification;
(c) The title deeds of immovable properties are held in the name of the Company.
(ii) The Management has conducted physical verification of inventory at reasonable intervals and no material discrepancies were noticed.
(iii) The Company has not granted loans to any party covered in the register maintained under Section 189 of the Companies Act, 2013.
(iv) The Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013, in respect of loans, investments, provided by the Company. The Company has not provided any guarantee or security to any company covered under Section 185.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has prescribed maintenance of Cost Records under Subsection (1) of Section 148 of the Companies Act, 2013 and such accounts and records have been made and maintained.
(vii) According to the information and explanations given to us in respect of Statutory dues :
(a) The Company is regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess, Goods and Service Tax and any other Statutory Dues to the appropriate authorities and there were no undisputed amounts payable which were in arrears as at 31st March 2018 for a period of more than six months from the date they became payable.
(b) Details of dues of Income Tax or Sales Tax or Service Tax or Duty of Customs or Duty of Excise or Value Added Tax, Cess and Goods and Service Tax have not been deposited as on 31st March 2018 on account of disputes are given below :
(viii) The Company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government.
Name of the Statute |
Nature of dues |
Amount '' crores |
Forum where the dispute is pending |
Period to which the dues belong |
Central Excise Act, 1944 |
Excise Duty |
0.13 |
CESTAT |
January -June 2007 |
- do - |
- do - |
0.21 |
- do - |
February 2008 -December 2012 |
- do - |
- do - |
0.08 |
- do - |
December 2005 -June 2007 |
- do - |
- do - |
0.41 |
- do - |
April 2007 -March 2011 |
- do - |
- do - |
0.37 |
Commissioner Appeals |
July 2007 to June 2017 |
- do - |
- do - |
0.02 |
Hon''ble High Court of Madras |
07 122008 |
- do - |
- do - |
0.05 |
- do - |
October -November 1996 |
Income Tax Act, 1961 |
TDS |
0.06 |
Commissioner of Income Tax (Appeals) |
2016-17 |
- do - |
- do - |
0.03 |
- do - |
2013-14 |
Customs Act, 1962 |
Customs Duty |
6.24 |
CESTAT |
March 2012 -January 2013 |
- do - |
- do - |
0.19 |
- do - |
13 122002 |
- do - |
Cenvat |
3.71 |
- do - |
April 2012 to January 2016 |
(ix) The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year.
(x) The Company has not noticed any fraud by the Company or any fraud on the
Company by its Officers or employees or reported during the year.
(xi) The managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of Section 197, read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence complying with the provisions of the Nidhi Rules, 2014 does not arise.
(xiii) All transactions with the related parties are in compliance with Sections 177 and 188 of the Companies Act, 2013, where applicable and the details have been disclosed in the Financial Statements, etc., 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 under review.
(xv) The Company has not entered into any non-cash transactions with Directors or persons connected with him.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
MAHARAJ N R SURESH AND CO. R SUBRAMANIAN AND COMPANY LLP
Firm Regn. No. 001931S Firm Regn. No. S200041
N R Suresh N Krishnamurthy
Membership No. 021661 Membership No. 019339
Partner Partner
Chartered Accountants Chartered Accountants
Place : Chennai
Date : May 26, 2018
Mar 31, 2017
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of SESHASAYEE PAPER AND BOARDS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2017, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of Significant Accounting Policies and other explanatory information.
Managementâs Responsibility for the Standalone 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 Standalone 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these Standalone Financial Statements based on our audit. We have taken into account the provisions of the Act, the Accounting and Auditing Standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the 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 a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the 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 Standalone Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone 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, of the state of affairs of the Company as at 31 March 2017 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the Directors as on 31 March 2017 and taken on record by the Board of Directors, none of the Directors is disqualified as on 31 March 2017 from being appointed as a Director in terms of Section 164(2) of the Act; and
(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 Aâ.
(g) with respect to the other matters 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:
(i) the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note No. 10(i) (a) to the financial statements;
(ii) the Company did not have any long term contracts, including derivative contracts; and
(iii) there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(iv) details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December :
SBNs |
Other denomination Notes |
Total |
|
Closing Cash in hand as on 08 11 2016 |
687500 |
256195 |
943695 |
( ) Permitted Receipts |
12827500 |
9079111 |
21906611 |
(-) Permitted Payments |
36500 |
4230761 |
4267261 |
(-) Amount deposited in Banks |
13478500 |
4801399 |
18279899 |
Closing Cash in hand as on 30 12 2016 |
0 |
303146 |
303146 |
Notes :
(i) Permitted receipts under SBNs represent collection of SBNs tendered by public at Petroleum Retail outlet owned by the Company
(ii) Permitted payments under SBNs represent SBNs tendered by the Company at other Petroleum Retail outlets for purchase of petroleum products for Companies vehicles.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Sub-section (11) pf Section 143 of the Act, we give in the Annexure âBâ a statement on the matters specified in the Paragraphs 3 and 4 of the Order, to the extent applicable.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORSâ REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF SESHASAYEE PAPER AND BOARDS LIMITED.
The Annexure referred to in Paragraph 1 under the heading âReport on Other Legal and Regulatory Requirementsâ of our Report of even date:
(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) These fixed assets have been physically verified by the Management at reasonable intervals and no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the Company.
(ii) The Management has conducted physical verification of inventory at reasonable intervals and no material discrepancies were noticed.
(iii) The Company has granted unsecured loan to a Company covered in the register maintained under section 189 of the Companies Act, 2013.
(a) The terms and conditions of the grant of such loan are not prejudicial to the Companyâs interest.
(b) The schedule of repayment of principal and payment of interest has been stipulated and the repayments or receipts are regular.
(c) There are no overdue amounts.
(iv) The Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013, in respect of loans, investments, provided by the Company. The Company has not provided any guarantee or security to any Company covered under Section 185.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has prescribed maintenance of Cost Records under Subsection (1) of Section 148 of the Companies Act, 2013 and such accounts and records have been made and maintained.
(vii) According to the information and explanations given to us in respect of Statutory dues :
(a) The Company is regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other Statutory dues to the appropriate authorities and there were no undisputed amounts payable which were in arrears as at 31st March 2017 for a period of more than six months from the date they became payable.
(b) Details of dues of Income Tax or Sales Tax or Service Tax or Duty of Customs or Duty of Excise or Value Added Tax have not been deposited as on 31st March 2017 on account of disputes are given below :
Name of the Statute |
Nature of dues |
Amount Rs.lakhs |
Forum where the dispute is pending |
Period to which the dues belong |
Central Excise Act, 1944 |
Excise Duty |
134.88 |
CESTAT |
February 2004-March 2005 |
- do - |
- do - |
13.16 |
- do - |
January 2007 -June 2007 |
- do - |
- do - |
21.26 |
- do - |
February 2008 -December 2012 |
- do - |
- do - |
7.67 |
- do - |
December 2005 -June 2007 |
- do - |
- do - |
40.83 |
- do - |
April 2007 -March 2011 |
- do - |
- do - |
2.43 |
Honâble High Court of Madras |
07 122008 |
- do - |
- do - |
4.56 |
- do - |
October -November 1996 |
Income Tax Act, 1961 |
TDS |
1.86 |
Commissioner of Income Tax (Appeals) |
2015-16 |
- do - |
- do - |
6.46 |
- do - |
2016-17 |
- do - |
- do - |
3.11 |
- do - |
2013-14 |
Customs Act, 1962 |
Customs Duty |
624.17 |
CESTAT |
March 2012 -January 2013 |
- do - |
- do - |
18.75 |
- do - |
13 122002 |
(viii) The Company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.
(ix) The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year.
(x) The Company has not noticed any fraud by the Company or any fraud on the Company by its Officers or employees or reported during the year.
(xi) The managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197, read with Schedule V to the Companies Act.
(xii) The Company is not a Nidhi Company and hence complying with the provisions of the Nidhi Rules, 2014 does not arise.
(xiii) All transactions with the related parties are in compliance with Sections 177 and 188 of Companies Act, 2013, where applicable and the details have been disclosed in the Financial Statements, etc., 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 under review.
(xv) The Company has not entered into any non-cash transactions with Directors or persons connected with him.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Suri & Co., S Viswanathan LLP Maharaj N R Suresh and Co.,
Firm Regn. No. 004283S Regn. No. 004770S/S200025 Firm Regn. No. 001931S
S Swaminathan Chella K Srinivasan N R Suresh
Membership No. 020583 Membership No. 023305 Membership No. 021661
Partner Partner Partner
Chartered Accountants Chartered Accountants Chartered Accountants
Chennai May 30, 2017
Mar 31, 2016
INDEPENDENT AUDITORSâ REPORT TO THE MEMBERS OF M/s SESHASAYEE PAPER AND BOARDS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of SESHASAYEE PAPER AND BOARDS LIMITED (''the Company''), which comprise the Balance Sheet as at 31 March 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of Significant Accounting Policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s 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 Standalone 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these Standalone 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 the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone 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, of the state of affairs of the Company as at 31 March 2016 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the Directors as on 31 March 2016 and 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; and
(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 Aâ.
(g) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note No. 10(i)(a) to the financial statements;
(ii) the Company did not have any long-term contracts, including derivative contracts; and
(iii)there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s 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 âBâ a statement on the matters specified in the Paragraphs 3 and 4 of the Order, to the extent applicable.
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 Seshasayee Paper and Boards Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s Management is responsible for establishing and maintaining internal financial controls based on âthe 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 (ICAI). 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 Company''s 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 Auditor''s 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 Company''s 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 :
(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(ii) 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
(iii) 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
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 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.
The Annexure referred to in Paragraph 2 under the heading ââReport on Other Legal and Regulatory Requirementsâ of our Report of even date:
(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) These fixed assets have been physically verified by the Management at reasonable intervals and no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the Company.
(ii) The Management has conducted physical verification of inventory at reasonable intervals and no material discrepancies were noticed.
(iii) The Company has granted unsecured loan to a company covered in the register maintained under section 189 of the Companies Act, 2013.
(a) The terms and conditions of the grant of such loan are not prejudicial to the Company''s interest.
(b) The schedule of repayment of principal and payment of interest has been stipulated and the repayments or receipts are regular.
(c) There are no overdue amounts.
(iv) The Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013, in respect of loans, investments, provided by the Company. The company has not provided any guarantee or security to any company covered under Section 185.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has prescribed maintenance of Cost Records under Subsection (1) of Section 148 of the Companies Act, 2013 and such accounts and records have been made and maintained.
(vii) According to the information and explanations given to us in respect of Statutory dues :
(a) The Company is regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other Statutory Dues to the appropriate authorities and there were no undisputed amounts payable which were in arrears as at 31st March 2016 for a period of more than six months from the date they became payable.
(b) Details of dues of Income Tax or Sales Tax or Service Tax or Duty of Customs or Duty of Excise or Value Added Tax have not been deposited as on 31st March 2016 on account of disputes are given below :
(viii) The Company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.
Name of the Statute |
Nature of dues |
Amount Rs, lakhs |
Forum where the dispute is pending |
Period to which the dues belong |
Central Excise Act, 1944 |
Excise Duty |
269.76 |
CESTAT |
February 2004 -March 2005 |
- do - |
- do - |
102.93 |
- do - |
May 2005 - June 2007 |
- do - |
- do - |
42.51 |
- do - |
February 2008 -December 2012 |
- do - |
- do - |
12.36 |
- do - |
March 2005 - June 2007 |
- do - |
- do - |
40.83 |
- do - |
April 2007 - March 2011 |
- do - |
- do - |
2.43 |
Hon''ble High Court of Madras |
07.12.2008 |
- do - |
- do - |
4.56 |
- do - |
October - November 1996 |
Income Tax Act, 1961 |
TDS |
1.86 |
Commissioner of Income Tax (Appeals) |
2015-16 |
- do - |
- do - |
3.11 |
- do - |
2013-14 |
Customs Act, 1962 |
Customs Duty |
624.17 |
CESTAT |
March 2012 - January 2013 |
- do - |
- do - |
18.75 |
- do - |
13.12.2002 |
(ix) The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year. Term Loans borrowed by the Company were applied for the purpose for which the loans were obtained.
(x) As explained to us no fraud by the Company or any fraud on the Company by its Officers or employees has been noticed or reported during the year.
(xi) The managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197, read with Schedule V to the Companies Act.
(xii) The Company is not a Nidhi Company and hence complying with the provisions of the Nidhi Rules, 2014 does not arise.
(xiii) All transactions with the related parties are in compliance with Sections 177 and 188 of Companies Act, 2013, where applicable and the details have been disclosed in the Financial Statements, etc., 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 under review.
(xv) The Company has not entered into any non-cash transactions with Directors or persons connected with him.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Suri & Co., S Viswanathan LLP Maharaj N R Suresh and Co.,
Firm Regn. No. 004283S Regn. No. 004770S/S200025 Firm Regn. No. 001931S
R Mahesh Chella K Srinivasan N R Suresh
Membership No. 024775 Membership No. 023305 Membership No. 021661
Partner Partner Partner
Chartered Accountants Chartered Accountants Chartered Accountants
Chennai May 28, 2016
Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of
SESHASAYEE PAPER AND BOARDS LIMITED ('the Company'), which comprise the
Balance Sheet as at 31st March 2015, the Statement of Profit and Loss
and the Cash Flow Statement for the year then ended, and a summary of
Significant Accounting Policies and other explanatory information.
Management's Responsibility for the Standalone 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 Standalone 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these Standalone
Financial Statements based on our audit. We have taken into account the
provisions of the Act, the Accounting and Auditing Standards and matters
which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the Auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the Auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Standalone
Financial Statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid Standalone 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, of the state of affairs of the Company as
at 31st March 2015 and its profit and its 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 ("the
Order") issued by the Central Government of India in terms of
Sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in the Paragraphs 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
(b) in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
(c) the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
(d) in our opinion, the aforesaid Standalone Financial Statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the
Directors as on 31st March 2015 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March 2015
from being appointed as a Director in terms of Section 164 (2) of the
Act; and
(f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note No.
10(i)(a) to the financial statements;
ii. the Company did not have any long- term contracts including
derivative contracts; and
iii. there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT :
The Annexure referred to in Paragraph 1 under the heading "Report on
Other Legal and Regulatory Requirements", of our Report of even date:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the Management at
reasonable intervals and no material discrepancies were noticed on such
verification.
(ii) (a) The Management has carried out physical verification of
inventory at reasonable intervals.
(b) 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 and no
material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured / unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013.
(iv) There is an adequate internal control system commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services and no
major weakness has been noticed in the internal control system.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has prescribed maintenance of Cost Records
under Section 148(1) of the Companies Act, 2013 and such accounts and
records have been made and maintained.
(vii) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company is regular in depositing undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income Tax, Value
Added Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and any other statutory dues with the appropriate
authorities and there were no undisputed amounts payable which were in
arrears as at 31st March 2015 for a period of more than six months from
the date they became payable.
(b) Details of dues of Value Added Tax, Customs Duty, Excise Duty and
Cess which have not been deposited as on 31st March 2015 on account of
disputes are given below:
Name of the Nature of Amount Forum where the
Statute dues Rs. lakhs dispute is pending
Central Excise Excise Duty 269.76 CESTAT
Act, 1944
- do - - do - 102.93 - do -
- do - - do - 42.51 - do -
- do - - do - 12.36 - do -
- do - - do - 2.43 Hon'ble High Court
of Madras
- do - - do - 4.56 - do -
Kerala Value Value 0.69 Deputy
Added Tax Added Tax Commissioner
Act 2003 (Appeals)
Customs Act, Customs Duty 624.17 CESTAT
1962
- do - - do - 18.75 - do -
Name of the Period to which
Statute the dues belong
Central Excise February 2004 -
Act, 1944 March 2005
- do - May 2005 - June 2007
- do - February 2008 -
December 2012
- do - March 2005 - June 2007
- do - 07.12.2008
- do - October - November 1996
Kerala Value 2009-10
Added Tax
Act 2003
Customs Act,1962 March 2012 - January 2013
- do - 13.12.2002
(c) The amounts which were required to be transferred to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules thereunder,
has been transferred to such fund within time.
(viii) The Company has no accumulated losses as at March 31, 2015 and
has not incurred cash losses during the financial year ended on that
date or in the immediately preceding financial year.
(ix) The Company has not defaulted in repayment of dues to financial
institution or banks. There are no dues payable to the debenture
holders during the year.
(x) The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
(xi) Term loans borrowed by the Company were applied for the purpose
for which the loans were obtained.
(xii) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
Suri & Co., M/s S Viswanathan
Firm Regn. No. 004283S Firm Regn. No. 004770S
Maharaj N R Suresh and Co., S Swaminathan
Firm Regn. No. 001931S Membership No. 020583
Partner
Chartered Accountants
Chella K Srinivasan N R Suresh
Membership No. 023305 Membership No. 021661
Partner Partner
Chartered Accountants Chartered Accountants
Chennai
May 30, 2015
Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of SESHASAYEE
PAPER AND BOARDS LIMITED which comprise of the Balance Sheet as at 31st
March 2014, Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of Significant Accounting Policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in Sub-section (3C) of Section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the Auditor''s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the Auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of Accounting Policies used and the reasonableness of the accounting
estimates made by Management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
(b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of sub- section (4A)
of Section 227 of the Act, we give in the annexure a statement on the
matters specified in the paragraphs 4 and 5 of the said 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;
(e) on the basis of written representations received from the Directors
as on 31st March 2014 and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31st March 2014 from being
appointed as a Director in terms of Clause (g) of Sub-section (1) of
Section 274 of the Companies Act, 1956.
Referred to in Paragraph 1 under the heading "Report on Other Legal and
Regulatory Requirements" of our Report of even date :
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the Management at
reasonable intervals and no material discrepancies were noticed on such
verification.
(c) Fixed assets of a substantial part, affecting the going concern,
have not been disposed off during the year.
(ii) (a) The Management has carried out physical verification of
inventory at reasonable intervals.
(b) 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 and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has not granted any loans, secured / unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(iv) There is an adequate internal control system commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services and
no major weakness has been noticed in the internal control system.
(v) (a) The particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1956, have been entered in the
Register required to be maintained under that Section.
(b) The transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable, having
regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) The Company has an internal audit system commensurate with its
size and nature of its business.
(viii) Central Government has prescribed maintenance of Cost Records
under Section 209(1)(d) of the Companies Act, 1956 and such accounts
and records have been made and maintained.
(ix) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Value Added Tax, Wealth Tax,
Service tax, Custom Duty, Excise Duty, Cess and any other statutory
dues with the appropriate authorities and there were no undisputed
amounts payable which were in arrears as at 31st March 2014 for a
period of more than six months from the date they became payable.
(b) Details of dues of Income Tax, Wealth Tax, Service Tax, Sales Tax,
Value Added Tax, Customs Duty,
Excise Duty and Cess which have not been deposited as on 31st March
2014 on account of disputes are given below:
Name of the Nature of Amount Forum where the Period to which
Statute dues Rs. lakhs dispute is
pending the dues belong
Central
Excise Excise
Duty 269.76 CESTAT February 2004 -
Act, 1944 March 2005
- do - - do - 102.93 - do - May 2005 -
June 2007
- do - - do - 42.51 - do - February 2008 -
December 2012
- do - - do - 2.43 - do - 07.12.2008
- do - - do - 12.36 - do - April 2001 -
June 2007
- do - - do - 4.56 Hon''ble
High Court October -
November 1996
of Madras
Customs - do - 2164.17 CESTAT March 2012 -
January 2013
Act, 1962
Govt. of Generation 1840.21 Hon''ble
Supreme June 2003 -
March 2013
Tamilnadu
Electrical Tax with Court of
India
Inspectorate interest
Kerela Value Sales Tax 0.69 Deputy 2009-10
Added Tax Commissi-
oner
Act 2003 (Appeals)
(x) The Company has no accumulated losses as at March 31, 2014 and has
not incurred cash losses during the financial year ended on that date
or in the immediately preceding financial year.
(xi) The Company has not defaulted in repayment of dues to financial
institution or banks. There are no dues payable to the debenture
holders during the year.
(xii) The Company has granted a loan on the basis of security by way of
pledge of shares and adequate documents and records for such loan has
been maintained.
(xiii) The Company is not a chit fund / nidhi / mutual benefit fund /
society and hence, Clause (xiii) of Paragraph 4 of the Order is not
applicable to the Company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments.
(xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
(xvi) Term loans borrowed by the Company were applied for the purpose
for which the loans were obtained.
(xvii) Funds raised on short term basis have not been used for long
term investments.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956, during the year.
(xix) The Company has not issued any debentures and hence, creation of
charge does not arise.
(xx) The Company has not raised any money through public issues and
hence, disclosure and verification of end use of money raised through
public issues do not arise.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
Suri & Co., M/S Viswanathan Maharaj N R Suresh & Co.,
Firm Regn.
No. 004283S Firm Regn.
No. 004770S Firm Regn.
No. 001931S
S Swaminathan Chella K Srinivasan N R Suresh
Membership
No. 020583 Membership
No. 023305 Membership
No. 021661
Partner Partner Partner
Chartered
Accountants Chartered
Accountants Chartered
Accountants
Chennai
May 30, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of SESHASAYEE
PAPER AND BOARDS LIMITED which comprise of the Balance Sheet as at 31st
March 2013, Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of Significant Accounting Policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in Sub-section (3C) of Section 211
of the Companies Act, 1956 (''the Act''). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the Auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the Auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of Accounting Policies used and
the reasonableness of the accounting estimates made by Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India :
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013;
(b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order'') issued by the Central Government in terms of Sub-section (4A)
of Section 227 of the Act,
we give in the Annexure a statement on the matters specified in the
paragraphs 4 and 5 of the said 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 Act;
(e) on the basis of written representations received from the Directors
as on 31st March 2013 and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31st March 2013 from being
appointed as a Director in terms of Clause (g) of Sub-section (1) of
Section 274 of the Act.
(f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under Section 441A of the Act
nor has it issued any Rules under the said Section, prescribing the
manner in which such cess is to be paid, no cess is due and payable by
the Company.
Referred to in Paragraph 1 under the heading "Report on Other Legal and
Regulatory Requirements" of our Report of even date :
1 (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the Management at
reasonable intervals and no material discrepancies were noticed on such
verification.
(c) Fixed assets of a substantial part, affecting the going concern,
have not been disposed off during the year.
2 (a) The Management has carried out Physical verification of inventory
at reasonable intervals.
(b) 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 and no
material discrepancies were noticed on physical verification.
3 (a) The Company has not granted any loans, secured / unsecured to
companies, firms or other parties covered in the Register maintained
under Section 301 of the Act.
(b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the Register maintained
under Section 301 of the Act.
4 There is an adequate internal control system commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services and
no major weakness has been noticed in the internal control system.
5 (a) The 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.
(b) The transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable, having
regard to the prevailing market prices at the relevant time.
6 The Company has not accepted any deposits from the public.
7 The Company has an internal audit system commensurate with its size
and nature of its business.
8 Central Government has prescribed maintenance of Cost Records under
Section 209(1)(d) of the Act and such accounts and records have been
made and maintained.
9 According to the information and explanations given to us in respect
of statutory dues :
(a) The Company is regular in depositing undisputed statutory dues,
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Value Added Tax, Wealth Tax,
Service tax, Custom Duty, Excise Duty, Cess and any other statutory
dues with the appropriate authorities and there were no undisputed
amounts payable which were in arrears as at 31st March 2013 for a
period of more than six months from the date they became payable..
10 The Company has no accumulated losses as at March 31, 2013 and has
not incurred cash losses during the financial year ended on that date
or in the immediately preceding financial year.
11 The Company has not defaulted in repayment of dues to financial
institution or banks. There are no dues payable to the debenture
holders during the year.
12 The Company has granted a loan on the basis of security by way of
pledge of shares and adequate documents and records for such loan has
been maintained.
13 The Company is not a chit fund / nidhi / mutual benefit fund /
society and hence, Clause (xiii) of Paragraph 4 of the Order is not
applicable to the Company.
14 The Company is not dealing in or trading in shares, securities,
debentures and other investments.
15 The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
16 Term loans borrowed by the Company were applied for the purpose for
which the loans were obtained.
17 Funds raised on short term basis have not been used for long term
investments.
18 The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under Section
301 of the Act, during the year.
19 The Company has not issued any debentures and hence, creation of
charge does not arise.
20 The Company has not raised any money through public issues and
hence, disclosure and verification of end use of money raised through
public issues do not arise.
21 According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the year.
For M/s S VISWANATHAN For SURI & CO.,
Firm Regn. No. 004770S Firm Regn. No. 004283S
Chella K Srinivasan S Swaminathan
Membership No. 023305 Membership No. 020583
Chennai Partner Partner
May 30, 2013
Chartered Accountants Chartered Accountants
Mar 31, 2012
1 We have audited the attached Balance Sheet of M/s SESHASAYEE PAPER
AND BOARDS LIMITED, as at 31st March 2012, the Statement of Profit and
Loss and also the Cash Flow Statement 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 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.
3 As required by the Companies (Auditors' Report) Order, 2003, as
amended by the Companies (Auditors' Report) (Amendment) Order, 2004,
issued by the Central Government under Section 227(4A) 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 above, we report
that :
(i) We have obtained all the information and explanations which, to the
best of our
knowledge and belief, were necessary for the purposes of our audit.
(ii) In our opinion, proper books of account, as required by law, have
been kept by the Company, so far as appears from our examination of
those books.
(iii) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement, dealt with by this Report, are in agreement with the
books of account.
(iv)In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement, dealt with by this Report, comply with the
Accounting Standards, referred to in Section 211(3C) of the Companies
Act, 1956, so far as applicable.
(v) On the basis of declarations from the Directors of the Company, as
at March 31, 2012, and taken on record by the Board of Directors of the
Company, no Director is disqualified as on March 31, 2012, from being
appointed as a Director of the Company, in terms of Section 274(1)(g)
of the Companies Act, 1956.
(vi)In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read with the notes
thereon, 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 :
(a) in the case of the Balance Sheet, of the state of the Company's
affairs, as at March 31, 2012;
(b) in the case of the Statement of Profit and Loss, of the PROFIT for
the financial 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.
ANNEXURE TO AUDITORS' REPORT :
Referred to in Paragraph 3 of our Report of even date :
1 (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the Management at
reasonable intervals and no material discrepancies were noticed on such
verification.
(c) Fixed assets of a substantial part, affecting the going concern,
have not been disposed off during the year.
2 (a) The Management has carried out physical verification of inventory
at reasonable intervals.
(b) 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 and no
material discrepancies were noticed on physical verification.
3 (a) The Company has granted an unsecured loan of Rs 16.35 crores to a
Company covered in the Register maintained under Section 301 of the
Companies Act, 1956 and the balance outstanding as on 31st March 2012
was Rs 5 crores.
(b) The rate of interest and other terms and conditions of the loan
given are, prima facie, not prejudicial to the interest of the Company.
(c) The payment of interest and repayment of principal are regular.
(d) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956 and hence, Sub-clauses (f)
and (g) of Clause (iii) of Paragraph 4 of the Order are not applicable.
4 There is an adequate internal control system commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services and
no major weakness has been noticed in the internal control system.
5 (a) The particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1956, have been entered in the
Register required to be maintained under that Section.
(b) The transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable, having
regard to the prevailing market prices at the relevant time.
6 The Company has not accepted any deposits from the public.
7 The Company has an internal audit system commensurate with its size
and nature of its business.
8 Central Government has prescribed maintenance of Cost Records under
Section 209(1)(d) of the Companies Act, 1956 and such accounts and
records have been made and maintained.
9 (a) The Company is regular in depositing undisputed statutory dues,
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Value Added Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and any other statutory
dues with the appropriate authorities and there were no undisputed
amounts payable which were in arrears as at 31st March 2012 for a
period of more than six months from the date they became payable.
(b) Details of dues of Income Tax, Wealth Tax, Service Tax, Value Added
Tax, Customs Duty, Excise Duty and Cess which have not been deposited
as on 31st March 2012 on account of disputes are given below:
Name of the Nature of Amount Forum where
the Period to which
Statute dues Rs lakhs dispute is
pending the dues belong
Central Excise Excise Duty 4.69 CESTAT March -
November 2005
Act, 1944
-do - - do - 76.61 CESTAT May -
December 2005
-do - - do - 269.76 CESTAT February 2004 -
March 2005
-do - - do - 7.67 Commissioner December 2005 -
June 2007
(Appeals)
-do - - do - 26.32 - do - January -
June 2007
-do - - do - 2.43 - do - For the day
07 12 2008
-do - - do - 4.56 Hon'ble High
Court October -
November 1996
of Madras
Income Tax Income Tax 313.03 Commissioner
of Assessment
Year 2007-08
Act, 1961 Income Tax
(Appeals)
-do - - do - 738.27 - do - Assessment
Year 2008-09
10 The Company has no accumulated losses as at March 31, 2012 and has
not incurred cash losses during the financial year ended on that date
or in the immediately preceding financial year.
11 The Company has not defaulted in repayment of dues to financial
institution or banks. There are no dues payable to the debenture
holders during the year.
12 The Company has granted a loan on the basis of security by way of
pledge of shares and adequate documents and records for such loan has
been maintained.
13 The Company is not a chit fund / nidhi / mutual benefit fund /
society and hence, Clause (xiii) of Paragraph 4 of the Order is not
applicable to the Company.
14 The Company is not dealing in or trading in shares, securities,
debentures and other investments.
15 The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
16 Term loans borrowed by the Company were applied for the purpose for
which the loans were obtained.
17 Funds raised on short term basis have not been used for long term
investments.
18 The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956, during the year.
19 The Company has not issued any debentures and hence, creation of
charge does not arise.
20 The Company has not raised any money through public issues and
hence, disclosure and verification of end use of money raised through
public issues do not arise.
21 According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the year.
For SURI & CO., For M/s S VISWANATHAN
Firm Regn. No. 004283S Firm Regn. No. 004770S
S Swaminathan Chella K Srinivasan
Membership No. 020583 Membership No. 023305
Chennai Partner Partner
May 29, 2012 Chartered Accountants Chartered Accountants
Mar 31, 2010
We have audited the attached Balance Sheet of M/s SESHASAYEE PAPER AND
BOARDS LIMITED, as at 31st March 2010, the Profit and Loss Account and
also the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
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.
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.
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.
The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement, dealt with by this Report, are in agreement with the books
of account.
In our opinion, the Balance Sheet, Profit and Loss Account and the Cash
Flow Statement, dealt with by this Report, comply with the Accounting
Standards, referred to in
Section 211(3C) of the Companies Act, 1956, so far as applicable.
On the basis of declarations from the Directors of the Company, as at
March 31, 2010, and taken on record by the Board of Directors of the
Company, no Director is disqualified as on March 31, 2010, from being
appointed as a Director of the Company, in terms of Section 274(1)(g)
of the Companies Act, 1956.
The Cess, specified under Sub-section (2) of Section 441A of the
Companies Act, 1956, has not been provided for nor paid, in view of the
rate and manner of payment having not yet been notified by the Central
Government.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts, read with the notes
thereon, 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 the Companys
affairs, as at March 31, 2010;
(ii) in the case of the Profit and Loss Account, of the PROFIT for the
financial year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
As required by the Companies (Auditors Report) Order, 2003, as amended
by the Companies (Auditors Report) (Amendment) Order, 2004, issued by
the Central Government under Section 227(4A) of the Companies Act,
1956, we state that :
1 (a) The Company has maintained proper records showing full
particulars including
quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the Management at
reasonable intervals and no material discrepancies were noticed on such
verification.
(c) Fixed assets of a substantial part, affecting the going concern,
have not been disposed off during the year.
2 (a) The Management has carried out
physical verification of inventory at reasonable intervals.
(b) 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 and no
material discrepancies were noticed on physical verification.
3 (a) The Company has granted an unsecured
loan of Rs fifty lakhs to a Company covered in the Register maintained
under Section 301 of the Companies Act, 1956.
(b) The rate of interest and other terms and conditions of the loan
given are, prima facie, not prejudicial to the interest of the Company.
(c) The payment of interest is regular and the repayment of the
principal has not fallen due and hence, Sub-clause (d) of Clause (iii)
of Paragraph 4 of the Order is not applicable and
(d) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956 and hence, Sub-clauses (f)
and (g) of Clause (iii) of Paragraph 4 of the Order are not applicable.
4 There is an adequate internal control system commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services and
no major weakness has been noticed in the internal control system.
5 (a) The particulars of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956,
have been entered in the Register required to be maintained under that
Section.
(b) The transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable, having
regard to the prevailing market prices at the relevant time.
6 The Company has not accepted any deposits from the public.
7 The Company has an internal audit system commensurate with its size
and nature of its business.
8 Central Government has prescribed maintenance of Cost Records under
Section 209(1)(d) of the Companies Act, 1956 and such accounts and
records have been made and maintained.
9 (a) The Company is regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income-tax, Sales-tax,
Wealth Tax, Service tax, Custom Duty, Excise Duty, Cess and any other
statutory dues with the appropriate authorities.
(b) The Company has not deposited the disputed Excise Duty of Rs 389.61
lakhs, consisting of Rs 4.56 lakhs, for the period October 1996 to
November 1996, Rs 4.69 lakhs for the period March 2005 to November
2005, Rs 76.61 lakhs, for the period May 2005 to December 2006
and Rs 269.76 lakhs, for the period February 2004 to March 2005, on
which appeals are pending before the Customs, Excise and Service Tax
Appellate Tribunal and Rs 7.67 lakhs, for the period December 2005 to
June 2007 and Rs 26.32 lakhs for the period January 2007 to June 2007
on which appeals are pending before the Commissioner (Appeals) and
disputed Income Tax of Rs 1.43 crores for the Assessment Year 2007-08,
on which appeals are pending before the Commissioner of Income Tax
(Appeals).
10 The Company has no accumulated losses as at March 31, 2010 and has
not incurred cash losses during the financial year ended on that date
or in the immediately preceding financial year.
11 The Company has not defaulted in repayment of dues to financial
institution or banks. There are no dues payable to the debenture
holders during the year.
12 The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
and hence, maintenance of adequate documents and records for such cases
does not arise.
13 The Company is not a chit fund / nidhi / mutual benefit fund /
society and hence,
Clause (xiii) of Paragraph 4 of the Order is not applicable to the
Company.
14 The Company is not dealing in or trading in shares, securities,
debentures and other investments.
15 The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
16 Term loans borrowed by the Company were applied for the purpose for
which the loans were obtained.
17 Funds raised on short term basis have not been used for long term
investments.
18 The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under Section
301 of the Companies Act, 1956, during the year.
19 The Company has not issued any debentures and hence, creation of
charge does not arise.
20 The Company has not raised any money through public issues and
hence, disclosure and verification of end use of money raised through
public issues do not arise.
21 According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the year.
For SURI & CO., For Messrs S VISWANATHAN
Firm Regn. No. 004283S Firm Regn. No. 004770S
S Swaminathan Chella K Srinivasan
Membership No. 20583 Membership No. 23305
Chennai Partner Partner
May 29, 2010 Chartered Accountants Chartered Accountants