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Control Print Ltd.

BSE: 522295 Sector: Industrials
NSE: CONTROLPR ISIN Code: INE663B01015
BSE 00:00 | 17 Jul 406.90 9.40
(2.36%)
OPEN

398.50

HIGH

409.55

LOW

398.50

NSE 00:00 | 17 Jul 405.10 -0.10
(-0.02%)
OPEN

405.00

HIGH

411.90

LOW

402.05

OPEN 398.50
PREVIOUS CLOSE 397.50
VOLUME 106
52-Week high 554.00
52-Week low 345.00
P/E 19.16
Mkt Cap.(Rs cr) 664
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 398.50
CLOSE 397.50
VOLUME 106
52-Week high 554.00
52-Week low 345.00
P/E 19.16
Mkt Cap.(Rs cr) 664
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Control Print Ltd. (CONTROLPR) - Auditors Report

Company auditors report

ON THE STANDALONE IND AS FINANCIAL STATEMENTS TO THE MEMBERS OF CONTROL PRINT LIMITEDReport on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS Financial Statements of ControlPrint Limited ("the Company") which comprise the Balance Sheet as at March312018 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibilityforthe Standalone Ind AS 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 Ind AS Financial Statements that give a true and fair view of thefinancial position financial performance (including other comprehensive income) cashflow and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards specified in theCompanies (Indian Accounting Standards) Rules 2015 (as amended) under Section 133 of theAct.

This responsibility also includes maintenance of adequate accounting records inaccordance 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 Standalone Ind AS Financial Statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone Ind AS FinancialStatements based on our audit. We have taken into account the provisions of the Act andthe rules made there under including the accounting and auditing standards and matterswhich are required to be included in the audit report under the provisions of the Act andthe Rules made there under.

We conducted our audit in accordance with the Standards on Auditing under section143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS Financial Statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS Financial Statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS Financial Statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sdirectors as well as evaluating the overall presentation of the Standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS Financial Statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 312018 and its total comprehensive income (comprising of profit andother comprehensive income) its cash flow and the changes in equity for the year ended onthat date.

Other Matters

1. The financial information of the Company for the year ended March 312017 and thetransition date opening balance sheet as at 1st April 2016 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements for the years ended March 312017 and March 312016 prepared inaccordance with

the Companies (Accounting Standards) Rules 2006 (as amended) which were audited byDosi & Jain Chartered Accountants on which they expressed an unmodified opiniondated May 29 2017 and May 25 2016 respectively. The adjustments to those financialstatements for the differences in accounting principles adopted by the Company ontransition to the Ind AS have been audited by us.

2. We did not audit the financial statements of Colombo branch included in thestandalone Ind AS financial statements of the company whose financial statements reflecttotal assets of' 241.28 Lakhs as at March 312018 and the total revenue of ' 83.77 Lakhsfor the year ended on that date as considered in the financial statements of above branchhas been audited by the branch auditor whose report has been furnished to us and ouropinion in so far as it relates to the amounts and disclosures included in respect ofbranch is based solely on the report of such branch auditor.

Our opinion is not modified in respect ofthese matters.

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 ofthe Act ("the Order") and on the basis of examination of the books and recordsof the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure ‘A' statement on the mattersspecified in the paragraph 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 purpose 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 Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

d. In our opinion the aforesaid Standalone Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act;

e. On the basis of the written representations received from the directors as on March312018 taken on record by the Board of Directors none ofthe directors is disqualified ason March 312018 from being appointed as a director in terms of Section 164 (2) of theAct;

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refers to ourseparate report in Annexure ‘B';

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)in our opinion and to the best of our information and according to the explanations givento us;

i. The Company has disclosed the impact of pending litigation as at March 312018 onits financial position in its Standalone Ind AS financial statements - Refer Note 41

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 312018.

For Jhawar Mantri & Associates
Chartered Accountants
Firm Registration Number: 113221W
Naresh Jhawar
Partner
Membership No. 045145
Place: Mumbai
Dated: May 25 2018

ANNEXURE- ‘A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

1) In respect of Fixed Assets:

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

(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and nature of its assets. Pursuant to the program certain fixed assets werephysically verified by the management during the year and whatever discrepancies noticedon such verification has been properly dealt in the books of accounts.

(c) The title deeds of immovable properties as disclosed in Note 2 on property plantand equipment to the standalone Ind AS financial statements are held in the name oftheCompany.

2) As per the information and explanations given to us the inventories have beenphysically verified at reasonable intervals during the year by the management exceptmaterials lying with third parties where confirmations are obtained. The discrepanciesnoticed on the physical verification of inventory as compared to book stock have beenproperly dealt with in the books of accounts by the Company by writing off inventoriesamounting to ' 612.85 Lakhs during the year.

3) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Therefore the provisions of Clause 3 (iii)

(a) (iii)(b) and (iii)(c) of the said Order are not applicable to the Company.

There is a transfer of ' 3.33 Lakhs during the year along with the opening outstandingbalance of ' 29.69 Lakhs (outstanding as on year end ' 33.02 Lakhs) granted to the whollyowned subsidiary of the company Liberty Chemicals Private Limited.

4) 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 Loans and Advances made guarantees given and investments made.

5) The Company has not accepted any deposits during the year from the public coveredunder Sections 73 to 76 of the Companies Act 2013.

6) As informed to us the Central Government has prescribed maintenance of cost recordsunder section 148(1) of the Act. We have broadly reviewed the cost records maintained bythe Company pursuant to the Companies (Cost Records and Audit) Rules 2014 as amended andprescribed by the Central Government under sub-section (1) of Section 148 of the Act andare of the opinion that prima facie the prescribed cost records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

7) According to the information and explanations given to us in respect of statutorydues:

(a) The Company is generally regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income-tax Sales Tax Service Tax Goods andService Tax Customs Duty Excise Duty Value Added Tax Cess and other material statutorydues applicable to it to the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income-tax Sales Tax Service Tax Goods and Service Tax Customs DutyExcise Duty Value Added Tax Cess and other material statutory dues in arrears as atMarch 312018 for a period of more than six months from the date they became payable.

(c) Details of dues of Income-tax Sales Tax Service Tax Goods and Service TaxCustoms Duty Excise Duty and Value Added Tax which have not been deposited as on March312018 on account of disputes are given below:

Rs in Lakhs

Name of Statute Nature of Dues Forum where dispute is pending Amount (Involved) Amount (Paid) Amount (Unpaid)
Central Sales Tax Act Local Sales Tax Sales Tax for FY 2010-11 DCST (Appeals) Mumbai 95.04 44.00 51.04
Act Sales Tax for FY 2012-13 DCST (Appeals) Mumbai 154.00 57.28 96.72
Sales Tax for FY 2014-15 Asst. Comm. Of Sales Tax Noida 6.89 - 6.89
Sales Tax for FY 2009-10 DCST (Appeals) Shimla 139.32 7.00 132.32

8) According to the records of the Company examined by us and the information andexplanations provided to us the Company has not defaulted in repayment of loans orborrowings to any Financial Institutions or Banks or dues to debenture holders as at theBalance Sheet date.

9) In our opinion and according to the information and explanations given to us thecompany has not raised any money by way of term loans or initial public offer or furtherpublic offer including debt instruments during the year.

10) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

11) According to the information and explanations given 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 Act.

12) The company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable toit accordingly the provisions of clause 3(XII) of the Order are not applicable.

13) The Company has entered into transactions with related parties in compliance withsections 177 and 188 of the Act. The details of such related party transactions have beendisclosed in the Standalone Ind AS financial statements as required under Ind AS 24Related Party Disclosures specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

14) The Company has not made any preferential allotment of shares or fully or partlyconverted debentures during the year. However the Company has raised ' 3000 Lakhsthrough Qualified Institutional Placement ("QIP") by allotting 659340 EquityShares at a price of ' 455 per share. The QIP placement is in compliance with section 42of the Companies Act 2013. Further the Company has disclosed the end use of moneyreceived from QIP in Note No. 45 of notes to the Standalone Ind AS financial statementsand the same has been verified by us.

15) 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 them. Accordingly paragraph 3(xv)of the Order is not applicable.

16) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicable tothe Company.

For Jhawar Mantri & Associates
Chartered Accountants
Firm Registration Number: 113221W
Naresh Jhawar
Partner
Membership No. 045145
Place: Mumbai
Dated: May 25 2018

ANNEXURE- ‘B' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 (f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

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 ControlPrint Limited ("the Company") as of March 312018 in conjunction with our auditof the Standalone Ind AS Financial Statements of the Company for the year ended on thatdate.

Management's Responsibilityforthe 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 Act.

Auditor's 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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 ofthe 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. Provide reasonable assurance that the transactions are recorded as necessary topermit preparation of Financial Statements in accordance with the generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition ofthe 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 control 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 aspects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Jhawar Mantri & Associates
Chartered Accountants
Firm Registration Number: 113221W
Naresh Jhawar
Partner
Membership No. 045145
Place: Mumbai
Dated: May 25 2018