To the Members of COSBOARD INDUSTRIES LIMITED
Report on the Financial Statements
1. We have audited the accompanying financial statements of COSBOARD INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at March 312015 the Statement of Profit and Loss and Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
2.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 tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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.
3. Our responsibility is to express an opinion on these financial statements basedon our 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.
4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. 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. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of the accounting estimates made by the Companys managementand Board of Directors as well as evaluating the overall presentation of the financialstatements
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
6. 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:
a) In the case of the Balance Sheet of the state of affairs of the Company as at March31 2015; and
b) In the case of the Statement of Profit and Loss Account of the Profit for the yearended on that date; and
c) In the case of the Cash Flow statement of the cash flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection143 of the Act we give in the Annexure a statement on the matters Specified inparagraphs 3 and 4 of the Order.
8. 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 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 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 theAuditors
Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014:
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 B R R & ASSOCIATES
B. Ravinder Rao
Annexure referred to in paragraph 7 Our Report of even date to the members of COSBOARDINDUSTRIES LIMITED on the accounts of the company for the year ended 31st March 2015
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:
i. (a). The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b). We have been informed that all the assets have not been physically verified by theManagement during the year but there is a regular programme of verification which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets.
ii. (a) Physical verification of inventory has been conducted at reasonable intervalsby the management
(b) The procedures of physical verification of inventory followed by the managementreasonable and adequate in relation to the size of the company and the nature of itsbusiness (c) The company is maintaining proper record s of inventory and the discrepanciesbetween the physical stocks and the book stocks noticed on physical verification are notmaterial.
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 for recoveryof the principal and interest does not arise.
iv. In our opinion and according to the information and explanations given to us thereis adequate internal control system commensurate with the size of the Company and thenature of its business and company needs to establish some additional controls procedureswith regard to the purchases of inventories fixed assets and with regard to sales ofgoods. Further on the basis of our examination of the books and records of the Companyand according to the information and explanations given to us no major weakness has notbeen noticed or reported.
v. The Company has not accepted any deposits from the public covered under Section 73to 76 of the Companies Act 2013
vi. 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)
vii. (a) According to the information and explanations given to us and based on therecords of the company examined by us the company is regular in depositing the undisputedstatutory dues including Provident Fund Employees State Insurance Income-taxSales-tax Wealth Tax Service Tax Custom Duty Excise Duty and other material statutorydues as applicable with the appropriate authorities in India ;
(b) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of Income Tax Wealth Tax Service TaxSales Tax Customs Duty and Excise Duty which have not been deposited on account of anydisputes other than those mentioned below:
|Name of statute ||Nature of dues ||Amount (in lacs) ||Forum where dispute is pending |
|Central Excise ||Excise Duty ||38.93 ||High Court Odisha Cuttack |
|CESCO ||Electricity demand ||190.37 ||High Court Odisha Cuttack |
|CESCO ||Electricity demand ||22.70 ||High Court Odisha Cuttack |
|CESCO ||Electricity Duty ||105.62 ||High Court Odisha Cuttack |
(c) 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 ofreporting delay in transferring such sums does not arise
viii. The Company has accumulated losses at the end of the current financial year andare less than fifty per cent of its net worth and Company has not incurred cash losses inCurrent financial year and also in the immediately preceding financial year.
ix. According to the records of the company examined by us and as per the informationand explanations given to us the company has availed loans from banks and has not issueddebentures
x. In our opinion and according to the information and explanations given to us theCompany has not given any guarantee for loan taken by others from a bank or financialinstitution during the year
xi. In our opinion and according to the information and explanations given to us thecompany has raised term loan from bank during the year.
xii. During the course of our examination of the books and records of the companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud on or by the Company noticed or reported duringthe course of our audit nor have we been informed of any such instance by the Management
For B R R & Associates
B. Ravinder Rao