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Kanpur Plastipack Ltd.

BSE: 507779 Sector: Industrials
NSE: N.A. ISIN Code: INE694E01014
BSE 00:00 | 12 Nov 107.15 -2.65
(-2.41%)
OPEN

108.75

HIGH

111.50

LOW

107.00

NSE 05:30 | 01 Jan Kanpur Plastipack Ltd
OPEN 108.75
PREVIOUS CLOSE 109.80
VOLUME 3439
52-Week high 188.90
52-Week low 95.00
P/E 8.19
Mkt Cap.(Rs cr) 154
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 108.75
CLOSE 109.80
VOLUME 3439
52-Week high 188.90
52-Week low 95.00
P/E 8.19
Mkt Cap.(Rs cr) 154
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kanpur Plastipack Ltd. (KANPURPLASTIPA) - Auditors Report

Company auditors report

To

The Members of

Kanpur Plastipack Limited

Kanpur.

Report On The Standalone Ind-As Financial Statements

We have audited the accompanying standalone Ind-AS financial statements of KanpurPlastipack Limited (“the Company”) which comprise the Balance Sheet as at31st March 2018 the

Statement of Profit and Loss (including other comprehensive income) the Cash FlowStatement for the year then ended the statement of changes in equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation (herein after referred to as “standalone

Ind AS financial statements”).

Management’s Responsibility For The 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 the stateof affairs (financial position) profit or loss (financialperformance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind-AS) prescribed under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules

2015 as amended. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and 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 Ind-AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone

Ind-AS financial statements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom 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 selected depend on the auditor’s judgmentincluding the assessment of the risks of material misstatement of the Ind-AS financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company’s preparation of theInd-AS financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the standalone Ind-AS financial statements. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the standalone Ind-AS financial statements.

Other Matter

Incoming auditor to audit comparative information for adjustments to transition to IndAS16

The comparative financial information of the Company for the year ended 31stMarch 2017 and the transition date opening balance as at 01st April 2016included in these standalone Ind

AS financial statements are based on the previously issued statutory financialstatements prepared in accordance with the

Companies (Accounting Standards) Rules 2006 audited by the predecessor auditor whosereport for the year ended 31st March 2017 and 31st March 2016 dated29th May 2017 and 23rd May

2016 respectively expressed an unmodified opinion on those standalone financialstatements as adjusted for the differences in the accounting principles adopted by theCompany on transition to the Ind AS which have been audited by us.

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 information required by 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 (financial position) of the Company as at 31stMarch 2018 and its profit (financial performance including other comprehensive income)its cash flows and the changes in equity for the year ended on that date.

Report On Other Legal And Regulatory Requirements

1 As required by the Companies (Auditor’s Report) Order 2016 (“theOrder”) issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we attach in “Annexure-A” a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2 As required by Section 143 (3) of the Act we report that: a We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c The Balance Sheet the Statement of Profit and Lossincluding the Statement of Other Comprehensive Income the Cash Flow Statement and thestatement of changes in Equity dealt with by this Report are in agreement with the booksof account. d In our opinion the aforesaid standalone Ind-AS financial statements complywith the Accounting

Standards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 and the Companies (Indian Accounting Standards) Rule 2015 asamended; e On the basis of the written representations received from the directors as on31st March 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 st March 2018 from being appointed as adirector in terms of Section 164

(2) of the Act. f With respect to the adequacy of the internal financial controls overfinancial reporting of the company and the operating effectiveness of such controlsreference is invited towards our separate report in “Annexure B”. g With respectto the other matters to be included in the Auditor’s Report in accordance with Rule11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best ofour information and according to the explanations given to us: i The Company has disclosedthe impact of pending litigations on its financial position in its financial statementsRefer Note 33 to the financial statements; ii The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses. iii There were no amounts which were required to be transferred to the InvestorEducation and

Protection Fund by the Company.

For Rajiv Mehrotra & Associates
Chartered Accountants
Firm Reg.no.002253C
Rajiv Mehrotra
(Partner)
Kanpur 14th May 2018 M.no.071428

A N N E X U R E " A " T O T H E I N D E P E N D E N T A U D I T O R S ‘R E P O RT

(Referred to in Para 1 under ‘Report on Other legal and RegulatoryRequirements’ section of our report of even date)

Re: Kanpur Plastipack Limited we report that:

(i) a. The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets. b The company has a regular programmefor physical verification of all assets over a period of three years. In accordance withthis programme certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification. In our opinion it is reasonable havingregard to the size of the company and the nature of its assets. c According to theinformation and explanations given to us and the records examined by us and based copieson the registered sale deeds/transfer deeds etc. evidencing title in immovable propertieswhich are freehold we report that the immovable properties capitalized in the books ofaccount of the company are held in its name.

The Original title deeds being pledged against loans secured from the bank were notin possession of the company and therefore could not be verified.

(ii) a. As explained to us the inventory has been physically taken by the managementduring the year at various locations. In our opinion and according to the information andexplanations given to us no material discrepancies were noticed on physical verificationof stock verified. b. The procedures of physical verification of inventories followed bythe management are reasonable and adequate in relation to the size of the company and thenature of its business.

(iii) The company has not granted any loans secured or unsecured to parties covered inthe register maintained under section 189 of the Companies Act 2013.

(iv) In Our opinion and according to the information and explanations given us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of grant of loans making investments and providing guarantees.

(v) In our opinion and according to the information and explanations given to us thecompany has not accepted any public deposits. As per the information and explanationsgiven to us no order has been passed by the Company Law Board or the National Company LawTribunal or the Reserve Bank of India or any Court or Tribunal.

(vi) In our opinion and according to the information and explanations given to us thecompany is liable for maintenance of cost records u/s 148 of the Companies Act 2013 andthe company is maintaining such records on a regular basis as specified under theCompanies (Cost Records & Audit) Rules 2014.

(vii) (a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including investor education protection fund income tax sales tax wealthtax service tax & customs duty and other material statutory dues applicable to it.According to the information and explanations given to us no undisputed amounts payablein respect of provident fund income tax sales tax wealth tax customs duty VAT cessand other material statutory dues were in arrears as at 31st March 2018 for aperiod of more than six months from the date they became payable.

(b) As per the information and explanations given to us and on the basis of theverification of the records of the company the details of statutory dues which have notbeen deposited on account of disputes are as under:

Name of the Statute Nature of dues Pending Amount J in Lakhs Period to which amount relates Forum where dispute is pending Remarks
Central Excise Rebate claims. 28.90 FY 2012-13 & 2013-14 Additional Secretary to Govt. First Appeal filed by Departmental before the Commissioner (Appeal) was dismissed.
Of India The Revenue thereafter filed further Appeal
- - do - - - - do - - 160.00 57.00 2009-13 Asstt. Commissioner Central Excise Kanpur. In addition claims of H55.31 Lakhs filed by the company are with-held on similar grounds.
Central Sales Tax Act 1956 Central Sales Tax 0.53 FY 2009-10 Allahabad High Court The total demand raised was H3.52 lakhs. An amount of H2.99 lakhs stands deposited under protest.
Central Sales Tax Act 1956 Central Sales Tax 0.23 FY 2010-11 Jt. Commissioner Corporate Circle-1 Kanpur The total demand raised was H2.69 lakhs. An amount of H2.45 lakhs stands deposited under protest. The matter has been decided in the company’s favour and remanded to the Assessing Authority for consideration by the Commissioner (Appeals)
Income Tax Tax determined upon post-search assessment - AY 2012-13 The ITAT Lucknow Amount deposited under protest- H104.58 Lakhs
Income Tax Penalty u/s 271AAA Not yet quantified AY 2012-13 The ITAT Lucknow The quantum of penalty is dependent on the outcome of the Appeal against Quantum proceedings referred to the preceding para.

viii In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to a financial institution or bank. Thecompany has not issued debentures. ix In our opinion and according to the information andexplanations given to us the company has applied term loans for the purposes for whichthe same were availed. The company has raised funds through a Rights issue during the yearfor expansion. On the basis of the books of account and records of the company in ouropinion the application of the funds raised is in accordance with the terms and conditionsof the issue. x According to the information and explanations given to us no fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe course of our audit. xi In our opinion and according to the information andexplanations given to us the company has paid/provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 r.w.Schedule V of the Companies Act 2013. xii The company is not a Nidhi Company and hencethe reporting under clause (xii) of CARO 2016 Order is not applicable. xiii In our opinionand according to the information and explanations given to us the company has compliedwith

Sections 177 and Section 188 of the Companies Act 2013 where applicable for alltransactions with related parties and the details of related party transactions have beendisclosed in the financial statements etc. as required by the applicable accountingstandards. xiv During the year the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures and hence reportingunder clause

(xiv) of CARO 2016 is not applicable to the Company. The company has however made aRights Issue to existing shareholders which has been covered under clause (ix) above. xvIn our opinion and according to the information and explanations given to us the companyhas not entered into any non-cash transactions with its directors or directors of itssubsidiary or associate companies or persons connected with them and hence provisions ofsection 192 of Companies Act 2013 are not applicable. xvi In our opinion the company isnot required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For Rajiv Mehrotra & Associates
Chartered Accountants
Firm Reg.no.002253C
Rajiv Mehrotra
(Partner)
Kanpur 14th May 2018 M.no.071428

A N N E X U R E " B " T O T H E I N D E P E N D E N T A U D I T O R S ‘R E P O RT

(Referred to in Para 2(f) under ‘Report on Other legal and RegulatoryRequirements’ section of our report of even date)

Report On The Internal Financial Controls Under Section 143(3)(I) Of The Companies Act2013 (“The Act”)

We have audited the internal financial controls over financial reporting of KanpurPlastipack Limited (“the Company”) as of March 31 2018 in conjunction with ouraudit of the financial statements of the Company for the year 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.

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.

Auditors’ 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 to the extent applicable to anaudit of internal financial controls both issued by the Institute of CharteredAccountants of India.

Those Standards and the Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch 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 controls based on the assessed risk. Theprocedures selected depend on the auditor’s judgement including the assessment ofthe risks of material misstatement of the 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflecttransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 to the best of our information and according to the explanations givento us the company has in all material aspects an adequate internal financialcontrols’ system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31st

2018 based on the internal control over financial reporting criteria established bythe company considering the essential components of internal control stated in GuidanceNote of Audit of International Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For Rajiv Mehrotra & Associates
Chartered Accountants
Firm Reg.no.002253C
Rajiv Mehrotra
(Partner)
Kanpur 14th May 2018 M.no.071428