TNPL Auditors Report

Report on the Standalone Ind AS Financial Statements


We have audited the accompanying standalone Ind AS financial statements of M/s. Tamil Nadu Newsprint and Papers Limited [‘the Company’] which comprise the Balance Sheet as at 31st March 2017 and the Statement of Profit and Loss [including other comprehensive income], the statement of Cash Flows and the statement of changes in equity for the year then ended and a summary of significant accounting policies and other explanatory information [hereinafter referred to as “standalone Ind AS financial statements”].


Management’s Responsibility for the Standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India including the Indian Accounting Standards [Ind AS] specified under Section 133 of the Act, read with relevant rules issued in 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.


Auditor’s Responsibility


Our responsibility is to express an opinion on these standalone Ind AS 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 thereunder.


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 standalone Ind AS financial statements are free from material misstatement.


An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company’s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. 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 standalone Ind AS 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 standalone Ind AS financial statements.


Opinion


In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 including Ind AS, of the financial position of the Company as at 31st March 2017, and its financial performance including other comprehensive income, its Cash Flows and the changes in equity for the year ended on that date.


Report on other Legal and Regulatory Requirements


1. As required under Section 143 [5] of the Companies Act, 2013, we give in the “Annexure A” our report on the directions issued by the Comptroller and Auditor General of India.


2. As required by the Companies [Auditor’s Report] Order, 2016 [“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, to the extent applicable.


3. 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 appears from our examination of those books;


c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the statement of Cash Flows and the Statement of changes in equity dealt with by this Report are in agreement with the books of account;


d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with relevant rule issued in the Companies [Accounts] Rules, 2014;


e) On the basis of written representations received from the directors as on 31st March 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2017, from being appointed as a director in terms of Section 164 [2] of the Act and;


f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls as required under Clause [i] of Sub-section 3 of Section 143 of the Companies Act, 2013, we give in the “Annexure B” our report on Internal Financial Controls of the Company for the year ended 31st March 2017 and


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, 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 standalone Ind AS financial statements as referred to in Notes 37 to the standalone Ind AS financial statements;


ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, and as required on long-term contracts including derivative contracts as referred to in Notes 39 to the standalone Ind AS financial statements;


iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company and


iv. The Company has provided requisite disclosures in its standalone Ind AS financial statement as to holdings as well as dealings in Specified Bank Notes during the period from 8th November 2016 to 30th December 2016 and these are in accordance with the books of accounts maintained by the Company. Refer Notes 38 (f) to the standalone Ind AS financial statements.


Annexure to the Auditors’ Report


The Annexure referred to in Independent Auditors’ Report to the members of the Company on the standalone Ind AS financial statement for the year ended 31st March 2017, on the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of audit, we report that -


Fixed Assets


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 at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.


c) All title deeds of the immovable properties are held by the Company except 10 grounds and 425 square feet on which the Corporate Office of the Company functioning at Chennai. The transfer of title of the said land by the Government of Tamil Nadu in favour of the Company is yet to be done pending completion of necessary formalities.


d) Fixed assets disposed off during the year were not substantial, and therefore, do not affect the going concern assumption.


Inventory and its physical verification


a) The inventory has been physically verified during the year by the Management. In our opinion, the frequency of verification is reasonable.


b) The procedures 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) The Company has maintained proper records of inventory and no material discrepancies were noticed on physical verifications.


Loans granted / taken from related Companies


a) The Company has not granted any loans and advances, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Act.


b) The Company has not taken any loans and advances, secured or unsecured from companies, firms or other parties covered in the register maintained under section 189 of the Act.


Guarantees given / acquired by the Company


a) In our opinion and according to the information and explanation given to us and based on the records produced before us during the course of our audit, the Company has not given any guarantee or to provide security in connection with a loan or acquire by way of subscription, purchase or otherwise, the guarantees or securities during the year under review.


Public Deposits


a) According to the information and explanations given to us, the Company has not accepted any deposits from the public during the year.


Cost Records


a) The Central Government has prescribed the maintenance of cost records by the Company under Section 148 [1] of the Companies Act, 2013 and we are of the opinion that prima facie, the books of accounts have been maintained by the Company and the proforma specified therein for the year are under preparation. We have however not carried out a detailed verification of such records.


Statutory Dues


a) The Company has generally been regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income Tax, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Excise Duty, Customs Duty and Cess and any other statutory dues applicable to it with appropriate authorities.


b) According to the information and explanations given to us, no undisputed amounts payable were in arrears as at 31st March 2017 for a period of more than six months from the date they became payable.


c) According to the information and explanations given to us, there are no material dues of Sales Tax / Value Added Tax / Income Tax / Customs Duty / Wealth Tax / Service Tax / Excise Duty / Cess which have not been deposited on account of any dispute. However, according to information and explanations given to us, the following dues of statutory dues have not been deposited by the Company on account of disputes:
















































Name of the Statute



Nature of Dues



Period to which the amount pertains



Amount [Rs. Lakhs]



Forum where the dispute is pending



Cenvat Credit Rules, 2004



Excise Duty Exemption



1997-1998


1998-1999



4.25



CESTAT Chennai



Cenvat Credit Rules, 2004



Capital Goods Credit



1997-1998


1998-1999


1999-2000


2000-2001 2001-2002



61.55



Hon’ble High Court of Madras



Cenvat Credit Rules, 2004



Capital Goods Credit



2003-2004


2004-2005


2005-2006


2006-2007



1523.69



CESTAT Chennai



Cenvat Credit Rules, 2004



Capital Goods Credit



2006-2007


2007-2008



11582.62



CESTAT Chennai



Cenvat Credit Rules, 2004



Input credit reversal on effluent sludge waste



2006-2007


2007-2008


2008-2009


2009-2010



6035.33



CESTAT Chennai

















































































































Cenvat Credit Rules, 2004



Input Service Credit



2007-2008


2008-2009



1074.46



CESTAT Chennai



Cenvat Credit Rules, 2004



Capital Goods Credit



2008-2009



11.94



Hon’ble High Court of Madras



Cenvat Credit Rules, 2004



Capital Goods Credit



2008-2009



37.25



Hon’ble High Court of Madras



Cenvat Credit Rules, 2004



Capital Goods Credit



2009-2010



453.97



CESTAT Chennai



Cenvat Credit Rules, 2004



Capital Goods Credit



2009-2010


2010-2011



16543.42



CESTAT Chennai



Cenvat Credit Rules, 2004



Capital Goods Credit



2010-2011



4.94



Hon’ble High Court of Madras



Cenvat Credit Rules, 2004



Capital Goods Credit



2010-2011



5.90



Hon’ble High Court of Madras



Cenvat Credit Rules, 2004



Input credit reversal on effluent sludge waste



2010-2011



1066.48



CESTAT Chennai



Cenvat Credit Rules, 2004



Capital Goods Credit



2010-2011



1096.39



CESTAT Chennai



Cenvat Credit Rules, 2004



Input credit reversal on coal



2013-2014


2014-2015



1565.46



CESTAT Chennai



Customs Act, 1962



Custom Duty



1999-2000



106.29



Commissioner Chennai



Customs Act, 1962



Custom Duty



1999-2000



20.44



Commissioner Cochin



Customs Act, 1962



Custom Duty



1991-1992



1.30



Commissioner Appeals, Chennai



Customs Act, 1962



Custom Duty



1991-1992



1.03



Commissioner Appeals, Trichy



Customs Act, 1962



Custom Duty



1991-1992



33.33



Commissioner Chennai and Hon’ble High Court of Madras































































































































Customs Act, 1962



Custom Duty



1991-1992



8.68



Commissioner Chennai



Customs Act, 1962



Custom Duty



1997-1998



14.94



Commissioner Chennai



Customs Act, 1962



Custom Duty



1997-1998



39.87



Commissioner Chennai



Customs Act, 1962



Custom Duty



2012-2013



2180.99



Commissioner Trichy



Customs Act, 1962



Custom Duty



2014-2015



75.70



Commissioner Chennai



Income Tax Act, 1961



Income Tax



2002-2003



16.48



Assessing Officer Chennai



Income Tax Act, 1961



Income Tax



2003-2004



612.81



Commissioner appeals & Assessing Officer, Chennai



Income Tax Act, 1961



Income Tax



2004-2005



40.87



ITAT, Chennai



Income Tax Act, 1961



Income Tax



2006-2007



41.18



Assessing Officer, Chennai



Income Tax Act, 1961



Income Tax



2007-2008



138.53



Assessing Officer, Chennai



Income Tax Act, 1961



Income Tax



2009-2010



808.30



ITAT, Chennai



Income Tax Act, 1961



Income Tax



2012-2013



609.48



ITAT, Chennai



Income Tax Act, 1961



Income Tax



2013-2014



385.42



Commissioner of Appeals, Chennai



Income Tax Act, 1961



Income Tax



2014-2015



149.89



Commissioner of Appeals, Chennai



Wealth Tax Act, 1957



Wealth Tax



1997-1998



1.37



Commissioner of Appeals, Chennai



Wealth Tax Act, 1957



Wealth Tax



1998-1999



6.50



Commissioner of Appeals, Chennai



Wealth Tax Act, 1957



Wealth Tax



1999-2000



5.81



Commissioner of Appeals, Chennai














































































Wealth Tax Act, 1957



Wealth Tax



2001-2002



5.63



Commissioner of Appeals, Chennai



Wealth Tax Act, 1957



Wealth Tax



2002-2003



0.15



Commissioner of Appeals, Chennai



TNVAT Act, 2006



Value Added Tax



2010-2011



15.21



Appellate Deputy Commissioner [CT] Trichy



TNVAT Act, 2006



Value Added Tax



2011-2012



52.12



Appellate Deputy Commissioner [CT] Trichy



TNVAT Act, 2006



Value Added Tax



2012-2013



87.82



Appellate Deputy Commissioner [CT] Trichy



Central Sales Tax Act, 1956



Central Sale Tax



1997-1998



11.47



Appellate Deputy Commissioner [CT] Trichy



Central Sales Tax Act, 1956



Central Sale Tax



1998-1999



12.90



Appellate Deputy Commissioner [CT] Trichy



Central Sales Tax Act, 1956



Central Sale Tax



1999-2000



8.30



Appellate Deputy Commissioner [CT] Trichy



Central Sales Tax Act, 1956



Central Sale Tax



2000-2001



10.04



Appellate Deputy Commissioner [CT] Trichy



Total



46570.50



d) According to the information and explanation given to us, the amount required to be transferred to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 2013 and rules made thereunder have been transferred by the Company to the fund within time.


Term Loans


a) The Company has obtained term loans during the year which were prima facie, applied for the purpose which they were obtained.


b) On the basis of verification of records and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks and debenture holders during the year under review.


c) The Company did not raise any monies by way of issue of debentures or further public offer including debt instruments during the year.


Frauds noticed


a) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India and to the best of our knowledge and according to the information and explanations given to us, no fraud of material nature on the Company by its officers or employees has been noticed or reported during the year nor have we been informed of any such case by the management.


Managerial Remuneration


a) On the basis of verification of records and according to the information and explanations given to us and based on our examination of records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013 during the year under review.


Nidhi Company


a) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and the provisions of the Nidhi Rules, 2014 are not applicable to the Company.


Related Party Transactions


a) On the basis of verification of records and according to the information and explanations given to us, all transactions with the related parties are in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable and the details have been properly disclosed in the standalone Ind AS financial statements for the year under review.


Shares and Debentures


a) On the basis of verification of records and according to the information and explanations 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.


Non-cash Transactions


a) According to information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him / her during the year under review.


Registration under RBI Act, 1934


a) In our opinion and according to the information and explanations given to us and in accordance with the nature of activity of the Company, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.


As per our report of even date


For Raman Associate


Chartered Accountants


FRN - 002910S


N. Raguraman


Partner


M. No. 202578


Place : Chennai


Date : 29th May, 2017

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.
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