| 1. We have audited the attached Balance Sheet of SPECIALITY PAPERS
LIMITED as at 31st March, 2015, the Profit and Loss account and also
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit
2. Management's Responsibility for the Financial Statements
Management is responsible for the preparation of the financial
statements as per section 134 (5) of the Companies Act, 2013 that give
a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the Accounting
Standards referred to in section ! 33 of the Companies Act,2013 read
with Rule 7 of the companies (Accounts) Rules, 2014.This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements give a true and fair view and are free from material
misstatement, whether due to fraud or error
3. Auditor's responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
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 the to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
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 control relevant to the
Company preparation and fair presentation of the financial statements
in order to design audit procedures that arc appropriate in the
circumstances. 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.
5. Opinion
In our opinion and to the best of our information and according to the
explanations given to us. the 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 the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015:
b) In the case of the Profit and Loss Account, of the profit/ loss 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
As required by the Companies (Auditor's Report) Order,2015 ("the
Order") issued by the Central Government of India in terms of Section
143 (11) of the Act, we give in the Annexure a statement on the matters
specified in paragraph 3 and 4 of the Order.
6. 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
purposes of our audit.
b) in our opinion, proper books of accounts as required by law, have
been kept by the Company 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 with by this report are in agreement with the books of
accounts;
d) In our opinion, the Balance Sheet, Statement of Profit & Loss
account, and Cashflow Statement dealt comply with the Accounting
Standards referred to in section 133 of 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 31st March, 2015 and taken on record by the Board of Directors,
we report that non of the directors is disqualified 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)
Rule, 2014,in our opinion and 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
financial position in its financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses if any. on
long term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, if any 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 ' Report on Other Legal and Regulatory
Requirements Section of our report of even date.
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Fixed Assets have been physically verified by the Management during
the year and no material discrepancies were noticed on such
verification.
(c) According to the information and explanation given to us, the
Company has not disposed off any substantial part of fixed assets
during the year.
2. (a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business
The Company is maintaining proper records of inventory and no material
discrepancies were 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 to the parties covered in the register maintained under
Section 189 of the Companies' act 2013.
(b) In respect of loans/advances granted, repayment of the principal
amount is stipulated
(c) There is no overdue amount of loans/advances granted to companies,
firms or other parties listed in the register maintained under Section
189 of the Companies' act 2013.
(d) The Company has taken Interest free loans from Three parties
covered in the register maintained under section 189 of the Companies
Act, 2013. The year end total balance of loans taken from such parties
was 1941.66 lakhs.
In our opinion and according to the information and explanation given
to us, the rate of interest and other terms and conditions in respect
of loans taken from these parlies are prima facie not prejudicial to
the interest of the company.
In respect of loans taken, there is no agreed period for repayment of
these loans.
In our opinion and according to the information and explanations given
to us. there are adequate
4. internal control procedures commensurate with the size of the
company and the nature of is business, for the purchase of inventory
and fixed assets and for the sale of goods,The Company has not accepted
deposit from the public within the meaning of section 73 to76 of
5. the Companies Act, 2013 read with the "Companies (Acceptance of
Deposits) Rules. 2014 (us amended).. Hence the provision of clause
3(vi) are not applicable to the Company.
6. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 148( 1 ) of the Companies
Act, 2013, and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained.
7. a) According to the books and records as produced and examined by us
in accordance with generally accepted auditing practices in India and
also Management representations, undisputed statutory dues in respect
Provident fund, Professional Tax, Income Tax, Sales Tax, VAT. Wealth
Tax, Service Tax, Custom Duty, Excise Duty, Cess and material statutory
dues, if any. applicable to it, has been regularly deposited with the
appropriate authorities.
b) According to the records of the Company, there are no dues of
Provident fund. ESIC Income Tax, Sales Tax, VAT, Wealth Tax, Service
Tax, Custom Duty, Excise Duty. Cess and material statutory dues,if any,
applicable to it, has been regularly deposited with the appropriate
authorities that have not been deposited on amount of any deposit.
c) The Company is regular in depositing with appropriate authorities
undisputed statutory dues including Investor's education and Protection
fund and other material statutory dues applicable to it, if any,
8. The Company has accumulated losses exceeding fifty percent of its
net worth as on the balance sheet date and has incurred cash loss
during the financial year and immediately preceding financial year.
9. In our opinion and according to the information and explanation
given to us and the books accounts verified by us, the company has not
defaulted in repayment of dues to a financial institution or bank.
10. The Company has not granted any loans and advances on the basis of
security by way pledge of shares, debentures and other security.
11. According to the information and explanations given to us the
company has not given any 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 and explanations given to us, no fraud on or by the company
was noticed or reported during the year.
For JAMES SHAH & CO.
CHARTERED ACCOUNTANT
Proprietor
M.No.36195
Place: Mumbai
Date: 15/09/2015
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