Andhra Pradesh Paper Mills
BSE: 502330 | NSE: APPAPER | ISIN: INE435A01028 | Paper
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Auditor's Report | Year End : Mar '08 |
1. We have audited the attached Balance Sheet of The Andhra Pradesh
Paper Mills Limited as at 31st March, 2008, the Profit and Loss Account
and also the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of The Companies Act, 1956 of India (the Act) and on the
basis of such checks as we considered appropriate and according to the
information and explanations given to us, we set out in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, 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 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 appears from our examination of such
books.
c. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
d. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956 with the
exception of Accounting Standard 22, on Accounting for Taxes on
Income, referred to in Note No.7 of Schedule 19 (II).
e. In our opinion and to the best of our information and according to
the explanations given to us, subject to not fully providing for
deferred tax liability in accordance with Accounting Standard 22 issued
by the Institute of Chartered Accountants of India, referred to in Note
No. 7 of Schedule 19 (II), the said accounts give the information
required by the Companies Act, 1956, in the manner so for required and
give a true and fair view, in conformity with the accounting principles
generally accepted in India:
i. in the case of the Balance Sheet of the state of affairs of the
company as at 31st March 2008;
ii. in the case of the Profit and Loss Account, of the profit for the
year ended on that date;
iii. in case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
f. On the basis of written representations received from the Directors
as on 31st March, 2008 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2008 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN PARAGRAPH 3 OF OUR
REPORT OF EVEN DATE
i. a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. The fixed assets have been physically verified by the management
during the year in accordance with a phased programme of verification
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. According to the information
furnished to us, no material discrepancies have been noticed on such
verification.
c. The fixed assets disposed off by the Company during the year do not
form a substantial part thereof.
ii. a. Physical verification of inventory has been conducted during the
year by the management at reasonable intervals.
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. On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on such verification between the
physical stocks and the book records were not material.
iii. a. The Company has not granted any loans, secured or unsecured to
Companies, firms or other parties to whom the provisions of Section 301
of the Companies Act, 1956 apply. Accordingly sub clauses (b), (c) and
(d) of clause (iii) of paragraph 4 of the Order are not applicable.
b. The Company has not taken any loans, secured or unsecured from
companies, firms, or other parties to whom the provisions of Section
301 of the Companies Act apply. Accordingly, sub clauses (f), (g) and
(h) of clause (iii) of paragraph 4 of the Order are not applicable.
iv. 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 with regard to purchase of inventory, fixed assets and sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal controls.
v. 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 the 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 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of Sections
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from
public. No order has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any court or any
tribunal.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii. We have broadly reviewed the books of account relating to
materials, labour and other items of cost 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 we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
ix. a. According to the records of the company, the company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income tax, sales tax, wealth tax, custom
duty, excise duty, service tax, cess, and other material statutory dues
applicable to it.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty, service tax and cess were in arrears as
at 31st March 2008 for a period of more than six months from the date
they became payable.
c. As at 31st March 2008, there have been no disputed dues, which have
not been deposited with the respective authorities in respect of income
tax, wealth tax, excise duty, service tax and cess, except disputed
excise duty and service tax under Central Excise Act of Rs.109.86 lakhs
pending before the Appellate Commissioner, Customs and Central Excise,
Rs.269.75 lakhs pending before the Customs, Central Excise and Service
Tax Appellate Tribunal and Rs.57.68 lakhs pending before Honble High
Court of Andhra Pradesh, disputed sales tax under Andhra Pradesh
General Sales Tax Act and Central Sales Tax Act of Rs.15.13 lakhs
pending before the Appellate Deputy Commissioner, Rs.60.59 lakhs
pending before the Sales-tax Appellate Tribunal and Rs.132.67 lakhs
pending before the Andhra Pradesh High Court.
x. The Company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year.
xi. In oar opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks or debentureholders.
xii. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly the provisions of clause (xii) of paragraph 4 of the Order
are not applicable.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other instruments. Accordingly, the
provisions of clause (xiv) of paragraph 4 of the Order are not
applicable to the Company.
xv. The Company has not given any guarantees for loans taken by others
from banks or financial institutions. Accordingly, the provisions of
clause (xv) of paragraph 4 of the Order are not applicable to the
Company.
xvi. In our opinion, the term loans have been applied for the purposes
for which they were raised.
xvii. According to the information and explanations given to us and on
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investment.
xviii.During the year the Company has made a preferential allotment of
19,13,875 equity shares to a party covered in the register maintained
under Section 301 of the Act and report that the price at which the
said shares have been issued is not prejudicial to the interest of the
Company.
xix. The Company has created securities in respect of secured
debentures in earlier years. There are no debentures outstanding at the
year end.
xx. During the year, the Company has not raised any money by way of
public issue. Accordingly, the provisions of clause (xx) of paragraph 4
of the Order are not applicable to the Company.
xxi. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For Brahmayya & Co.,
Chartered Accountants
C.V. Ramana Rao
Secunderabad Partner
12th May, 2008 Membership No. 018545 |
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| Source : Religare Technova | |
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