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Kay Power & Paper Ltd.

BSE: 530255 Sector: Industrials
NSE: N.A. ISIN Code: INE961B01013
BSE LIVE 13:15 | 21 Sep 5.56 0
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5.67

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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 5.67
PREVIOUS CLOSE 5.56
VOLUME 489
52-Week high 7.93
52-Week low 2.95
P/E 3.12
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 5.55
Sell Qty 1111.00
OPEN 5.67
CLOSE 5.56
VOLUME 489
52-Week high 7.93
52-Week low 2.95
P/E 3.12
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 5.55
Sell Qty 1111.00

Kay Power & Paper Ltd. (KAYPOWERPAPER) - Auditors Report

Company auditors report

To Members of Kay Power And Paper Limited

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of Kay Power And PaperLimited ("the Company") which comprise the Balance Sheet as at March 31 2016and the Statement of Profit and Loss and Cash Flow Statement for the year ended as on thatdate and a summary of significant 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 preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 The Act read with rule 7 of the Companies (Accounts) Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance of the provisions of the Act for safeguarding the assets of the company and forpreventing 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 internal control relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether 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 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 there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. These Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and disclosures in the financialstatements.

The procedures selected depend on the auditor's judgment including the assessment ofthe risks of material misstatement in the financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation and fair presentation of the financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances but not for the purpose of expressing an opinion on whether the Companyhas in place an adequate internal financial control system over financial reporting andthe operating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.

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

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: (a) in the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2016 (b) in the case of the Statement of Profitand Loss of the profit for the year ended on that date and (c) in the case of the CashFlow Statement of the cash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of Section 143 of the Act we give in theAnnexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:

(a) We have obtained all the information and explanations which to the best of ourknowledge 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 Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

(d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of Companies (Accounts) Rules 2014 except AS15 AS15 regarding'Accounting for retirement benefits' on account of non-provision for terminal benefitslike gratuity payable to employees as described in the para 9 of Notes to accounts.

(e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of sub-section (2) ofSection 164 of the Companies Act 2013 (f) With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate report in Annexure B; (g) With respect to theother matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us:

i. The Company did not have any pending litigation having material impact on itsfinancial position.

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.

For GODBOLE & COMPANY
Chartered Accountants
Place : Satara Ashutosh Godbole
Date : 28th May 2016 Proprietor
Mem. No. 104822
FRN : 117969W

Annexure A

Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'Section of our Report of even date to the Members of Kay Power And Paper Limited for theyear ended on 31st March 2016 i.

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

b) As per our information and explanations given to us fixed assets have beenphysically verified by the management during the year and no material discrepancies werenoticed on such verification.

c) The title deeds of immovable properties are held in the name of the company;

ii. According to information and explanations given to us The physical verification ofinventory has been conducted at reasonable intervals by the management and no materialdiscrepancies were noticed during such verification.

iii. In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships and other parties covered in the register maintained under Section189 of the Companies Act 2013.

iv. In respect of loans investments guarantees and security the provisions ofsection 185 and 186 of the Companies Act 2013 have been complied with.

v. In our opinion and according to information and explanations given to us theCompany does not have any deposits accepted from the public during the year under audit.

vi. The Company is maintaining cost records as prescribed under Section 148 (1) of theCompanies Act 2013.

However we have not verified the same for completeness or accuracy.

vii. a. According to records of Company is regular in depositing with appropriateauthorities undisputed statutory dues including provident fund dues and Profession tax. Noamount is outstanding as at 31/3/2016 for a period more than 6 months from the date theybecome payable.

viii. According to information and explanations given to us no undisputed amountspayable in respect of income tax sales tax excise duty were in arrears as at 31/3/2016for a period more that six months from the date they became payable except net liabilityof MVAT pertaining to period from financial year 2007-08 to 2014-15 amounting to Rs.486.92Lacs which is withheld by the Company in anticipation of grant of deferral of the sameunder rehabilitation scheme sanction of which is awaited.

ix. In our opinion and according to information and explanations given to us theCompany had defaulted in repayment of dues to IREDA earlier and it has made agreement forOne Time settlement scheme for the repayment of the loan taken from IREDA. The Company haspaid all instalments due as per scheme of OTS sanctioned by IREDA during the year.

x. According to information and explanations given to us The company has not raised anymoneys by way of initial public offer or further public offer (including debt instruments)and term loans during the year

xi. Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud by the company or any fraud on the Company by itsofficers or employees has been noticed or reported during the year

xii. The company has not paid or provided for any Managerial Remuneration referred bythe provisions of section 197 read with Schedule V to the Companies Act;

xiii. The company is not a Nidhi Company;

xiv. Based upon the audit procedures performed and information and explanations givenby the management all transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial Statements etc. as required by the applicable accountingstandards;

xv. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review;

xvi. Based upon the audit procedures performed and information and explanations givenby the management the company has not entered into any non-cash transactions withdirectors or persons connected with him within the meaning of the provisions of section192 of Companies Act 2013;

xvii. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For GODBOLE & COMPANY
Chartered Accountants
Place : Satara A. G. Godbole
Date : 28th May 2016 Proprietor Mem. No. 104822
FRN : 117969W

Annexure - B to the Auditors' 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 Kay Powerand Paper Limited ("the Company") as of 31 March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 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 of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 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 31 March 2016 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 GODBOLE & COMPANY
Chartered Accountants
Place : Satara A. G. Godbole
Date : 28th May 2016 Proprietor Mem. No. 104822
FRN : 117969W