The Members of
Kanpur Plastipack Limited
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of KanpurPlastipack Limited (the Company') which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss (including other comprehensive income) theStatement of Cash Flows for the year ended and a summary of the significant accountingpolicies and other explanatory information (herein after referred to as "StandaloneFinancial Statements").
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors are responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone Financial Statements that give true and fair view of the financialposition financial performance including other comprehensive income and Cash Flow of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards (AS) prescribed under Section 133 of the Act read withrelevant 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 StandaloneFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on the Standalone Financial Statementsbased on our audit. We have taken into account the provisions of the Act the Accountingand Auditing Standards and matters which are required to be included in the audit reportunder the provisions 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 Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Financial Statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe Standalone Financial Statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Standalone Financial Statements that give true and fair view in orderto 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 Directors as well asevaluating the overall presentation of the Standalone Financial Statements.
We believe that the audit evidences we have obtained are sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Financial Statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the AS of the financialposition of the Company as at 31 March 2017 and its financial performance includingother comprehensive income its Cash Flows and the changes in equity for the year ended onthat 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 section 143(11) of the Act we givein the Annexure A a statement on the matters specified in the paragraph 3 and 4 of theorder.
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 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 and the Statement of Cash Flowsdealt with by this Report are in agreement with the books of account;
d. in our opinion the aforesaid Standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant rule issuedthereunder;
e. on the basis of the written representations received from the Directors taken onrecord by the Board of Directors as on 29th May 2017 none of the director isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164 (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"; 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 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.
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 FinancialStatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and these are inaccordance with the books of accounts maintained by the Company.
For Pandey & Co.
CA Amit Pandey
Firm No. 000357C
Date : 29th May 2017
ANNEXURE - A TO THE AUDITOR S REPORT
The Annexure referred to in Independent Auditors' Report to the members of the Companyon the Standalone Financial Statements for the year ended 31st March 2017 wereport that:
(i) In respect of its Fixed Assets.
a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b. The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner.
c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company although the original title deeds of immovable propertiesare in custody of the bank.
(ii) In respect of its Inventories:
a. The inventories have been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable.
b. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c. The Company has maintained proper records of inventories. As explained to us therewere no material discrepancies noticed on physical verification of inventories as comparedto the book records.
(iii) The Company has not granted any loans secured or unsecured to Companies FirmLimited Liability Partnerships (LLP) or other parties covered by clause (76) of Section 2of the Companies Act 2013.
(iv) The Company has not granted any loan to Directors and the investments made are notexceeding the limits as prescribed u/s 186(2) therefore compliance to section 185 and186 of Companies Act 2013 is not required.
(v) The Company has accepted the Deposits from Directors Promoters their relativesand Inter Corporate Deposits the outstanding balance of which as on 31 stMarch 2017 is Rs. 247 Lacs.All these deposits are exempted deposits under Section 73 to76 of the Companies Act 2013 read with Companies (Acceptance of Deposits) Rules 2014.
(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Companies Act 2013.
(vii) In respect of statutory dues:
a. According to the records of the Company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-Tax Sales Tax Wealth Tax Service Tax Customs Duty Excise Duty Cess and otherstatutory dues have been generally regularly deposited with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of the aforesaid dues were outstanding as at March 31 2017 for a period ofmore than six months from the date of becoming payable.
b. According to the information and explanations given to us there are no dues of dutyof customs which have not been deposited with the appropriate authorities on account ofany dispute. However according to information and explanations given to us following isthe status of dues relating to income tax sales tax duty of excise service tax andvalue added tax.
|Name of the statute ||Nature of dues ||Amount (Rs. in Lacs) ||Period to which the amount relates ||Forum where dispute is pending ||Remark on whether amount deposited or not. |
|Central Excise ||Rebate claims ||28.9 ||Financial year 2012- 13 and 2013- 14 ||Joint Secretary New Delhi ||Claim received. Departmental appeal pending. |
|Central Excise ||Service tax on Common input service against exempted goods ||41.78 ||Financial year 2009-10 to 2012-13 ||Commissioner Appeal Kanpur ||Not deposited. Departmental appeal pending. |
|Central sales Tax Act 1956 ||Additional Tax ||3.52 ||Financial year 2009-10 ||Appellate Tribunal Commercial Tax Kanpur ||20% deposited. |
|Income Tax Act 1961 ||Income Tax ||201.00; Income disputed. NIL Demand. Outstanding tax deposited under protest. ||Financial year 2011-12 ||ITAT Lucknow ||Tax deposited under protest. |
|Income Tax Act 1961 ||Penalty U/S 271(AAA) ||200.00; out of above disputed income penalty proceedings initiated and pending on 200 lacs ||Financial year 2011-12 ||ACIT Central Circle Kanpur || |
VIII. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment of duesto financial institutions banks and debenture holders.
IX. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Accordingly paragraph 3 (ix)of the Order is not applicable.
X. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.
XI. According to the information and explanations give 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 Companies Act 2013.
XII. The Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order isnot applicable.
XIII. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the Financial Statements as requiredby the applicable accounting standards.
XIV. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
XV. During the year the Company has allotted 3979624 fully paid up equity shares asbonus in the ratio of 1:2 to its equity shareholders. The same has been listed on theBombay Stock Exchange accordingly.
XVI. 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 it.
XVII. The Company does not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For Pandey & Co.
CA Amit Pandey
Firm No. 000357C
Date : 29th May 2017
ANNEXURE - B TO THE AUDITOR S REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of KanpurPlastipack Limited ("the Company") as of 31st March 2017 inconjunction with our audit of the Standalone Financial Statements of the Company for theyear 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
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 Standalone Financial Statements whether due to fraud orerror.
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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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.
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 31st March 2017based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
For Pandey & Co.
CA Amit Pandey
Firm No. 000357C
Date: 29th May 2017