Control Print Ltd.
|BSE: 522295||Sector: Industrials|
|NSE: CONTROLPR||ISIN Code: INE663B01015|
|BSE 00:00 | 01 Oct||229.25||
|NSE 00:00 | 01 Oct||229.30||
|Mkt Cap.(Rs cr)||374|
|Mkt Cap.(Rs cr)||374.37|
Control Print Ltd. (CONTROLPR) - Auditors Report
Company auditors report
TO THE MEMBERS OF CONTROL PRINT LIMITED
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements ofControl Print Limited ("the Company") which comprise the Standalone BalanceSheet as at March 312020 the Standalone Statement of Profit and Loss (including OtherComprehensive Income) the Standalone Statement of Changes in Equity and the StandaloneCash Flow Statement for the year then ended and notes to financial statements including asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "the Standalone Financial Statements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 (the 'Act') in the manner so required andgive a true and fair view in conformity with the Companies (Indian Accounting Standards)Rules 2015 as amended ("Ind AS") and accounting principles generally acceptedin India of the state of affairs of the Company as at 31st March 2020 totalcomprehensive income (comprising of profit and other comprehensive income) the changes inequity and its cash flow for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India ('ICAI') together with ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and Code of Ethics. We believe thatthe audit evidence that we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.
We have determined that there are no key audit matters to becommunicated in our report.
Emphasis of Matter
1. We draw attention to Note No. 42 (C) of the standalone financialstatements regarding the arbitration award against the Company & in favour of VideojetTechnologies Inc. requiring the Company to pay Rs. 632.92 Lakhs with interest @12% thereonfrom the date of filing of statement of claim i.e. August 4 2012. Further the Companyhas been awarded to receive from Videojet Technologies Inc. Rs. 100.95 Lakhs along withinterest @ 12% thereon from the date of filing of set off i.e. January 9 2013. TheCompany has filed an appeal before the Honourable Bombay High Court. The Honourable Courtvide it order dated 28th February 2020 stayed the award of the ArbitralTribunal and directed the Company to furnish Bank Guarantee of Rs. 230.00 Lakhs whichthe Company has complied with. Since the matter is pending for final adjudication beforethe Court the Company Management has decided that no provision for any liability in thismatter is considered necessary in the accounts.
2. We draw attention to Note No. 46 of the standalone financialstatements which describes the uncertainties and the impact of the COVID-19 pandemic onthe company's operations and results as assessed by the management. The Management hasassessed that there is no material impact on the standalone financial statements due tolockdown and related restrictions imposed towards controlling the COVID 19 pandemic.
Our opinion is not modified in respect of these matters.
Information other than the Standalone Financial Statements andAuditor's Report thereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annual Reportbut does not include the standalone financial statements and our auditor's report thereon.Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these Standalone FinancialStatements that give a true and fair view of the financial position financial performance(including other comprehensive income) changes in equity and cash flow of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) prescribed under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the standalone financial statements the Board ofDirectors is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so. The Board ofDirectors is also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone FinancialStatements
Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with Standards on Auditing weexercise professional judgment and maintain professional skepticism throughout the audit.We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under Section 143(3) (i) of the Act we are also responsible for explainingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast
significant doubt on the Company's ability to continue as a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in our auditor's report to the related disclosures in the standalone financialstatements or if such disclosures are inadequate to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor's report. Howeverfuture events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
1. We did not audit the financial statements of Colombo (Sri Lanka)Branch included in the standalone financial statements of the Company whose financialstatements reflect total assets of Rs. 284.50 Lakhs as at 31st March 2020total revenues of Rs. 122.91 Lakhs total net loss after tax of Rs. 26.66 Lakhs and totalcomprehensive income of Rs. 26.66 Lakhs for the year ended 31st March 2020. Thefinancial statement of above branch has been audited by another independent auditor inaccordance with the regulations of that country whose report has been furnished to usand our opinion on the standalone financial statements to the extent it has been derivedfrom such audited financial statements is based solely on the report of such otherauditor.
Our opinion is not modified in respect of this matter.
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 in the Annexure 'A' statement on the matters specifiedin the 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 explanationswhich to the best of 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 beenkept by the Company so far as it appears from our examination of those books.
c. The reports on the accounts of the branch office of the Companyaudited under Section 143(8) of the Act by branch auditors have been sent to us and havebeen properly dealt with by us in preparing this report.
d. The Balance Sheet Statement of Profit and Loss (including othercomprehensive income) the Statement of
Changes in Equity and the Cash Flow Statement dealt with by this Reportare in agreement with the books of account.
e. In our opinion the aforesaid standalone financial statements complywith the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.
f. On the basis of the written representations received from thedirectors as on March 312020 taken on record by the Board of Directors none of thedirectors are disqualified as on March 312020 from being appointed as a director in termsof Section 164(2) of the Act;
g. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controlsrefers to our separate report in Annexure 'B'. Our report expresses an unmodified opinionon the adequacy and operating effectiveness of the Company's internal financial controlsover financial reporting.
h. With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.
i. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 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 as atMarch 312020 on its financial position in its standalone financial statements Refer Note42 (C) to the standalone financial statements.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; and
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
1) (a) The Company has maintained proper records showing fullparticulars including quantitative details and
situation of property plant and equipment.
(b) The Company has a program of verification to cover all the items ofproperty plant and equipment in a phased manner which in our opinion is reasonablehaving regard to the size of the Company and nature of its assets. Pursuant to theprogram certain property plant and equipment were physically verified by the managementduring the year and whatever discrepancies noticed on such verification has been properlydealt in the books of accounts.
(c) According to the information and explanations given to us therecords examined by us and based on the examination of the conveyance deeds / registeredsale deed provided to us we report that the title deeds comprising all the immovableproperties of land and buildings which are freehold are held in the name of the Companyas at the balance sheet date. In respect of immovable properties of land and building thathave been taken on lease and disclosed as fixed assets in the standalone financialstatements the lease agreements are in the name of the Company.
2) As per the information and explanations given to us the inventorieshave been physically verified at reasonable intervals during the year by the managementexcept materials lying with third parties and goods-in-transit. Due to COVID-19 relatedlockdown restrictions Management was not able to perform the year end physicalverification of inventories. According to the information and explanations given to usthe procedures for physical verification of inventories followed by the management duringthe year are reasonable and adequate in relation to the size of the Company and the natureof its business. The discrepancies noticed on verification between the physical stocks andthe book records were not material and have been properly adjusted in the books ofaccount.
3) The Company has not granted any loans secured or unsecured tocompanies firms limited liability partnerships or other parties covered in the registermaintained under Section 189 of the Act. Therefore the provisions of Clause 3 (iii) (a)(b) and (c) of the said Order are not applicable to the Company.
There is a transfer of Rs. 1.24 Lakhs during the year along with theopening outstanding balance of Rs. 47.65 Lakhs (outstanding as on year end Rs. 48.89Lakhs) granted to the wholly owned subsidiary company viz. Liberty Chemicals PrivateLimited.
4) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 185 and 186 of theCompanies Act 2013 with respect to Loans and Advances made guarantee given andinvestments made.
5) The Company has not accepted any deposits during the year from thepublic covered under Sections 73 to 76 of the Companies Act 2013.
6) As informed to us the Central Government has prescribed maintenanceof cost records under section 148(1) of the Act. We have broadly reviewed the cost recordsmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014as amended and prescribed by the Central Government under sub-section (1) of Section 148of the Act and are of the opinion that prima facie the prescribed cost records havebeen made and maintained. We have however not made a detailed examination of the costrecords with a view to determine whether they are accurate or complete.
7) According to the information and explanations given to us inrespect of statutory dues:
(a) The Company is regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-tax Sales Tax Service TaxGoods and Service Tax Customs Duty Excise Duty Value Added Tax Cess and other materialstatutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of ProvidentFund Employees' State Insurance
Income-tax Sales Tax Service Tax Goods and Service Tax CustomsDuty Excise Duty Value Added Tax Cess and other material statutory dues in arrears asat March 31 2020 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 andService Tax Customs Duty Excise Duty and Value Added Tax which have not been depositedas on March 312020 on account of disputes are given below:
8) According to the records of the Company examined by us and theinformation and explanations provided to us the Company has not defaulted in repayment ofloans or borrowings to any Financial Institutions or Banks or dues to debenture holders asat the Balance Sheet date.
9) In our opinion and according to the information and explanationsgiven to us the company has not raised any money by way of term loans or initial publicoffer or further public offer including debt instruments during the year.
10) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Management.
11) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.
12) The company is not a Nidhi Company and the Nidhi Rules 2014 arenot applicable to it accordingly paragraph 3(xii) of the Order is not applicable.
13) The Company has entered into transactions with related parties incompliance with sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the standalone financial statements as required byapplicable Ind AS.
14) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures.Accordingly paragraph 3(xiv) of the Order is not applicable.
15) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with them. Accordinglyparagraph 3(xv) of the Order is not applicable.
16) The Company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is notapplicable to the Company.
ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 2 (g) under 'Report on Other Legal andRegulatory Requirements' section of our report of even date)
Report on the Internal Financial Controls under Clause (i) ofSub-Section 3 of Section 143 of the Companies Act 2013 ('the Act')
We have audited the internal financial controls over financialreporting of Control Print Limited ("the Company") as of March 312020 inconjunction with our audit of the Standalone Financial Statements of the Company for theyear ended on that date.
Management's Responsibility for the Internal Financial Controls
The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued 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 Act.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting 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 ICAI and the Standards on Auditingprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls. 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:
1. Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
2. Provide reasonable assurance that the transactions are recorded asnecessary to permit preparation of Financial Statements in accordance with the generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and
3. Provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial control 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 theexplanations given to us 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 31 2020 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.