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Arms Paper Ltd.

BSE: 532397 Sector: Others
NSE: N.A. ISIN Code: INE971A01014
BSE 15:11 | 19 Jan 1.32 -0.06
(-4.35%)
OPEN

1.32

HIGH

1.32

LOW

1.32

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 1.32
PREVIOUS CLOSE 1.38
VOLUME 14057
52-Week high 1.92
52-Week low 1.31
P/E
Mkt Cap.(Rs cr) 1
Buy Price 1.32
Buy Qty 943.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.32
CLOSE 1.38
VOLUME 14057
52-Week high 1.92
52-Week low 1.31
P/E
Mkt Cap.(Rs cr) 1
Buy Price 1.32
Buy Qty 943.00
Sell Price 0.00
Sell Qty 0.00

Arms Paper Ltd. (ARMSPAPER) - Auditors Report

Company auditors report

To

The Members of ARMS PAPER LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of ARMS PAPER LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2017 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Maanagement’s Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility :

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances.An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("theOrder")issued by the Central Government of India in terms of sub-section(11) of section 143 ofthe Companies Act 2013 we give in the "Annexure - A"astatement on the mattersspecified in paragraphs 3 and 4 of the Order tothe 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 bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure -B"

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition;

ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note 12 to the financial statements.

For J. R. PUROHIT & CO.
Chartered Accountants
(Firm Reg No:111841W)
Vikas Purohit
Place : Ahmedabad Partner
Date :29th May 2017 Mem No:131959

ANNEXURE A TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date.)

(i) In respect of its fixed assets :

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information;

(b) As explained to us the Company has a phased program of physical verification ofits fixed assets which in our opinion is reasonable having regard to the size of theCompany and the nature of its business. During the year the Company has physicallyverified some of the assets and no material discrepancies were noticed on suchverification.

(c) The Company does not have any immovable properties hence clause (i)(c) is notapplicable.

(ii) There is no inventory of finished goods hence clause (ii) is not applicable tothe Company.

(iii) During the year the Company has not given any loans secured or unsecured to thecompanies firms LLP or other parties covered in the register maintained under section189 of the Companies Act 2013. Hence Clause (iii) (a) (b) and (c) are not applicable tothe Company.

(iv) Based on our audit procedures and on the basis of information and explanationsgiven to us by the managementprovisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security have been complied with.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit and hence the provisions of Section 73 to 76 or anyother relevant provisions of the Companies Act and the Companies (Acceptance of Deposits)Rules 2014 with regard to the deposits accepted are not applicable to the Company.Therefore the provisions of clause (v) of paragraph 3 of the Order are not applicable tothe company. According to the information and explanations given to us no order has beenpassed by Company Law Board or National Company Law Tribunal or Reserve Bank of India orany Court or any other Tribunal.

(vi) The Central Government has not prescribed maintenance of cost records undersection 148(1) of the Companies Act 2013 in respect of the Company.

(vii) In respect of statutory dues:

(a) According to the records of the Company the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including ProvidentFund Employees' State Insurance Sales Tax Service Tax Duty of Customs Duty of ExciseValue Added Tax Cess except for the TDS. According to the information and explanationsgiven to us there are undisputed amounts payable in respect of above dues which were inarrears as at 31st March 2017 for a period of more than six months from the date theybecame payable.

Nature of the Statue Nature of Dues Amount Periods to which Amount Relates
Income Tax Act 1961 Tax Deducted at Source 35047/- AY 2014-15 to AY 2017-18

(b) According to the information and explanation given to us the Company does not haveany disputed Statutory dues of income tax or sales tax or wealth tax or service tax orduty of customs or duty of excise or value added tax or cess.

(viii) According to the information and explanation given to us the Company has nottaken any borrowings from the financial institution or banks or debenture holders duringthe year. Therefore clause (viii) is not applicable to the Company.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year under audit. According to theinformation and explanation given to us the Company has not taken any term loan duringthe year. Therefore clause (ix) is not applicable.

(x) Based on the audit procedures performed and representation obtained from managementwe report that no case of material fraud by the Company or on the Company by its officeror employee has been noticed or reported for the year under audit.

(xi) Based on our audit procedures and on the basis of information and explanationsgiven to us by the management managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

(xii) The Company is not a Nidhi Company.Therefore; the provisions of clause (xii) ofparagraph 3 of the Order are not applicable to the Company.

(xiii) Based on our audit procedures and on the basis of information and explanationsgiven to us by the management all transactions with the related parties are in compliancewith sections 177 and 188 of Companies Act2013 wherever applicable and the details havebeen disclosed in the Financial Statements etc. as required by the applicable accountingstandards;

(xiv) Based on our audit procedures and on the basis of information and explanationsgiven to us by the management the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review. Therefore the provisions of clause (xiv) of paragraph 3 of the Order arenot applicable to the Company.

(xv) Based on our audit procedures and on the basis of information and explanationsgiven to us by the management the Company has not entered into any non-cash transactionswith Directors or persons connected with him.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For J. R. PUROHIT & CO.
Chartered Accountants
(Firm Reg No:111841W)
Vikas Purohit
Place : Ahmedabad Partner
Date :29th May 2017 Mem No:131959

ANNEXURE B TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2(f) under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date.)

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013 ("THE ACT")

We have audited the Internal Financial Controls over financial reporting of Arms PaperLimited ("the Company") as of 31stMarch 2017 in conjunction with our audit ofthe 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 InternalFinancial Controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on audit of internal financial controls over financial reporting(the"Guidance Note") issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on audit of internal financial controls over financial reportingand the Standards on Auditingboth issued by ICAI and deemed to be prescribed undersection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls.Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofManagement and Directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany'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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31stMarch 2017 based ontheinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on audit ofinternal financial controls over financial reporting issued by the Institute of CharteredAccountants of India.

For J. R. PUROHIT & CO.
Chartered Accountants
(Firm Reg No:111841W)
Vikas Purohit
Place : Ahmedabad Partner
Date :29th May 2017 Mem No:131959