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JK Paper Ltd.

BSE: 532162 Sector: Industrials
NSE: JKPAPER ISIN Code: INE789E01012
BSE LIVE 15:42 | 23 Aug 96.90 3.85
(4.14%)
OPEN

93.65

HIGH

97.65

LOW

93.60

NSE 15:53 | 23 Aug 97.05 3.80
(4.08%)
OPEN

93.80

HIGH

97.90

LOW

93.70

OPEN 93.65
PREVIOUS CLOSE 93.05
VOLUME 144095
52-Week high 123.00
52-Week low 55.00
P/E 8.34
Mkt Cap.(Rs cr) 1,636
Buy Price 97.10
Buy Qty 97.00
Sell Price 0.00
Sell Qty 0.00
OPEN 93.65
CLOSE 93.05
VOLUME 144095
52-Week high 123.00
52-Week low 55.00
P/E 8.34
Mkt Cap.(Rs cr) 1,636
Buy Price 97.10
Buy Qty 97.00
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 Financial Statements

We have audited the accompanying standalone financial statements of JK Paper Limited("the Company") which comprise the Balance Sheet as at March 312016theStatement of Profit and LossCash Flow Statement for the year then endedand 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) ofthe Companies Act2013 ("the Act") with respect to the preparation andpresentation of these Standalone Financial Statements that give a true and fair view ofthe financial positionfinancial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in Indiaincluding the AccountingStandards specified under Section 133 of the Actread with Rule 7 of the Companies(Accounts) Rules 2014.This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and otherirregularitiesselection and application of appropriate accounting policiesmakingjudgments and estimates that are reasonable and prudentand designimplementation andmaintenance of adequate internal financial controlsthat were operating effectively forensuring the accuracy and completeness of the accounting recordsrelevant to thepreparation and presentation ofthe financial statements that give a true and fair view andare free from material misstatementwhether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these Standalone Financial Statementsbased on our audit.

We have taken into account the provisions of the Actthe 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 undersub-section 10 of section 143 of the Act.Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements.The procedures selected depend on theauditor’s judgmentincluding the assessment of the risks of material misstatement ofthe financial statementswhether due to fraud or error.In making those riskassessmentsthe auditor considers internal financial control relevant to theCompany’s preparation ofthe financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances.An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directorsas well asevaluating the overall presentation ofthe financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to usthe aforesaid Standalone financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in Indiaof the state of affairs of the Companyas at March 312016and it's profit and it's cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to Note No.33 (b) ofthe Financial Statements regarding assets heldfor sale grouped under ‘Other Current Assets’ amounting to Rs.157.57 Crorespending for disposal since September2013.

Our opinion is not qualified in respect ofthe above matter.

Report on Other Legal and Regulatory Requirements

1.As required by the Companies (Auditor’s Report) Order2016 ("theOrder") issued by the Central Government of India in terms of sub-section (II) ofsection 143 of theActwe give in the"Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 ofthe Orderto the extent applicable.

2.As required by section 143 (3) of the Actwe 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 opinionproper 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 Sheetthe Statement of Profit and Loss and the Cash Flow Statementdealt with by this report are in agreement with the books of account.

(d) In our opinionthe aforesaid Standalone financial statements comply with theAccounting Standards specified under section 133 of the Actread with Rule 7 of theCompanies (Accounts) Rules2014.

(e) On the basis of written representations received from the directors as on March312016 taken on record by the Board of Directorsnone of the directors is disqualified ason March 312016 from being appointed as a director in terms of sub-section 2 of section164 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 controlsrefer to ourseparate Report in "Annexure B".

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule II of the Companies (Audit and Auditors) Rules2014in 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 financial positionin its financial statements - Refer Note 30 to the financial statements.

ii.The Company has made provisionas required under the applicable law or accountingstandardsfor material foreseeable lossesif anyon long-term contracts includingderivative contracts

- Refer Note 5 and 8 to the financial statements.

iii.There has been no delay in transferring amountsrequired to be transferredto theInvestor Education and Protection Fund by the Company.

"ANNEXURE A" TO THE INDEPENDENT AUDITORS’ REPORT

The Annexure as referred in paragraph (I) ‘Report on Other Legal and RegulatoryRequirements of our

Independent Auditors’ Report to the members ofJK Papers Limited on the standalonefinancial statements for the year ended March 312016we report that:

i.(a) The Company has maintained proper records showing full particularsincludingquantitative details and situation offixed assets.

(b) The fixed assets have been physically verified by the management according to theprogramme of periodical verification in phased manner whichin our opinionis reasonablehaving regard to the size of the Company and the nature of its Fixed Assets.Thediscrepanciesif anynoticed 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 Companyexceptin the following case:-

Particular Total No.of Cases Gross Book Value Net Book Value
Free hold Land* 1 Rs.2.89 Crore Rs.2.89 Crore

*Also refer Note No.10(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 usthe discrepancieswhenever material noticed onsuch physical verification of inventory as compared to book records were properly dealtwithin the books of accounts.

iii.The Company has not granted any loanssecured or unsecured tocompaniesfirmsLimited Liability partnerships or other parties covered in the Registermaintained under section 189 of the Act.Accordinglythe provisions of clause 3 (iii) (a)to (c) of the Order are not applicable to the Company.

iv.According to the information and explanations given to usthe Company have compliedwith the provisions of section 185 and 186 of the Act with respect to theloansinvestments made.

v.In our opinion and according to the information and explanations given to ustheCompany 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 faciethe 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 ofthe records of the Companythe Company is generally regular in depositingundisputed statutory dues including provident fundemployees’ state insurancesales-taxincome taxservice taxcustom dutyexcise dutyvalue added taxcess and any othermaterial statutory dues with the appropriate authorities to the extent applicable andfurtherthere are no undisputed statutory dues payable for a period of more than sixmonths from the date they become payable as at March 312016.

(b) According to the records and information and explanations given to usthere are nodues in respect of income taxsales taxservice taxduty of exciseduty of customor valueadded tax which have not been deposited on account of any dispute except as given below:

Name of the statute Nature of dues Period to which amount relates Amount involved (Rs.in Crores)* Forum where dispute is pending
Sales Tax Act Sales Tax 1983-1984/ 1987-1988 0.05 Sales Tax DepartmentDelhi
1997-1998 0.10 Sales TaxTribunalCuttack
2002-2003 0.01 Deputy CommissionerDelhi
2004-2005 0.46 High CourtAllahabad
2005-2009 1.46 Additional CommissionerCuttack
2005-2009 0.16 Sales TaxTribunalCuttack
2006-2007 1.05 High CourtAllahabad
2006-2007 0.12 Gujarat Vat (Tribunal)Ahmedabad
2007-2008 & 2008-2009 0.24 High CourtAllahabad
2009-2010 0.08 High CourtAllahabad
2012-2013 5.85 Additional CommissionerCuttack
Central Excise Act I944 Excise Duty 1981-1982/ 1982-1983 0.70 Deputy Commissioner Central ExciseRayagada
1982-1983 0.41 Supreme Court
1986-1995 1.31 High CourtCuttack
2004-2007 0.07 CESTATAhmedabad
2005-2007 0.03 CESTATAhmedabad
2005-2010 0.05 CESTATAhmedabad
2007-2010 3.37 CESTATAhmedabad
2012-2014 0.16 CESTATAhmedabad
2011-2012 0.09 Commissioner (Appeals)Bhubaneswar
2009-2010 0.08 CESTATAhmedabad
2010-2011 0.53 CESTATAhmedabad
2011-2012 0.18 CESTATAhmedabad
2008-2010 6.22 Commissioner ExciseBhubaneswar
2012-2013 0.21 Commissioner (Appeals)Surat
2013-2014 0.19 Commissioner (Appeals)Surat
2014-2015 0.09 Commissioner (Appeals)Surat
2011-2012 0.08 Commissioner (Appeals)Surat
2008-2012 0.73 Commissioner (Appeals)Surat
Custom Act Custom Duty 2011-2012 & 2012-2013 0.72 CESTATAhmedabad
Finance Act Service Tax 2009-2010 0.31 Commissioner (Appeals)Surat
2007 - 2009 0.15 CESTATAhmedabad
Income Tax ActI96I Income Tax 2010-2011 0.46 CIT (Appeals)

*Net of payment

viii.In our opinionon the basis of audit procedures and according to the informationand explanations given to usthe Company has not defaulted in repayment of loan orborrowing to any banks and financial institutions and dues to debenture/bond holders.TheCompany does not have any loans or borrowings from the government.

ix.According to the information and explanations given to usthe Company has not raisedmoneys by way of initial public offer or further public offer (including debt instruments)during the year.The term loans have been applied for the purpose for which they wereraised.

x.According to the information and explanations given to usno instance of fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year.

xi.According to the information and explanations given to us and based on ourexamination of the records of the Companythe 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 ustheCompany is not a Nidhi Company.Accordinglyparagraph 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 Companytransactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv.Based upon the audit procedures performed and the information and explanationsgiven to usthe Company has made the preferential allotment of shares during the yearunder review.The requirement of section 42 of the Act have been complied with and theamount raised has been used for the purposes for which the funds were raised.

xv.According to the information and explanations given to us and based on ourexamination of the records of the Companythe Company has not entered into non-cashtransactions with directors or persons connected with him.Accordinglyparagraph 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 Act1934.

"ANNEXURE B" TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF JK PAPER LIMITED.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act20 i 3 ("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 ofJK PaperLimited ("the Company") as of March 31 2016 in conjunction with 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 stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India (ICAI).These responsibilities include thedesignimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of itsbusinessincluding adherence to Company's policiesthe safeguarding of its assetstheprevention and detection of frauds and errorsthe accuracy and completeness of theaccounting recordsand the timely preparation of reliable financial informationasrequired under the Companies Act2013.

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 accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting and the Standards on Auditingissued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act2013to the extentapplicable to an audit of internal financial controlsboth applicable to an audit ofInternal Financial Controls andboth issued bythe 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 financialreportingassessing the risk that a material weakness existsand testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk.Theprocedures selected depend on the auditor’s judgementincluding the assessment of therisks of material misstatement of the financial statementswhether 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles.A Company’s internal financial control overfinancial reporting includes those policies and procedures that (I) pertain to themaintenance of records thatin reasonable detailaccurately and fairly reflect thetransactions and dispositions of the assets ofthe Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principlesand that receiptsand expenditures 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 acquisitionuseor disposition oftheCompany’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 financialreportingincluding the possibility of collusion or improper management override ofcontrolsmaterial misstatements due to error or fraud may occur and not bedetected.Alsoprojections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsorthat the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinionthe Company hasin all material respectsan adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 312016based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued bythe Institute of CharteredAccountants oflndia.

For S.S.KOTHARI MEHTA & CO.

Chartered Accountants

Firm Registration Number: 000756N

K.S.MEHTA

Partner

Membership Number: 008883

Place: New Delhi

Date: May 62016