To the Members of Karur K.C.P. Packkagings Limited
Report on the Financial Statements
We have audited the accompanying standalone financial statements of M/s. Karur
K.C.P. Packkagings Limited ("the Company"), which comprise the Balance Sheet
as at March 31,2015, the Statement of Profit and Loss and Cash Flow Statement for the year
then ended and a summary of significant accounting policies and other explanatory
information.
ManagementRs.s Responsibility for the Financial Statements
The CompanyRs.s Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 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 Group in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under Section 133 of the
Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the company 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.
AuditorRs.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 Rules made there under.
We conducted our audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India, being standards specified pursuant to the
proviso to Section 143(10) of the Companies Act, 2013. 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 auditorRs.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 CompanyRs.s preparation and fair
presentation 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 the effectiveness of the entityRs.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.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Emphasis
The aforesaid financial statements comprise of the holding company and does not include
its wholly owned subsidiary company M/s. Shriudha Ventures Pte Ltd., Singapore. We have
been informed by the Board of Directors, that, though the company is required to have the
consolidated financial statements as required by the provisions of Section 134(1) of the
Companies Act,2013, the audit of the accounts of the foreign subsidiary have not yet been
completed and hence the Board of Directors have approved the holding company (stand alone)
financial statements.
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:
(a) In the case of Balance Sheet, of the state of affairs of the Company as at March
31, 2015.
(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. Pursuant to Companies (AuditorRs.s Report) Order, 2015 ("the Order")
issued by the Central Government, in terms of Section 143(11) of the Companies Act, 2013,
we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the
Order.
2. Pursuant to 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 (and proper returns adequate
for the purposes of our audit have been received from the branches not visited by us) ;
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 aforesaid financial statements comply with the Accounting
Standards specified pursuant to Section 133 of the Act read with Rule 7 of the Companies
(Accounts) Rules, 2014
e) On the basis of the written representations received from the directors as on 31st
March, 2015 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2015 from being appointed as a director in terms of Section
164 (2) of the Companies Act, 2013.
f) With respect to the other matters to be included in the AuditorRs.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 does not have any pending litigations including tax disputes referred
to in Clause 7(b) infra, which would impact its financial position. In this regard, we
draw you attention to Note No : 28 to the financial statements
(ii) The Company did not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
| Place : Karur |
For MSS SRIRAM & Co., |
| Date : 30th May, 2015 |
Chartered Accountants |
|
ICAI Firm Registration No 007909S |
|
P.R.MAHADEVAN |
|
Partner |
|
Membership Number : 007377 |
ANNEXURE TO INDEPENDENT AUDITORSRs. REPORT
(Referred to in paragraph 1 under the heading Rs.Report on Other Legal and Regulatory
RequirementsRs. of our report of even date)
1. In respect of fixed assets:
a. The company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets on the basis of available information;
b. According to the information and explanation furnished to us, the fixed assets have
been physically verified by the management during the year in a periodical manner, which
in our opinion is reasonable, having regard to the size of the Company and the nature of
assets. No material discrepancies were noticed on such verification.
2. In respect of Inventories :
a. As explained to us, the inventories have been physically verified by the management
during the year at reasonable intervals.
b. In our opinion and according to the information and explanation given to us, the
procedures of physical verification of the inventories followed by the management are
reasonable and adequate in relation to the size of the Company and nature of its business.
c. In our opinion and according to the information and explanation given to us, the
Company has maintained proper records of inventories and discrepancies noticed on physical
verification of inventories as compared to book records were not material and have been
appropriately dealt with in the books of accounts.
3. In respect of loans and advances :
The Company has not granted any loans secured or unsecured to the Companies / Firms and
any other parties covered in the register maintained under Section 189 of the Companies
Act, 2013.
4. In respect of internal control system:
In our opinion and according to the information and explanations given to us, there are
adequate internal control systems commensurate with the size of the Company and nature of
its business for the purchase of inventory, fixed assets and for the sale of goods and
services. Further, in our opinion and according to information and explanations given to
us, there is no continuing failure to correct major weakness in internal control.
5. Public Deposits
In our opinion and according to the information and explanation given to us, the
Company has not invited or accepted any deposits from the public during the year.
Therefore, the provisions of the clause (v) of the paragraph 3 of the Companies
(AuditorRs.s Report) Order, 2015 are not applicable to the Company.
6. Cost Records
We have broadly reviewed the cost records maintained by the Company pursuant to the
Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under
section 148 (1) (d) of the Companies Act, 2013, the prescribed cost accounts and 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.
7. Statutory Dues:
a. According to the information and explanations given to us and the records examined
by us, the Company is regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues
applicable to it. According to the information and explanations given to us, no undisputed
arrears of statutory dues were outstanding as at 31st March 2015, for a period of more
than six months from the date they became payable.
b. The details of disputed statutory dues are given below:-
| Name of the Statute |
Nature of the dues |
Period to which the amount relates |
Amount In Lakhs |
Forum where dispute in pending |
| Central Excise / Service Tax |
Dispute on Cenvat / Service Tax Credit, Interest and Penalty |
Feb-07 |
61.73 |
Central Excise Customs & Service Tax Appellate Tribunal, Chennai |
| Tamil Nadu Value Added Tax,2006 |
Dispute on Reversal of Input Tax Credit |
2013-14 |
28.62 |
High Court Of Judicature, Madras (Madurai Bench) |
| 2014-15 |
44.15 |
High Court Of Judicature, Madras (Madurai Bench) |
(c) According to the records of the Company, there are no amounts that are due to be
transferred to the Investors Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made there under.
8. Accumulated Losses:
The Company does not have accumulated losses at 31st March 2015. The Company has not
incurred cash losses during the financial year covered by our audit and in the immediately
preceding financial year.
9. Defaulting of Term Loans:
In our opinion and according to the information and explanation given to us, the
Company has not defaulted in repayment of its dues to Financial Institutions and Banks.
The Company has not issued any debentures.
10. Guarantee For Loans:
According to the information and explanations given to us, the Company has given
guarantee for the loan availed by its wholly owned subsidiary company M/s. Shriudha
Ventures Pte Ltd., Singapore from the bank, the terms and conditions whereof are not
prejudicial to the interest of the company.
11. Purpose & Application of Term Loans :
According the information and explanations given to us, the Company has applied the
Term Loans for the purposes for which they were obtained.
12. Frauds:
In our opinion and according to the information and explanation given to us, and based
on the books and records examined by us, there are no frauds on or by the Company that has
been noticed or reported during the year.
| Place : Karur |
For MSS SRIRAM & Co., |
| Date : 30th May, 2015 |
Chartered Accountants |
|
ICAI Firm Registration No 007909S |
|
P.R.MAHADEVAN |
|
Partner |
|
Membership Number : 007377 |
+91-9892691696
