Kalptaru Papers Ltd.
|BSE: 590036||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE783C01019|
|BSE 05:30 | 01 Jan||Kalptaru Papers Ltd|
|NSE 05:30 | 01 Jan||Kalptaru Papers Ltd|
|BSE: 590036||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE783C01019|
|BSE 05:30 | 01 Jan||Kalptaru Papers Ltd|
|NSE 05:30 | 01 Jan||Kalptaru Papers Ltd|
TO THE MEMBERS OF
KALPTARU PAPERS LIMITED.
Report on the Financial Statements
We have audited the accompanying financial statements of KALPTARU PAPERS LIMITED("the company") which comprise the Balance Sheet as at
31 March 2017 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters 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 the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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.
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 st atements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on our judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments we considersinternal financial control relevant to the Companys preparation of the financialstatements that give true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made byCompanys Directors as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial stat ements 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; a) In the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2017; b) In the case of the Statement of Profitand Loss of the profit for the year ended on that date; and c) In the case of the CashFlow 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 (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the Annexure-A a statement on the matters specified inthe paragraph 3 and 4 of the order to the extent applicable.
2. As required by Section 143 (3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes 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 (and proper returns adequatefor the purposes of our audit have been received from the branches which is also auditedby us).
c) the Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.[and the returns receivedfrom the branches which are prepared by us] d) In our opinion the aforesaid financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.
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"; and
g) With respect to the other matters included in the Auditors Report and to ourbest of our information and according to the explanations given to us: i. The Company hasdisclosed the impact of pending litigations on its financial position in its financialstatements Refer Note 33 to the financial statements. ii. The Company has made provisionas required under the applicable law or accounting standards for material foreseeablelosses. iii. There has been no delay in transferring amounts required to be transferredto the Investor Education and Protection F und by the Company.
ANNEXURE-A TO THE AUDITORS' REPORT
The Annexure referred to in our report to the members of KALPTARU PAPERS LIMITED forthe year ended 31st March 2017.
On the basis of the information and explanation given to us during the course of ouraudit we report that:
1. (a) As informed to us The company is in process of updating of proper recordsshowing full particulars including quantitative details and situation of its fixed assets.
(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on suchverification.
(c) The title deeds of immovable properties are held in the name of thecompany.
2. (a) As explained to us inventories have been physically verified during the year bythe management at reasonableintervals.
(b) In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its inventories. No material discrepancy wasnoticed on physical verification of stocks by the management as compared to book records.
3. According to the information and explanations given to us and on the basis of ourexamination of the books of account theCompanyhasnotgrantedanyloanssecuredorunsecuredtocompaniesfirmsorotherpartieslistedintheregistermaintainedunder Section 189 of the Companies Act. Thus sub clauses (a) & (b) are not applicableto thecompany.
4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of loans investments guarantees and security.
5. In our opinion and according to the information and explanations given to us companyhasnt accepted any deposits from the directives issued by the Reserve Bank of Indiaand as per the provisions of sections 73 to 76 or any other relevant provisions of theCompaniesAct
6. As per information & explanation given by the management maintenance of costrecords has been prescribed by the Central Government under clause(d)of sub-section (1) ofsection 148 of the Act and we are of the opinion that prima facie the prescribed accountsand records have been made and maintained.
7. (a) According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty cess to theextent applicable and any other statutory dues have generally been regularlydeposited withthe appropriate authorities. According to the information and explanations given to usthere were following outstanding statutory dues as on 31st of March 2017 for a period ofmore than six months from the date they became payable.
According to the information and explanation given to us there are no dues of incometax sales tax service tax duty of customs duty of excise value added tax outstandingon account of any dispute.
8. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that th e Company has defaulted in repayment of dues toa Indian Overseas Bank so all accounts of company in Indian Overseas Bank has beenconverted to Non-Performing Assets during financial year FY 2013-14 and all NPA loanaccounts were sold by IOB to M/s Invent Assets Securitisation& Reconstruction privatelimited on 31.03.2017 vide letter dated 19.05.2017. The Company has defaulted in repaymentof loans amounting Rs. 29202267/- as per Ledger balance of Axis Bank. Bank has alsoissued notice under Securitisation and Reconstruction of Financial Assets and Enforcementof Security Interest Act 2002 vide letter dated 01.09.2016. The Company has defaulted inthe payment of principal outstanding of Rs.32379525.00 of Religare Finvest limited videletter dated 07.04.2017. ReligareFinvest limited has also issued notice underSecuritisation and Reconstruction of Fin ancial Assets and Enforcement of SecurityInterest Act 2002 vide letter dated 15.02.2017.
9. Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans in financial year2016-2017. Accordingly the provisions of clause 3 (ix) of the Order are not applicable tothe Company and hence not commented upon
10. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year nor have we been informed of such case by the management.
11. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 r eadwith Schedule V to the Companies Act;
12. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.
13. In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.
14. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.
15. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.
16. In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.
ANNEXURE - B TO THE AUDITORS' REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143
of the Companies Act 2013 (gthe Acth)
We have audited the internal financial controls over financial reporting of KALPTARUPAPERS LIMITED. ("The Company") as of 31st March 2017 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Companys 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 Reportingissued by the Institute of Chartered Accountants of
India (ICAI). These responsibilities include the design implementation andmaintenance of adequate internal financial c ontrols that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompanys p olicies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completen ess of the accounting records and thetimely preparation of reliable financial information as required under the Companies Act2013.
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 Reporting(the
"Guidance Note") and the Standards on Auditing issued by ICAI and deemed tobe prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of Internal
Financial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the
Companys internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regardi ng 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 trans actions 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporti ng and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017 based on theinternal 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.