For the Financial Year ended March 31 2020
G.K.P. Printing & Packaging Limited (U21012MH2018PLC307426)
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the Standalone Financial Statements of G. K. P. PRINTING &PACKAGING LIMITED ("the Company") which comprise the balance sheet as at 31stMarch 2020 and the statement of Profit and Loss and Statement of Cash flows for the yearthen ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information
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 March 31 2020 and profit/loss 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 theStandalone Financial Statements section of our report. We are independent of the Companyin accordance 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 theStandalone Financial Statements under the provisions of the Companies Act 2013 and theRules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained 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 andthere are no matters during the year to be reported as key audit matters.
Information Other than the Standalone 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 Board'sReport including Annexure to Board's Report (but does not include the standalone financialstatements and our auditor's report thereon) and the rest of the Annual Report (the"Other Information"). The Other information is expected to be made available tous after the date of this auditor's report.
Our opinion on the standalone financial statements does not cover the other informationand we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated.
When we read the other information if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance.
Management's Responsibility for the Standalone 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 Financial Statements that give a true and fair view of the financialposition financial performance of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 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 Standalone Financial Statement that give a true and fair view and arefree from material misstatement whether due to fraud or error.
In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of theseStandalone 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 StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company 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 auditor'sreport. 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 StandaloneFinancial Statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
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 Standalone Financial Statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when 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 2016 ("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 the 'Annexure A' a statement on the matters specifiedin 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 and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
d. In our opinion the aforesaid Standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e. On the basis of the written representations received from the directors as on 31stmarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st march 2020 from being appointed as a director in termsof Section 164 (2) of the Act.
f. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197 of the Act as amended in our opinion andto the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.
g. 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".
h. 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 no pending litigation which should require to disclose on itsfinancial position.
ii. The Company did not have any long-term contracts including derivative contracts forwhich 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.
|For Keyur Shah & Co. || |
|Chartered Accountants || |
|F.R.No. 141173W || |
|Keyur Shah || |
|Proprietor || |
|M. No. 153774 ||Date: 31-07-2020 |
|UDIN: 20153774AAAABX7148 ||Place: Ahmedabad |
"Annexure A" to the Independent Auditors' Report
Referred to in paragraph 1 under the heading 'Report on Other Legal & 'RegulatoryRequirement' of our report of even date to the Standalone Financial Statements of theCompany for the period ended March 31 2020:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;
b) The Fixed Assets have been physically verified by the management in a phased mannerdesigned to cover all the items over a period of three years which in our opinion isreasonable having regard to the size of the company and nature of its business. Pursuantto the program a portion of the fixed asset has been physically verified by themanagement during the Period and no material discrepancies between the books records andthe physical fixed assets have been noticed.
c) The Title deed of immovable properties are held in the name of the company.
a) The management has conducted the physical verification of inventory at reasonableintervals.
b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.
Loans given by the Company:
The company has not granted loans & advances to parties covered under section 189of the Act Loans to directors & Investment by the Company:
In our opinion and according to the information and explanations given to us thecompany has complied with the provision of section 185 & 186 of the Companies Act2013 in respect of loans etc. except in case of two loans of Rs. 21200562/- in the nameof K P Print & Packaging & Rs. 8017634/- in the name of Packwell Enterprise LLPwhich has been taken over by company as a effect of Business Succession Agreement dated 14thApril 2018 entered into with M/s GK Packaging M/s Pratham Packaging and M/s GKP Printing& Packaging Ltd. however Section 185 is applicable only at the time of granting theloan and any change in circumstances thereafter would not make the section applicablehence in our opinion the same loan is granted before the acquisition of the Proprietorshipconcern by the company hence violation regarding the Section 185 is not applicable andtherefore our report is not qualified for the same.
The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.
As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company.
a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Goods & Service Tax Service Tax Duty of CustomsDuty of Excise Value added Tax Cess and any other statutory dues with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts are payable in respect of the above wherein arrears as at March 31 2020 for aperiod of more than six months from the date on when they become payable.
b) According to the information and explanation given to us there are no dues ofincome tax sales tax Goods & Service Tax service tax duty of customs duty ofexcise value added tax outstanding on account of any dispute.
Repayment of Loans:
In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. The Company has not taken anyloan from the government and has not issued any debentures. The Loans taken from financialinstitutions have been properly disclosed in Financial Statements & are repaid atregular intervals.
Utilization of IPO & FPO:
Based upon the audit procedures performed and the information and explanations given bythe management the company had made an initial public offering (IPO) of 2056000 equityshares of face value of Rs.10 each fully paid up for cash at a price of Rs.32 per equityshare (including share premium of Rs.22 per equity share) aggregating to Rs.65792000/-the aforementioned equity shares were allotted on 6th May2019. The equityshares of the company got listed on BSE on 8th May 2019.
The Proceeds from the IPO net off issues expenses is Rs. 587.92 Lakhs and utilizationof the same as follows:
|Sr. No. ||Particulars ||Planned as per Prospectus ||Utilization up to 31st March 2020 ||Balance as at 31st March 2020 |
|1 ||Funding the working capital requirements of the company ||441.00 ||441.00 || |
|2 ||General corporate purpose ||146.92 ||146.92 ||- |
| ||TOTAL ||587.92 ||587.92 ||- |
Reporting of Fraud:
Based upon the audit procedures performed and the information and explanations given bythe management we report that no fraud by the Company or on the company by its officersor employees has been noticed or reported during the period.
Approval of Managerial Remuneration:
Based upon the audit procedures performed and the information and explanations given bythe management the managerial remuneration has been paid or provided in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act 2013.
In our opinion the Company is not a Nidhi Company. Therefore the provisions of clause4 (xii) of the Order are not applicable to the Company.
Related Party Transaction:
In our opinion all transactions with the related parties are in compliance withsection177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.
Private Placement or Preferential Issues:
Based upon the audit procedures performed and the information and explanations given bythe management the company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under review.
Non Cash Transaction:
The company has not entered into non cash transaction with the directors or theirrelatives and hence provisions of section 192 of the Companies Act 2013 are notapplicable to the Company.
Register under RBI Act 1934:
In our opinion the company is not required to be registered under section 45 IA of theReserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) of theOrder are not applicable to the Company and hence not commented upon.
For Keyur Shah & Co.
Chartered Accountants F.R.No. 141173W
|Keyur Shah || |
|Proprietor || |
|M. No. 153774 ||Date: 31-07-2020 |
|UDIN: 20153774AAAABX7148 ||Place: Ahmedabad |