| 1. We have audited the accompanying Standalone Financial Statements of
AURANGABAD PAPER MILLS LIMITED ("the Company"), which comprises the
Balance Sheet as at March 31st, 2015, and 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
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation and presentation of these Standalone
Financial Statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the accounting principles generally accepted in India,
including the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules 2014. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provision of the Act for safeguarding of the
assets of the Company and for preventing and detecting the frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgment and estimates that are reasonable
and prudent; and design, implementation and maintenance of adequate
internal financial control, 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
3. Our responsibility is to express an opinion on these Standalone
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 Audit Report under the
provisions of the Act and the Rules made there under.
We conducted our Audit in accordance with the Standards on Auditing
specified under 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.
4. 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 of the Financial Statements that give 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 whether the Company has in place an adequate internal financial
control system over financial reporting and the operating effectiveness
of such controls. An Audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the Financial Statements.
5. We believe that the Audit evidence we have obtained is sufficient
and appropriate to provide a basis for our Audit opinion on the
Standalone Financial Statements.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the Standalone 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, of the state of affairs of the Company as
at March 31st, 2015 and its loss and its cash flows for the year ended
on that date..
Report on other Legal and Regulatory Requirements
7. As required by the Companies ( Auditor's Report ) Order, 2015 ( "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 paragraphs 3 and 4 of the
said Order.
8. 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 best of our knowledge and belief were necessary for the
purpose of our Audit;
b) In our opinion proper Books of Accounts as required by law have been
kept by the Company so far as appears from our examination of those
Books;
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
Accounts;
d) In our opinion, the aforesaid Standalone Financial Statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies ( Accounts ) Rules, 2014;
e) On the basis of written representations received from the Directors
as on March 31st, 2015 and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31st, 2015, from
being appointed as a Director in terms of Section 164(2) of the Act;
f) With respect to other matters to be included in the Auditor's Report
in accordance with Rule 11 of 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 which would impact
its financial position.
ii) The Company did not have any long term contracts including
derivative contracts; as such 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 report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring sums does not
arise.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
Audit, we report that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its Fixed
Assets;
(b) As explained to us, Fixed Assets have been physically verified by
the Management at regular intervals; as informed to us no material
discrepancies were noticed on such verification;
2. (a) As explained to us, inventories have been physically verified
during the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business;
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the Management as compared to book records.
3. According to the information and explanations given to us and on
the basis of our examination of the Books of Accounts, the Company has
not granted any Loans, Secured or Unsecured, to Companies, Firms or
other parties listed in the Register maintained under Section 189 of
the Act.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of Fixed Assets & for the sale. Further, on the basis of our
examination of the books and records of the Company and according to
the information and explanations given to us, no major weakness has not
been noticed or reported.
5. The Company has not accepted any deposits from the Public covered
under Section 73 and 76 of the Companies Act, 2013.
6. In our opinion and as per information & explanation given by the
Management, maintenance of cost records under sub- Section (1) Section
148 are not applicable to the Company.
7. (a) According to the information and
explanations given to us and based on the records of the Company
examined by us, the Company is regular in depositing undisputed
statutory dues including Provident Fund, Employees' State Insurance,
Income-tax, Sales- tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty and other material statutory dues, as applicable, with the
appropriate authorities in India;
(b) According to the information and explanations given to us and based
on the records of the Company examined by us, there are no dues of
Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty and Excise
Duty which have not been deposited on account of any disputes.
(c) There has not been an occasion in
case of the Company during the year under report to transfer any sum to
the Investor Education and Protection Fund. The question of reporting
the delay in transferring such sums does not arise.
8. In our Opinion, the Company has accumulated losses at the end of
the Financial Year which is more than 50% of its Net Worth as at 31st
March, 2015 and has incurred cash losses during the current and in the
immediately preceding Financial Year.
9. Based on our Audit procedures and on the information and
explanations given by the Management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a Financial
Institution, Bank or Debenture Holders during the Financial Year
covered by our Audit.
10. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from a Bank or Financial Institutions.
11. Based on our Audit procedures and on the information given by the
Management, we report that the Company has not raised any term loans
during the year.
12. During the course of our examination of the books and records of
the Company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any instance by the Management.
For Sunil Adavade & Co.
Chartered Accountants
FRN: 121360W
-Sd/-
Sunil Shivram Adavade
(Proprietor)
Membership No. :109964
Place: Mumbai
Date: 29th May, 2015
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