To the Members of
CKP Products Limited
We have audited the accompanying standalone financial statements of CKP ProductsLimited ("the Company") which comprise the balance sheet as at March 31 2018the statement of profit and loss and statement of cash flows for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements:
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act
2013 ("the Act") with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes the maintenance of adequate accounting records in accordance with the provisionof the Act for safeguarding of the assets of the Company and for preventing and detectingthe frauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.
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 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by the Actin the manner 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 state of affairs of the Company as at March31 2018; and b) in the case of the statement of profit and loss of the profit for theyear ended on that date. c) in the case of statement of cash flows of the cash flows forthe year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditors Report) Order 2016 ("the Order")issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Act we give inthe 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 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 statement of cash flows dealtwith by this report are in agreement with the books of account.
(d) in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
(e) on the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct;
CKP PRODUCTS LIMITED
(f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer AnnexureB to this report;
(g) with respect to the other matters to be included in Auditors Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to explanations given to us:
i. The Company does not have any pending litigations;
ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. The Company was not required to transfer any amount to Investor Education andProtection
For R T Jain & Co LLP
FRN: 103961W / W100182
(CA Bankim Jain)
Mem No.: 139447
Mumbai 30th May 2018
Annexure A to the Auditors Report
Referred to in paragraph 1 of our report of even date on the accounts of the companyfor the year ended 31st March 2018
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
1. a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.
c) According to the information and explanation received by us as the company owns noimmovable property the requirement on reporting whether title deeds of immovableproperties held in the name of the company is not applicable.
2. a) As explained to us inventories of oil have been physically verified duringthe year by the management at reasonable intervals.
b) In our opinion and on the basis of our examination of the records no materialdiscrepancy was noticed on physical verification of stocks by the management as comparedto book records.
3. According to the information and explanations given to us and on the basis ofour examination of the books of account the Company has not granted loan to itssubsidiary of Rs. 1985307/- during the year. There is no stipulation as regardsrepayment in respect of the said loan. No interest has been charged on the said loan.Except this there is no other transaction with other party covered in the registermaintained under Section 189 of the Companies Act 2013.
4. According to the information and explanations given to us the Company hascomplied with the provisions of Section 185 and 186 of the Act in respect of the grant ofloans making investments and providing guarantees and securities as applicable.
5. In our opinion the company has not accepted any deposits within the meaning ofRule 2 (b) of Companies (Acceptances of Deposits) Rules 2014 so far upto March 31 2018.
6. According to the information and explanations provided by the management thecompany is not engaged in production of goods or provision of any such services for whichthe Central Government has prescribed particulars relating to utilization of material orlabour or other items of cost. Hence the provisions of section 148(1) of the CompaniesAct 2013 do not apply to the company. Hence in our opinion no comment on maintenance ofsuch records is required.
7. a) According to the records of the company undisputed statutory dues includingProvident Fund
Investor Education and Protection Fund Employees' State Insurance Income-taxSales-tax Wealth Tax Service Tax Custom Duty Excise Duty cess to the extentapplicable and any other statutory dues have generally been regularly deposited with theappropriate authorities. According to the information and explanations given to us therewere no outstanding statutory dues as on 31stof March 2017 for a period ofmore than six months from the date they became payable except the following:
|Particulars ||Amount |
|Income Tax for AY 2017-2018 ||Rs. 8027150/- |
|Profession Tax ||Rs. 11292/- |
|Tax Deducted at Source ||Rs. 2600/- |
| || |
b) According to the information and explanations given to us there is no amountspayable in respect of income tax wealth tax service tax sales tax customs duty andexcise duty which have not been deposited on account of any disputes.
8. Based on our audit procedures and on the information and explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to a financial institution bank or debenture holders.
9. Based on records of the company the company has raised Rs. 6.24 crores by wayof Initial Public Offer during the month of May 2017. Moneys raised by way of IPO havebeen used for the purpose for which it was obtained.
10.Based on the audit procedures performed and the information and explanationsgiven to us we report that no fraud on or by the Company has been noticed or reportedduring the year.
11.According to information and explanations given to us in our opinion themanagerial remuneration paid during the year are within the limits as mandated by theprovisions of Section 197 read with Schedule V to the Companies Act 2013.
12.The Company is not a Nidhi company. Therefore the provision of this clause ofthe Companies
(Auditor's Report) Order 2016 is not applicable to the Company.
13.Based on our audit procedures and on the information given by the managementthe company has complied with the sections 177 and 188 of the Companies Act 2013 for allthe transactions with the related parties and the details of such transactions have beenproperly disclosed in the financial statements as required by the applicable accountingstandards.
14.The Company has done preferential allotment and private placement of sharesduring the year to one of the directors covered in register maintained under section 189of the Companies Act 2013. The amount raised by way preferential allotment and privateplacement has been utilised for working capital requirements of the company.
15.The company has not entered into any non-cash transactions with directors of thecompany or its subsidiary or persons connected with them.
16.The Company is not required to be registered under Section 45-IA of Reserve Bankof India Act
For R T Jain & Co LLP
FRN: 103961W / W100182
(CA Bankim Jain)
Mem No.: 139447
Mumbai 30th May 2018
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 CKPProducts Limited ("the Company") as of 31st March 2018 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').
These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to 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 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 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.
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 March 31 2018 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 R T Jain & Co LLP
FRN: 103961W / W100182
(CA Bankim Jain)
Mem No.: 139447
Mumbai May 30 2018