| We have audited the accompanying financial statements of Agio Paper &
industries 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.
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.
Auditor's Responsibility
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 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 system 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 qualified audit opinion on the
financial statements.
Basis for Qualified Opinion
The Paper Factory of the Company has been under shut down since 6th
October, 2010 to fulfil certain pollution control measures as
enumerated in note no. 2.18.F in the financial statements. As further
explained in note no 2.18.G, based on the future plans and valuation
of fixed assets, the management of the Company is not envisaging any
impairment loss in the fixed assets & Capital Work in Progress of the
Company as at the balance sheet date as per the requirements of
Accounting Standard AS- 28 on "Impairment of Assets". However in
absence of any certainty towards future plans of the Company or a
binding sale agreement at arm's length basis indicating the amount
obtainable from sale of fixed assets & Capital Work in progress, we
are unable to comment on the quantum of impairment loss on the fixed
assets & Capital Work in progress, if any, at the balance sheet date.
The impact of the above on the financial statements therefore could
not be determined.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the basis of qualified opinion paragraph, 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 Matter
We draw attention to the following matter in the Notes to the
financial statements:
Note no. 2.18.E & Note No. 2.18.F indicates fact that the net worth of
the Company is completely eroded and the production facility at the
paper factory is at a halt due to reasons mentioned in the note. These
conditions indicate the existence of a material uncertainty that may
cast significant doubt about the Company's ability to continue as a
going concern. However, the financial statements of the Company have
been prepared on a going concern basis for the reasons stated in the
above notes. The appropriateness of the said basis is interalia
dependent on the Company's ability to infuse requisite funds for
meeting its obligations, repayment of term loans and resuming normal
operations.
Our opinion is not modified in respect of above matter.
Report on Other Legal and Regulatory Requirements
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
c. 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.
d. Except for the effects of the matter described in the basis for
qualified opinion paragraph, 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.
e. The matter described in the "Basis of Qualified Opinion" paragraph
and in the "Emphasis of Matter" paragraph above, in our opinion, may
have an adverse effect on the functioning of the Company.
f. On the basis of the written representations received from the
directors as on 31st March, 2015 and 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 Act.
g. 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.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts . The company neither entered into any
derivative contract during the year nor have any outstanding
derivative contract at the year-end.
iii. The provisions relating to transferring any amounts to the
Investor Education and Protection Fund is not applicable to the
Company during the year.
For and on behalf of
Singhi & Co
Chartered Accountants
Firm Registration No. 302049E
Gopal Jain
Partner
Date : 11th April, 2015 Membership No - 059147 |