We have audited the accompanying financial statements of EMAMI PAPER
MILLS LIMITED (the Company), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information, in which are
incorporated the Returns for the year ended on that date audited by the
branch auditors of the Company''s branch at Gulmohar.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (the Act) 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 Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. 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.
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 the Rules made
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 the disclosures in the financial statements. 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 financial control relevant
to the Company''s preparation 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 whether the Company has in place an adequate internal
financial controls over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, 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 on the financial
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, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
EMPHASIS OF MATTERS
We draw attention to the following matters in the Notes to the
financial statements :
Note 2.35 to the financial statements which, describes the change in
depreciation rate as required under schedule II of the Act.
Our opinion is not modified in respect of these matters.
We did not audit the financial statements of Gulmohar branch included
in these financial statements of the Company whose financial statements
reflect total assets of Rs. 2,118.92 Lacs as at 31st March, 2015 and
total revenues of Rs. 6,402.14 Lacs for the year ended on that date, as
considered in these financial statements. The financial statements of
this branch have been audited by the branch auditor whose reports have
been furnished to us, and our opinion in so far as it relates to the
amounts and disclosures included in respect of the branch, is based
solely on the report of such branch auditor.
Our opinion is not modified in respect of this matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
(i) As required by the Companies (Auditor''s Report) Order, 2015 (the
Order) issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
(ii) 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 and proper returns adequate for the purposes of our audit
have been received from the branch not visited by us.
(c) The reports on the accounts of the branch of the Company audited
under Section 143 (8) of the Act by branch auditor have been sent to us
and have been properly dealt with by us in preparing this report.
(d) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account and with the returns received from the branch not
visited by us.
(e) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(f) The note described in Emphasis of Matters paragraph above, in our
opinion, would not have an adverse effect on the functioning of the
(g) 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
(h) With respect to the other matters to be included in the Auditor''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 has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 2.29 & 2.42
to the financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
The Annexure referred to in our report to the members of Emami Paper
Mills Limited (the Company^ for the year ended on 31st March 2015. We
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) The fixed assets were physically verified during the year by the
management in accordance with a program of verification, covering all
fixed assets over a period of three years, which in our opinion
provides for physical verification of all major items of fixed assets
at reasonable intervals..
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of 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 explanations
given to us, the Company has maintained proper records of its inventory
and no material discrepancies were noticed on physical verification.
(iii) The Company has granted loans to three companies listed in the
register maintained under Section 189 of the Companies Act, 2013.
(a) In respect of loans granted, repayment of the principal amount is
as stipulated and payment of interest has been regular.
(b) There are no overdue amount of more than rupees one lakh in respect
of the loans granted to the bodies corporate listed in the register
maintained under Section 189 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the company in respect of these areas.
(v) The company has not accepted any deposit from the public during the
(vi) To the best of our knowledge and as explained, the Central
Government has not prescribed the maintenance of cost records under
clause 148(1) of the Companies Act, 2013, for the year for the
products/services of the Company.
(vii) According to the information and explanations given to us in
respect of statutory and other dues :
a) The Company has been regular in depositing undisputed statutory
dues, including Provident Fund, Employees State Insurance, Income Tax,
Service Tax, Sales Tax, Value Added Tax, Wealth Tax, duty of Custom,
duty of Excise, Cess and other statutory dues with the appropriate
authorities during the year. According to the information and
explanations given to us, no undisputed amounts payable in respect of
the aforesaid dues were outstanding as at 31st March, 2015 for a period
of more than six months from the date of becoming payable.
(b) According to the information and explanations given to us, details
of dues of duty of Excise, Sales Tax, Entry Tax, Value Added Tax,
Income Tax and Employees State Insurance which have not been deposited
as on 31st March, 2015 on account of dispute are given below :
Particular Financial Year to Forum where matter is Amount
which the matter pending Rs in
The Central Excise 1994-95 ACCE 0.87
Act 1944 & Service
Tax (Finance Act,
2002-03 to 2006-07 ACCE 1.10
2006-07 Tribunal 74.81
2007-08 Tribunal 0.10
2011-12 Comm. Appeals 5.06
Particular Financial Year to Forum where matter is Amount
which the matter pending Rs in
Central Sales Tax 1993-94 Tribunal 16.26
2004-05 DCCT 0.53
2006-07 Tribunal 3.82
2008-09 Tribunal 0.46
2009-10 Comm. Appeals 17.12
2010- 11 Comm. Appeals 7.34
Value Added Tax Act, 2006-07 Tribunal 0.59
2007-08 Tribunal 0.80
2009- 10 Comm. Appeals 10.89
2010- 11 Comm. Appeals 25.48
Entry Tax Act (Orissa2006- 07 Addl. Comm. 1.30
2007- 08 Addl. Comm. 0.11
2008- 09 Addl. Comm. 32.00
2009- 10 Addl. Comm. 32.05
2010- 11 Addl. Comm. 42.36
Orissa Sales Tax 1989- 90 High Court 0.79
ESIC 1996- 97 ESIC Court 0.22
Income Tax Act, 1961 1995- 96 Comm. Appeals 2.20
(c) The amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder has been
transferred to such fund within time.
(viii) The Company does not have accumulated losses as at the end of
the year and the Company has not incurred cash losses during the
current year and in the immediately preceding financial year.
(ix) Based on our audit procedures and on the basis of information and
explanations given by the management, we are of the opinion that the
company has not defaulted in the repayment of dues to financial
institution and banks.
(x) According to information given to us, the Company has not given any
guarantee for loans taken by others from banks or financial
(xi) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
company were applied for the purpose for which the loans were obtained.
(xii) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For S. K. AGRAWAL & COMPANY
Registration No. 306033E
S. K. Agrawal
Place : Kolkata Partner
Dated : 6th May, 2015 Membership No. 9067