| We have audited the accompanying financial statements of RAMA PAPER
MILLS LIMITED, KIRATPUR, DISTT. BIJNOR ("Company") which comprise the
Balance sheet as at 31 March 2015, the Statement of Profit and Loss and
the 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 ("the Act") with respect
to the preparation and presentation 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 the 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 judgments 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
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 the Rules made there under.
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 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 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
whether the Company has in place an adequate internal financial
controls 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 the Company's directors, 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 qualified audit opinion.
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, of the state of affairs of the Company as
at 31 March 2015, and its loss and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), as amended, 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.
2. 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 account 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
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement 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 31 March 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2015, from being
appointed as a director in terms of section 164 (2) of the Act, and
f. 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 as referred to in Note
32 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,
and as required on long-term contracts including derivative contracts.
(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
The Annexure referred to in our report to the members of RAMA PAPER
MILLS LIMITED, KIRATPUR, DISTT. BIJNOR ('the Company') for the year
ended 31 March 2015. We report that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations given to us,
physically verification of fixed assets have been carried out by the
management and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification is
reasonable, having regard to the size of the company and nature of its
assets.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedure of physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) In our opinion and according to information and explanations given
to us, the company has maintained proper records of inventory. As
explained to us, no material discrepancies were noticed on physical
verification as compared to book records.
(iii) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act.
(iv) 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 inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weaknesses in internal controls.
(v) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposit from the public.
(vi) The Cost record has been specified by the Central Government under
sub-section (1) of section 148 of the Companies Act, 2013. We have
broadly reviewed the accounts and records of the Company in this
connection and are of the opinion, that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, carried out a detailed examination of the records with a view
to determine whether they are accurate or complete.
(vii) (a) According to the records of company and information and
explanation 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 during the year. There is no undisputed amounts
payable, as at 31.03.2015 for a period of more than six months from the
date they became payable.
(b) According to the information and explanations given to us, there
are no dues of income tax, value added tax, wealth tax, duty of customs
and cess which have not been deposited with the appropriate authorities
on account of any dispute. However, according to information and
explanations given to us, the following dues of sales tax and service
tax have not been deposited by the Company on account of disputes:
Name of the statute Amount (In Forum where dispute is pending
Rs.)
Trade Tax 3061083.00 Appellate Tribunal, Moradabad
Service Tax 1683603.00 Customs, Excise & Service Tax
Appellate Tribunal
(c) According to the information and explanations given to us there is
no amount required to be transferred to investor education and
protection fund in accordance with the relevant provision of the
companies act, 1956 (1 of 1956) and rules made there under has been
transferred to such fund within time.
(viii) The company has no accumulated losses and has incurred cash
losses in such financial year and has not incurred cash losses in the
immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the company has defaulted in repayment of dues to banks of
Rs.140.45 lacs of principal and Rs.39.54 lakhs towards interest as on
31.03.2015.
(x) In our opinion, the company has not given any guarantee for loans
taken by others from bank or financial institutions.
(xi) In our opinion, no term loan has been raised during the year.
(xii) According to information and explanation given to us, no fraud on
or by the company has been noticed or reported during the course of our
audit.
For SHIAM & CO.,
Chartered Accountants,
Registration No.000030C
Sd/-
Ajay Kumar Jain
Dated: 30.05.2015 PARTNER
Place: Muzaffarnagar Membership No. 071220 |