| We have audited the accompanying financial statements of B & A
PACKAGING INDIA LIMITED ("the Company"), which comprises the
Balance Sheet as at 31st March, 2014, the Statement of Profit & 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
Management is responsible for 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 Standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956 ("the Act"). 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.
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 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.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statement. 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's
preparation and fair presentation of the financial statements in order
to design audit procedures that are 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 evidences we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
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 31st March, 2014 ;
(b) in the case of the Statement of Profit and Loss, of the profit 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
1. As required by the Companies (Auditor's Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that :
(a) We have 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 referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956 ;
(e) On the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT To The members of B & A
PACKAGING INDIA LIMITED Refer our report of even date
1. i) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
ii) During the year the fixed assets were physically verified by the
management.
iii) No part of the fixed assets of the Company was disposed off during
the year.
2. i) During the year, inventories were physically verified by the
management at reasonable intervals.
ii) In our opinion, the procedure of physical verification of
inventories followed by the management is adequate considering the size
of the Company and the nature of its business.
iii) Based on examination of records, we are of opinion that, the
Company is maintaining proper records of inventories. The discrepancies
noticed on physical verification of inventories as compared to book
records were not material and have been properly dealt with in the
books of account.
3. According to the information and explanations given to us, the
Company has not granted any loan, secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. During the year the Company has repaid
existing interest free loans to a Private Limited Company and a
Director and also taken unsecured loan from its holding company. In our
opinion the terms and conditions of these loans are prima facie not
prejudicial to the interest of the Company and the repayments were not
due during the year under audit.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods. During the course of our audit, we have not come across any
instance of major weakness in the internal controls.
5. a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and exceeding the value of Rupees five lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within the
meaning of Section 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. 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 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have however,
not made a detailed examination of these records with a view to
determine whether they are accurate or complete.
9. i) According to the records of Company, undisputed statutory dues
including provident fund, employees' state insurance, income tax,
sales tax, wealth tax, customs duty and excise duty have generally been
regularly deposited with the appropriate authorities. ii) According to
the information and explanations given to us, the following are the
particulars of disputed dues on account of sales tax and employees'
state insurance matters which have not been deposited by the Company
Name of the Nature of dues Amount Relevant Forum where
Statute (Rs.) Period dispute is
pending
Central Sales Sales 27,54,267 1998-1999 Sales Tax
Tribunal
Tax Act Tax Cuttack
Central Sales Sales 7,83,904 2002-2003 Sales Tax Tribunal
Tax Act Tax Cuttack
Central Sales Sales 7,72,449 2003-2004 Sales Tax
Tribunal
Tax Act Tax Cuttack
Central Sales Sales 28,46,586 2006-2007 Commissioner
of
Tax Act Tax & Sales Tax
(Appeal),
Cuttack
2007-2008
Central Sales Sales 17,47,350 2008-2009 Commissioner
of
Tax Act Tax & Sales Tax
(Appeal),
Cuttack
2009-2010
Central Sales Sales 1,25,70,219 2010-2011 Commissioner
of
Tax Act Tax to Sales Tax
(Appeal),
Cuttack
2012-2013
Orissa Value VAT 1,38,204 2006-2007 Commissioner
of
Added Tax Act & Sales Tax
(Appeal),
Cuttack
2007-2008
Employees'
State E.S.I 61,398 2002-2003 Employees'
Insurance
Insurance Act Court, Kolkata
Income Tax Act TDS 4,38,27,820 2008-2009 Commissionerof
Income Tax
(Appeals),
Bhubaneswar
Income Tax Act Income 35,534 2009-2010 Commissioner
of
Tax Income Tax
(Appeals),
Bhubaneswar
10) The Company has no accumulated loss as on 31st March, 2014.
Further, the Company has not incurred cash loss during the year ended
31st March, 2014 or in the immediately preceding financial year ended
31st March 2013.
11) According to the records of the Company and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to its bankers.
12) According to the information given to us, the Company has not
granted loans or advances on the basis of security by way of pledge of
shares, debentures and other securities.
13) In our opinion and according to the information and explanations
given to us, the provisions of any special statute applicable to chit
fund / nidhi / mutual benefit fund / societies are not applicable to
the Company.
14) In our opinion, the Company does not deal or trade in shares,
securities, debentures or other investments.
15) According to the information given to us, the Company has not given
any guarantee for loans taken by others from banks or financial
institutions during the period.
16) The term loan obtained by the Company during the year from its
banker has been utilised for the purpose for which the said loan was
received.
17) According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no fund raised on short term basis were used for long term investment.
18) The Company has not made any preferential allotment of shares
during the period.
19) The Company has not issued any debentures during the period.
20) The Company has not raised any money by way of public issue during
the period.
21) In our opinion and according to the information and explanations
given to us no fraud on or by the Company was reported during the
period.
For APS ASSOCIATES
CHARTERED ACCOUNTANTS
(Registration No. 306015E)
A. Dutta
Place : Kolkata Partner
Dated : 23rd May, 2014 Membership No. 017693 |