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Sarda Papers Ltd.

BSE: 516032 Sector: Industrials
NSE: N.A. ISIN Code: INE385D01011
BSE LIVE 15:15 | 14 Sep 7.99 -0.42
(-4.99%)
OPEN

8.80

HIGH

8.80

LOW

7.99

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 8.80
PREVIOUS CLOSE 8.41
VOLUME 203
52-Week high 13.23
52-Week low 7.99
P/E
Mkt Cap.(Rs cr) 2
Buy Price 7.99
Buy Qty 17.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.80
CLOSE 8.41
VOLUME 203
52-Week high 13.23
52-Week low 7.99
P/E
Mkt Cap.(Rs cr) 2
Buy Price 7.99
Buy Qty 17.00
Sell Price 0.00
Sell Qty 0.00

Sarda Papers Ltd. (SARDAPAPERS) - Auditors Report

Company auditors report

To

The Members

Sarda Papers Limited

I. Report on the Financial Statements

We have audited the attached financial statements of Sarda Papers Limited (hereinafterreferred to as the Company) comprising of the Balance Sheet as at 31st March2015 the Statement of Profit and Loss and the Cash Flow Statement for the year endedalong with the Significant Accounting Policies and other explanatory information formingan integral part thereof.

II. Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the Accounting Standardsreferred to in Section 133 of the Companies Act 2013 (hereinafter referred to as theAct) read with Rule 7 of the Companies (Accounts) Rules 2014 and in accordance with theaccounting principles generally accepted in India. This responsibility also includes themaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the Company and for preventing and detecting the frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

III. Auditors’ 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 anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company’s Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a reasonable basis for our audit opinion.

IV. Refer the following Notes:

Basis for Qualified Opinion

(i) Note No. 8 regarding non-provision of depreciation for the year on Plant andMachinery and Factory Buildings aggregating to Rs 32.84 Lacs due to closure of plant onaccount of suspension of manufacturing operations and consequential overstatement of fixedassets and overstatement of profit for the year by Rs 32.84 Lacs;

Emphasis of Matter

(i) Note No. 21 regarding the preparation of financial statements of the Company on agoing concern basis. In view of the matters stated therein relating to revival ofoperations of the Company and the recent positive developments accompanying financialstatements have been prepared under going concern assumption; and

(ii) Note No. 22 regarding non-provision in the Company’s books in respect ofimpairment in the Company’s assets as per the recommendations of AccountingStandard–28 Impairment of Assets since in the Company’s opinion the estimatedrealizable values exceed the carrying values of the fixed assets and hence no impairmentarises.

Consequential impact of such non–provision on the carrying values as well as onthe profit for the year is presently unascertainable;

(iii) Note No. 32 regarding non-compliance by the Company with the requirements Section203 of the Act in respect of appointment of a whole-time Company secretary.

Our opinion is not qualified in respect of the above matters.

(V) Opinion

Subject to para (IV)(i) above in our opinion and to the best of our information andaccording to the explanations given to us the aforesaid financial statements give theinformation required by the Act in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2015 and its Profit and its cash flowsfor the year ended on that date.

(VI) Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 issued by theCentral Government of India in terms of sub-section (11) of Section 143 of the Act weenclose in the Annexure a statement on the matters specified in paragraph 3 of the saidOrder to the extent applicable to the Company during the year under review.

2. Further to our comments in the Annexure referred to in 1. Above as per therequirements of Section 143(3) of the Act we report as follows:

(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 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 Balance Sheet Statement of Profit and Loss and the Cash FlowStatement dealt with by this report comply with the Accounting Standards referred to inSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014;

(e) On the basis of written representations received from the respective directors ason 31st March 2015 and taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2015 from being appointed as adirector in terms of sub-section (2) of Section 164 of the Act;

(f) 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; and

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

For Shyam Malpani & Associates
Chartered Accountants
Firm Registration No. – 120438W
Shyam Malpani
Proprietor
Membership No. F 34171
Mumbai dated 29th May 2015.

Annexure to the Auditors’ Report

(Referred to in paragraph VI(1) of our report of even date)

In terms of the information and explanations given to us and the books and recordsexamined by us and on the basis of such checks as we considered appropriate we furtherreport as under:

(i) Fixed Assets

(a) The Company has maintained fixed assets register showing full particulars includingquantitative details and situation of the fixed assets.

(b) As explained to us the management has physically verified the fixed assets in aphased manner the periodicity of which in our opinion is reasonable.

(ii) Inventory

(a) We were explained that the management has conducted physical verification ofinventories as at close of the year under review.

(b) Based on the explanations we are of the opinion that the procedures of physicalverification of inventories followed by the management are reasonable and adequate inrelation to the size of the Company and nature of its business.

(c) In our opinion the Company is maintaining proper records of inventory and nomaterial discrepancies were noticed on the physical verification of the same and uponcomparison with the said records.

(iii) Loans & Advances granted

During the year under review the Company has not granted any loans secured orunsecured to the parties covered in the register maintained under Section 189 of the Act.

(iv) Internal Controls

In our opinion the Company has adequate internal control procedures commensurate withthe size and the nature of its business for the sale of goods and provision of services.We have not come across any significant weakness in the present internal control system.

(v) Public Deposits

According to the information and explanations given to us the Company has not accepteddeposits as per the directives issued by Reserve Bank of India and the provisions ofSections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder.

(vi) Cost Records

As explained to us the coated paper products manufactured by the Company do not fallin the category prescribed by the Central Government for maintenance of cost accounts andrecords under Section 148(1) of the Act during the year under review.

(vii) Statutory Dues

(a) As per the records verified by us the Company is generally regular in depositingthe statutory dues including Income tax Sales Tax Service Tax and Excise Duty with theappropriate authorities during the year under review. According to the information andexplanations given to us no undisputed amounts payable in respect of the above were inarrears as at the end of the year for a period of more than six months.

Keeping in view the present operations of the Company statutes pertaining toEmployee’s State Insurance Corporation Customs Duty Wealth Tax Provident Fund andCess are not applicable to the Company during the year under review.

(b) The disputed statutory dues aggregating to Rs. 21.77 Lacs that have not beendeposited on account of disputed matters pending before appropriate authorities are asunder :

Sr. No. Name ofthe statute Nature of The Dues Amount (Rs. inLacs) Period Forum wheredispute ispending
1 CentralExcise Act 1944 Excise Duty and Penalties 3.07 01/09/1996 to 31/01/1997 Commissioner of Central Deputy Excise (Appeals) Nashik
2 CentralExcise Act 1944 Excise Duty and Penalties 5.70** October 1998 to February 2000 Central Excise andService tax AppellateTribunal Mumbai
3 CentralExcise Act 1944 Excise Duty and Penalties 5.36* FY 2000-01 and FY 2001-02 Central Excise andService tax AppellateTribunal Mumbai
4 CentralExcise Act 1944 Excise Duty and Penalties 7.64 FY 2002-03 Deputy Commissioner of Central Excise (Appeals) Nashik

Note: * includes Rs. 0.50 Lacs deposited by the Company under protest but charged torevenue.

** includes Rs. 1.00 Lacs deposited by the Company under protest but charged torevenue.

(c) The Company has no amounts to be transferred to Investor Education and ProtectionFund at any time during the year under review.

(viii) Accumulated Losses

As per the records of the Company the accumulated losses of the Company have exceeded50% of the Net Worth of the Company as at the end of the current financial year. TheCompany has however not incurred any cash losses during the current financial year(Previous Year Rs. 1.23 Lacs).

(ix) Dues to Financial Institutions / Banks

From the books of accounts verified by us during the year the Company has no duespending to be payable to banks/ Financial Institution. The Company has not borrowed anyamount through Debentures.

(x) Guarantees given

As explained to us the Company has not given any guarantee in respect of loans takenby others from Banks / Financial Institutions.

(xi) Application of funds raised

No Term Loans were raised by the Company during the year.

(xii) Frauds

During the course of examination of the books of accounts and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given to us we have not come across anyfraud on or by the Company noticed or reported during the year nor have we been informedof such case by the Management causing the financial statements to be materiallymisstated.

For Shyam Malpani & Associates
Chartered Accountants
Firm Registration No. – 120438W
Shyam Malpani
Proprietor
Membership No. F 34171
Mumbai dated 29th May 2015.