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JK Paper Ltd.

BSE: 532162 Sector: Industrials
NSE: JKPAPER ISIN Code: INE789E01012
BSE LIVE 15:43 | 15 Dec 131.00 -1.10
(-0.83%)
OPEN

133.50

HIGH

136.90

LOW

130.50

NSE 15:52 | 15 Dec 130.55 -1.55
(-1.17%)
OPEN

134.10

HIGH

136.80

LOW

130.00

OPEN 133.50
PREVIOUS CLOSE 132.10
VOLUME 208235
52-Week high 142.45
52-Week low 82.85
P/E 10.84
Mkt Cap.(Rs cr) 2,263
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 133.50
CLOSE 132.10
VOLUME 208235
52-Week high 142.45
52-Week low 82.85
P/E 10.84
Mkt Cap.(Rs cr) 2,263
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

JK Paper Ltd. (JKPAPER) - Auditors Report

Company auditors report

To

The Members JK Paper Limited

REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS

We have audited the accompanying standalone Ind AS financial statements of JK PaperLimited ("the Company") which comprise the Balance Sheet as at March 312017the Statement of Profit and Loss (including Other Comprehensive Income). The Statement ofCash Flow and the Statement of Changes in Equity for the year then ended and a summary ofsignificant 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these Standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and change in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under Section 133 of the Act read with relevant rules issued thereunder.

This responsibility also 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; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement 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 in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind AS financial statements are free from 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 thefinancial position of the Company as at March 31 2017 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date.

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" 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 purpose of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The balance sheet the statement of profit and loss the cash flow statement andthe statement of changes in equity dealt with by this report are in agreement with thebooks of account;

(d) In our opinion the aforesaid Standalone Ind AS financial statements comply withthe Accounting Standards specified under section 133 of the Act read with relevant ruleissued thereunder;

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

(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" and

(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 - refer note 37 to the standaloneInd AS financial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts - Refer Note 19 and 24 to the standalone Ind AS financial statements;

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

iv. The Company has provided requisite disclosures in its standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom November 8 2016 to December 30 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer note 63 to the standalone Ind AS financialstatements.

For SS KOTHARI MEHTA & CO.
Chartered Accountants
Firm's Registration Number: 000756N
K. S. mehta
Place: New Delhi Partner
Date: May 16 2017 Membership Number: 008883

"Annexure A" to the Independent Auditor's Report

The Annexure as referred in paragraph (1) 'Report on Other Legal and RegulatoryRequirements of our Independent Auditors' Report to the members of JK Paper Limited on thestandalone Ind AS financial statements for the year ended March 312017 we report that:

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

(b) The fixed assets have been physically verified by the management according toprogramme of periodical verification in phased manner which in our opinion is reasonablehaving regard to the size of the Company and the nature of its Fixed Assets. Thediscrepancies if any noticed on such physical verification have been properly dealt within the books of accounts.

(c) The title deeds of immovable properties are held in the name of the Company exceptin the following case:

Particular Total No. of Cases Gross Book Value (H In Crore) Net Book Value (H In Crore)
Free hold Land* 1 20.24 20.24

*Also refer Note No. 2(a)

ii. We have been explained by the management that the inventory have been physicallyverified at reasonable intervals during the year. As far as we can ascertain and accordingto information and explanations given to us the discrepancies whenever material noticedon such physical verification of inventory as compared to book records were properly dealtwithin the books of accounts.

iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the Register maintained undersection 189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (c) of theOrder are not applicable to the Company.

iv. According to the information and explanations given to us the Company havecomplied with the provisions of sections 185 and I86 of the Act with respect to the loansinvestments made.

v. In our opinion and according to the information and explanations given to us theCompany has complied with the directives issued by the Reserve Bank of India and theprovisions of Section 73 to 76 or any other relevant provisions of the Act and the rulesframed there under with regard to deposits accepted from the public. We have been informedthat no order has been passed by Company Law Board or National Company Law Tribunal orReserve Bank of India or any Court or any other Tribunal in this regard.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by Central Government for the maintenance of cost records under section148(1) of the Act in respect to the Company's products to which said rules are madeapplicable and are of the opinion that prima facie the prescribed records have been madeand maintained. We have however not made a detailed examination of the said records with aview to determine whether they are accurate or complete.

vii. (a) According to the information and explanations given to us and on the basis ofexamination of the records of the Company the Company is generally regular in depositingundisputed statutory dues including provident fund employees' state insurance sales-taxincome tax service tax custom duty excise duty value added tax cess and any othermaterial statutory dues with the appropriate authorities to the extent applicable andfurther there are no undisputed statutory dues payable for a period of more than sixmonths from the date they become payable as at March 312017.

(b) According to the records and information and explanations given to us there are nodues in respect of income tax sales tax service tax duty of excise duty of custom orvalue added tax which have not been deposited on account of any dispute except as givenbelow:

Name of the statute Nature of dues Period to which amount relates Amount involved (H in Crores)* Forum where dispute is pending
1981-1983 0.70 Deputy Commissioner Central Excise Rayagada
1982-1983 0.41 Supreme Court
1986-1995 1.31 High Court Cuttack
Act 1944 Central Excise 2004-2007 0.07 High Court Gujrat
2005-2010 0.05 CESTAT Ahmedabad
2007-2010 3.37 CESTAT Ahmedabad
2008-2010 6.22 Commissioner Excise Bhubaneswar
2008-2012 0.69 CESTAT Ahmedabad
2009-2010 0.08 CESTAT Ahmedabad
2010-2011 0.43 CESTAT Ahmedabad
2011-2012 0.18 CESTAT Ahmedabad
2011-2012 0.08 CESTAT Ahmedabad
2012-2013 0.20 CESTAT Ahmedabad
2012-2014 0.16 CESTAT Ahmedabad
Act 1944 Central Excise 2013-2014 0.18 CESTAT Ahmedabad
2014-2015 0.09 Commissioner (Appeals)Surat
2015-2016 0.07 Commissioner (Appeals)Surat
2014-2015 0.11 Commissioner (Appeals)Surat
Custom Act 1962 Custom Duty 2011-2012 & 2012-2013 0.72 CESTAT Ahmedabad
2007-2009 0.15 CESTAT Ahmedabad
Finance Act 1944 Service Tax 2009-2010 0.31 Commissioner (Appeals)Surat
1983- 84/1987-88 0.05 Sales Tax Department- Delhi
1997-98 0.10 Sales Tax Tribunal Cuttack
2002-2003 0.01 Deputy Commissioner Delhi
2005-2009 0.16 Sales Tax Tribunal Cuttack
Sales Tax Sales Tax 2006-2007 0.55 Gujarat Vat (Tribunal) Ahmedabad
2006-2007 1.05 High Court Allahabad
2007-2009 0.24 High Court Allahabad
2012-13 5.85 Additional Commissioner Cuttack
FY 2008-09 0.72 CIT (Appeals)
Income Tax Act 1961 Income Tax FY 2010-11 0.18 CIT (Appeals)
FY 2012-13 3.81 CIT (Appeals)

*Net of payment

viii. In our opinion on the basis of audit procedures and according to the informationand explanations given to us the Company has not defaulted in repayment of loan orborrowing to any banks and financial institutions and due to debenture/ bond holders as atbalance sheet date. The company does not have any loans any loan or borrowings from thegovernment.

ix. According to the information and explanations given to us the Company has notraised moneys by way of initial public offer or further public offer (including debtinstruments) during the year. The term loans have been applied for the purpose for whichthey were raised.

x. According to the information and explanations given to us no instance of fraud bythe Company or on the Company by its officers or employees has been noticed or reportedduring the year.

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us and based on ourexamination of the record of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone Ind AS financial statements as requiredby the applicable accounting standards.

xiv. Based upon the audit procedures performed and the information and explanationsgiven to us the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debenture during the year under review. Accordinglyparagraph 3(xiv) of the Order is not applicable.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

FFor SS KOTHARI MEHTA & CO.
Chartered Accountants
Firm's Registration Number: 000756N
K. S. Mehta
Place: New Delhi Partner
Date: May 16 2017 Membership Number: 008883

"Annexure B" to the Independent Auditor's Report

of even date on the Standalone Ind AS Financials Statements of JK Paper Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 2(f) of'Report on Other Legal and Regulatory Requirements' section

We have audited the internal financial controls over financial reporting of JK PaperLimited ("the Company") as of March 312017 in conjunction with our audit of thestandalone Ind AS 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 (ICAI). 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 Reportingand the Standards on Auditing issued by ICAI and deemed to be prescribed 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 standalone Ind AS financial statements whether due to fraudor 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 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.

For SS KOTHARI MEHTA & CO.
Chartered Accountants
Firm's Registration Number: 000756N
K. S. Mehta
Place: New Delhi Partner
Date: May 16 2017 Membership Number: 008883