SPECIALITY PAPERS LIMITED
Report on the Financial Statements
1. We have audited the attached Balance Sheet of SPECIALITY PAPERS LIMITED as at 31stMarch 2017 the Profit and Loss account and also the Cash Flow Statement for the yearended on that date annexed thereto. These financial statements are the responsibility ofthe company's management. Our responsibility is to express an opinion on these financialstatements based on our audit
2. Management's Responsibility for the Financial Statements
Management is responsible for the preparation of the financial statements as persection 134 (5) of the Companies Act 2013 that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theAccounting Standards referred to in section 133 of the Companies Act2013 read with Rule 7of the companies (Accounts) Rules 2014.This responsibility includes the designimplementation and maintenance of internal control 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
3. Auditor's responsibility
Our responsibility is to express an opinion on these financial statements based on ouraudit.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.
4. An audit involves performing procedures to obtain audit evidence about the amountsanddisclosures 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 controlrelevant to the Company's preparation and fairpresentation of the financial statements in orderto design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained issufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner 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 March312017;
b) In the case of the Profit and Loss Account of the profit/ loss for the year endedon 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
As required by the Companies (Auditor's Report) Order2015 ("theOrder) issued by the Central Government of India in terms of Section 143 (11) of theAct we give in the Annexure a statement on the matters specified in paragraph 3 and 4 ofthe Order.
5. 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 purposes of our audit.
b) in our opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from our examination of the 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 accounts;
d) In our opinion the Balance Sheet Statement of Profit & Loss account andCashflow Statement dealt comply with the Accounting Standards referred to in section 133of the Companies Act 2013 read rule 7 of the Companies (Accounts) Rules 2014;
e) On the basis of written representations received from the Directors as on 3 LMarch 2017 and taken on record by the Board of Directors we report that non of thedirectors is disqualified from being appointed as a director in terms of section 164 (2)of the Companies Act2013.
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) Rule 2014in our opinionand to the best of 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 provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts.
iii. There has been no delay in transferring amounts if any required to be transferredto the Investor Education and Protection Fund by the Company.
Annexure to Independent Auditors' Report
Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements Section of our report of even date.
1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) Fixed Assets have been physically verified by the Management during the year and nomaterial discrepancies were noticed on such verification.
(c) According to the information and explanation given to usthe Company has notdisposed off any substantial part of fixed assets during the year.
2. (a) The management has conducted physical verification of inventory at reasonableintervals during the year.
The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness
The Company is maintaining proper records of inventory and no material discrepancieswere noticed on physical verification carried out at the end of the year.
3. (a) During the year company has not granted any interest free loans and advances tothe parties covered in the register maintained under Section 189 of the Companies' act2013.
(b) In respect of loans/advances granted repayment of the principal amount isstipulated
(c) There is no overdue amount of loans/advances granted to companies firms or otherparties listed in the register maintained under Section 189 of the Companies' act 2013.
In our opinion and according to the information and explanations given to us there areadequate
4. internal control procedures commensurate with the size of the company and the natureof its business for the purchase of inventory and fixed assets and for the sale of goods.
5. The Company has not accepted deposit from the public within the meaning ofsection73to76 of the Companies Act 2013 read with the Companies (Acceptance ofDeposits) Rules 2014 (as amended).. Hence the provisions of clause 3(vi) arenotapplicable to the Company.
6. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained.
7. a) According to the books and records as produced and examined by us in accordancewith generally accepted auditing practices in India and also Management representationsundisputed statutory dues in respect of Provident fund Professional Tax Income TaxSales Tax VAT Wealth Tax Service Tax Custom Duty Excise Duty Cess and materialstatutory dues if any applicable to it has been regularly deposited with theappropriate authorities.
b) . According to the records of the Company there are no dues of Provident fundESIC Income Tax Sales Tax VAT Wealth Tax Service Tax Custom Duty Excise Duty Cessand material statutory dues if any applicable to it has been regularly deposited withthe appropriate authorities that have not been deposited on amount of any deposit.
c) . The Company is regular in depositing with appropriate authorities undisputedstatutory dues including Investor's education and Protection fund and other materialstatutory dues applicable to it if any.
8. The Company has accumulated losses exceeding fifty percent of its net worth as onthe balance sheet date and has incurred cash loss during the financial year andimmediately preceding financial year.
9. In our opinion and according to the information and explanation given to us and thebooks of accounts verified by us the company has not defaulted in repayment of dues to afinancial institution or bank.
10. The Company has not granted any loans and advances on the basis of security by wayof pledge of shares debentures and other security.
11. According to the information and explanations given to us the company has not givenany guarantee for loans taken by others from banks or financial institutions.
12. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the company was noticed or reported during theyear.