To
The Members of Shree Karthik Papers Limited
Report on the Audit of Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Shree Karthik Papers Limited
(“the Company”), which comprise the standalone Balance Sheet as at March 31,
2023, the Statement of Profit and Loss (including Other Comprehensive Income), standalone
Statement of Changes in Equity and the standalone Statement of Cash Flows for the year
then ended, and a summary of the significant accounting policies and other explanatory
information (hereinafter referred to as financial statements).
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
Companies Act, 2013 (“the Act”) in the manner so required and give a true and
fair view in conformity with the Indian Accounting Standards prescribed under section 133
of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,
(“Ind AS”) and other accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2023, the profit and total comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for opinion
We conducted our audit of the financial statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under
those Standards are further described in the Auditors Responsibilities for the Audit of
the Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India (ICAI) together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the Rules made thereunder, and we
have fulfilled our other ethical responsibilities in accordance with these requirements
and the ICAls Code of Ethics. We believe that the audit evidence we obtained by us is
sufficient and appropriate to provide a basis for our audit opinion on the financial
statements.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. We
have determined that there are no Key audit matters to be communicated in our report.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Annual
Report, but does not include the financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Managements Responsibility for the Ind AS Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these financial statements that give
a true and fair view financial position, financial performance including other
comprehensive income, changes in equity and cash flows of the Company in accordance with
the Ind AS and other accounting principles generally accepted in India, including the Ind
AS specified under Section 133 of the Act. This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and 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.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors are responsible for overseeing the Companys financial reporting
process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal financial controls relevantto
the audit in orderto design audit procedures that are appropriate in the circumstances.
Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on
whether the Company has adequate internal financial controls system in place and the
operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going
concern basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
Companys ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors report to the
related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our audit. However, future events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the
financial statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. 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 purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid financial statements comply with the Ind AS specified
under 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 March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in “Annexure A”. Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial statements.
g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in
our opinion and to the best of our information and according to the explanations given to
us:
1. The Company has disclosed the impact of pending litigations on its financial
position in its financial statements.
2. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
3. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the company.
2. As required by the Companies (Auditors Report) Order, 2020 (“the Order”)
issued by the Central Government in terms of Section 143(11) of the Act, we give in
“Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the
order.
|
For T.M. Jeyachandran& Co., |
| Place: Coimbatore |
Chartered Accountants, |
| Date : 27.05.2023 |
FRN 012309S |
| UDIN : 23200164BGWIQP5297 |
R.Selvaganesh |
|
Partner |
|
M.No.200164 |
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1{f) under Report on Other Legal and Regulatory
Requirements section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting 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 Shree
Karthik Papers Limited (“the Company”) as of March 31, 2023 in conjunction with
our audit of the Ind AS financial statements of the Company for the year ended on that
date.
Managements Responsibility for Internal Financial Controls
The Companys 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 Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India. 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 respective companys policies, the safeguarding of its 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 Companys internal financial
controls over financial reporting of the Company 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”) issued by the Institute of Chartered
Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of internal financial controls.
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 was 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 auditors judgement, 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 Companys internal financial controls system over
financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys 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 for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, 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 preparation 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 authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
companys 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, to the best of our information and according to the
explanations given to us, 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 March 31, 2023, based on the
criteria for internal financial control over financial reporting established by the
respective 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 T.M. Jeyachandran& Co., |
| Place: Coimbatore |
Chartered Accountants, |
| Date : 27.05.2023 |
FRN 012309S |
| UDIN : 23200164BGWIQP5297 |
R.Selvaganesh |
|
Partner |
|
M.No.200164 |
ANNEXURE -B TO THE INDEPENDENT AUDITORS REPORT
[Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory
Requirements in the Independent Auditors Report of even date to the members of Shree
Karthik Papers Limited on the financial statements for the year ended 31.03.2023]
In respect of Companys Property, Plant and Equipment:
a. The company has maintained proper record showing full particulars, including
quantitative details and situation of Property, plant and Equipments.
b. The Company has a program of verification to cover all the items of Property, Plant
and Equipments in a phased manner which, in our opinion, is reasonable having regard to
the size of the Company and the nature of its assets. Pursuant to the program, certain
Property, Plant and Equipments were physically verified by the management during the year.
According to the information and explanations given to us, no material discrepancies were
noticed on such verification.
c. According to the information and explanations given to us, the records examined by
us and based on the examination of the records of the company, the title deeds of
immovable properties of the company are held in the name of the company. According to the
information and explanations given to us and on the basis of our examination of the
records of the Company, the Company has not revalued its Property, plant and equipment
(including Right-of-use assets) or Intangible assets or both during the year.
d. According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there are no proceedings initiated or pending
against the Company for holding any benami property under the Prohibition of Benami
Property Transactions Act, 1988 and rules made thereunder.
ii. (a)The inventory has been physically verified by the management during the year. In
our opinion and as informed, the frequency of such verification and procedure and coverage
by management were appropriate. No material discrepancies were noticed in the inventory on
physical verification carried out during the year.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has been sanctioned working capital
limits in excess of Five Crore Rupees, in aggregate, from banks on the basis of security
of current assets(Primary security as Current Assets). In our opinion the quarterly
returns or statements filed by the company with such banks are in agreement with the books
of account of the company.
iii. According to the information and explanation given to us, the Company has not
granted any loans, secured or unsecured to companies, firms, Limited Liability
Partnerships or other parties covered in the register maintained under Section 189 of the
Act. Accordingly, paragraph 3 (iii)(a), 3 (iii)(b) and 3 {(iii)(c) of the Order are not
applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of Sections 185 and 186 of the Act in respect of
grant of loans, making investments and providing guarantees and securities, as applicable.
v. In our opinion and according to the information and explanations given to us, the
Company has not accepted any deposits from the public within the provisions of Sections 73
to 76 of the Act and the rules framed there under.
vi. We have broadly reviewed the books of account maintained by the Company in respect
of products where the maintenance of cost records has been specified by the Central
Government under subsection (1) of Section 148 of the Act and the rules framed there under
and we are of the opinion that prima facie, the prescribed accounts and records have been
made and maintained.
vii.
a. The Company is generally regular in depositing with appropriate authorities,
undisputed statutory dues including provident fund, employees state insurance, income
tax, goods and service tax, customs duty, excise duty, cess and any other material
statutory dues applicable to it. However, there have been slight delay in few cases /
delays in deposit have not been serious. and
According to the information and explanations given to us, no undisputed amounts
payable in respect of GST, Provident fund, Income-tax, Duty of Customs, Cess and other
material statutory dues applicable to it, were outstanding, as at 31.3.2023, for a period
of more than six months from the date they became payable. Employees State insurance is
not applicable for the company
b. According to the information and explanation given to us, the dues outstanding with
respect to, income tax, sales tax, service tax, value added tax, goods and service tax,
customs duty, excise duty on account of any dispute, are as follows:
Name of the Statue |
Amount |
Period to which the amount relates |
Forum where dispute is pending |
CST ACT 1956 |
Rs.15,12,822 (Tax) |
AY 1995-1996 |
Central sales tax |
|
Rs.25,64,365(Penalty) |
|
Appellate |
| CST ACT 1956 |
Rs.4,44,575 (Tax) |
AY 2003-2004 |
RS Puram East circle, CBE |
viii.According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not surrendered or disclosed
any transactions, previously unrecorded as income in the books of account, in the tax
assessments under the Income-tax Act, 1961 as income during the year.
ix. According to the information and explanations given to us, the Company has not
defaulted in repayment of loans or borrowings to financial institution(s), bank(s),
government(s). The company has not raised any money against issue of debentures.
(a) According to the information and explanations given to us by the management, the
Company has obtained term loans and repaid the same as per schedule.
(b) The company has not been declared wilful defaulter by any bank or financial
institution or government or government authority.
(c) The company has availed term loan and repaid the loan appropriately.
(d) 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 funds have been raised
on short-term basis by the Company. Accordingly, clause 3(ix)(d) of the Order is not
applicable.
(e) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not taken any funds from any
entity to meet the obligations of its subsidiaries.
(f) In our opinion and according to the information and explanations given to us, the
Company has utilized the money raised by way of term loans during the year for the
purposes for which they were raised.
X. (a) During the year the Company has not raised any money by way of initial public
offer or further public offer. Accordingly clause 3(x)(a) of the order is not applicable
to the company.
(b) According to the information and explanation given to us the company has not made
any preferential allotment or private placement of shares or fully or partly convertible
debentures during the year under review. Therefore, paragraph 3(x) (b) of the Order is not
applicable to the Company.
xi. (a) Based on the audit procedures performed for the purpose of reporting the true
and fair view of the financial statements and based on the principles of materiality, to
the best of our knowledge and belief and as per the information and explanation given to
us and the representations obtained from the management no instance of fraud by the
Company or any fraud on the Company by its officers or employees, noticed or reported
during the year, nor have we been informed of any such instance by the management.
(b) According to the information and explanations given to us, no report U/s. 143 (12)
of the Companies Act, 2013 has been filed by the auditors in form ADT 4 as prescribed
under rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the Central
Government.
xii. The Company is not a Nidhi Company. Therefore, paragraph 3(xii) of the Order is
not applicable to the Company.
xiii. According to the information and explanation given to us, all transactions
entered into by the Company with the related parties are in compliance with Sections 177
and 188 of Act, where applicable and the details have been disclosed in the Financial
Statements etc., as required by the applicable accounting standards.
xiv. (a) Based on information and explanations provided to us and our audit procedures,
in our opinion, the Company has an internal audit system commensurate with the size and
nature of its business. (b) We have considered the internal audit reports of the Company
issued till date for the period under audit.
xv. In our opinion and according to the information and explanations given to us, the
Company has not entered into any non-cash transactions with its directors or persons
connected to its directors and hence, provisions of Section 192 of the Companies Act, 2013
are not applicable to the Company.
xvi.(a) The Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934. Accordingly, clause 3(xvi)(a) of the Order is not applicable.
(b) The Company is not required to be registered under Section 45-1A of the Reserve
Bank of India Act, 1934. Accordingly, clause 3(xvi)(b) of the Order is not applicable.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India. Accordingly, clause 3(xvi)(c) of the Order is not
applicable.
(d) According to the information and explanations provided to us during the course of
audit, the Group does not have any CIC. Accordingly, the requirements of clause 3(xvi)(d)
are not applicable.
xvii. The Company has not incurred cash losses in the current financial year.
xviii. There has been no resignation of the statutory auditors during the year.
Accordingly, clause 3(xviii) of the Order is not applicable.
xix. According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realisation of financial assets and payment
of financial liabilities, other information accompanying the financial statements, our
knowledge of the Board of Directors and management plans and based on our examination of
the evidence supporting the assumptions, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date of the audit report that
the Company is not capable of meeting its liabilities existing at the date of balance
sheet as and when they fall due within a period of one year from the balance sheet date.
We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the Company as and when they fall due.
xX. In our opinion and according to the information and explanations given to us,
sub-section (5) of Section 135 of the Companies Act, 2013 is not applicable to the
company. Accordingly, clauses 3(xx)(a) and 3(xx) (b) of the Order are not applicable.
|
For T.M. Jeyachandran& Co., |
| Place: Coimbatore |
Chartered Accountants, |
| Date : 27.05.2023 |
FRN 012309S |
| UDIN : 23200164BGWIQP5297 |
R.Selvaganesh |
|
Partner |
|
M.No.200164 |
+91-9892691696
