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Control Print Ltd.

BSE: 522295 Sector: Industrials
NSE: CONTROLPR ISIN Code: INE663B01015
BSE LIVE 15:58 | 17 Nov 448.00 16.90
(3.92%)
OPEN

441.75

HIGH

450.65

LOW

435.35

NSE 15:59 | 17 Nov 448.55 13.80
(3.17%)
OPEN

435.00

HIGH

455.00

LOW

433.95

OPEN 441.75
PREVIOUS CLOSE 431.10
VOLUME 8257
52-Week high 463.85
52-Week low 225.00
P/E 23.01
Mkt Cap.(Rs cr) 702
Buy Price 0.00
Buy Qty 0.00
Sell Price 448.00
Sell Qty 57.00
OPEN 441.75
CLOSE 431.10
VOLUME 8257
52-Week high 463.85
52-Week low 225.00
P/E 23.01
Mkt Cap.(Rs cr) 702
Buy Price 0.00
Buy Qty 0.00
Sell Price 448.00
Sell Qty 57.00

Control Print Ltd. (CONTROLPR) - Auditors Report

Company auditors report

STANDALONE ANNUAL FINANCIAL RESULTS OF THE COMPANY

The Members of Control Print Limited

Report on the (Standalone) Financial Statements

1. We have audited the accompanying Standalone Financial Statements of Control PrintLimited ("the Company") for the quarter ended March 31 2017 and the year todate results for the period April 01 2016 to March 31 2017 pursuant to the requirementof Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations2015.

2. We have relied on financials of the foreign branch audited by the Firm of CharteredAccountants who have issued the Audit Report thereof in Srilanka.

Management's Responsibility for the (Standalone) Financial Statements

3. The management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ('the act') with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

4. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act andother applicable authoritative pronouncements issued by the Institute of CharteredAccountants of India. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

5. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's management and Board of Directors aswell as evaluating the overall presentation of the financial statements.

6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion

Opinion

7. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

a) In the case of Balance Sheet of the state of affairs of the Company as at March 312017.

b) In the case of the Profit and Loss Account of the profit for the year ended on thatdate.

c) In the case of the Cash Flow Statement of the Cash Flows of the Company for theyear ended on that date.

Report on Other Legal and Regulatory Requirements

8. 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 section143 ofthe Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us. Wegive in the Annexure B a statement on the matters Specified in paragraphs 3 and 4of the Order.

9. As required by section 143(3) of the Act we further report that:

a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as appears from our examination of those books;

c) The reports on the accounts of the branch office at Sri Lanka audited u/s 143(8) bythe branch auditors have been sent to us and properly dealt with by us in preparing thereport;

d) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

e) In our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 subject to the following:-

There has been a change in method of accounting policy in consonance with AccountingStandard 2 with respect to valuation of inventory with effect from April 01 2016 fromFIFO basis to Weighted Average Basis due to implementation of SAP based ERP accountingsystem. There is no substantial impact of the same on the profits of the company for theperiod under review.

f) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct;

g) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in Annexure A;

h) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:-

i. The Company has pending litigations which would impact its financial position asreferred to in Note No 36(1) (b) of the accounts on Contingent Liabilities not providedfor:

Financial Year Name of Statute Nature of Dues Amount Forum where dispute is pending
in Lacs
2010-2011 Central Sales Tax Act1956 CST liability ` 51.04 (net of tax paid Rs 44) For which company has obtained a stay order. Deputy Commissioner of Sales Tax Appeals - (Mumbai)

ii. The Company has not made provision as on March 31 2017 as required under theapplicable law or accounting standard for material foreseeable losses as the Company didnot have any long-term contracts including derivative contracts; as such the question ofcommenting on any material foreseeable losses thereon does not arise.

iii. There has been no sum transferred during the year under report for the year2008-09 to the Investor Education and Protection Fund.

iv. The company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from November 082016 to December 30 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the company and as produced to us by the management - Refer Note 37.

For Dosi and Jain
Chartered Accountants
Firm Registration No 112435W
Chandresh Gandhi
Place: Mumbai Partner
Dated: May 29 2017 M. No 43172

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in Para 9 of the Independent Audit report of even date to the members ofControl Print Limited on the standalone financial statements for the year ended March 312017.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of ControlPrint Limited ("the Company") as of March 31 2017 in conjunction our audit ofthe standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and may not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Dosi and Jain
Chartered Accountants
Firm Registration No 112435W
Chandresh Gandhi
Place: Mumbai Partner
Dated: May 29 2017 M. No 43172

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

Annexure referred to in paragraph 8 of Our Report of even date to the members ofControl Print Limited on the accounts of the company for the year ended March 31 2017.

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

i) In respect of Fixed Assets

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

b) As explained to us fixed assets have been physically verified by the management atthe year end on a rotational basis at the plants; Further discrepancies noticed on suchverification have been properly dealt in the books of accounts.

c) The title deeds of immovable properties as disclosed in the Fixed Assets Schedule tothe Financial Statement are held in the name of the Company.

ii) In respect of Inventories

a) The inventories have been physically verified by the management by followingreasonable and adequate procedures during the year end based on the inventory recordsmaintained.

b) The discrepancies noticed on the verification between physical stocks and bookstocks have been properly dealt with in the books of accounts by the company by writingoff inventories amounting to Rs 539.17 lacs during the year.

iii) The company has not granted any loans secured or unsecured to/from companiesfirms LLPs or other parties covered in the register maintained under section 189 of theAct during the year.

There is a transfer of Rs 7.09 lacs during the year along with the outstanding openingbalance of Rs 22.60 lacs towards loan granted in the earlier year to the wholly ownedsubsidiary company Liberty Chemicals Private Limited.

iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions with Section 185 and 186 of the Companies Act2013 in respect of the loans and investments made and guarantees and security provided byit.

v) The Company has not accepted any deposits from the public covered under Section 73to 76 of the Companies Act 2013. vi) As informed to us the Central Government hasprescribed maintenance of cost records under sub-section (1) of Section 148 of the Act.The company has appointed the Cost Auditor whose report has been received upto thefinancial year 2015-16.

vii) In respect of Statutory dues

(a) According to the information and explanations given to us and based on the recordsof the company examined by us the company is generally regular in depositing theundisputed statutory dues including Provident Fund Employees' State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty and othermaterial statutory dues as applicable with the appropriate authorities in India.According to the information and explanations given to us there are no undisputedamounts outstanding as on March 31 2017 for a period of more than six months from thedate they become payable by the company.

(b) According to the information and explanations given to us and based on the recordsof the company examined by us dues of Central Sales Tax Rs 51.04 lacs (net of taxes paidRs 44 lacs) have not been deposited on account of disputes are referred to in Note No 9(h) (i) of our Independent Audit Report of even date. The company has obtained stay inrespect of the said demand.

(c) There has been no sum transferred during the year under report for the year 2008-09to the Investor Education and Protection Fund.

viii) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government or dues to debenture holders as on theBalance Sheet date.

ix) In our opinion and according to the information and explanations given to us thecompany has not raised any term loans or initial public offer or further public offerduring the year

x) During the course of our examination of the books and records of the companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud on or by the Company noticed or reported duringthe course of our audit nor have we been informed of any such instance by the Management.

xi) The Company has paid/provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

xii) As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it; the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii) The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under AccountingStandard (AS) 18 Related Party Disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.

xiv) The Company has not made any preferential allotment during the year .Further noprivate placement of shares or fully or partly convertible debentures have been issuedduring the year under review.

xv) The Company has not entered into non cash transactions with its directors orpersons connected with them. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For Dosi and Jain
Chartered Accountants
Firm Registration No 112435W
Chandresh Gandhi
Place: Mumbai Partner
Dated: May 29 2017 M. No 43172