| Report on the Financial Statements
1. We have audited the accompanying financial statements of MANJUSHREE
TECHNOPACK LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone 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 of these 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
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.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. 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 the
Rules made thereunder.
5. 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 audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's
6. 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 a true and fair view in order to design
audit procedures that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by the
Company's Directors, as well as evaluating the overall presentation of
the financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
Opinion
8. 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,
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) 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
9. 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 paragraphs 3 and 4 of the Order.
10. 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.
(d) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(e) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(g) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2015 from being appointed as
a director in terms of Section 164 (2) 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 13.ii. to
the 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 - Refer Note 7 to
the financial statements;
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITORS' REPORT
(as referred to in para 9 of the Independent Auditors' report of even
date)
(i)
(a) As per the information and explanations provided to us, the Company
is maintaining proper records showing full particulars, including
quantitative details and situation of fixed assets;
(b) the Company has a regular program of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this program, certain fixed
assets were verified during the year and no material discrepancies were
noticed on such verification. Consequently, commenting on proper
treatment thereof in the books of account does not arise. In our
opinion, this periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets.
(ii)
(a) As per the information and explanations provided to us, the
physical verification of inventory has been conducted at reasonable
intervals by the management. In our opinion, the frequency of such
verification is reasonable;
(b) As per the information and explanations provided to us, the
procedures followed for physical verification of inventory by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) As per the information and explanations provided to us, the Company
has maintained proper records of inventories. We are informed that the
discrepancies between the physical stocks and the book records noticed
on verification were not material;
(iii) As per the information and explanations provided to us, the
Company has not granted loans, secured and / or unsecured to companies,
firms or other parties covered in the register maintained under section
189 of the Companies Act. Consequently, commenting under this clause
does not arise.
(iv) As per the information and explanations provided to us, the
Company has adequate internal control system commensurate with the size
of the company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
Further, there does not exist any continuing failure to correct major
weaknesses in such internal control system.
(v) As per the information and explanations provided to us, the Company
has not accepted deposits. Consequently, comments under this clause are
not provided.
(vi) As per the information and explanations provided to us, the
Central Government has specified maintenance of cost records under
sub-section (I) of section 148 of the Companies Act and the Company
makes and maintains such accounts and records. We have broadly reviewed
the cost records maintained by the Company pursuant to the Companies
and are of the opinion that prima facie the prescribed cost 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. As informed to us, the Company is in the process of
obtaining the Cost Audit report required for the current financial
year.
(vii)
(a) As per the information and explanations provided to us, the Company
is regular in depositing undisputed statutory dues including provident
fund, employees' state insurance, income-tax, sales-tax, wealth tax,
service tax, duty of customs, duty of excise, value added tax, cess and
any other statutory dues with the appropriate authorities and there
does not exist, any arrears of outstanding statutory dues as at the
last day of the financial year concerned for a period of more than six
months from the date they became payable;
(b) As per the information and explanations provided to us, there does
not exist any dues of income tax or sales tax or wealth tax or service
tax or duty of customs or duty of excise or value added tax or cess
that have not been deposited on account of any dispute other than the
following:
Name of the statute Nature of dues Amount Period to which
in Rs. the amount relates
CENVAT Excise duty with 35,380 Oct'10 to Aug'11
Credit Rules, 2004 penalty
CENVAT Excise duty with 3,99,720 Sep'08 to Jul'09
Credit Rules, 2004 penalty
CENVAT Excise duty with 83,862 Aug'09 to May'10
Credit Rules, 2004 penalty
CENVAT Excise duty with 1,21,033 Apr'10 to Sep'10
Credit Rules, 2004 penalty
CENVAT Excise duty with 39,034 Jun'10 to Apr'11
Credit Rules, 2004 penalty
CENVAT Excise duty with 4,35,986 Sep'08 to Jul'09
Credit Rules, 2004 penalty
CENVAT Excise duty with 264 Jul'11 to Oct 11
Credit Rules, 2004 penalty
CENVAT Excise duty with 1,10,915 Sep'11 to May'12
Credit Rules, 2004 penalty
CENVAT Service tax with 1,84,305 Dec'10 to Jan'12
Credit Rules, 2004 penalty
CENVAT Service tax with 1,20,309 Feb'12 to Dec'12
Credit Rules, 2004 penalty
Income Tax Act, 1961 Income tax 9,99,096 2010-11
with interest
Customs Act, 1962 Duty demand for 2,85,597 Apr'2002
bonded warehoused
raw materials
Name of the Statute Forum where dispute is pending
CENVAT Credit Rules 2004 Custom, Excise & Service Tax
Appellate Tribunal (CESTAT)
CENVAT Credit Rules 2004 CESTAT
CENVAT Credit Rules 2004 CESTAT
CENVAT Credit Rules 2004 CESTAT
CENVAT Credit Rules 2004 CESTAT
CENVAT Credit Rules 2004 CESTAT
CENVAT Credit Rules 2004 Commissioner (Appeal)
CENVAT Credit Rules 2004 Commissioner (Appeal)
CENVAT Credit Rules 2004 Commissioner (Appeal)
CENVAT Credit Rules 2004 Commissioner (Appeal)
Income Tax Act 1961 Commissioner (Appeal)
Customs Act 1962 Assistant Commissioner of
Customs (Bonds)
(c) As per the information and explanations provided to us, the Company
has transferred the amount required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
thereunder within time.
(viii) As per the information and explanations provided to us, the
Company has no accumulated losses at the end of the financial year and
has not incurred any cash losses in such financial year and in the
immediately preceding financial year;
(ix) As per the information and explanations provided to us, the
Company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders. Consequently, comments under
this clause is not provided:
(x) As per the information and explanations provided to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions;
(xi) As per the information and explanations provided to us, the term
loans were applied for the purpose for which the loans were obtained;
and
(xii) during the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the Company, noticed or reported during the year, nor have we been
informed of such case by the management.
for Singhvi, Dev & Unni
Chartered Accountants
Firm Registration No. 003867S
Parthasarathy Sudarsanam
Bangalore Partner
May 28, 2015 Membership No.: 205179 |