We have audited the accompanying financial statements of Kiran
Print-Pack Ltd., which comprise the Balance Sheet as at 31st March,
2014 and also 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
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 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. 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 the
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 statements. The procedures
selected depend on the auditor's judgement, 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 the management, 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 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 informa-
tion 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 31stMarch, 2014;
(b) In the case of the Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company 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 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, 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:
(I) 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;
(ii) 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;
(iii) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
(iv) In our opinion, the Balance Sheet and the Statement of Profit &
Loss dealt with by this report comply with the accounting standards
referred to in sub-section (3C) of section 211 of the Companies Act,
1956 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 all the
directors of the Company 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;
Re : KIRAN PRINT-PACK LIMITED
Annexure to the Auditors' Report referred to in our report of even
date
On the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we further report as under. Matters specified
in clauses (i)(c), (vi), (viii), (xi), (xii), (xiii), (xiv), (xv),
(xvi), (xvii), (xviii), (xix), (xx) and (xxi) of paragraph 4 of the
CARO 2003 do not
apply to the Company. Accordingly, no comments have been made on these
clauses which are not applicable to the company.
(I) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets.
b) The fixed assets have not been physically verified by the management
during the year but there is a regular programme of verifica- tion
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. No material discrep- ancies were
noticed on such physical verification.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of such verification is
reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification of inventory as
compared to the book records.
(iii) (a) The Company has granted interest free advances to seven
parties covered in the register maintained under section 301 of the
Companies Act, 1956 on call basis. The maximum amount involved was Rs.
2,24,69,379 and the year-end balance was Rs. Nil.
(b) In our opinion, the other terms and conditions on which the
advances have been granted to companies, firms or other parties listed
in the register maintained under section 301 of the Companies Act, 1956
are prima facie, not prejudicial to the interest of the Company.
(c) According to the information and explanations given to us, the
loans given by the Company are without any stipulation as to the
payment of principal and as explained to us, the receipts of the
principal amounts are regular.
(d) The Company has taken unsecured interest free loans from two
parties covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved was Rs. 1,77,000 and
the year-end balance was Rs. Nil.
(e) In our opinion, the rate of interest, wherever applicable and other
terms and conditions on which the loan has been taken from the parties
listed in the register maintained under section 301 of the Companies
Act, 1956 is prima facie, not prejudicial to the interest of the
Company.
(f) According to the information and explanations given to us, the
loans taken by the Company are without any stipulation as to the
payment of principal and as explained to us, the Company is regular in
the payment of the principal amounts.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensu- rate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to sale of
goods and services. We have neither come across nor have been informed
of any continuing failure to correct major weaknesses in internal
control system.
(v) Based on the audit procedures applied by us and according to the
information and explanations given to us, there are no transac- tions
with any party listed in the register maintained under section 301 of
the Companies Act, 1956, that exceeded an amount of Rs. 5,00,000
during the year under audit.
(vi) In our opinion, the Company has an internal audit system
commensurate with the size and the nature of its business.
(vii) (a) As per the records of the Company and according to the
information and explanations given to us, the Company is generally
regular in depositing with the appropriate authorities the undisputed
statutory dues including Provident Fund, Investor Education Protection
Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues to the extent applicable to it.
According to the information and explanations given to us, there are no
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)According to the information and explanations given to us, there are
no dues of Income Tax/Sales Tax/Wealth Tax/Service Tax/Customs Duty/
Excise Duty/Cess, which have not been deposited on account of any
dispute
(viii) The accumulated losses as at the end of the financial year do
not exceed fifty percent of its net worth and the Company has incurred
cash losses in the current financial year and in the immediately
preceding financial year.
For ASL & CO.
Chartered Accountants
Firm Regn. No.: 101921W
Saurabh P. Shah (Partner)
Membership No. 41749
Place: Mumbai
Dated : 29thMay, 2014
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