You are here » Home » Companies » Company Overview » Malu Paper Mills Ltd

Malu Paper Mills Ltd.

BSE: 532728 Sector: Industrials
NSE: MALUPAPER ISIN Code: INE383H01017
BSE 00:00 | 16 Aug 22.05 1.55
(7.56%)
OPEN

22.50

HIGH

23.00

LOW

22.05

NSE 00:00 | 16 Aug 22.40 1.70
(8.21%)
OPEN

23.50

HIGH

23.50

LOW

21.00

OPEN 22.50
PREVIOUS CLOSE 20.50
VOLUME 3102
52-Week high 51.45
52-Week low 18.25
P/E 5.60
Mkt Cap.(Rs cr) 38
Buy Price 22.05
Buy Qty 200.00
Sell Price 22.70
Sell Qty 200.00
OPEN 22.50
CLOSE 20.50
VOLUME 3102
52-Week high 51.45
52-Week low 18.25
P/E 5.60
Mkt Cap.(Rs cr) 38
Buy Price 22.05
Buy Qty 200.00
Sell Price 22.70
Sell Qty 200.00

Malu Paper Mills Ltd. (MALUPAPER) - Auditors Report

Company auditors report

TO THE MEMBERS OF MALU PAPER MILLS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of MALU PAPER MILLS LIMITEDwhich comprise the Balance Sheet as at March 31 2018 and the Statement of Profit andLoss (including Other Comprehensive Income) the Statement of Changes in Equity and theStatement of Cash Flows for the year then ended and a summary of the significantaccounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is 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 standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due 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. 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 obtain reasonable assuranceabout whether the financial statements are free from material misstatement. An auditinvolves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements. The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments; the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.

Opinion

In our Opinion and to the best of our information and according to the explanationsgiven to us and subject to matter described in the Emphasis of Matters the aforesaidfinancial statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India;

a) In case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2018;

b) In the case of the statement of Profit and Loss (including Other ComprehensiveIncome) of the profit for the year ended on 31st March 2018;

c) In case of the Statement of Changes in Equity the changes in equity for the yearended on 31 st March 2018; and

d) In the case of the Cash Flow Statement of the cash flow for the year ended on 31 stMarch 2018.

Emphasis of Matters

We draw attention to the following matter:

Balances shown under Loans and Advances Sundry Debtors Sundry Creditors and CurrentLiabilities being subject to confirmations/ reconciliations/settlement

and consequential adjustments if any the impact thereof cannot be ascertained at thisstage.

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 the Act we give in the Annexure a statement on the matters

specified in the 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 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 & the Cash Flow Statementsdealt with by this Report are 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 Actread with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

e) On the basis of written representations received from the directors as on 31 March2018 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2018 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 matter 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 :

a. The Company does not have any pending litigations which would impact its financialposition.

b. The Company did not have any long term contracts including derivatives contracts forwhich there were any material foreseeable losses;

c. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For R.A. Kuvadia & Co Chartered Accountants

R.A. Kuvadia
Proprietor
Place : NAGPUR Mem No. : 040087
Date : 29-05-2018 FRN : 105487W

ANNEXURE "A" OF THE INDEPENDENT AUDITIOR'S REPORT

The Annexure referred to in our report to the members of the Malu Paper

Mills Limited for the year Ended on 31st March 2018.

We report that:-

(i) a) As per the information and explanation provided to us the preparation of

fixed assets register showing full particulars including quantitative details codingand situation of Fixed Assets is approaching completion.

b) As per the information and explanation provided to us the physical verification ofthe fixed assets has been carried out by the management; and no material discrepancieswere noticed on such verification.

c) On examination of the documents provided to us the title deeds of immovableproperties (Freehold land and Leasehold land) are held in the name of company and nomaterial discrepancies were noticed on such verification.

(ii) As per the information and explanation provided to us the management hasphysically verified its inventories at reasonable intervals

(iii) The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act. Hence Clause (a) (b) & (c) are not applicable.

(iv) The company has not provided any loans guarantees & security or made anyinvestment. Thus the provisions of section 185 and 186 of the Companies Act 2013 are notapplicable.

(v) The company has not accepted deposits from the public. Hence the issue ofcompliance with the directives issued by the Reserve Bank of India and the provisions ofsections 73 to 76 or any other relevant provisions of the Companies Act and the rulesframed there under does not arise.

(vi) We have broadly reviewed books of accounts maintained by the company pursuant tothe Companies (Cost Accounting Records) Rules 2011 prescribed by the Central Governmentunder section 128 of the Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been maintained. We have however not made a detailed

examination of the cost records with a view to determine whether they are accurate orcomplete.

(vii) According to the information and explanations given to us and the recordsexamined by us the company is regular in depositing undisputed statutory dues includingProvident fund Employees state insurance Income Tax Sales Tax Wealth Tax Service TaxDuty of Customs Duty of exciseValue Added Tax Cess and any other statutory dues withthe appropriate authorities. According to the information and explanations given to us noundisputed arrears of statutory dues were outstanding as at 31st March 2018for a period of more than six months from the date they became payable.

(viii) During the Financial Year 2011-12 all the credit facilities utilised from banksare restructured under the Corporate Debts Restructure (CDR) mechanism and according tothe records of the company examined by us and the information and explanations given tous we are of the opinion that the company has not defaulted in repayment of dues to anyfinancial institutions or banks. The company does not have any borrowings by way ofdebentures.

(ix) During the year no money has been raised either by way of initial public offer orfurther public offer or by term loans by the company.

(x) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the company noticed or reported during the year nor have webeen informed of such case by the management.

(xi) The provisions of Nidhi Rules 2014 are not applicable to the company.

(xii) According to the information and explanations provided to us by the managementall transactions with the related parties are in compliance with section 177 & 188 ofCompanies Act 2013 and the details have been disclosed in the Financial Statements asrequired by the applicable accounting standards.

(xiii) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year.

(xiv) The company has not entered into any non-cash transactions with directors orpersons connected with him. The provision of section 192 of Companies Act 2013 aretherefore not applicable.

(xv) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For R.A. Kuvadia & Co Chartered Accountants

R.A. Kuvadia
Proprietor
Place : NAGPUR Mem No. : 040087
Date : 29-05-2018 FRN : 105487W

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 ("the Act")

We have audited the internal financial controls over financial reporting of MALUPAPER MILLS LIMITED as of 31 March 2018 in conjunction with our audit of thefinancial 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' 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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining an

understanding of internal financial controls over financial reporting assessing therisk that a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding 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 transactions 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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.

Opinion

The Company is in process of compiling the documented policies for internal financialcontrols with respect to maintenance of records authorization by appropriate authorityfor material transactions check against unauthorized acquisition/use/disposition ofcompany's assets and utilization of equity and borrowed funds prevention and detectionof frauds and errors the accuracy and completeness of accounting records and the timelycompletion of reliable financial information etc. The company is streaming to lay downcontrols with respect to the above.

In view of this in our opinion the adequacy & effectiveness of the internalcontrol systems over financial reporting as at 31 March 2018 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India needs to be strengthened.

For R.A. Kuvadia & Co Chartered Accountants

R.A. Kuvadia
Proprietor
Place : NAGPUR Mem No. : 040087
Date : 29-05-2018 FRN : 105487W