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Essel Propack Ltd.

BSE: 500135 Sector: Industrials
NSE: ESSELPACK ISIN Code: INE255A01020
BSE 11:24 | 19 Jun 245.20 0.15
(0.06%)
OPEN

248.95

HIGH

248.95

LOW

243.10

NSE 11:14 | 19 Jun 245.55 0.35
(0.14%)
OPEN

245.20

HIGH

247.75

LOW

242.85

OPEN 248.95
PREVIOUS CLOSE 245.05
VOLUME 1274
52-Week high 317.00
52-Week low 233.25
P/E 48.27
Mkt Cap.(Rs cr) 3,856
Buy Price 245.60
Buy Qty 49.00
Sell Price 246.50
Sell Qty 15.00
OPEN 248.95
CLOSE 245.05
VOLUME 1274
52-Week high 317.00
52-Week low 233.25
P/E 48.27
Mkt Cap.(Rs cr) 3,856
Buy Price 245.60
Buy Qty 49.00
Sell Price 246.50
Sell Qty 15.00

Essel Propack Ltd. (ESSELPACK) - Auditors Report

Company auditors report

To

The Members of

Essel Propack Limited

1. Report on the standalone financial statements

We have audited the accompanying standalone financial statements of Essel PropackLimited ('the Company') which comprise the balance sheet as at 31 March 2018 thestatement of profit and loss (including other comprehensive income) the statement of cashflows and the statement of changes in equity for the year then ended and a summary of thesignificant accounting policies and other explanatory information (herein after referredto as "standalone financial statements").

2. Management's responsibility for the standalone financial statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 (" the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

3. Auditor's responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. While conducting the audit we have taken into account the provisionsof the Act the Accounting and Auditing Standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder.

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financial statements are free frommaterial 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 thestandalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone 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.

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2018 and its profit total comprehensive income its cash flows and thechanges in equity for the year ended on that date.

5. Other Matters

The comparative financial information of the Company for the year ended 31 March 2017included in these standalone financial statements have been audited by the predecessorauditor. The report of the predecessor auditor on the comparative financial informationdated 23 May 2017 expressed an unmodified opinion which has been relied upon by us.

6. Report on other Legal and Regulatory requirements

I. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of section 143(11) of the Act ("the Order") and onthe basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanations given to us we give in theAnnexure A a statement on the matters specified in the paragraph 3 and 4 of the Order.

II. As required by Section143 (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) the statement of cash flows and the statement of changes in equity dealt with bythis Report are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended;

e) On the basis of written representations received from the directors of the Companyas on 31 March 2018 and taken on record by the Board of Directors none of the directorsis disqualified as on 31 March 2018 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"; and

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements;

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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Ford Rhodes Parks & Co. LLP

Chartered Accountants

Firm Registration Number: 102860W/W100089

Ramaswamy Subramanian

Partner

Membership Number 016059

Mumbai 26 April 2018

Annexure A to the Independent Auditor's Report

Annexure referred to in paragraph 6(I) under "Report on other Legal and Regulatoryrequirements" of our report of even date to the members of Essel Propack Limited onthe standalone financial statements for the year ended 31 March 2018

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of three years. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. In accordance with this programmecertain fixed assets were physically verified by the management during the year. Asinformed to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

ii. Inventories except for goods-in-transit and stocks lying with third parties havebeen physically verified by the management. For stocks lying with third parties at theyear end these have been confirmed by them. In our opinion the frequency of suchverification is reasonable. Discrepancies noticed on such verification between physicalstocks and the book records were not material and these have been properly dealt with inthe books of account.

iii. The Company had granted unsecured loan of ' 9607 lakhs to a company covered inthe register maintained under Section 189 of the Act;

a) In our opinion the rate of interest and other terms and conditions on which theloan had been granted to the company listed in the register maintained under Section 189of the Act is prima facie not prejudicial to the interest of the Company.

b) The aforesaid loan granted is repayable on demand and the borrower is regular inpayment of interest as stipulated except for minor delay.

c) There is no amount of interest overdue for more than 90 days as at 31 March 2018.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofloans/ guarantees given investments made and securities provided by it.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73 to 76 of the Act.

vi. We have broadly reviewed the cost records maintained by the Company prescribed bythe Central Government under Section 148(1) of the Act and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have howevernot made a detailed examination of such records with a view to determine whether they areaccurate or complete.

vii. According to the records of the Company examined by us and information andexplanations given to us:

a) Undisputed statutory dues including provident fund employees' state insuranceincome tax sales tax service tax duty of customs duty of excise value added taxgoods and services tax cess and others as applicable have generally been regularlydeposited with the appropriate authorities except delay in few cases. There are noundisputed amounts payable in respect of aforesaid dues outstanding as at 31 March 2018for a period of more than six months from the date they became payable.

b) There are no dues of service tax and duty of customs which have not been depositedon account of any dispute. The disputed dues of income tax sales tax duty of excise andvalue added tax which have not been deposited are as under:

Name of the Statute Nature of the Dues Rs. in lakhs Period to which the amount relate Forum where dispute is pending
Central Excise Act 1944 Duty of Excise 151 FY 2001-2002 to FY 2005-2006 FY 2009-2010 and FY 2010-2011 Tribunal CESTAT
101 FY 2009-2010 to FY 2010-2011 and FY 2013-2014 to FY 2014-2015 Commissioner of Central Excise (Appeals)
Maharashtra Value Value added 76 FY 2005-2006 Maharashtra Sales Tax Tribunal
Added Tax Act 2002 tax 5 FY 2013-2014 Commissioner of Sales Tax
Himachal Pradesh Value Added Tax Act 2005 Value added tax 3 FY 2008-2009 Additional Excise and Taxation Commissioner
Central Sales Tax Act 1956 Central sales tax 861 FY 2002-2003 FY 2005-2006 FY 2006-2007 FY 2007-2008 and 2008-2009 Maharashtra Sales Tax Tribunal
228 FY 2002-2003 to FY 2004-2005 Commissioner of VAT-Dadra and Nagar Haveli
248 FY 2002-2003 FY 2008-2009 and FY 2011-2012 Deputy Commissioner of Sales Tax (Appeals)
573 FY 2001-2002 FY 2003-2004 FY 2005-2006 FY 2012-2013 and FY 2013-2014 Joint Commissioner of Sales Tax (Appeals)
29 FY 2009-2010 FY 2011-2012 FY 2012-2013 and FY 2013-2014 Assistant Commissioner of Commercial Taxes
The Income Tax Act 1961 Income tax- Penalty 55 FY 2006-2007 Income Tax Appellate Tribunal
797 FY 2007-2008 FY 2011-2012 and FY 2012-2013 Commissioner of Income Tax (Appeals)
Income tax 830 FY 2006-2007 FY 2011-2012 FY 2012-2013 and FY 2013-2014 Commissioner of Income Tax (Appeals)

viii. According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to financial institutions banks government or dues to debenture holders.

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

x. 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 been informed of any such case by theManagement.

xi. According to the records of the Company examined by us and information andexplanations given to us the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company and the Nidhi Rules 2014 are not applicable to it.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the

Act where applicable and details of such transactions have been disclosed in thestandalone financial statements as required by the applicable Indian Accounting Standards.

xiv. According to the records of the Company examined by us and information andexplanations given to us the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

xv. According to the records of the Company examined by us and information andexplanations given to us the Company has not entered into non-cash transactions withdirectors or persons connected with him.

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

For Ford Rhodes Parks & Co. LLP

Chartered Accountants

Firm Registration Number: 102860W/W100089

Ramaswamy Subramanian

Partner

Membership Number 016059

Mumbai 26 April 2018

Annexure B to the Independent Auditor's Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 6(II)(f)under "Report on other Legal and Regulatory requirements" of our report of evendate to the members of Essel Propack Limited on the standalone financial statements forthe year ended 31 March 2018

We have audited the internal financial controls over financial reporting of EsselPropack Limited ("the Company") as of 31 March 2018 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding 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.

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 FinancialReporting" (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 standalone financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theInstitute of Chartered Accountants of India.

For Ford Rhodes Parks & Co. LLP

Chartered Accountants

Firm Registration Number: 102860W/W100089

Ramaswamy Subramanian

Partner

Membership Number 016059

Mumbai 26 April 2018