We have audited the accompanying Financial Statements of Tamil Nadu Newsprint and Papers Limited ("the
Company"), which comprise the Balance Sheet as at 31st March 2025, and the Statement of Profit and Loss (including
Other Comprehensive Income), Statement of Changes in Equity and the Statement of Cash Flows for the year then
ended, and notes to the Financial Statements, including a summary of Material Accounting Information and other
explanatory information hereinafter referred to as Financial Statements
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 Companies Act, 2013 ("Act") in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles
generally accepted in India, of the state of affairs of the Company as at 31st March 2025, the Profit (Including Other
Comprehensive Income), the Statement of changes in Equity, and its cash flows for the year ended on that date.
We issued an audit report dated 13th May, 2025 under UDIN 25021661BMLEQK3780. Pursuant to the suggestions made
by the Office of the Principal Accountant General (Audit II) Tamil Nadu & Puducherry, Chennai revision has been made
to paragraphs 3(b) and 3 (h) (vi) of Report on Other Regulatory information relating to maintenance of audit trail and
hence this revised audit report issued replaces our original report dated 13th May, 2025
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified
under section 143 (10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in
the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together
with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the
Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
Financial Statements of the current period. These matters were addressed in the context of our audit of Financial
Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report.
|
Sl.
No.
|
Key Audit Matters
|
Response to Key Audit Matters & Conclusion
|
|
1.
|
As at March 31, 2025, the Company has deferred
tax asset in the nature of MAT credit aggregating
to ' 39881.49 lakhs. Recognition and carry forward
of MAT credit asset requires significant judgement
regarding the likelihood of its realization within
the utilization period as provided under the tax
laws which envisages that the company earns
adequate profit as per the projections considered
for evaluating the appropriateness of carrying value
of MAT credit. These future taxable profits reckoned
for this purpose are based on the business plan
prepared by the management and projected post¬
tax cash flows of the Company. The management's
conclusions in this regard are significantly dependent
on future business plans which are susceptible for
uncertainties involved in forecasting such profits.
We identified this as key audit matter for current
year audit owing to the materiality of the amounts
involved and inherent subjectivity involved in the
determination of utilization of MAT credit.
|
Our audit procedures in relation to assessment
of appropriateness of MAT credit recognized and
carried forward , are as follows:
◊ Assessed and tested the design and operating
effectiveness of the Company's controls over
recognition of the MAT credit entitlement.
◊ Assessed the Company's analysis for MAT credit
realisability based on future projections of
taxable profits.
◊ Tested the appropriateness of the forecast of
tax liability as per the tax laws.
◊ Obtained and evaluated sensitivity analysis
performed by the management on aforesaid key
assumptions covering the future profitability.
◊ Based on our audit procedure we concluded that
MAT credit carried forward is realizable within the
statutory period permitted under the Income Tax
Act.
|
|
2.
|
Note 16 - Other current assets include ' 2618.62
lakhs and Note 11 - other Non-current assets include
' 177.21 lakhs refund receivable from Income tax
department. This also includes ' 1027.19 lakhs
interest in Note 27 - Other income. Being a significant
item recognised and carried forward in Balance
sheet, this is considered as key audit matter
|
Our audit procedures include verification of revision
orders from Income Tax Department, interest
calculations and the refund amount. We also verified
the refund received ' 2618.62 lakhs subsequent to
the reporting date.
Based on the above audit procedures, we have
concluded that the recognition of interest income
and refund due is in accordance with the accepted
accounting principles and IND AS
|
|
3.
|
Note no 27 - Other income includes interest of
' 317.50 lakhs dues from TANGEDCO for the FY
January 2010 to February 2014 sanctioned during the
year and which is receivable in 15 equal instalments
commencing from May 2025.
|
We conducted out standard audit procedures which
involves
a. Verification of confirmation and terms contained
there in
b. The discount rate applied and discounted value
c. The first payment received was also verified.
Based on the audit verification, we are of the opinion
that the interest recognised is based on principles of
certainty of receipts and in accordance with IND AS.
The amount recognized in Statement of Profit and
Loss and Balance Sheet are found acceptable.
|
Information Other Than the Financial Statements and Auditor's Report Thereon
The company's Board of Directors is responsible for the other information. The other information comprises the
information included in Board's Report, Management Discussion & Analysis Report, Business Responsibility Report,
but does not include the financial statements and our auditor's report thereon. The Board's Report, Management
Discussion & Analysis Report, Business Responsibility Report is expected to be made available to us after the date of
this auditor's report.
Our opinion on the financial statements does not cover the other information and we will not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified
above when it becomes available and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the reports, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance.
Management Responsibility and those Charged With Governance 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("the Act") with respect to the preparation of these Financial Statements that give a true and fair view of the
Financial Position, Financial Performance (including Other Comprehensive Income), Changes in Equity 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. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the
Company and 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.
In preparing the Financial Statements, the Board of Directors is responsible for assessing the Company's ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Those Board of Directors is also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit.
We also:
? Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
? Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for
expressing our opinion on whether the Company has adequate Internal Financial Controls system in place and the
operating effectiveness of such controls.
? Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
? Conclude on the appropriateness of management's use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
? Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures,
and whether the Financial Statements represent the underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the Financial Statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably knowledgeable user of the Financial Statements may be
influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and
in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Financial
Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in Internal Control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As Required under Section 143(5) of the Companies Act,2013, we give in the "Annexure A", our report on the
directions issued by the Comptroller and Auditor General of India
2. As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by the Central Government of
India in terms of Section 143 (11) of the Companies Act, 2013, we give in "Annexure C" a statement on the matters
specified in paragraphs 3 of the Order, to the extent applicable.
3. 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 account as required by law have been kept by the Company so far as it
appears from our examination of those books except for the matters stated in the Paragraph 3 (h)(vi) below
on reporting under rule 11(g) of the Companies (Audit and Auditors) Rules,2014.
(c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement
of Changes in Equity and the 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 Indian Accounting Standards specified
under 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 2025 taken on record
by the Board of Directors, none of the Directors is disqualified as on 31st March 2025 from being appointed as
a Director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the Internal Financial Controls over financial reporting of the Company, and
the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
(g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements
of Section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with the provisions of
Section 197 of the Act.
(h) 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 has disclosed the impact of pending litigations on its financial position in its financial
statements. Refer note 38 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 has been no delay in transferring amounts, required to be transferred to the Investor Education and
Protection Fund by the company.
iv) (a) The management has represented that, to the best of it's knowledge and belief, as disclosed in the
note 42(xvi)(A) to the financial statements no funds have been advanced or loaned or invested (either
from borrowed funds or share premium or any other sources or kind of funds) by the company to or
in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding,
whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly
lend or invest in other persons or entities Identified in any manner whatsoever by or on behalf of
the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
(b) The management has represented that, to the best of it's knowledge and belief, as disclosed in the
note 42(xvi)(B) to financial statements no funds have been received by the company from any persons
or entities, including foreign entities ("funding Parties"), with the understanding, whether recorded
in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
and
(c) Based on such audit procedures we have considered reasonable and appropriate in the circumstances;
nothing has come to the notice that has caused us to believe that the representations under sub¬
clause (i) and (ii) of Rule 11 (e) contain any material mis-statement.
v) (a) The final dividend paid by the company during the year in respect of the same declared for the
previous year is in accordance with Section 123 of the Act.
(b) As stated in the Note 17(v) to the financial statements, the Board of Directors of the Company have
proposed final dividend for the year which is subject to the approval of the members at the ensuing
Annual General Meeting. The dividend proposed is in accordance with Section 123 of the Act as
applicable.
vi) Based on our examination, which included test checks performed by us the company has used an
accounting software Oracle E-Business Suite ('EBS') which "at the application level" records details for
each accounting record, creator information, creation, and update timestamps, and locking records
upon transaction entry. In EBS, edits directly to accounted transactions are prohibited by design, with
any modifications necessitating a separate reversal entry. All accounting records are frozen on creation
and maintained for updates (via update date/user). An override to an accounting record requires a new
reversal line and original line is untouched. Such records are available and maintained for the previous
year also. However, the EBS software does not have audit trail enabled at the "database level" for logging
any direct data changes. As per information and explanation given to us there is no scope to alter/edit any
entry at the back end by the users. Thus, the software by its design and control takes care of the audit
trail requirements under the Companies Act and the same has been operated throughout the year for all
transactions recorded in the software and the audit trail has not been tampered with and the audit trail
has been preserved by the company as per the statutory requirements for record retention and the data
once created cannot be edited except by way of reversal of the original entry
MAHARAJ N R Suresh AND CO LLP
Firm Registration.No.001931S/S000020
N RSuresh
Membership No. 021661
Partner
Chartered Accountants
UDIN: 25021661BMLEQO1091
Place : Chennai
Date : 25th July 2025
| 