To the Members of
BIO GREEN PAPERS LIMITED
Report on the Financial Statements:
2. We have audited the accompanying financial statements of M/s. BIO GREEN PAPERSLIMITED "the Company" which comprise the Balance Sheet as at March 31 2016the Statement of Profit and Loss and Cash flow statement for the year ended and a summaryof significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements:
3. The management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ('the act') with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
4. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under. We conducted our audit inaccordance 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 theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.
5. An audit involves performing procedures to obtain audit evidence about the amountsand 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's management and Board of Directors aswell as evaluating the overall presentation of the financial statements
6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
7. In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a) In the case of the Balance Sheet of the state of affairs of the Company as at March31 2016; and
(b) In the case of the Profit and Loss Account of the Profit for the year ended onthat date
(c) In the case of the Cash Flow statement of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements:
8. 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 section143 ofthe Act we give in the Annexure a statement on the matters Specified in paragraphs 3 and4 of the Order.
9. As requires section 143(3) of the Act we further 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 appears from our examination of those books;
c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d. in our opinion the aforesaid financial statements comply with the applicableAccounting standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014
e. on the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct
f. In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
i) The Company does not have any pending litigations which would impact its financialposition except as mentioned in CARO.
ii) The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise
iii) There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise
|For D.M.RAO & CO |
|Chartered Accountants |
|(D. Madhusudana Rao) |
|Membership No. 028434 |
|Date: 30/05/2016 |
ANNEXURE REFERRED TO IN PARAGRAPH 7 OF THE AUDITOR'S REPORT ON THE ACCOUNTS OF BIOGREEN PAPERS LIMITED FOR THE YEAR ENDING 31ST MARCH 2016.
Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:
I. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
(b) As explained to us the fixed assets have been physically verified by themanagement at reasonable intervals and no material discrepancies between the book recordsand the physical inventory have been noticed on such verification.
(c) The Company has not disposed off substantial part of the Fixed Assets.
II. (a) The Inventory has been physically verified during the year and in our opinionthe frequency of verifications is reasonable
. (b) In our opinion the procedures of the physical verification of inventory followedby the
Management are reasonable and adequate in relation of the size of the Company and thenature of its business. However company need to take some more procedures to improveinventory controls.
(c) The Company is maintaining proper records of inventory and as explained to usthere was no material discrepancies noticed on such verification of stocks as compared tobook records.
III. (a) The company has not granted any loans secured or unsecured to companiesfirms or other parties covered in the register maintained under section 189 of the Act.
(b) The question of whether reasonable steps have been taken by the company forrecovery of the principal and interest does not arise.
(c) As no loans are granted by company the clause of receipt of interest &principal amount from parties is not applicable to the company.
IV. In our opinion and according to the information and explanations given to usthere are sufficient adequate internal control systems commensurate with the size of thecompany and the nature of its business with regard to purchase of inventory and fixedassets and for sale of goods and services. There is no continuing failure by the companyto correct any major weaknesses in internal control.
V. (a) The Company has not accepted any deposits from the public covered underSection 73
to 76 of the Companies Act 2013
(b) According to the information and explanations given to us as no such contracts orarrangements made by the company the applicability of the clause of charging thereasonable price having regards to the prevailing market prices at the relevant time doesnot arise.
VI. The Company has not accepted any deposits from the public and hence theapplicability of the clause of directives issued by the Reserve Bank of India andprovisions of section 58A 58AA or any other relevant provisions of the Act and the rulesframed there under does not arise. As per information and explanations given to us theorder from the Company Law Board or National Company Law Tribunal or Reserve Bank of Indiaor any Court or any other Tribunal has not been received by the Company.
VII. The Company has a formal system of Internal Audit but there are adequate checks& controls at All levels established by the Management.
VIII. As informed to us the Central Government has prescribed maintenance of costrecords under subsection (1) of Section 148 of the Act ( Cost Audit not yet completed bytill date)
IX. (a) According to the information and explanations given to us the statutory duesin respect of PF ESI Income Tax and other applicable statutory payments are payingregular and any other statutory dues as at the end of the period for a period more thansix months from the date they became payable.
X. The Company has no accumulated losses at the end of the financial year and thecompany has not incurred cash losses in this financial year and the immediately precedingfinancial year.
XI. On the basis of the information and explanation given to us Company become NPAwith State Bank of India with an outstanding amount of Rs. 2.70 Crores.
XII. According to the information and explanations given to us the Company has notgranted any loans or advances on the basis of security by way of pledge of sharesdebentures and other securities and hence the applicability of the clause regardingmaintenance of adequate documents in respect of loans does not arise.
XIII. This clause is not applicable to this Company as the Company is not coveredby the provisions of special statute applicable to Chit Fund in respect of Nidhi/MutualBenefit Fund/Societies.
XIV. According to the information and explanations and management letter given to usthe Company has not given any guarantee for loans taken by others from Banks or FinancialInstitutions and hence the applicability of this clause regarding terms and conditionswhich are prejudicial to the interest of the company does not arise.
XV. As per the management representation received by us the term loans obtained by theCompany were applied for purpose for which such loans were obtained by the Company.
XVI. As per the management representation received by us no funds are raised by theCompany on short-term basis. Hence the clause of short term funds being used for long-term investment does not arise.
XVII. According to the information and explanations given to us during the year thecompany does not have any debentures and hence the applicability of the clause regardingthe creation of security or charge in respect of debentures issued does not arise.
XVIII. According to information and explanations given to us the company has notraised money by way of public issues during the year; hence the clause regarding thedisclosure by the management on the end use of money raised by Public Issue is notapplicable.
XIX. According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the year under audit.
|For D.M.RAO & CO |
|Chartered Accountants |
|(D. Madhusudana Rao) |
|Membership No. 028434 |
|Date: 30/05/2016 |