1. Report on the Financial Statements
We have audited the accompanying financial statements of M/s. Rama Pulp & Papers Ltd, which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss for the year then ended, and a summary of significant accounting policies and other explanatory information.
2. Management’s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance in accordance with the Accounting Standards referred to in section 129(1) of the Companies Act, 2013 read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control 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.
3. Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted the audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. 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.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on 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, we have considered internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. 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.
5. We believe that the audit evidences obtained are sufficient and appropriate to provide a basis for our audit opinion.
6. Opinion
In our opinion and to the best of 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 March31, 2018;
(b) In the case of the Statement of Profit and Loss, of the profit for the year & its Cash Flow ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor’s Report) Order, 2015, issued by the Central Government of India in terms of subsection (11) of section 143 of the Companies Act 2013 and on the basis of such checks of the books and records of the company as we consider appropriate and according to the information and explanations given to us, we give in the Annexure 'A' statement on the matters specified in paragraphs 3 and 4 of the Order.
8. As required by section 143(3) of the Act, we report that:
(i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of audit;
(ii) In our opinion proper books of accounts as required by law have been kept by the Company so far as appears from examination of those books;
(iii) The Balance Sheet, Statement of Profit and Loss & cash Flow statement dealt with by this Report are in agreement with the books of accounts;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss comply with the Accounting Standards notified under the Act and read with Rule 7 of the Company's (Accounts) Rules, 2014 & read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
(v) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, We report that none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of sub-section (2) of section 164 of the Companies Act, 2013.
(vi) In our opinion & to the best of our information and according to explanation given to us, we report as under with respect to other matters to be included in Auditors Report in accordance with Rule 11 of the companies (Audit & Auditors) Rule 2014.
i. The company does not have any pending litigation which would impact its financial position except Service Tax liability as per para (vii) (b) of the Annexure 'A' of this report.
ii. The company did not have any long term contracts including derivative contracts as such the question of commenting any material foreseeable losses there on does not arise
iii. There has been no delay in transferring amounts required to be transferred, to The Investors Education & Protection Fund by the company.
The Annexure 'A' referred to in paragraph 7 of our Report of even date to the members of M/S Rama Pulp & Papers Ltd. on the accounts of the company for the year ended 31st March, 2018
i). a) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.
b) As informed to us, the fixed assets have been physically verified by the management during the year at reasonable intervals and we were informed that no material discrepancies have been noticed on such verification.
Title deed of all immovable properties are held in the name of company.
ii). a) Physical verification of the inventory has been conducted at reasonable intervals by the management,
b) Procedures of physical verification of inventory followed by the management are reason able and adequate in relation to the size of the company and nature of its business.
c) The company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification
iii). a) The clause for any loans granted, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act 2013 is not applicable to the company as no such loans are granted by the company.
b) Whether receipt of the principal amount and interest are regular. This sub clause is related to above and is therefore not applicable.
c) If overdue amount is more than one lacs, whether reasonable steps have been taken by the company for recovery of the principal and interest. This sub clause is not applicable to the company.
iv). In our opinion & according to information & explanation given to us, there are 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. There is no major weaknesses in the internal control system Hence questions of correcting internal control system do not arise
v). The company has not accepted deposits, Hence question of the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 companies Act 2013 or any other relevant provisions of the companies Act 2013 and the rules framed there under, are not applicable to the company,
vi). According to the information and explanations given to us, Central government has not specified maintenance of cost records under subsection (1) of section 148 of the Act of the Companies Act 2013.
vii).a) As per the records of the company and according to the information and explanations given to us, the company is regular in depositing with appropriate authorities, statutory dues including, Provident Fund, Employees State Insurance income tax, sales tax, wealth tax, custom duty, excise duty, cess, value added tax and other statutory dues, to the extent applicable to it,
b) Company has not deposited Service tax demand raised by the department Rs. 2,59,56,040/- for the period 16.5.2008 to 31.03.2010. Appeal by the company is pending before Customs excise & Service Tax Appellate Tribunal, Ahmadabad
c) During the year company has transferred amounts, required to be transferred, to The Investors Education & Protection Fund & There is no delay in transferring funds.
viii). There are no accumulated losses at the end of the financial year of the company and neither any cash losses is incurred in such financial year or in the immediately preceding financial year.
ix). The company has not defaulted in repayment of dues for loans from Financial institution or bank or debenture holders
x) The company has not given any guarantee for loans taken by others from bank or financial institution, therefore whether the terms whereof are prejudicial to the interest of the company is not applicable.
xi) The company has neither raised any funds by way of public issue nor taken any term loans and thus the clause 3 (ix), whether term loans were applied for the purpose for which they were obtained, is not applicable
xii) According to the information and explanations given to us, no frauds on or by the company have been noticed or reported during the year.
xiii) Managerial Remuneration paid is in accordance with the requisite approval mandated by the provisions of section 197 read with schedule V of the companies act 2013.
xiv) In our opinion & according to the information & explanation given to us, The company is not a nidhi company. Accordingly paragraph 3(xii) of the order is not applicable.
xv) In our opinion & according to the information & explanation given to us, The company has not entered in to any transactions with the related parties according to section 177 & 188 of the Act.
xvi). Company has not made any preferential allotment/ Private placement shares or Debentures during the year under review.
xvii). Company has not entered in to non cash transactions with Directors or persons connected with him.
xviii). Company is not required to be registered under u/s 45-IA of the Reserve Bank of India Act, 1934.
Annexure B to the Auditors’ Report
Report on the Internal Financial control under Clause (i) of Sub - section 3 of Section 143 of the Companies Act, 2013 ( the Act )
We have audited the Internal Financial controls over financial reporting of Rama Pulp & Papers Ltd as of 31st March 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Control over Financial Reporting issued by the Institute of Chartered Accountants of India ('ICAI’).
These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to the company’s policies, the safeguarding of it assets, the prevention and detection of frauds and errors the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over financial Reporting ( the Guidance Note’ ) and the standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Company Act, 2013 to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate Internal Financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal Financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting.
A Company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements of external purposes in accordance with generally accepted accounting principles. A Company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable details, accurately and fairly reflect the transactions and dispositions of the assets of the Company (2) provide reasonable assurance that transactions are recorded as necessary to permit preparing of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of the management and directors of the Company and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisitions, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2018 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For For VIDYA & CO
Chartered Accountants
Firm Reg. No. 308022E
Amit Nagar
Place: Mumbai Partner
Date: 30th May 2018 Membership No: .056156
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