We have audited the accompanying financial statements of Mohit Paper
Mills Limited (the Company), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
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 and presentation 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 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 there under. 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 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 system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of 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.
Report on Other Legal and Regulatory Requirements
1. 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 Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order to the extent applicable.
2. 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
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 it appears from our examination of those
(c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
(d) In our opinion, the aforesaid Balance Sheet, the Statement of
Profit & Loss and Cash Flow Statement comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014;
(e) On the basis of written representations received from the directors
as on March 31,2015, taken on record by the Board of Directors, none of
the directors is disqualified as on March 31,2015 from being appointed
as a director in terms of Section 164(2) of the Act; and
(f) With respect to 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 no pending litigations that would materially affect
the financial position of the Company.
(ii) The Company did not have any long-term contracts including
derivative contracts; for which there were any material foreseeable
(iii) There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors'' Report
Referred to in Paragraph 1 under the heading of Report on Other Legal
and Regulatory Requirements of our report of even date to the members
of Mohit Paper Mills Limited for the year ended 31 March 2015.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of
(b) The Company has conducted the physical verification of fixed assets
during the year and has not identified any material differences during
(ii) (a) The inventories have been physically verified at reasonable
intervals by the management.
(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 are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of its
inventories and no material discrepancies were noticed on such physical
(iii) (a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
(b) In view of our comment in paragraph 3(a) above, clause (iii) (a)
and (b) of paragraph 3 of the Companies (Auditor''s Report) Order, 2015
are not applicable to the Company.
(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 audit, we have not observed any
continuing failure to correct major weaknesses in internal control
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the cost records maintained by the
Company pursuant sub-section (1) of Section 148 of the Companies Act,
2013 and are of opinion that prima facie, the prescribed accounts and
records have been maintained.
(vii) (a) According to the records of the Company and information and
explanations given to us, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Employee State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Duty of Custom, Duty of Excise,
Value Added Tax, Cess and any other statutory dues with the appropriate
authorities and we have been informed that no arrears of undisputed
statutory dues outstanding as at the last day of the financial year
under audit for a period of more than six months from the date they
(b) According to the records of the Company and the information and
explanations given to us, there were no disputed demands outstanding as
at 31st March, 2015.
(c) There are no amounts 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 there
(viii) The Company does not have accumulated losses at the end of the
financial year under audit and has not incurred cash losses during the
financial year covered by audit and in the immediately preceding
(ix) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to the financial
institution or bank.
(x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xi) According to the information & explanations given to us, no term
loans were obtained during the year under audit.
(xii) Based upon the audit procedures performed and according to the
information & explanations given to us, no fraud on or by the Company
has been noticed or reported during the year of our audit.
ForAjay Shreya & Co.
Firm Registration No.: 021423N
Membership No.: 085354
Place: New Delhi