| We have audited the accompanying standalone financial statements of
M/s. Karur K.C.P. Packkagings Limited ("the Company"), which comprise
the Balance Sheet as at March 31,2015, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended and a summary of
significant accounting 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 Section 134(5) of the Companies Act, 2013 with respect to the
preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Group in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the company for
preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and Rules made there
under.
We conducted our audit in accordance with the Standards on Auditing
issued by the Institute of Chartered Accountants of India, being
standards specified pursuant to the proviso to Section 143(10) of the
Companies Act, 2013. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation and fair presentation of the financial statements that give
a true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity's internal control. An
audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Emphasis
The aforesaid financial statements comprise of the holding company and
does not include its wholly owned subsidiary company M/s. Shriudha
Ventures Pte Ltd., Singapore. We have been informed by the Board of
Directors, that, though the company is required to have the
consolidated financial statements as required by the provisions of
Section 134(1) of the Companies Act,2013, the audit of the accounts of
the foreign subsidiary have not yet been completed and hence the Board
of Directors have approved the holding company (stand alone) financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of Balance Sheet, of the state of affairs of the
Company as at March 31, 2015.
(b) In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. Pursuant to Companies (Auditor's Report) Order, 2015 ("the Order")
issued by the Central Government, in terms of Section 143(11) of the
Companies Act, 2013, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. Pursuant to Section 143 (3) of the Act, we report that :
a) We have sought and obtained all the information and explanations
which to the best of 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 the Company so far as appears from our examination of those
books (and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us) ;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified pursuant to Section 133 of the Act read
with Rule 7 of the Companies (Accounts) Rules, 2014
e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Companies Act, 2013.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company does not have any pending litigations including tax
disputes referred to in Clause 7(b) infra, which would impact its
financial position. In this regard, we draw you attention to Note No :
28 to the financial statements
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
(iii) There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under the heading 'Report on Other Legal
and Regulatory Requirements' of our report of even date)
1. In respect of fixed assets:
a. The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information;
b. According to the information and explanation furnished to us, the
fixed assets have been physically verified by the management during the
year in a periodical manner, which in our opinion is reasonable, having
regard to the size of the Company and the nature of assets. No material
discrepancies were noticed on such verification.
2. In respect of Inventories :
a. As explained to us, the inventories have been physically verified
by the management during the year at reasonable intervals.
b. In our opinion and according to the information and explanation
given to us, the procedures of physical verification of the inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
c. In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of inventories
and discrepancies noticed on physical verification of inventories as
compared to book records were not material and have been appropriately
dealt with in the books of accounts.
3. In respect of loans and advances :
The Company has not granted any loans secured or unsecured to the
Companies / Firms and any other parties covered in the register
maintained under Section 189 of the Companies Act, 2013.
4. In respect of internal control system:
In our opinion and according to the information and explanations given
to us, there are adequate internal control systems commensurate with
the size of the Company and nature of its business for the purchase of
inventory, fixed assets and for the sale of goods and services.
Further, in our opinion and according to information and explanations
given to us, there is no continuing failure to correct major weakness
in internal control.
5. Public Deposits
In our opinion and according to the information and explanation given
to us, the Company has not invited or accepted any deposits from the
public during the year. Therefore, the provisions of the clause (v) of
the paragraph 3 of the Companies (Auditor's Report) Order, 2015 are not
applicable to the Company.
6. Cost Records
We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Records and Audit) Rules, 2014
prescribed by the Central Government under section 148 (1) (d) of the
Companies Act, 2013, the prescribed cost accounts and 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 or
complete.
7. Statutory Dues:
a. According to the information and explanations given to us and the
records examined by us, the Company is regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues
applicable to it. According to the information and explanations given
to us, no undisputed arrears of statutory dues were outstanding as at
31st March 2015, for a period of more than six months from the date
they became payable.
Name of the Nature of the dues Period to which the
Statute amount relates
Central Excise / Dispute on cenvat /
Service Tax Service Tax Credit, Feb-07
Interest and Penalty
2013- 14
Tamil Nadu Value Dispute on Reversal
Added Tax,2øø6 of |nput Tax Credit
2014- 15
Name of the Amount
Statute Rs. Forum where dispute in pending
In Lakhs
Central Excise / Central Excise Customs &
Service Tax 61.73 Service Tax Appellate
Tribunal, Chennai
28.62 High Court Of Judicature,
Madras (Madurai Bench)
Tamil Nadu Value 44.15 High Court Of Judicature,
Added Tax,2øø6 Madras (Madurai Bench)
(c) According to the records of the Company, there are no amounts that
are due to be transferred to the Investors Education and Protection
Fund in accordance with the relevant provisions of the Companies Act,
1956 (1 of 1956) and rules made there under.
8. Accumulated Losses:
The Company does not have accumulated losses at 31st March 2015. The
Company has not incurred cash losses during the financial year covered
by our audit and in the immediately preceding financial year.
9. Defaulting of Term Loans:
In our opinion and according to the information and explanation given
to us, the Company has not defaulted in repayment of its dues to
Financial Institutions and Banks. The Company has not issued any
debentures.
10. Guarantee For Loans:
According to the information and explanations given to us, the Company
has given guarantee for the loan availed by its wholly owned subsidiary
company M/s. Shriudha Ventures Pte Ltd., Singapore from the bank, the
terms and conditions whereof are not prejudicial to the interest of the
company.
11. Purpose & Application of Term Loans :
According the information and explanations given to us, the Company has
applied the Term Loans for the purposes for which they were obtained.
12. Frauds:
In our opinion and according to the information and explanation given
to us, and based on the books and records examined by us, there are no
frauds on or by the Company that has been noticed or reported during
the year.
Place : Karur For MSS SRIRAM & Co.,
Date : 30th May, 2015 Chartered Accountants
ICAI Firm Registration No 007909S
P.R.MAHADEVAN
Partner
Membership Number : 007377
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