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Kanpur Plastipack Ltd.

BSE: 507779 Sector: Industrials
NSE: KANPRPLA ISIN Code: INE694E01014
BSE 00:00 | 24 Sep 165.35 -5.30
(-3.11%)
OPEN

168.30

HIGH

171.45

LOW

164.30

NSE 00:00 | 24 Sep 164.80 -5.05
(-2.97%)
OPEN

172.90

HIGH

172.90

LOW

164.50

OPEN 168.30
PREVIOUS CLOSE 170.65
VOLUME 2598
52-Week high 205.33
52-Week low 56.73
P/E 10.12
Mkt Cap.(Rs cr) 355
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 168.30
CLOSE 170.65
VOLUME 2598
52-Week high 205.33
52-Week low 56.73
P/E 10.12
Mkt Cap.(Rs cr) 355
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kanpur Plastipack Ltd. (KANPRPLA) - Auditors Report

Company auditors report

To

The Members of

Kanpur Plastipack Limited

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

OPINION

We have audited the standalone financial statements of KanpurPlastipack Limited ("the Company") which comprise the Standalone Balance Sheetas at 31st March 2021 the Standalone Statement of Profit and Loss (includingother comprehensive income) Standalone Statement of and Standalone Statement of Changesin Equity and Standalone Statement of Cash Flows for the year then ended and notes to thestandalone financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the standalonefinancial 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 sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31stMarch 2021 and profit (including other comprehensive income) changes in equity and itscash flows for the year ended on that date.

BASIS FOR OPINION

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the ‘Auditor's Responsibilities for the Audit of theStandalone Financial Statements' section of our report.

We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

KEY AUDIT MATTERS

Key audit matters (‘KAM') are those matters that in ourprofessional judgment were of most significance in our audit of the standalone financialstatements of the current period. These matters were addressed in the context of our auditof the standalone financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters.

1. Impact of the COVID-19 Pandemic on the Company's abilityto continue as a going concern:

The company is primarily engaged in exports and its receivablescomprise of debts due from various overseas parties including those based in the UKEurope Brazil etc. Thus vis--vis the company the impact of COVID-19 pandemic onrecoverability of its receivables realisability of stocks and future business prospectson its ability to continue as a going concern required extensive verification proceduresanalysis of the post Balance Sheet events management discussions and judgements.

How our audit addressed the key audit matter

For the matter referred to above our procedures included amongothers verification and recovery pattern of all material export receivables upto the dateof completion of our audit other relevant documentation/correspondence includingcorrespondence with Banks customers ongoing/pending export orders and shipments to thevarious parties assessing management's conclusions etc. in view of the laid downaccounting and measurement principles.

2. Verification of inventories as at the close of the year:

In view of the fact that the second wave of the COVID-19 Pandemic hadset in the inventories as at the reporting date could not be verified physically. Thusrecognition and valuation of inventories as at the reporting date required extensiveverification procedures analysis of the post Balance Sheet events management discussionsand judgements.

How our audit addressed the key audit matter

For the matter referred to above our procedures included amongothers verification of inventory records for period falling after the close of the yearand evidences of movement and sale of the same after the reporting date; verification ofdocuments and records submitted to various authorities including banks and revenueauthorities; checking of documents evidencing movement of material (both raw material aswell as finished goods) discussions with management etc.

OTHER INFORMATION

The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany's annual report but does not include the standalone financial statements andour auditors' report thereon.The other information included in the annual report areexpected to be made available to us after the date of this auditor's report.

Our opinion on the standalone financial statements does not cover theother information and 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 in the audit or otherwise appears to be materially misstated.

After the Other Information is made available to us if based on thework we have performed we conclude that there is a material misstatement therein we arerequired to communicate the matter to those charged with governance.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIALSTATEMENTS

The Company's management and Board of Directors are responsiblefor the matters stated in Section 134(5) of the Act with respect to the preparation ofthese standalone financial statements that give a true and fair view of the state ofaffairs profit (including other comprehensive income) changes in equity and cash flowsof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing 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 of theaccounting 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.

In preparing the standalone financial statements management and Boardof Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

Board of Directors is also responsible for overseeing theCompany's financial reporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONEFINANCIAL STATEMENTS

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 SAs we exercise professional judgment and maintainprofessional 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 control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to standalonefinancial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditors' report. However future events orconditions 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.

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 auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

As required by the Companies (Auditors' Report) Order 2016("the Order") issued by the Central Government of India in terms of Section143(11) of the Act we give in "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

(A) 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 purposes of ouraudit.

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 Balance Sheet the Statement of Profit and Loss (including othercomprehensive income) the Statement of Changes in Equity and the Statement of Cash Flowsdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directorsnone of the directors is disqualified as on 31st March 2021 from beingappointed as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

(B) With respect to the other matters to be included in theAuditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations as at 31stMarch 2021 on its financial position in its standalone financial statements.

ii. The Company does not have any long term contracts requiring aprovision for material foreseeable losses.

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

( C) With respect to the matter to be included in the Auditors'Report under section 197(16):

In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of Section 197 read with Schedule V of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) whichare required to be commented upon by us.

For RAJIV MEHROTRA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG.NO.002253C
RAJIV MEHROTRA
(PARTNER)
M.No.071428
Kanpur 24th May 2021 UDIN: 21071428AAAAAB8283

Annexure "A"

To The Independent Auditors' Report

(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 fullparticulars including quantitative details and situation of fixed assets.

b. The company has a regular programme for physical verification of allassets over a period of three years. In accordance with this programme certain fixedassets were verified during the year and no material discrepancies were noticed on suchverification. In our opinion it is reasonable having regard to the size of the companyand the nature of its assets.

c. According to the information and explanations given to us and therecords examined by us and based copies on the registered sale deeds/transfer deeds etc.evidencing title in immovable properties which are freehold we report that the immovableproperties capitalized in the books of account of the company are held in its name. TheOriginal title deeds being pledged against loans secured from the bank were not inpossession of the company and therefore could not be verified. However certified copies ofthe title deeds were verified.

(ii) a. As explained to us the inventory has been physically taken bythe management during the year at various locations. However physical verification ofinventory could not be undertaken as at the close of the year owing to the rise in secondwave of the COVID-19 Pandemic. 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.

c. In our opinion and according to the information and explanationsgiven to us the Company has maintained proper records of its inventories and no materialdiscrepancies were noticed on physical verification of stocks as compared to book recordson the date of the physical verification.

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

(iv) In Our opinion and according to the information and explanationsgiven us the company has complied with the provisions of Section 185 and 186 of theCompanies Act 2013 in respect of grant of loans making investments and providingguarantees.

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

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

(vii) (a) The company is regular in depositing with appropriateauthorities undisputed statutory dues including investor education protection fund incometax sales tax wealth tax service tax & customs duty and other material statutorydues applicable to it. According to the information and explanations given to us noundisputed amounts payable in respect of provident fund income tax sales tax wealthtax customs duty VAT cess and other material statutory dues were in arrears as at 31stMarch 2021 for a period of more than six months from the date they became payable.

(b) As per the information and explanations given to us and on thebasis of the verification of the records of the company the details of statutory dueswhich have not been deposited on account of disputes are as under:

Name of the Statute Nature of dues Pending Amount Rs. in Lakhs Period to which amount relates Forum where dispute is pending Remarks
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 Return processed u/s 143(1) of the Act 166.79 AY 2018-19 Central Processing Centre The company has moved an application u/s 154 of the Act against the said demand.

(viii) In our opinion and according to the information and explanationsgiven to us the company has not defaulted in repayment of dues to a financial institutionor bank. The company has not issued debentures.

(ix) In our opinion and according to the information and explanationsgiven to us the company has applied term loans for the purposes for which the same wereavailed. The company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year.

(x) According to the information and explanations given to us no fraudby the company or on the company by its officers or employees has been noticed or reportedduring the course of our audit.

(xi) In our opinion and according to the information and explanationsgiven to us the company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 r.w. Schedule V of theCompanies Act 2013.

(xii) The company is not a Nidhi Company and hence the reporting underclause (xii) of CARO 2016 Order is not applicable.

(xiii) In our opinion and according to the information and explanationsgiven to us the company has complied with

Sections 177 and Section 188 of the Companies Act 2013 whereapplicable for all transactions with related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

(xiv) During the year the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures andhence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.

(xv) In our opinion and according to the information and explanationsgiven to us the company has not entered into any non-cash transactions with its directorsor directors of its subsidiary or associate companies or persons connected with them andhence provisions of section 192 of Companies Act 2013 are not applicable.

(xvi) In our opinion the company is not required to be registered underSection 45-IA of the Reserve Bank of India Act 1934.

For RAJIV MEHROTRA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG.NO.002253C
RAJIV MEHROTRA
(PARTNER)
M.No.071428
Kanpur 24th May 2021

Annexure "B"

To The Independent Auditors' Report

(Referred to in Para 2(f) under ‘Report on Other legal andRegulatory Requirements' section of our report of even date)

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER SECTION 143(3)(I) OFTHE COMPANIES ACT 2013 ("THE ACT")

We have audited the internal financial controls with reference tofinancial statements of Kanpur Plastipack Limited ("the Company") as of March31 2021 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Opinion

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 controls with reference to Financial Statements and such internal financialcontrols over financial reporting were operating effectively as at March 31st2021 based on the internal control over financial reporting criteria established by thecompany considering the essential components of internal control stated in Guidance Noteof Audit of International Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining 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. 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 safeguardingof its 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 Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to Financial Statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls over Financial Reporting (the "Guidance Note") and the Standards onAuditing to the extent applicable to an audit of internal financial controls both issuedby the Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference toFinancial Statements were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to Financial Statements andtheir operating effectiveness. Our audit of internal financial controls with reference toFinancial Statements included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal controls based on theassessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue 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 internalfinancial controls with reference to Financial Statements.

Meaning of Internal Financial Controls With Reference to StandaloneFinancial Statements

A company's internal financial controls with reference toFinancial Statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany's internal financial controls with reference to Financial Statements includesthose 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 transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference toStandalone Financial Statements

Because of the inherent limitations of internal financial controls withreference to Financial Statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to Financial Statements to future periods are subject to the riskthat the internal financial controls with reference to Financial Statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

For RAJIV MEHROTRA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG.NO.002253C
RAJIV MEHROTRA
(PARTNER)
M.No.071428
Kanpur 24th May 2021

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