We have audited the accompanying financial statements of Kalpena
Industries Limited (the Company), which comprise the Balance Sheet as
at 31st March , 2014, the Statement of Profit and Loss and the Cash
Flow Statement f or the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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 (the Act) 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, and in accordance with the accounting principles generally
accepted in India. 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.
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 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 the 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 but not f or the purpose of expressing an opinion on the
effectiveness of the company''s internal control. 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
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit 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 the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit 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(the
Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we gi ve 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:
(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
(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
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act 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;
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 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 Act.
Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date
i) In respect of fixed assets
a) The company is generally maintaining proper records showing full
particulars including quantitative details and situation of Fixed
b) As per the information and explanation given to us, fixed assets are
physically verified by the management in a phased periodical manner,
which in our opinion, is reasonable having regard to the size of the
company and the nature of its assets. The discrepancies noticed on such
verification were not material.
c) There was no substantial disposal of the Fixed Assets. ii) In
respect of its inventories
a) As explained to us, the inventories of the company except stock in
transit, have been physically verified by the management at reasonable
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the company and nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material having regard to the size of
operation of the company and have been dealt with in the books of
iii) a) According to information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the Register maintained under Section
301 of the Act.
b) According to information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms or
other parties covered in the Register maintained under Section 301 of
iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the products
of the company are of special nature and suitable alternative sources
are not readily available for obtaining comparable quotations, there is
generally an adequate internal control system commensurate with the
size of the company and the nature of its business with regard to
purchase of inventory a nd fixed assets and 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) In our opinion and according to the information and explanations
provided by the management, we are of the opinion that there are no
contracts or arrangements that need to be entered into the register
maintained under section 301 of the Companies Act, 1956.
vi) The Company has not accepted any deposit from public, therefore the
provisions of Clause(vi) of paragraph 4 of the Order are not applicable
to the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the books of accounts maintained by the
company in respect of product where pursuant to rules prescribed by the
central government, the maintenance of cost records has been prescribed
under clause (d) of subsection (1) of sec 209 of the Act and are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have not, however, made a detail examination of
the cost record with a view to determine whether they are accurate or
ix) a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, income- tax, sales-tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues
as applicable, with the appropriate authorities. As at 31st March,
2014, there were no arrears in respect of the aforesaid dues 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 material dues of Wealth tax, Income Tax, Service Tax, Custom Duty
and Cess which have not been deposited with the appropriate authorities
on account of any dispute. However, according to the information and
explanations given to us, the following dues of, Sales tax, and Excise
Duty, have not been deposited by the Company on account of disputes:
Name of Statue Nature of Dues Amount Period of which
(Rs.In Thousands) the amount relates
Excise Act Excise Duty 2,935 F.Y. 1996-97
Value Added Tax Value Added Tax 44,705 F.Y. 2004-05
6,093 F.Y. 2005-06
34,441 F.Y. 2006-07
Central Sales Tax Central Sales Tax 6,912 F.Y. 2004-05
21,757 F.Y. 2005-06
10,110 F.Y. 2006-07
Name of Statute Forum where dispute is pending
Excise Act CEGAT
Value Added Tax Jt. Comm. of Sales Tax, Beliaghata, Kolkata
Central Sales Tax Jt. Comm. of Sales Tax, Beliaghata, Kolkata
x) There are no accumulated losses of the company. The company has not
incurred cash loss during the financial year covered by our audit and
the i mmediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution and banks as at the Balance Sheet date.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statue applicable to chit fund /
nidhi / mutual benefit fund / societies are not applicable to the
xiv) In our opinion the company, is not dealing in or trading in
shares, securities, debentures and other investments.
xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from bank or financial institution during the year.
xvi) According to the information & explanation given to us, the term
loan are being applied by the company for the purpose for which the
loan were obtained.
xvii) According to the information and explanations given to us, on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
xviii)The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
xix) There are no debentures issued and outstanding at the year end.
xx) The Company has not raised any money by public issue during the year.
xxi) According to the information and explanations given to us and
representations made by management and based upon the audit procedures
performed, we report that no fraud on or by the company has been
noticed or reported during the course of our audit.
FOR B. MUKHERJEE & CO.
Firm Registration No. 302096E
Place: Kolkata PARTNER
Date: 30th May 2014 (Membership No. 002941)