You are here » Home » Companies » Company Overview » Pudumjee Paper Products Ltd

Pudumjee Paper Products Ltd.

BSE: 539785 Sector: Industrials
NSE: PDMJEPAPER ISIN Code: INE865T01018
BSE LIVE 15:40 | 24 Nov 26.70 -0.35
(-1.29%)
OPEN

27.50

HIGH

27.50

LOW

26.60

NSE 15:31 | 24 Nov 26.85 -0.25
(-0.92%)
OPEN

27.05

HIGH

27.35

LOW

26.70

OPEN 27.50
PREVIOUS CLOSE 27.05
VOLUME 18814
52-Week high 34.20
52-Week low 16.51
P/E 11.08
Mkt Cap.(Rs cr) 254
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 27.50
CLOSE 27.05
VOLUME 18814
52-Week high 34.20
52-Week low 16.51
P/E 11.08
Mkt Cap.(Rs cr) 254
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Pudumjee Paper Products Ltd. (PDMJEPAPER) - Auditors Report

Company auditors report

To

The Members of

Pudumjee Paper Products Ltd.

We have audited the accompanying standalone financial statements of Pudumjee PaperProducts Ltd. ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation wherein are incorporated the accounts of Hygiene Products Division not visitedby us but audited by other branch auditors.

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 financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance 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 judgments 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 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 financial statementsbased 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 there under.

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 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 judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the 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 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 of the state of affairs of the Companyas at 31st March 2017 and its profit and its cash flows for the year ended onthat date.

We have relied on the financial statements of Branch auditors. These financialstatements have been audited by other auditor whose report have been furnished to us bythe management and our opinion on the statement in so far as it relates to the amountsand disclosures included in respect of the Hygiene products division is based solely onthe reports of the other auditor.

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 in paragraph 3and 4 of the Order.

2 As required by Section 143 (3) of the Act

(a) We have sought and obtained all the information and explanation 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 Cash Flow statementdealt 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 Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors 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 our financialreporting of the company and 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. TheCompany has disclosed the pending litigations in its financial statements which mayimpact its financial position [Refer Note 25.14 (a) (ii)];

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 required to be transferred to the Investor Education andProtection Fund by the Company.

iv. The Company has provided requisite disclosures to 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 and the Hygiene productsdivision [Refer Note 25.23];

For KHARE & COMPANY
Chartered Accountants
Place of Signature: Pune FRN 105100W
Dated 20th May 2017. Y. P. Shukla
Proprietor
Membership No. 16203

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT

Referred to in Paragraph 1 under the heading of ''report on other legal and regulatoryrequirements" of our report of even date of the financial statements for the yearended 31st March 2017.

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

b) As explained to us the fixed assets have been physically verified by the Managementat the end of the year. It has been reported to us that no material discrepancies havebeen noticed on such verification.In our opinion the periodicity of verification isreasonable;

c) According to the information and explanations given to us the title deeds ofimmovable property are in the name of the Company;

ii It is reported that the inventories have been physically verified by the managementat the end of the year and as explained to us there were no material discrepancies noticedon physical verification of inventory as compared to the book records;

iii The Company has given unsecured loans to a company covered in the registermaintained under Section 139 of the Companies Act 2013

a) In our opinion the terms and conditions of the loans given are not prima facieprejudicial to the interest of the company;

b) The company to whom loans have been given by the Company are regularly repaying theprincipal amounts and interest thereon wherever applicable as stipulated;

c) There are no overdue amounts in respect of the loans given by the Company;

iv In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013with respect to the loans and investments made;

v The Company has not accepted any deposits from public. The Company has repaid thosedeposits which were due and claimed during the year. The Company has complied with thedirectives issued by the Reserve Bank of India and provisions of sections 73 to 76 andother relevant provisions of the Companies Act 2013 and rules framed thereunder;

vi We have broadly reviewed the records maintained by the Company pursuant to the ordermade by the Central Government for the maintenance of cost records under Section 148(1) ofthe Companies Act 2013 and are of the opinion that prima facie the prescribed accountsand records have been so made and maintained. However no detailed examination of suchaccounts and records have been carried out by us;

vii a) According to the information and explanations given to us and on the basis ofthe records of the company amounts deducted/accrued in the books of account in respect ofundisputed statutory dues including Provident Fund Employees State Insurance Income TaxSales Tax Service Tax Custom Duty Excise Duty Value Added Tax Cess and other materialstatutory dues have been regularly deposited during the year with the appropriateauthorities.

According to the information and explanations given to us there are no undisputedstatutory dues referred above as on 31st March 2017 outstanding for a period ofmore than six months from the date they became payable;

b) According to the information and explanations given to us the disputed statutorydues aggregating to Rs. 307.00 lacs that have not been deposited on account of disputesand matters pending before appropriate authorities are as under:

Nature of the Dues Forum where the dispute is Pending Amount Rs. in lacs
1 Excise High Court Mumbai (Dept's Appeal) 20.96
2 Excise CESTAT (Dept's Appeal) 60.05
3 Excise Service Tax Asst. Comm. Mahad 3.89
4 Excise CESTAT Dy. Commissioner (Central Excise) 151.78
5 Customs CESTAT 68.32
6 Customs Asst.Commissioner Customs Goa 2.00

viii According to the information and explanations given to us the Company has notmade any default in repayment of loans or borrowings to financial institutions banks orto Government. The Company does not have any outstanding debentures;

ix The Company has not raised money by way of initial public offer or further publicoffer however it has raised money by way of term loans from banks and according to theinformation and explanations given to us the term loans were applied for the purposes forwhich they were obtained;

x To the best of our knowledge and belief and according to the information andexplanations given to us by the management no fraud on or by the company or on theCompany by its officers or employees has been noticed or reported during the course of ouraudit;

xi According to the information and explanations given to us and based on ourexaminations of records of the company Managerial remuneration has been paid inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith schedule V of the Companies Act 2013.

xii Since the Company does not fall into the category of a Nidhi Company this clauseis not applicable to the Company;

xiii According to the information and explanations given to us all transactions withrelated parties are in compliance with section 177 and 188 of the Companies Act 2013where applicable and have been disclosed in the financial statement as required by theapplicable accounting standards;

xiv According to the information and explanations given to us and based on ourexaminations of records of the company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review;

xv According to the information and explanations given to us and based on ourexaminations of records of the company the company has not entered into any non-cashtransactions with directors or persons connected with him during the year;

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

For KHARE & COMPANY
Chartered Accountants
Place of Signature: Pune FRN 105100W
Dated 20th May 2017. Y. P. Shukla
Proprietor
Membership No. 16203

ANNEXURE B TO INDEPENDENT AUDITORS' REPORT

Referred to in Paragraph 2(f) under the heading of "report on other legal andregulatory requirements" of our report of even date of the financial statements forthe year ended 31st March 2017.

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 PudumjeePaper Products Ltd. ('the Company') as of 31st March 2017 in conjunction withour audit 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'). 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.

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 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 ofmisstatement 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 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 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 KHARE & COMPANY
Chartered Accountants
Place of Signature: Pune FRN 105100W
Dated 20th May 2017. Y. P. Shukla
Proprietor
Membership No. 16203