The Members of
B & A Packaging India Limited
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of B & A PACKAGING INDIALTD ("the Company") which comprise the balance sheet as at 31st March 2022and the statement of Profit and Loss (including Other Comprehensive Income) thestatement of changes in equity and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the financialstatements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2022 the profit and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthe aforesaid requirements and the Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matter described below to be the key audit matters to be communicatedin our report.
The accuracy of recognition measurement disclosure and presentation of revenuesaccrued or deemed to have accrued during the year in accordance with the principles laiddown in Ind AS 115.
Principal audit procedures
The principal audit procedures performed by us comprise:
(a) obtaining an understanding of the Company's internal procedures to identify thestage at which the risk and reward in the goods are transferred to the Company's customersand significant control over the goods ceases to remain with the Company;
(b) assessing the extent and quality of controls embedded in those procedures and
(c) testing a representative sample of transactions to ensure that revenue has not beenrecognised until the risk and reward in the goods and significant control over them haspassed from the Company to its customers.
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Directors'Report and annexures thereto but does not include the financial statements and ourauditor's report thereon.
Our opinion on the financial statements does not cover the aforesaid other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.
If in doing so we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.
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 ofthese financial statements that give a true and fair view of the financial positionfinancial performance changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Ind AS's specifiedunder section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statement that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal controls.
Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditors'report. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in Annexure A to this report a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
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 including Other ComprehensiveIncome Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the relevant books of account.
(d) In our opinion the aforesaid financial statements comply with the Ind ASsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 (as amended).
(e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164 (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 to this Report. Our report expresses an unmodified opinionon the adequacy and operating effectiveness of the Company's internal financial controlover financial reporting.
(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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:
(i) The Company has disclosed the impact of pending litigation on its financialposition in its financial statements.
(ii) The Company does not have any longterm contracts including derivative contractsfor which 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 during the year under audit.
(iv) The management has represented that no funds have been advanced or loaned orinvested (either from borrowed funds or any other sources) by the company to any otherperson(s) or in entity(ies) including foreign entities ("Intermediaries") withthe understanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries")or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries.
(v) The management has represented that no funds have been received by company fromany person(s) or entity(ies) including foreign entities ("Funding Parties")with the understanding whether recorded in writing or otherwise that the company shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries.
(vi) Based on our audit procedures as considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (iv) and (v) contain any material mis-statement.
Annexure "A" To The Independent Auditor's Report dated 27th May 2022
(Referred to under Report on Other Legal and Regulatory Requirements' section ofour report to the Members of B & A Packaging India Limited of even date) Mattersto be included in the Auditor's Report under Companies (Auditor's Report) Order 2020
(i)(a) A. The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.
(i)(a) B. The Company has maintained proper records showing full particulars ofintangible assets.
(i)(b) The property plant and equipment were physically verified during the year bythe management inaccordance with a regular programme of verification which in ouropinion provides for physical verification of all the property plant and equipment atreasonable intervals. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification.
(i)(c) The title deeds of all of the immovable properties (other than properties wherethe company is the lessee and the lease agreements are duly executed in favour of thelessee) disclosed in the financial statements are held in the name of the Company.
(i)(d) The Company has not revalued its Property Plant and Equipment or intangibleassets during they ear.
(i) (e) According to information and explanations given to us and on the basisof our examination of the records of the Company there are no proceedings initiated orare pending against the Company for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder.
(ii) (a) The inventory except goods-in-transit and stock lying with thirdparties has been physically verified by the management during the year. In our opinionthe frequency of such verification is reasonable and procedures and coverage asfollowed by management were appropriate. According to information and explanations givento us and on the basis of our examination of the records of the Company no discrepancieswere noticed on verification between the physical stock and book records that were morethan 10% in the aggregate of each class of inventory.
(ii) (b) The Company has been sanctioned working capital limits in excess offive crore rupeesin aggregate from bank on the basis of security of properties plantand equipment and current assets. According to information and explanations given to usand on the basis of our examination of the records of the Company the quarterly returnsor statements filed by the Company with such bank are in agreement with the books ofaccount of the Company.
(iii) (a) The Company has not made any investments provided any guarantee orsecurity or granted any loans or advances in the nature of loans secured or unsecured tocompanies firms and Limited Liability partnerships or any other parties. Accordinglyreporting under clause 3(iii) (a) to 3(iii) (f) of the Order are not applicable.
(iv) The Company has neither made any investments nor has given loans or providedguarantee or security and therefore the relevant provisions of Section 185 and 186 of theCompanies Act 2013 are not applicable to the Company. Accordingly reporting under clause3(iv) of the Order is not applicable.
(v) The Company has not accepted any deposits or amounts which are deemed to bedeposits from the public. Accordingly reporting under clause 3(v) of the Order is notapplicable.
(vi) The Central Government has specified maintenance of cost records by the Companyunder sub-section (1) of section 148 of the Companies Act. We have broadly reviewed thebooks of account maintained by the Company pursuant to the rules made by the CentralGovernment for the maintenance of cost records under section 148(1) of the Companies Act2013 in respect to its manufactured goods provided by it and are of the opinion thatprima facie the specified accounts and records have been made and maintained. We havenot however made a detailed examination of the records with a view to determine whetherthese are accurate or complete.
(vii)(a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including Goods and Services Tax Provident Fund Employees' StateInsurance Income-Tax duty of customs value added tax cess and other material statutorydues applicable to it. There are no material outstanding statutory dues existing as on thelast day of the financial year which is outstanding for more than six months from the daythese becomes payable.
(vii)(b) The Company has disputed certain demands raised by government authorities andhas preferred appeal before the appellate authorities. The statutory dues which have notbeen deposited with the respective authorities on account of such disputes are as follows:
|Name of the Satute ||Nature of the Dues ||Amount (INR) ||Period to which the amount relates ||Forum where dispute is pending ||Remarks if any |
|Central Sales Tax Act ||Sales Tax ||337309 ||2015-2016 ||Central Sales Tax Appellate Tribunal Balasore Orissa || |
|Central Sales Tax Act ||Sales Tax ||506158 ||2016-2017 ||Central Sales Tax Appellate Tribunal Balasore Orissa || |
|Central Sales Tax Act ||Sales Tax ||129697 ||2017-2018 ||Central Sales Tax Appellate Tribunal Balasore Orissa || |
|IncomeTax Act ||IncomeTax ||59548242 ||2008-2009 ||Commissioner of Income (Appeal) Bhubaneswar Orissa ||As represented by management this is not tenable since favourable judgement received u/s 263 of The Income Tax Act 1961 for assessment of earlier year. |
|Income Tax Act ||Income Tax ||35530 ||2009-2010 ||Commissioner of Income (Appeal) Bhubaneswar Orissa || |
|Income Tax Act ||Income Tax ||129427 ||2013-2014 ||Commissioner of Income (Appeal) Bhubaneswar Orissa || |
|Income Tax Act ||Income Tax ||7210 ||2015-2016 ||Commissioner of Income (Appeal) Bhubaneswar Orissa || |
|Income Tax Act ||Income Tax ||1987290 ||2018-2019 ||Commissioner of Income (Appeal) Bhubaneswar Orissa || |
(viii) The Company has not surrendered or disclosed any transactions previouslyunrecorded as income in the books of account in the tax assessment under the Income TaxAct 1961 as income during they ear.
(ix) (a) The Company has not defaulted in repayment of loans and borrowings orin payment of interest thereon to the lenders during the year.
(ix)(b) According to the information and explanations given to us the Company has notbeen declared as will fulde faulter by any bank or financial institution or government orany government authority.
(ix)(c) In our opinion and according to the information and explanations given to usterm loans were utilised for the purposes for which they were obtained.
(ix)(d) According to the information and explanations given to us and on an overallexamination of the financial statements of the Company we report that no funds raised onshort-term basis have been used for long-term purposes by the Company.
(ix)(e) The Company does not have any subsidiary associate or joint ventures asdefined under Companies Act 2013.
(ix)(f) The Company does not hold any investment in any subsidiary associate or jointventure as defined under the Companies Act 2013 during the year. Accordingly reportingunder clause 3(ix)(f) of the Order is not applicable.
(x)(a) The Company has not raised any fund by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Accordingly reporting underclause 3(x)(a) of the Order is not applicable.
(x) (b) The Company has not made any preferential allotment or private placementof shares or convertible debentures during the year. Accordingly reporting under clause3(x)(b) of the Order is not applicable.
(xi) (a) According to the information and explanations given by the managementand based upon the audit procedureswe report that no fraud by the Company or any fraud onthe Company has been noticed or reported during the year.
(xi)(b) During the year no report under sub-section (12) of section 143 of theCompanies Act 2013 has been filed by us in Form ADT-4 as prescribed under Rule13 ofCompanies (Audit and Auditors) Rules 2014 with the Central Government.
(xi) (c) As represented to us by the management there are no whistle blowercomplaints received by the Company during the year.
(xii) (a) The Company is not a Nidhi Company. Accordingly reporting underclause 3(xii) of the Order is not applicable.
(xiii) The transactions entered with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and details have beendisclosed in the financial statements as required by the applicable accounting standards.
(xiv)(a) In our opinion the Company has an internal audit system commensurate with thesize and nature of its business.
(xiv) (b) We have considered the internal audit reports of the Company issuedtill date for the period under audit.
(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with its directors or persons connected with itsdirectors and hence provisions of section192 of the Companies Act 2013 are not applicableto the Company.
(xvi) (a) According to the information and explanations given to us the Companyis not required to be registered under section 45-IA of the Reserve Bank of India Act1934.
(xvi)(b) The Company has not conducted any NonBanking Financial or Housing Financeactivities.
(xvi) (c) The Company is not Core Investment Company (CIC) as defined in theregulations made by the Reserve Bank of India. Accordingly reporting under clause3(xvi)(c) and (d) of the Order are not applicable.
(xvii) The Company has not incurred cash losses in the financial year and in theimmediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year andaccordingly reporting under clause 3 (xviii) of the Order is not applicable.
(xix) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realisation of financial assets and paymentof financial liabilities other in formation accompanying the financial statements andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material un certainty exists as on thedate of the audit report that the Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due. We however state thatthis is not an assurance as to the future viability of the Company. We state that ourreporting is based on the facts and assumptions up to and as on the date of our auditreport and that we neither give any guarantee nor any assurance that the Company will beable to further discharge all its liabilities as and when they fall due falling due withina period of one year from the balance sheet date
(xx) (a) The requirements as stipulated by the provisions of sub section (5) ofSection 135 of the Companies Act 2013 are not applicable to the Company. Accordinglyreporting under clause 3(xx)(a) and (b) of the Order are not applicable.
(xxi) The Company is not required to prepare consolidated financial statements andhence reporting under this clause is not applicable.
Annexure "B" To The Independent Auditor's Report dated 27th May 2022
(Referred to in paragraph 2(f) under Report on Other Legal and RegulatoryRequirements' section of our report to the Members of B & A Packaging India Limited ofeven date)
Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of B & APackaging India Limited ("the Company") as on 31st March 2022 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. 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 respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls.
Those Standards and the Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch 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 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 internal financial controls system overfinancial reporting of the Company.
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.
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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2022 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
| ||For Ghosal Basu & Ray |
| ||Chartered Accountants |
| ||(Firm Regn. No. : 315080E) |
| ||Tapan Kumar Das |
| ||Partner |
|Place : Kolkata ||(Membership No : 050661) |
|Date : 27th May 2022 ||UDIN : 22050661AKCIJW4099 |