You are here » Home » Companies » Company Overview » Greenply Industries Ltd

Greenply Industries Ltd.

BSE: 526797 Sector: Others
NSE: GREENPLY ISIN Code: INE461C01038
BSE LIVE 15:40 | 11 Dec 333.15 -2.50
(-0.74%)
OPEN

335.00

HIGH

348.00

LOW

326.15

NSE 15:31 | 11 Dec 332.30 -3.80
(-1.13%)
OPEN

338.90

HIGH

340.00

LOW

330.00

OPEN 335.00
PREVIOUS CLOSE 335.65
VOLUME 15437
52-Week high 348.00
52-Week low 238.30
P/E 30.73
Mkt Cap.(Rs cr) 4,084
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 335.00
CLOSE 335.65
VOLUME 15437
52-Week high 348.00
52-Week low 238.30
P/E 30.73
Mkt Cap.(Rs cr) 4,084
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Greenply Industries Ltd. (GREENPLY) - Auditors Report

Company auditors report

TO THE MEMBERS OF GREENPLY INDUSTRIES LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone Ind AS financial statements of GREENPLYINDUSTRIES LIMITED ("the Company") which comprise the Balance Sheet as at 31March 2017 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of the stateof affairs (financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs (financial position) of the Company as at 31 March 2017 and its profit(financial position including other comprehensive income) its cash flows and the changesin equity for the year ended on that date.

OTHER MATTERS

The comparative financial information of the Company for the year ended 31 March 2016and the transition date opening balance sheet as at 1 April 2015 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 audited by us and our reports for the years ended 31 March 2016 and

31 March 2015 dated 24 May 2016 and 25 May 2015 respectively expressed an unModifiedopinion on those standalone financial statements as adjusted for the differences in theaccounting principles adopted by the Company on transition to the Ind AS which have beenaudited by us.

Our opinion is not Modified in respect of these matters.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. 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 ofthe Act we give in the "Annexure A" statement on the matters specified inparagraphs 3 and 4 of the Order.

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 bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by the law have been kept bythe 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 andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisQualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

(f) 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 B".

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its standalone Ind AS financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

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 8 November2016 to 30 December 2016 and the same are in accordance with books of account maintainedby the Company and as produced to us by the Management. (Refer Note 50).

For D. DHANDARIA & COMPANY

Chartered Accountants ICAI Firm Reg. No. 306147E

(Naveen Kumar Dhandaria)

Partner

Membership No. 061127

Place of Signature : Kolkata

Dated : 29 May 2017

ANNEXURE 'A' REFERRED TO IN PARAGRAPH ‘REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS' OF OUR REPORT OF EVEN DATE

RE: GREENPLY INDUSTRIES LIMITED (‘THE COMPANY')

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

(b) All fixed assets have not been physically verified by the management during theyear but there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

(c) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management the title deeds of immovable properties are held in the name of theCompany.

(ii) The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

(iii) The Company has granted unsecured loan to its wholly owned subsidiary companycovered in the register maintained under section 189 of the Companies Act 2013 ("theAct"). It has not granted any loans secured or unsecured to any other companiesfirms limited liability partnerships or other parties covered in the register maintainedunder Section 189 of the Act.

(a) In our opinion the rate of interest and other terms and conditions on which theloan had been granted to its wholly owned subsidiary company listed in the registermaintained under section 189 of the Act were not prima facie prejudicial to the interestof the Company taking into consideration the prevailing rate of interest for foreigncurrency loans.

(b) In the case of the loans granted to its wholly owned subsidiary company listed inthe register maintained under section 189 of the Act the principal had not fallen due forpayment. However the companies are regular in payment of interest as stipulated.

(c) There are no overdue amounts in respect of the loan granted to a body corporatelisted in the register maintained under section 189 of the Act.

(iv) In our opinion and according to the information and explanations given to us inrespect of loans investments guarantees and securities the Company has complied withthe provisions of Section 185 and 186 of the Act.

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act which apply to the Company.

(vii) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax customs duty excise duty value added tax cess andother material statutory dues applicable to it.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax sales-taxservice tax customs duty excise duty value added tax cess and other material statutorydues were outstanding at the year end for a period of more than six months from the datethey became payable.

(c) According to the records of the Company the dues outstanding of income-taxsales-tax service tax customs duty excise duty value added tax and cess on account ofany dispute are as per annexure of Statement of Disputed Dues.

STATEMENT OF DISPUTED DUES

Name of the Nature of the Dues Rs in Lacs Period to which the amount relates (Financial Year) Forum where dispute is pending
Statute
A) i) West Bengal Sales Tax Act 1994 Sales Tax Surcharge and Additional Surcharge Penalty (For short submission of Declaration Form 11) 10.26 1998 - 1999 Senior Joint Commissioner of Commercial Taxes Corporate Division
ii) West Bengal Sales Tax Act 1994 Sales Tax Surcharge and Additional Surcharge Penalty (For short submission of Declaration Form 11) 67.08 2000 - 2001 Assistant Commissioner of Commercial Taxes South Circle Kolkata.
iii) West Bengal Sales Tax Act 1994 Disallowance of Input Vat and Purchase Tax 296.57 2008 - 2009 West Bengal Taxation Tribunal Kolkata
B) i) Central Sales Tax Act 1956 Sales Tax (For short submission of Declaration Form C) 17.59 2000 - 2001 Assistant Commissioner of Commercial Taxes South Circle Kolkata.
ii) Central Sales Tax Act 1956 Sales Tax (For short submission of Declaration Form C) 8.72 2005 - 2006 West Bengal Commercial Taxes Appellate and Revision Board Kolkata.
iii) Central Sales Tax Act 1956 Sales Tax (For Non allowance of Declaration Form C and F) 74.63 2008 - 2009 Calcutta High Court Kolkata
C) i) Bihar Value Added Tax Act 2005 Denial of Entry Tax Credit 35.04 2009 - 2010 Joint Commissioner of Commercial Taxes (Appeals) East and West Division Patna
ii) Bihar Value Added Tax Act 2005 Denial of Entry Tax Credit 19.75 2008 - 2009 Joint Commissioner of Commercial Taxes (Appeals) East and West Division Patna
iii) Bihar Value Added Tax Act 2005 Denial of Entry Tax Credit 33.14 2011 - 2012 Joint Commissioner of Commercial Taxes (Appeals) East and West Division Patna
D) i) Central Excise Act 1944 For Imposition of Penalty (appeal filed by the department) 43.71 2000 - 2001 to 2005 - 2006 Before CESTAT East Zonal Bench Kolkata
ii) Central Excise Act 1944 Alleged Short Payment of Excise Duty 370.55 2010 - 2013 Before CESTAT Kolkata
iii) Central Excise Act 1944 Penalty on Above 201.19 2010 - 2013 Before CESTAT Kolkata
iv) Central Excise Act 1944 Duty on Resin in Negative List 286.93 01.03.2006 to 28.02.2013 Before CESTAT Meerut-II
v) Central Excise Act 1944 Penalty on Above 286.93 01.03.2006 to 28.02.2013 Before CESTAT Meerut-II
vi) Central Excise Act 1944 Disallowance of Discounts 248.90 01.09.2009 to 31.03.2010 Before CESTAT Kolkata

(viii) Based on our audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and according to information and explanationsgiven by the management we are of the opinion that the Company has not defaulted inrepayment of dues to any bank. Further the Company does not have any debentures and loanfrom financial institution or government.

(ix) During the year the Company raised a sum of Rs 5000 lacs through QualifiedInstitutional Placement (QIP). Pending utilisation of the funds so raised the surplusfunds were temporarily used for the purpose other than for which they were raised but wereultimately utilised for the stated end-use. In our opinion and according to theinformation and explanations given to us the Company has utilised the entire amount forthe purpose for which it was raised. The Company also raised a sum of Rs 21115.36 lacs byway of term loans from banks and it utilised a sum of Rs 18509.36 lacs for the purpose forwhich the same was taken. The balance amount of Rs 2606 lacs remains unutilised.

(x) Based upon the audit procedures performed and according to the information andexplanations given to us by the Management no material fraud on or by the Company hasbeen noticed or reported by the Management during the year.

(xi) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that the managerial remuneration has been paid /provided in accordance with the requisite approvals mandated by the provisions of Section197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause

3(xii) of the Order are not applicable to the Company and hence not commented upon.

(xiii) Based on our audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and according to the information andexplanations given by the management transactions with the related parties are incompliance with Section 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the notes to the financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence not commented upon.

(xv) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management the Company has not entered into any non-cash transactions withdirectors or persons connected with him.

(xvi) According to the information and explanations given to us the provisions ofSection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For D. DHANDARIA & COMPANY

Chartered Accountants ICAI Firm Reg. No. 306147E

(Naveen Kumar Dhandaria)

Partner

Membership No. 061127

Place of Signature : Kolkata

Dated : 29 May 2017

ANNEXURE ‘B' TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIALSTATEMENTS OF GREENPLY INDUSTRIES LIMTED

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB_SECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013 ("THE ACT")s

To the Members of Greenply Industries Limited

We have audited the internal financial controls over financial reporting of GREENPLYINDUSTRIES LIMITED ("the Company") as of 31 March 2017 in conjunction with ouraudit of the 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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.

AUDITOR'S 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 as specified under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 judgement 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 internal financial controls system overfinancial 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have a material 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 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.

EXPLANATORY PARAGRAPH

We also have audited in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10) of theAct the financial statements of Company which comprise the Balance Sheet as at 31 March2017 and the related Statement of Profit and Loss and Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation and our report dated 29 May 2017 expressed an unQualified opinion thereon.

For D. DHANDARIA & COMPANY

Chartered Accountants ICAI Firm Reg. No. 306147E

(Naveen Kumar Dhandaria)

Partner

Membership No. 061127

Place of Signature : Kolkata

Dated : 29 May 2017