To the members of
KIRAN PRINT-PACK LIMITED
Report on the Audit of Standalone Financial Statements
We have audited the accompanying standalone financial statements of Kiran Print-PackLtd. ("the Company") which comprise the Balance Sheet as at 31st March2019 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information. In ouropinion and to the best of our information and according to the explanations given to usthe aforesaid financial statements give the information required by the Companies Act2013 in the manner so required and give a true and fair view in conformity with the IndianAccounting Standards prescribed under section 133 of the Companies Act2013 read with theCompanies (Indian Accounting Standards) Rules2015 as amended and other accountingprinciples generally accepted in India of the state of affairs (financial position) ofthe Company as at 31st March 2019 and its Profit (financial performance including othercomprehensive income) the changes in Equity and its Cash Flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Companies Act 2013. Our responsibilities under those Standards arefurther described in Auditor's Responsibilities for the Audit of the Financial Statementssection of our audit report. We are independent of the Company in accordance with the Codeof Ethics issued by the Institute of Chartered Accountants of India (ICAI) together withthe ethical requirements that are relevant to our audit of the financial statements underthe provisions of the Companies Act 2013 and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the financial statements.
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 the audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.
|Key Audit Matter ||Auditors Response |
|Evaluation of uncertain tax positions: ||Principal Audit Procedures |
|The Company has material uncertain tax positions regarding income tax assessments for earlier tax periods involving significant judgement to determine the possible outcomes ||Obtained details of completed tax assessments for other periods from the management. We studied the management's underlying assumptions in estimating the tax provision and the possible outcome. We also considered legal precedence and other rulings in evaluating management's position on these uncertain positions. |
Information Other than the Standalone Financial Statements and Auditors 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 Annual Reportbut does not include the standalone financial statements and our auditors 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 ouraudit of the standalone financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements of our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.
Responsibility of the Management and Those Charged with Governance for the FinancialStatements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income and cash flows and changes in equity ofthe Company in accordance with the Indian Accounting Standards and other accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error. In preparing thefinancial statements the Board of Directors is responsible for assessing the Company'sability to continue as a going concern disclosing as applicable matters related togoing concern and using the going concern basis of accounting unless the management eitherintends to liquidate the Company or to cease operations or has no alternative but to doso. The Board of Directors is 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 financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with theStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud o error and are considered material if individually orin the aggregate they could reasonably be expected to influence the economic decisions ofthe users taken on the basis of these standalone financial statement.
As part of an audit in accordance with the Standards on Auditing we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:
? Identify and assess the risk of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as frauds may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
? Obtain an understanding of internal financial control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies act 2013 we are also responsible for expressing our opinionon whether the Company has adequate internal financial control systems in place and theoperating effectiveness of such controls.
? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.
? Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 statement or if such disclosures are inadequate to modify our opinion. Ourconclusions 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 financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation. Materiality is themagnitude of misstatements in the standalone financial statements that individually or inaggregate makes it probable that the economic decisions of a reasonably knowledgeable userof the financial statements may be influenced. We consider quantitative materiality andqualitative factors in (i) planning scope of our audit work and in evaluating the resultsof our work; and (ii) to evaluate the effect of any identified misstatements in thefinancial statements. 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 we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards. From the matters communicatedwith those charged with governance we determine those matters that were of mostsignificance in the audit of the financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor's report unlesslaw or regulation precludes public disclosure about the matter or when in extremely rarecircumstance we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonable be expected to outweigh the publicinterest 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 section 143(11) of the CompaniesAct 2013 we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.
2. As required by section 197(16) of the Companies Act 2013 we report that in ouropinion and to the best of our information and according to the explanation given to usthe remuneration paid by the Company to its director during the year is in accordance withthe provisions of and limits laid down under section 197 read with Schedule V of theCompanies Act 2013.
3. As required by section 143(3) of the Act based on our audit 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 purpose of our audit; (b) In ouropinion proper books of account as required by law have been kept by the Company so faras appears from our examination of those books; (c) The Balance Sheet the Statement ofProfit and Loss including Other Comprehensive Income the Statement of Changes in Equityand the Cash Flow Statement dealt with by this report are in agreement with the books ofaccount; (d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under section 133 of the Companies Act 2013 readwith the Rule 7 of the Companies (Indian Accounting Standards) Rules 2014 as amended; (e)On the basis of written representations received from the directors as on 31st March 2019and taken on record by the Board of Directors none of the directors is disqualified as on31st March 2019 from being appointed as a director in terms of section 164(2) of the Act.(f) With respect to the adequacy of internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer our separate reportin Annexure B. (g) 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 asamended in our opinion and to the best of our information and according to theexplanations given to us: i. The Company does not have any pending litigations which couldimpact its financial position. ii. The Company has not entered into any long-termcontracts including derivative contracts requiring provision under the applicable law oraccounting standards for material foreseeable losses. iii. There is no amount which isrequired to be transferred to the Investor Education and Protection Fund by the
For Manoj K Shah & Co.
Manoj K. Shah
Firm Regn. No.: 126403W
Membership No. 119022
Place : Mumbai
Date : May 29 2019
Annexure A - referred to in paragraph 1 under the heading "Report on Other Legaland Regulatory Requirements" of the Independent Auditors' Report of even date on theInd AS Financial Statements of Kiran Print-Pack Ltd. for the year ended 31st March 2019
On the 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 furtherreport as under.
(i) (a) As per the information and explanations given to us the Company has maintainedproper records showing full particulars including quantitative details and situations offixed assets.
(b) As per the information and explanations given to us the Company has a regularprogramme of verification of its fixed assets which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. No material discrepancieswere noticed on such physical verification. (c) As informed to us the title deeds of thefactory premises of the Company are not held in the name of the Company. Details of thesame are as under: Gross Block (as at 31.03.2019) Rs. 1573877 Net Block (as at31.03.2019) Rs. 1066231
(ii) The inventory has been physically verified during the year by the management. Inour opinion the frequency of such verification is reasonable considering the size andvolume of the business of the company. No material discrepancies were noticed on suchphysical verification.
(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly paragraph 3(iii) of the Order is not applicable to theCompany. (iv) In our opinion and according to the information and explanations given tous the company has not given any loans or guarantees or made any investments during theyear as per the provisions of section 185 and 186 of the Act.
(v) According to the information and explanations given to us the Company has notaccepted any deposits within the meaning of sections 73 to 76 of the Companies Act 2013and the rules framed there under. (vi) According to the information and explanations givento us the Central Government has not specified maintenance of cost records undersub-section (1) of section 148 of the Companies Act 2013 for the activities of theCompany.
(vii) (a) As per the records of the Company and according to the information andexplanations given to us the Company is generally regular in depositing with theappropriate authorities the undisputed statutory dues including Employees' StateInsurance Income Tax Sales Tax Service Tax Customs Duty Excise Duty Value Added TaxCess and other statutory dues to the extent applicable to it. According to the informationand explanations given to us there are no arrears of outstanding statutory dues as at thelast day of the financial year concerned for a period of more than six months from thedate they became payable. (b) On the basis of our examination of the documents and recordsof the Company and according to the information and explanations given to us there are nodues of Income Tax Sales Tax Service Tax Customs Duty Excise Duty Value Added Tax andCess as at 31st March 2019 which have not been deposited on account of any dispute.
(viii) The Company does not have any dues repayable to any financial institution bankor Government. Accordingly paragraph 3(viii) of the Order is not applicable to theCompany. (ix) According to the information and explanations given to us the Company hasnot raised any money by way of initial offer or further public offer (including debtinstruments) and has not taken any term loan 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 andbased on the audit procedures performed and according to the information and explanationsgiven to us we have neither come across any instance of material fraud by the Company oron the Company by its officers or employees noticed or reported during the year nor havewe been informed of any such case by the management.
(xi) Based on the audit procedures performed and the information and explanations givento us the managerial remuneration paid during the year is in accordance with theprovisions of section 197 read with Schedule V to the Companies Act 2013.
(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company. (xiii) Based on the audit procedures performed and theinformation and explanations given to us all transactions with the related parties are incompliance with section 177 and 188 of the Companies Act 2013 and the details have beendisclosed in the Standalone Financial Statements as required by the applicable IndianAccounting Standards.
(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or debentures during theyear under review. Accordingly paragraph 3(xiv) of the Order is not applicable to theCompany. (xv) According to the information and explanation given to us the Company hasnot entered into any non-cash transactions with directors or persons connected with thedirectors. Accordingly paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.
For Manoj K Shah & Co.
Manoj K. Shah
Mumbai : May 29 2019
Annexure B - referred to in clause (f) of paragraph 3 under the heading "Report onOther Legal and Regulatory
Requirements" of the Independent Auditors' Report of even date on the FinancialStatements of Kiran Print-Pack Ltd. for the year ended 31st March 2019
Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013
We have audited the internal financial controls over financial reporting of KiranPrint-Pack Limited ("the Company") as of March 31 2019 in conjunction with ouraudit of the Ind AS 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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
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") by the ICAI and the Standards on Auditing issued by theICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Control. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about 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 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 reportingincluding 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 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 that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisitionuse or disposition of the company's assets that could have a material effect on thefinancial 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.
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 March 31 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the ICAI.
For Manoj K Shah & Co.
Manoj K. Shah
Mumbai : May 29 2019