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Sree Sakthi Paper Mills Ltd.

BSE: 532701 Sector: Industrials
NSE: N.A. ISIN Code: INE266H01014
BSE LIVE 15:15 | 22 Sep 4.01 -0.39
(-8.86%)
OPEN

3.72

HIGH

4.35

LOW

3.72

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 3.72
PREVIOUS CLOSE 4.40
VOLUME 1620
52-Week high 12.00
52-Week low 3.27
P/E
Mkt Cap.(Rs cr) 7
Buy Price 4.01
Buy Qty 999.00
Sell Price 4.35
Sell Qty 2099.00
OPEN 3.72
CLOSE 4.40
VOLUME 1620
52-Week high 12.00
52-Week low 3.27
P/E
Mkt Cap.(Rs cr) 7
Buy Price 4.01
Buy Qty 999.00
Sell Price 4.35
Sell Qty 2099.00

Sree Sakthi Paper Mills Ltd. (SRSAKTHIPAPER) - Auditors Report

Company auditors report

TO THE MEMBERS OF

M/S. SREE SAKTHI PAPER MILLS LIMITED KOCHI.

Report on the Financial Statements

We have audited the accompanying financial statements of M/s. Sree Sakthi Paper MillsLimited Kochi which comprises of:-(a) The Balance Sheet as at 31st March 2016(b) The Statement of Profit and Loss for the year ended 31st March 2016 (c)Cash Flow Statement for the year ended 31st March 2016 and (d) A Summary ofsignificant accounting policies and other explanatory information.

Management's responsibility for the financial statements

The Company's Board of Directors are 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 Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding 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 there under. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and 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 Company's Directors as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial 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 March31 2016; and its LOSS and its cash flows for the year ended 31st March 2016.

Emphasis of Matter

We invite the attention of the users to Note No. 13(1) regarding notice No.PCB/ESC/CO-99/07 dated 24.05.2016 issued by the Pollution Control Board Kerala. Ouropinion is not qualified in respect of this matter.

Report on other legal and regulatory requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("The Order")issued by the Central Government of India in terms of sub-section 11 of section 143 of theAct we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the 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 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 AccountingStandards specified under section 133 of the Companies Act 2013 read with Rule 7 ofCompanies (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 sub-section (2) ofsection 164 of the Companies Act 2013.

f) The report on internal financial control as required under clause(i) of sub section3 of section 143 of the Companies Act 2013 is attached as Annexure 2.

g) With respect to other matters to be included in the Auditors Report in accordancewith Rule 11 of Companies (Audit and Auditors) Rules 2014 in our opinion and to the bestof our information and according to the explanations given to us:

i. The company has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii. The company has made provisions as required under any law or accounting standardfor material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred toInvestor Education and Protection Fund by the company.

For Balan & Co.
Chartered Accountants
Kochi -11 FRN:000340S
13.06.2016 Sd/-
A. Mohanan B.Sc.FCADISA
M. No. 20627
Partner

Ref: M/s. Sree Sakthi Paper Mills Limited Kochi -16 (2015-‘16) Annexure 1 : Referredto in paragraph 1 of report on other Legal and Regulatory requirements of our report ofeven date-(i) (a) The Company is maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management at reasonableintervals and the discrepancies noticed have been properly dealt with in the books ofaccounts.

(c) According to the information and explanation given to us the title deeds ofimmovable properties of the Company are held in the name of the Company except for 1.75acres of industrial land in the possession of the Company at Edayar purchased infinancial year 2012-13. The company has paid the entire purchase consideration and iswaiting for final clearance for effecting legal transfer of ownership.

(ii) The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable. The discrepancies noticed onverification between the physical stocks and the book records were not material and havebeen properly dealt with in the books of account.

(iii) (a) Except for unsecured loans Rs. 536353 /- Rs. 536413/- and Rs.711603/-advanced to the subsidiary companies M/s Sree Adisakthi Mukkuttathode Hydropower LimitedM/s Jalashaayi Alamparathodu Hydro power Limited and M/s Sree Kailas Palchuram Hydro powerLimited respectively prior to 2013 the Company has not granted any loans secured orunsecured to Companies firms LLPs or other parties covered in the register maintainedunder Section 189 of the Companies Act 2013.

(b) The terms and conditions of the above loans granted are not prejudicial to theinterest of the company.

(c) The company has not stipulated any schedule of repayment of principal.

(iv) The company has complied with the provisions of Sec 185 and 186 of the companiesAct 2013 in respect of loans investments guarantees and securities made by it. We areinformed by the company that the provisions of Sec 185 are not applicable to the loansmade to the subsidiary companies amounting to Rs.1784369 /- before 12-09-2013 being theeffective date of sec 185 of the companies Act 2013 (v) In our opinion and according tothe information and explanations given to us the Company has not accepted any depositsduring the year. Therefore the provisions of clause 3 (v) of the Companies (Auditor'sReport) Order 2016 are not applicable to the Company.

(vi) We have broadly reviewed the books and records maintained by the company pursuantto the order of the Central Government 148 (1) of the Companies Act 2013 and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. We have however not made a detailed examination of the records with a view todetermining whether these records are accurate or complete.

(vii) (a) According to the information given to us and on the basis of the checksconducted by us we report that the company has been generally regular in depositingundisputed statutory dues including Provident fund Employees state insurance Income TaxSales Tax Wealth Tax Service Tax Duty of Customs Duty of Excise Value added tax Cessand any other statutory dues with appropriate authorities except for income tax of Rs.48.80 lakhs and TDS of Rs. 0.87 lakhs which were in arrears as at 31.3.2016 for a periodof more than six months from the date they became payable.

(b) According to the information and explanations given to us and based on the recordsof the company examined by us the particulars of dues towards income tax sales taxwealth tax service tax duty of customs duty of excise value added tax and cess as at31st March 2016 which have not been deposited on account of any dispute arefurnished as :

Sl. No. Name of the statute Nature of Dues Amount of tax disputed Period to which the dispute relates Forum where the Dispute is pending
Rs. In lakhs
1 Income tax Act Income Tax 20.53 A.Y 2007-‘08 CIT (Appeals) Kochi
2 Income Tax Act Income Tax 11.68 AY-2011-12 CIT(Appeals) Kochi
3 Central Sales Tax Act Central Sales tax 15.48 A.Y 2007-‘08 Deputy Commissioner (Appeals) Kochi

(viii) In our opinion and according to the information and explanation given to us theCompany has not defaulted in repayment of loans or borrowings to financial institutionsbanks and Government. There were no debenture holders at any time during the year.

(ix) The company has not made any initial public offer or further public offer or hasavailed any new term loans during the year..

(x) To the best of our knowledge and belief and according to the information andexplanations given to us no material fraud by the Company or any fraud on the company byits officers or employees during the year was noticed or reported nor we were informed ofsuch case by the management. (xi) In our opinion the managerial remuneration has beenpaid or provided in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Companies (Auditor's Report) Order 2016 are not applicable to theCompany.

(xiii) In our opinion all transactions with the related parties are in compliance withSection 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial statements etc. as required by the applicable accountingstandards.

(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review.

(xv) In our opinion and according to the information and explanations given to us theCompany has not entered into any non cash transactions with directors or persons connectedwith him for which provisions of section 192 are applicable.

(xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45–IA of the Reserve Bank ofIndia Act 1934.

For Balan & Co.
Chartered Accountants
Kochi -11 FRN:000340S
13.06.2016 Sd/-
A. Mohanan B.Sc.FCADISA
M. No. 20627
Partner

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF SREE SAKTHI PAPER MILLS LIMITED

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 Sree SakthiPaper Mills Ltd (the company) as of 31st March 2016 in conjunction with ouraudit of the standalone financial statements of the company for the year ended on thatdate.

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 reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditor's 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 reporting(the Guidance Note) and the standards on auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls both applicable to an audit of internal financialcontrols and both issued by the Institute of Chartered Accountants of India. Thosestandards and the Guidance Notes require that we comply with ethical requirements and planand 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 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 controls based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of risks ofmaterial misstatement of the financial statements whether due to fraud or error Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the company's internal financial control systems overfinancial reporting.

Meaning of internal financial controls over financial reporting

A company's internal financial controls over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of the financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial controls over financialreporting includes those policies and procedures that (1) [pertain to the maintenance ofthe records that in reasonable detail accurately and fairy reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance that thetransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that the receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingthe prevention or timely deduction 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 of improper management override ofcontrols material misstatements due to error or fraud may occur and not be deducted.Also projections of any evaluation of the internal financial controls over the 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 March 31 2016 based on theinternal control over the financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of internal Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Balan & Co.
Chartered Accountants
Kochi -11 FRN:000340S
13.06.2016 Sd/-
A. Mohanan B.Sc.FCADISA
M. No. 20627
Partner