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Cella Space Ltd.

BSE: 532701 Sector: Industrials
NSE: N.A. ISIN Code: INE266H01014
BSE 00:00 | 22 Mar 6.34 0
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NSE 05:30 | 01 Jan Cella Space Ltd
OPEN 6.34
PREVIOUS CLOSE 6.34
VOLUME 100
52-Week high 11.40
52-Week low 5.20
P/E 0.97
Mkt Cap.(Rs cr) 12
Buy Price 5.80
Buy Qty 280.00
Sell Price 6.34
Sell Qty 2800.00
OPEN 6.34
CLOSE 6.34
VOLUME 100
52-Week high 11.40
52-Week low 5.20
P/E 0.97
Mkt Cap.(Rs cr) 12
Buy Price 5.80
Buy Qty 280.00
Sell Price 6.34
Sell Qty 2800.00

Cella Space Ltd. (CELLASPACE) - Auditors Report

Company auditors report

Independent Auditor’s Report

To The Members of M/s.Sree Sakthi Paper Mills Kochi.

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of M/s. Sree SakthiPaper Mills Kochi [CIN: L21012KL1991PLC006207] which comprises of:-

(a) The Balance Sheet as at 31st March 2018

(b) The Statement of Profit and Loss for the year (including other comprehensiveincome) ended 31st March 2018

(c) Statement of Changes in Equity for the year ended 31st March 2018

(d) Cash Flow Statement for the year ended 31st March 2018; and

(e) A Summary of Significant 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 standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the company in accordance with the Indian Accounting Standards (IndAS) prescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also 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; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting 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.

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 and the order passed under Section143(11) of the Act. We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of the standalone financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstancesbut not for the purpose of expressing an opinion on whether the company has in place anadequate internal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made byCompany’s Directors as well as evaluating the overall presentation of the standalonefinancial statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the standalone financialstatements

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2018; and its LOSS total comprehensive income the changes in equity andits cash flows for the year ended on that date.

Emphasis of Matter

We invite the attention of the users to

(a) Note No. 2(e) of the Significant Accounting Policies regarding the validity ofGoing Concern assumption for the company in preparation of the standalone financialstatements; (b) Note No. 13 of the Significant Accounting Policies regarding lackof external confirmation of balances for receivables and payables including balances dueto / from group concerns.

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

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 ofsection 143 of the Act we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

1) 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 including other comprehensiveincome Statement of changes in Equity and Cash Flow Statement dealt with by this Reportare in agreement with the books of account

d) In our opinion the aforesaid financial statements comply with the Indian 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 fromthe directors as on March 31 2018 and taken on record by the Board of Directors none ofthe directors is disqualified as on March 31 2018 from being appointed as a director interms of subsection (2) of section 164 of the Act.

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 B.

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 if any on long term contracts including derivativecontracts.

iii) iii) The company has not transferred the equity shares corresponding to Unpaiddividend where the specified period under 124 (5) has been completed within the due dateof 31st October 2017. However there has been no delay in transferring such unpaiddividends to Investor Education and Protection fund by the company.

For KPR & Co
Chartered Accountants
FRN: 5326S
Sd/-
Deepa Praveen ACA
Kochi -11 Memb No: 232410
13.06.2018 Partner

Ref: M/s. Sree Sakthi Paper Mills Limited Kochi -16 (2017-18)

Annexure A: Referred to in paragraph 1 of ‘Report on other Legal and Regulatoryrequirements’ of our report of even date-

(i) In respect of the fixed assets

(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets. (b) The fixed assets have beenphysically verified by the management at reasonable intervals and the discrepanciesnoticed have been properly dealt with in the books of accounts. (c) According to theinformation and explanation given to us the title deeds of immovable properties of theCompany are held in the name of the Company except for 1.75 acres of industrial land inthe possession of the Company at Edayar purchased in financial year 2012-13. We areinformed that the company has paid the entire purchase consideration and is waiting forfinal 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) The Company has not granted any loans secured or unsecured to Companiesfirms LLPs or other parties covered in the register maintained under Section 189 of theCompanies Act 2013 except for unsecured loans Rs. 5.36 lakhs Rs.5.36 lakhs and Rs. 7.11lakhs advanced to the subsidiary companies M/s Sree Adisakthi Mukkuttathode HydropowerLimited M/s Jalashaayi Alamparathodu Hydro power Limited and M/s Sree Kailas PalchuramHydro power Limited respectively prior to 2013. However the above loans were repaid by therespective borrowing companies during the year.

(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 ofprincipal.

(iv) In our opinion and according to the explanations given to us the Company hascomplied with the provisions of the Sections 185 and 186 of the Act in respect of thegrant of loans making investments and providing guarantees and securities made by it.

The company had granted loans/advances to subsidiary companies as given in iii(a)above which we were informed by the company that the provisions of section 185 and 186are not applicable as the were made before 12th September 2013 being the effective date ofSec 185 of Companies Act 2013.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits during the year. Therefore the provisions of clause3 (v) of the Companies (Auditor’s Report) Order 2016 are not applicable to theCompany.

(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 not been regular in depositing undisputedstatutory dues including Provident fund Employees state insurance Income Tax Sales TaxService Tax Duty of Customs Duty of Excise Value added tax Cess and other statutorydues with appropriate authorities. The extend of arrears of Statutory dues as at the lastday of the financial year concerned outstanding for a period of more than six months as at31.3.2018 from the date they became payable are income tax of Rs. 71.71 lakhs and TDS ofRs.4.82 lakhs Service Tax Rs 3.23 lakhs Excise duty of Rs 46.39 lakhs VAT of Rs 6.75lakhs andCSTofRs.1.25lakhs.

(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 2018 which have not been deposited on account of any dispute are furnished as:

Sl. No. Name of the statute Nature of Dues Amount of tax disputed (Rs. In lakhs) Period to which the dispute relates. Forum where the Dispute is pending.
1 Income Tax Act Income Tax 22.18 AY 2014-15 CIT(Appeals) Kochi
2 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 except for temporary delays occurred in the repayment details ofwhich are given in Annexure C. There were no debenture holders at any time during theyear.

(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 were we informed ofsuch case by the management.

(xi) In our opinion the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of Section 19 read withSchedule 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 tothe Company.

(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 madepreferential allotment of shares during the year under review in accordance with therequirements of Section 42 of the Companies Act 2013 and the amount raised has been usedfor the purposes for which the funds were raised.

(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 andaccording to the information and explanations given to us the Company is not required tobe registered under Section 45 IA of the Reserve Bank of India Act 1934.

For KPR & Co
Chartered Accountants
FRN: 5326S
Sd/-
Deepa Praveen ACA
Kochi -11 Memb No: 232410
13.06.2018 Partner

ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL STATEMENTS 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 2018 in conjunction with our audit of thestandalone 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 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 theprevention and detection of frauds and errors the accuracy and completeness of accountingrecords and 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 ofrisks of material 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 controlsystems over financial reporting.

Meaning of internal financial controls over financial reporting

A company’s internal financial controls over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of the financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial controlsover financial reporting includes those policies and procedures that (1) pertain to themaintenance of the records that in reasonable detail accurately and fairy reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that the transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatthe receipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding the prevention or timely deduction of unauthorized acquisition useor disposition of the company’s assets that could have a material effect on thefinancial 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

According to the information and explanations given to us and based on our audit thefollowing material weaknesses have been revealed as at March 31 2018:

The internal control system established by the company for recording of financialtransactions in time was not operating effectively due to which there was considerabledelay in recording reconciling and reporting the financial information on a timely basis.Further no internal audit was conducted during the year.

A ‘material weakness’ is a deficiency or a combination of deficiencies ininternal financial control over financial reporting such that there is a reasonablepossibility that a material misstatement of the company's annual or interim financialstatements will not be prevented or detected on a timely basis.

In our opinion except for the effects/possible effects of the material weaknessesdescribed above on the achievement of the objectives of the control criteria the Companyhas maintained in all material respects adequate internal financial controls overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as of March 31 2018 based on the internal control over thefinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of internal FinancialReporting issued by the Institute of Chartered Accountants of India.

We have considered the material weaknesses identified and reported above in determiningthe nature timing and extent of audit tests applied in our audit of the March 31 2018financial statements of the Company and these material weaknesses does not affect ouropinion on the financial statements of the Company.

For KPR & Co
Chartered Accountants
FRN: 5326S
Sd/-
Deepa Praveen ACA
Kochi -11 Memb No: 232410
13.06.2018 Partner

ANNEXURE C TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL STATEMENTS OF SREE

SAKTHI PAPER MILLS LIMITED

Details of delays occurred in repayment of loans referred in clause (viii) of AnnexureA.

Loan Amount Due date of payment Date of payment No. of days of delay
11044 15.04.2017 21.04.2017 6
11044 15.05.2017 26.05.2017 11
11044 15.06.2017 28.07.2017 43
11044 15.07.2017 28.07.2017 13
11044 15.08.2017 27.09.2017 43
11044 15.09.2017 27.09.2017 12
Axis Bank Car Loan
11044 15.10.2017 30.10.2017 15
11044 15.11.2017 30.11.2017 15
11044 15.12.2017 27.12.2017 12
11044 15.01.2018 03.02.2018 19
11044 15.02.2018 07.03.2018 20
11044 15.03.2018 31.03.2018 16
1358000 11.04.2017 28.04.2017 17
1375000 11.05.2017 31.05.2017 20
1358000 11.06.2017 30.06.2017 19
Term Loan (SBT
Panampilly Nagar) 3495000 11.07.2017 27.07.2017 16
1290000 11.08.2017 30.08.2017 19
46618010 11.09.2017 28.09.2017 17
500000 28.05.2017 31.05.2017 3
Term Loan (Punjab 468000 28.06.2017 30.06.2017 2
National Bank)
510000 28.08.2017 30.08.2017 2