Mar 31, 2015
We have audited the accompanying financial statements of Simplex
Papers Limited ('the Company'), which comprise the Balance Sheet
as at 31st March, 2015, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation and presentation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under
the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on whether the Company has in place an adequate
internal financial controls system over financial reporting and the
operating effectiveness of such controls. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Company's
Directors, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India,
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
b) in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
financial statements:
1. During the year, the Company has accumulated losses and its net
worth has been fully eroded. This indicates the existence of
uncertainty that may cast doubt about the Company's ability to
continue as a going concern. However as explained by the management in
Note no. 21, the financial statements of the Company have been
prepared on a going concern basis for the reason stated in the said
note.
Our opinion is not modified in respect of the aforesaid matter.
Report on Other Legal and Regulatory
Requirements
2. 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 Paragraphs 4 and 5 of the
Order.
3. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
(b) in our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books;
(c) the balance sheet, the statement of profit and loss and the cash
flow statement dealt with by this Report are in agreement with the
books of account;
(d) in our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the
directors as on 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 20 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 were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
The Annexure referred to in our report to the members of the Company
on the financial statements for the year ended 31st March, 2015, we
report that:
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 as per information and explanation given, no
material discrepancies were noticed on such verification.
ii. a. As explained to us, management conducted physical verification
of stocks of raw materials, finished goods and stores and spares at
reasonable intervals during the year, as also as at the balance sheet
date.
b. In our opinion and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory during the year, are reasonable and adequate
in relation to the size of the Company and nature of its business.
c. On the basis of our examination of inventory records, we are of the
opinion that the Company has maintained proper records of inventory.
Discrepancies noticed on physical verification of inventory as
compared to the book records were not material and have been properly
dealt with in the books of account.
iii. a. The Company has granted loans to two parties covered in the
register maintained under section 189 of the Companies Act, 2013
('the Act').
b. According to the information and explanations given to us, the
borrowers have been regular in the payment of the interest as
stipulated.
c. There are no overdue amounts of more than rupees one lakh in
respect of the loans granted to the bodies corporate listed in the
register maintained under section 189 of the Act.
iv. In our opinion and according to information and explanation given
to us, during the year under report, there are adequate internal
control procedures 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. Further, on the basis of our examination of
books and records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the
public, to which the directives issued by the Reserve Bank of India
and the provisions of Section 73 to 76 or any other relevant
provisions of the Companies Act, 2013 or the rules framed there under
apply.
vi. As per information and explanation given to us, by the management,
the provisions for maintenance of the cost records under Section
148(1) of the Act are not applicable to the Company as there is no
manufacturing activity during the year under review.
vii. a. According to the information and explanations given to us, the
Company was regular during the year in depositing undisputed statutory
dues including Provident Fund, Income tax, Sales tax, Customs duty and
Excise duty with the appropriate authorities. According to the
information and explanation given to us, as at the balance sheet date,
the Company has no undisputed statutory dues of a material nature
which remained unpaid for a period exceeding six months from the date
on which they were payable.
b. According to the information and explanation given to us, as at the
balance sheet date, the Company has not deposited dues of Excise duty
aggregating Rs.17,54,45,314/- and income tax aggregating Rs.1,59,280/-, on
account of the following disputes pending before authorities:
c. According to the information and explanations given to us, there
were no 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 there
under.
viii. The accumulated losses of the Company have exceeded fifty
percent of its net worth as at the end of the year covered by our
audit. The Company has not incurred cash losses during the year as
well as in the immediately preceding year.
ix. According to the information and explanations given to us, the
Company has not committed default in repayment of dues in respect of
its bank borrowings except in respect of the unsecured sales tax loan
from a state financial institution, aggregating Rs.47,58,522/- as at the
balance sheet date, which is due for more than six months.
x. According to the information and the explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions as at the Balance Sheet date.
xi. According to the information and the explanations given to us, the
Company has not taken any term loan during the year.
xii. To the best of our knowledge and belief and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year under
report.
For Vijay Rungta & Co.
Chartered Accountants
Firm's registration number: 111427W
Ajay J. Rungta
Partner
Membership No.: F- 40333
Mumbai, 27th May , 2015
Mar 31, 2014
We have audited the accompanying financial statements of Simplex Papers
Limited ("the Company"), which comprise the Balance Sheet as at 31st
March, 2014, the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
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") read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013. 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, 2014;
(b) In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of
India in terms of sub-section (4A) of Section 227 of the Act, we give
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956 read
with the General Circular 15/2013 dated 13th September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013;
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.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
[Referred to in Paragraph 1 of our report of even date to the members
of Simplex Papers Limited on the financial statements for the year
ended 31st March, 2014]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) According to information and explanation given to us, during the
year, the management conducted physical verification of certain fixed
assets in accordance with its policy of physical verification in a
phased manner. In our opinion, such frequency is reasonable having
regard to the size of the Company and the nature of its fixed assets.
As explained to us, the discrepancies noticed on physical verification
as compared to book records maintained, were not material and have been
properly dealt with in the books of account.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off by the Company during the year.
(ii) (a) As explained to us, management conducted physical verification
of stocks of raw materials, finished goods and stores and spares at
reasonable intervals during the year, as also as at the balance sheet
date.
(b) In our opinion, and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory during the year, are reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) On the basis of our examination of inventory records, we are of the
opinion that the Company has maintained proper records of inventory.
Discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
(iii) The Company has not granted / taken any loans, secured or
unsecured to/from companies, firms or parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to information and explanation given
to us, during the year under report, there are adequate internal
control procedures 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. Further, on the basis of our examination of
books and records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
(v) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
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) In our opinion and according to the information and explanations
given to us, transactions (other than those already dealt with in
paragraph (iii) above) made pursuant to contracts or arrangements
referred to in (v)(a) above and exceeding the value of Rs. five hundred
thousand in respect of each party during the year, have been made at
prices which are reasonable having regard to the market prices
prevailing at that time, where available.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public,
to which the directives issued by the Reserve Bank of India and the
provisions of Section 58A, 58AA or any other provisions of the
Companies Act, 1956 or the rules framed there under apply.
(vii) The Company has no internal audit system during the period
covered under audit.
(viii) According to the information and explanations given to us, the
provisions for maintenance of the cost records under Section 209(1)(d)
of the Act are not applicable to the Company as there was no
manufacturing activities during the year under review.
(ix) (a) According to the information and explanations given to us,
during the year the Company has generally been regular in depositing
undisputed statutory dues including Provident Fund, Income tax, Customs
duty and Excise duty with the appropriate authorities and that there
are no amounts payable as at 31st March, 2014 which were in arrears of
more than six months from the date they become payable. However, the
Company has paid outstanding undisputed Sales Tax dues of Rs.1,50,000/-.
(b) According to the information and explanation given to us, as at the
balance sheet date, the Company has not deposited dues of Excise duty
aggregating Rs.17,54,45,314/- and Income tax aggregating Rs.1,59,280/-, on
account of the following disputes pending before authorities:
Excise duty
Period to
which dues relate Pending before (in Rs.)
1994-99 Honbl''e High Court, Mumbai 16,36,72,492
1991-92 CESTAT 1,02,549
1999-00 Deputy Commissioner 1,16,70,273
Total 17,54,45,314
Income Tax
Period to which
dues relate Pending before (in Rs.)
A.Y. 2005-06 CIT, Mumbai 1,59,280
Total 1,59,280
(x) The accumulated losses of the Company have exceeded fifty percent
of its net worth as at the end of the year covered by our audit. The
Company has not incurred cash losses during the year under report and
in the immediately preceeding financial year.
(xi) According to the information and explanations given to us, the
Company has not committed default in repayment of dues in respect of
its bank borrowings except in respect of the unsecured Sales Tax loan
from a state financial institution, aggregating Rs.47,58,522/- as at the
balance sheet date, which is due for more than six months.
(xii) In our opinion, and according to the information and explanations
given to us, during the year under report, the Company has not granted
any loans or advances against security by way of pledge of shares and
securities; accordingly, the provisions of clause (xii) of paragraph 4
of the said Order are not applicable.
(xiii) The Company is not a chit fund / nidhi / mutual benefit fund /
society and accordingly, the provisions of clause (xiii) of paragraph 4
of the said Order are not applicable.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities and other
investments as its principal business, and accordingly the provisions
of clause (xiv) of paragraph 4 of the said Order are not applicable to
the Company.
(xv) According to the information and explanations given to us, as at
the balance sheet date, the Company has not given any guarantees for
loans taken by others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the Company did not avail any term loans during the year
under report. Accordingly, the provisions of clause (xvi) of paragraph
4 of the said Order are not applicable.
(xvii) In our opinion, and according to the information and
explanations given to us, and on an overall examination of the balance
sheet of the Company, prima facie, funds raised on a short-term basis
have not been used for long- term investments.
(xviii) According to the information and explanations given to us,
during the year under report, the Company did not make any preferential
allotment of shares to parties listed in the register maintained under
Section 301 of the Act.
(xix) The Company has not issued any debentures during the year under
report.
(xx) During the year under report, the Company did not raise any money
through a public issue; consequently, the provisions of clause (xx) of
paragraph 4 of the Order are not applicable.
(xxi) To the best of our knowledge and belief, and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year under
report.
For Vijay Rungta & Co.
Chartered Accountants
(Firm Registration No. 111427W)
Ajay Rungta
Partner
Membership No: F- 40333
Mumbai, 15th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Simplex Papers
Limited (the Company), which comprise the Balance Sheet as at 31st
March, 2013 and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
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 loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of
India in terms of sub-section (4A) of section 227 of the Act, we give
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
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 Companies Act, 1956.
ANNEXURE TO AUDITORS'' REPORT
[Referred to in Paragraph 1 of our report of even date to the members
of Simplex Papers Limited on the financial statements for the year
ended 31st March, 2013]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and
situation of fixed assets.
(b) According to information and explanation given to us, during the
year, the management conducted physical verification of certain fixed
assets in accordance with its policy of physical verification in a
phased manner. In our opinion, such frequency is reasonable having
regard to the size of the Company and the nature of its fixed assets.
As explained to us, the discrepancies noticed on physical verification
as compared to book records maintained, were not material and have been
properly dealt with in the books of account.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off by the Company during the year.
(ii) (a) As explained to us, management conducted physical verification
of stocks of raw materials, finished goods and stores and spares at
reasonable intervals during the year, as also as at the balance sheet
date.
(b) In our opinion, and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory during the year, are reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) On the basis of our examination of inventory records, we are of the
opinion that the Company has maintained proper records of inventory.
Discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
(iii) The Company has not granted / taken any loans, secured or
unsecured to/from companies, firms or parties govered in the register
maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to information and explanation given
to us, during the year under report, there are adequate internal
control procedures 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. Further, on the basis of our examination of
books and records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
(v) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
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) In our opinion and according to the information and explanations
given to us, transactions (other than those already dealt with in
paragraph (iii) above) made pursuant to contracts or arrangements
referred to in (v)(a) above and exceeding the value of Rs. five hundred
thousand in respect of each party during the year, have been made at
prices which are reasonable having regard to the market prices
prevailing at that time, where available.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public,
to which the directives issued by the Reserve Bank of India and the
provisions of Section 58A, 58AA or any other provisions of the
Companies Act, 1956 or the rules framed there under apply.
(vii) The Company has no internal audit system during the period
covered under audit.
(viii) We have broadly reviewed the books of account maintained by the
Company relating to the manufacture of paper products, pursuant to the
order made by the Central Government for the maintenance of cost
records under Section 209(1)(d) of the Act, and are of the opinion
that, prima facie, the prescribed accounts and records have been made
and maintained. We have not, however, made a detailed examination of
the records with a view to determining whether they are accurate and
complete.
(ix) (a) According to the information and explanations given to us, the
Company was regular during the year in depositing undisputed statutory
dues including Provident fund, Income tax, Customs duty and Excise duty
with the appropriate authorities. According to the information and
explanation given to us, as at the balance sheet date, the Company has
not deposited undisputed Sales tax dues of Rs. 1,50,000/-, which remained
unpaid for a period exceeding six months from the date on which they
were payable on account of the following disputes pending before
authorities:
x) The accumulated losses of the Company have exceeded fifty percent of
its net worth as at the end of the year
covered by our audit. The Company has not incurred cash losses during
the year under report and in the immediately preceeding financial year.
(xi) According to the information and explanations given to us, the
Company has not committed default in
repayment of dues in respect of its bank borrowings except in respect
of the unsecured Sales Tax loan from a state financial institution,
aggregating Rs.47,58,522/- as at the balance sheet date, which is due for
more than six months.
(xii) In our opinion, and according to the information and explanations
given to us, during the year under report, the Company has not granted
any loans or advances against security by way of pledge of shares and
securities; accordingly, the provisions of clause (xii) of paragraph 4
of the said Order are not applicable.
(xiii) The Company is not a chit fund / nidhi / mutual benefit fund /
society and accordingly, the provisions of clause (xiii) of paragraph 4
of the said Order are not applicable.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities and other
investments as its principal business, and accordingly, the provisions
of clause (xiv) of paragraph 4 of the said Order are not applicable to
the Company.
(xv) According to the information and explanations given to us, as at
the balance sheet date, the Company has not given any guarantees for
loans taken by others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the Company did not avail any term loans during the year
under report. Accordingly, the provisions of clause (xvi) of paragraph
4 of the said Order are not applicable.
(xvii) In our opinion, and according to the information and
explanations given to us, and on an overall examination of the balance
sheet of the Company, prima facie, funds raised on a short-term basis
have not been used for long- term investments.
(xviii) According to the information and explanations given to us,
during the year under report, the Company did not make any preferential
allotment of shares to parties listed in the register maintained under
section 301 of the Act.
(xix) The Company has not issued any debentures during the year under
report.
(xx) During the year under report, the Company did not raise any money
through a public issue; consequently, the provisions of clause (xx) of
paragraph 4 of the Order are not applicable.
(xxi) To the best of our knowledge and belief, and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year under
report.
For Vijay Rungta & Co.
Chartered Accountants
(Firm Registration No.111427W)
Ajay Rungta
Partner
Membership No.F-40333
Mumbai, 15th May, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Simplex Papers
Limited ('the Company') as at 31st March, 2012 and also the Statement
of Profit and Loss and the Cash Flow Statement of the Company for the
year ended on that date, annexed thereto (all together referred to as
'financial statements'). 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 statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 ('the Act'), and on the basis of such checks of the
books and records as we considered necessary and appropriate and
according to the information and explanations given to us during the
course of the audit, 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:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to Section 211(3C) of the Act;
e. without qualifying our report, we draw attention to Note 20 of the
notes to financial statements in respect of which we have relied upon
the management representation and estimates regarding restarting its
manufacturing operations;
f. on the basis of written representations received by the Company
from its Directors and taken on record by the Board of Directors, we
report that none of the directors are disqualified as at 31st March,
2012 from being appointed as directors in terms of clause (g) of
subsection (1) of Section 274 of the Act;
g. in our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
significant accounting policies and other notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view subject to note 4(e) above:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii. in the case of the Statement of Profit and Loss, of the loss of
the Company for the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS' REPORT
[Referred to in paragraph 3 of our report of even date to the members
of Simplex Papers Limited on the financial statements for the year
ended 31st March, 2012]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) According to information and explanation given to us, during the
year, the management conducted physical verification of certain fixed
assets in accordance with its policy of physical verification in a
phased manner. In our opinion, such frequency is reasonable having
regard to the size of the Company and the nature of its fixed assets.
As explained to us, the discrepancies noticed on physical verification
as compared to book records maintained, were not material and have been
properly dealt with in the books of account.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off by the Company during the year.
(ii) (a) As explained to us, management conducted physical verification
of stocks of raw materials, finished goods and stores and spares at
reasonable intervals during the year, as also as at the balance sheet
date.
(b) In our opinion, and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory during the year, are reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) On the basis of our examination of inventory records, we are of the
opinion that the Company has maintained proper records of inventory.
Discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
(iii) The Company has not granted / taken any loans, secured or
unsecured to companies, firms or parties covered in the register
maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to information and explanation given
to us, during the year under report, there are adequate internal
control procedures 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. Further, on the basis of our examination of
books and records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
(v) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
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) In our opinion and according to the information and explanations
given to us, transactions (other than those already dealt with in
paragraph (iii) above) made pursuant to contracts or arrangements
referred to in (v)(a) above and exceeding the value of Rupees five
hundred thousand in respect of each party during the year, have been
made at prices which are reasonable having regard to the market prices
prevailing at that time, where available.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public,
to which the directives issued by the Reserve Bank of India and the
provisions of Section 58A, 58AA or any other provisions of the
Companies Act, 1956 or the rules framed there under apply.
(vii) The Company has no internal audit system during the period
covered under audit.
(viii) We have broadly reviewed the books of account maintained by the
Company relating to the manufacture of paper products, pursuant to the
order made by the Central Government for the maintenance of cost
records under Section 209(1)(d) of the Act, and are of the opinion
that, prima facie, the prescribed accounts and records have been made
and maintained. We have not, however, made a detailed examination of
the records with a view to determining whether they are accurate and
complete.
(ix) (a) According to the information and explanations given to us, the
Company was regular during the year in depositing undisputed statutory
dues including Provident Fund, Income tax, Customs duty and Excise duty
with the appropriate authorities. According to the information and
explanation given to us, as at the balance sheet date, the Company has
not deposited undisputed Sales Tax dues of Rs 1,50,000/-, which
remained unpaid for a period exceeding six months from the date on
which they were payable on account of the following disputes pending
before authorities:
(b) According to the information and explanation given to us, as at the
balance sheet date, the Company has not deposited dues of Excise Duty
aggregating Rs 17,55,63,684/- and Sales Tax aggregating Rs
2,54,78,954/-, on account of the following disputes pending before
authorities:
Excise Duty
Period to which dues relate Pending before (in Rs)
1994-99 Honbl'e High Court, Mumbai 16,36,72,492
1991-92 CESTAT 1,02,549
1999-00 Deputy Commissioner 1,16,70,273
2005-06 Commissioner, (Appeals) 1,18,370
Total 17,55,63,684
Sales Tax (in Rs)
2004-05 Joint Commissioner, Appeal (BST) 16,49,315
2003-04 Joint Commissioner, Appeal (CST) 1,06,99,462
2004-05 Joint Commissioner, Appeal (CST) 1,31,30,177
Total 2,54,78,954
(x) The accumulated losses of the company have exceeded fifty percent
of its net worth as at the end of the year covered by our audit. The
Company has not incurred cash losses during the year under report but
has incurred cash loss in the preceding financial year.
(xi) According to the information and explanations given to us, the
Company has not committed default in repayment of dues in respect of
its bank borrowings except in respect of the unsecured Sales Tax loan
from a state financial institution, aggregating Rs 47,58,522/- as at
the balance sheet date, which is due for more than six months.
(xii) In our opinion, and according to the information and explanations
given to us, during the year under report, the Company has not granted
any loans or advances against security by way of pledge of shares and
securities; accordingly, the provisions of clause (xii) of paragraph 4
of the said Order are not applicable.
(xiii) The Company is not a chit fund / nidhi / mutual benefit fund /
society and accordingly, the provisions of clause (xiii) of paragraph 4
of the said Order are not applicable.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities and other
investments as its principal business, and accordingly the provisions
of clause (xiv) of paragraph 4 of the said Order are not applicable to
the Company.
(xv) According to the information and explanations given to us, as at
the balance sheet date, the Company has not given any guarantees for
loans taken by others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the Company did not avail any term loans during the year
under report. Accordingly, the provisions of clause (xvi) of paragraph
4 of the said Order are not applicable.
(xvii) In our opinion, and according to the information and
explanations given to us, and on an overall examination of the balance
sheet of the Company, prima facie, funds raised on a short-term basis
have not been used for long- term investments.
(xviii) According to the information and explanations given to us,
during the year under report, the company did not make any preferential
allotment of shares to parties listed in the register maintained under
section 301 of the Act.
(xix) The Company has not issued any debentures during the year under
report.
(xx) During the year under report, the company did not raise any money
through a public issue; consequently, the provisions of clause (xx) of
paragraph 4 of the Order are not applicable.
(xxi) To the best of our knowledge and belief, and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year under
report.
For Vijay Rungta & Co.
Chartered Accountants
(Firm Registration No. 111427W)
Ajay Rungta
Partner
Mumbai, 14th May, 2012 Membership No: F - 40333
Mar 31, 2011
1. We have audited the attached Balance Sheet of Simplex Papers
Limited ('the Company') as at March 31,2011 and also the Profit and
Loss Account and the Cash Flow Statement of the Company for the year
ended on that date, annexed thereto (all together referred to as
'financial statements'). 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 statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 ('the Act'), and on the basis of such checks of the
books and records as we considered necessary and appropriate and
according to the information and explanations given to us during the
course of the audit, 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:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books;
c. the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to Section 211 (3C) of the Act;
e. Without qualifying our report, we draw attention to Note 3 of the
schedule 16 of the accounts in respect of which we have relied upon the
management representation and estimates regarding restarting its
manufacturing operations;
f. on the basis of written representations received by the Company
from its directors and taken on record by the Board of Directors, we
report that as at the balance sheet date, none of the directors is
disqualified from being appointed as a director in terms of clause (g)
of subsection (1) of Section 274 of the Act;
g. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
significant accounting policies and other notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view subject to note 4(e) above:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2011;
ii) in the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date;
and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that
ANNEXURE TO AUDITORS' REPORT
[Referred to in paragraph 3 of our report of even date to the members
of Simplex Papers Limited on the financial statements for the year
ended March 31,2011]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) According to information and explanation given to us, during the
year, the management conducted physical verification of certain fixed
assets in accordance with its policy of physical verification in a
phased manner. In our opinion, such frequency is reasonable having
regard to the size of the Company and the nature of its fixed assets.
As explained to us, the discrepancies noticed on physical verification
as compared to book records maintained, were not material and have been
properly dealt with in the books of account.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off by the company during the year.
(ii) (a) As explained to us, management conducted physical verification
of stocks of raw materials, finished goods and stores and spares at
reasonable intervals during the year, as also as at the balance sheet
date.
(b) In our opinion, and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory during the year, are reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) On the basis of our examination of inventory records, we are of the
opinion that the Company has maintained proper records of inventory.
Discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
(iii) (a) In our opinion and according to the information and
explanations given to us, the Company has not granted any loans,
secured or unsecured to companies, firms or other parties covered in
the register maintained under Section 301 of the Act. Consequently, the
provisions of sub-clauses (b), (c) and (d) of clause (iii) of paragraph
4 of the Order are not applicable.
(b) The Company has availed a loan from one company covered in the
register maintained under Section 301 of the Act. The maximum amount
involved at any time during the previous year was Rs. 27.03 lacs.
(c) In our opinion, the terms and conditions on which the Company has
taken loans are not, prima facie, prejudicial to the interest of the
Company.
(d) There are no overdue amounts of more than Rupees one lakh in
respect of loan given.
(iv) In our opinion and according to information and explanation given
to us, during the year under report, there are adequate internal
control procedures 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. Further, on the basis of our examination of
books and records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
(v) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contract or arrangements referred to in Section 301
of the Act have been entered in the register required to be maintained
under that Section.
(b) In our opinion and according to the information and explanations
given to us, transactions (other than those already dealt with in
paragraph (iii) above) made pursuant to contracts or arrangements
referred to in (v)(a) above and exceeding the value of Rupees five
hundred thousand in respect of each party during the year, have been
made at prices which are reasonable having regard to the market prices
prevailing at that time, where available.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public,
to which the directives issued by the Reserve Bank of India and the
provisions of Section 58A, 58AAor any other provisions of the Companies
Act, 1956 or the rules framed there under apply.
(vii) The Company has no internal audit system during the period
covered under audit.
(viii) We have broadly reviewed the books of account maintained by the
Company relating to the manufacture of paper products, pursuant to the
order made by the Central Government for the maintenance of cost
records under Section 209(1 )(d) of the Act, and are of the opinion
that, prima facie, the prescribed accounts and records have been made
and maintained. We have not, however, made a detailed examination of
the records with a view to determining whether they are accurate and
complete.
(ix) (a) According to the information and explanations given to us, the
Company was regular during the year in depositing undisputed statutory
dues including Provident Fund, Income tax, Wealth Tax, Customs duty and
Excise duty with the appropriate authorities. According to the
information and explanation given to us, as at the balance sheet date,
the Company has not deposited undisputed dues of Sales Tax aggregating
Rs.18.57 lacs., which remained unpaid for a period exceeding six months
from the date on which they were payable.
(b) According to the information and explanation given to us, as at the
balance sheet date, the Company has not deposited dues of Excise duty
aggregating Rs.1,754.45 lacs, on account of the following disputes
pending before authorities:
Period to which dues relate Pending before Rs. in lacs.
1994-1999 Honbl'e High Court,
Mumbai 1,636.72
1991-1992 CESTAT 1.03
1999-2000 Deputy Commissioner 116.70
Total 1,754.45
(x) The accumulated losses of the company have exceeded fifty percent
of its net worth as at the end of the year covered by our audit. The
Company has incurred cash losses during the year under report and has
also incurred loss in the preceding financial year.
(xi) According to the information and explanations given to us, the
Company has not committed default in repayment of dues in respect of
its bank borrowings. In respect of the unsecured Sales Tax loan from a
state financial institution, aggregating Rs.47,58,522/- as at the
balance sheet date, which is due for more than six months.
(xii) In our opinion, and according to the information and explanations
given to us, during the year under report, the Company has not granted
any loans or advances against security by way of pledge of shares and
securities; accordingly, the provisions of clause (xii) of paragraph 4
of the said Order are not applicable.
(xiii) The Company is not a chit fund / nidhi / mutual benefit fund /
society and accordingly, the provisions of clause (xiii) of paragraph 4
of the said Order are not applicable.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities and other
investments as its principal business, and accordingly the provisions
of clause (xiv) of paragraph 4 of the said Order are not applicable to
the Company.
(xv) According to the information and explanations given to us, as at
the balance sheet date, the Company has not given any guarantees for
loans taken by others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the Company did not avail any term loans during the year
under report. Accordingly, the provisions of clause (xvi) of paragraph
4 of the said Order are not applicable.
(xvii) In our opinion, and according to the information and
explanations given to us, and on an overall examination of the balance
sheet of the Company, prima facie, funds raised on a short-term basis
have not been used for long- term investments.
(xviii) According to the information and explanations given to us,
during the year under report, the company did not make any preferential
allotment of shares to parties listed in the register maintained under
section 301 of the Act.
(xix) The Company has not issued any debentures during the year under
report.
(xx) During the year under report, the company did not raise any money
through a public issue; consequently, the provisions of clause (xx) of
paragraph 4 of the Order are not applicable.
(xxi) To the best of our knowledge and belief, and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year under
report.
For Vijay Rungta & Co.
Chartered Accountants
(Firm Registration No.111427W)
Ajay Rungta
Partner
Membership No: F- 40333
Mumbai, May 14, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Simplex Papers
Limited (the Company) as at March 31, 2010 and also the Profit and
Loss Account and the Cash Flow Statement of the Company for the year
ended on that date, annexed thereto (all together referred to as
financial statements). These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We 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 statements
presentation. We believe that our audit provides are as on able basis
for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 ("the Act), and on the basis of such checks of the
books and records as we considered necessary and appropriate and
according to the information and explanations given to us during the
course of the audit, 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:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books;
c. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d. in our opinion, the Balance Sheet, the Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to Section 211 (3C) of the Act;
e. Due to continued losses, the net worth of the company has been
fully eroded and the production is under suspension since September
2006. In spite of this, the accounts for the year under review have
been prepared on the assumption of a going concern basis. This is in
view of the efforts made by the management to restart the manufacturing
operations with alternative raw materials mix. (Refer note 4 of
Schedule 15)
f. on the basis of written representations received by the Company
from its directors and taken on record by the Board of Directors, we
report that as at the balance sheet date, none of the directors is
disqualified from being appointed as a director in terms of clause (g)
of subsection (1) of Section 274 of the Act;
g. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
significant accounting policies and other notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view subject to note 4(e) above:
i. in the case of the Balance Sheet,of the state of affairs of the
Company as at March 31st ,2010;
ii. in the case of the Profit and Loss Account,of the loss of the
Company for the year ended on that date; and
iii. in case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS REPORT
[Referred to in paragraph 3 of our report of even date to the members
of Simplex Papers Limited on the financial statements for the year
ended March 31,2010]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) According to information and explanation given to us, during the
year, the management conducted physical verification of certain fixed
assets in accordance with its policy of physical verification in a
phased manner. In our opinion, such frequency is reasonable having
regard to the size of the Company and the nature of its fixed assets.
As explained to us, the discrepancies noticed on physical verification
as compared to book records maintained, were not material and have been
properly dealt with in the books of account.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off by the company during the year.
(ii) (a) As explained to us, management conducted physical verification
of stocks of raw materials, finished goods and stores and spares at
reasonable intervals during the year, as also as at the balance sheet
date.
(b) In our opinion, and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory during the year, are reasonable and adequate
in relation to the size of the Company and nature of its business
(c) On the basis of our examination of inventory records, we are of the
opinion that the Company has maintained proper records of inventory.
Discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
(iii) (a) In our opinion and according to the information and
explanations given to us, the Company has not granted any loans,
secured or unsecured to companies, firms or other parties covered in
the register maintained under Section 301 of the Act. Consequently, the
provisions of sub-clauses (b), (c) and (d) of clause (iii) of paragraph
4 of the Order are notapplicable
(b) In our opinion and according to the information and explanations
given to us, the Company has not availed any loans, secured and
unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the Act. Consequently, the
provisions of sub-clauses (f) and (g) of the clause (iii) of paragraph
4 o he order are not applicable.
(iv) In our opinion and according to information and explanation given
to us, during the year under report, there are adequate internal
control procedures 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. Further, on the basis of our examination of
books and records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
(v) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contract or arrangements referred to in Section 301
of the Act have been entered in the register required to be maintained
under that Section.
(b) In our opinion and according to the information and explanations
given to us, transactions (other than those already dealt with in
paragraph (iii) above) made pursuant to contracts or arrangements
referred to in (v)(a) above and exceeding the value of Rupees five
hundred thousand in respect of each party during the year, have been
made at prices which are reasonable having regard to the market prices
prevailing at that time, where available.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
to which the directives issued by the Reserve Bank of India and the
provisions of Setion 58A,58AA or any other provisions of the Companies
Act, 1956 orthe rules framed there under apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company relating to the manufacture of paper products, pursuant to the
order made by the Central Government for the maintenance of cost
records under Section 209(1 )(d) of the Act, and are of the opinion
that, prima facie, the prescribed accounts and records have been made
and maintained. We have not, however, made a detailed examination of
the records with a view to determining whether they are accurate and
complete.
(ix) (a) According to the information and explanations given to us, the
Company was regular during the year in depositing undisputed statutory
dues including Provident Fund, Income tax, Wealth Tax, Customs duty and
Excise duty with the appropriate authorities. According to the
information and explanation given to us, as at the balance sheet date,
the Company has not deposited undisputed dues of Sales Tax aggregating
Rs. 18.57 lacs., which remained unpaid for a period exceeding six
months from the date on which they were payable.
(b) According to the information and explanation given to us, as at the
balance sheet date, the Company has not deposited dues of Excise duty
aggregating Rs.1,754.45 lacs, on account of the following disputes
pending before authorities:
Period to which
dues relate Pending before Rs. in lacs.
1994-1999 Honble High Court, Mumbai 1,636.72
[1991-1992 CESTAT 1.03
1999-2000 Deputy Commissioner 116.70
Total 1,754.45
(x) The accumulated losses of the company have exceeded fifty percent
of its net worth as at the end of the year covered by our audit. The
Company has incurred cash losses during the year under report and has
also incurred loss in the preceding financial year.
(xi) According to the information and explanations given to us, the
Company has not committed default in repayment of dues in respect of
its bank borrowings. In respect of the unsecured Sales Tax loan from a
state financial institution, aggregating Rs.47,58,522/- as at the
balance sheet date, which is due for more than six months.
(xii) In our opinion, and according to the information and explanations
given to us, during the year under report, the Company has not granted
any loans or advances against security by way of pledge of shares and
securities; accordingly, the provisions of clause (xii) of paragraph 4
of the said Order are not applicable.
(xiii) The Company is not a chit fund / nidhi / mutual benefit fund /
society and accordingly, the provisions of clause
(xiii)ofparagraph4ofthesaidOrderarenotapplicable.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities and other
investments as its principal business, and accordingly the provisions
of clause (xiv) of paragraph 4 of the said Order are not applicable to
the Company.
(xv) According to the information and explanations given to us, as at
the balance sheet date, the Company has not given any guarantees for
loans taken by others from banks orfinancial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the Company did not avail any term loans during the year
under report. Accordingly, the provisions of clause (xvi) of paragraph
4 of the said Order are not applicable.
(xvii) In ouropinion, and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
Company, prima facie, funds raised on a short-term basis have not been
used for long- term investments.
(xviii) According to the information and explanations given to us,
during the year under report, the company did not make any preferential
allotment of shares to parties listed in the register maintained under
section 301 of the Act.
(xix) The Company has not issued any debentures during the year under
report.
(xx) During the year under report, the company did not raise any money
through a public issue; consequently, the provisions of clause(xx) of
paragraph 4 of the Order are not applicable.
(xxi) To the best of our knowledge and belief, and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year under
report.
For Vijay Rungta & Co.
Chartered Accountants
(Firm Registration N0.111427W)
Ajay Rungta
Partner
Membership No: F-40333
Mumbai,May 21,2010
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