You are here » Home » Companies » Company Overview » Raj Packaging Industries Ltd

Raj Packaging Industries Ltd.

BSE: 530111 Sector: Industrials
NSE: N.A. ISIN Code: INE639C01013
BSE 00:00 | 14 Feb 26.40 -1.35
(-4.86%)
OPEN

26.40

HIGH

26.40

LOW

26.40

NSE 05:30 | 01 Jan Raj Packaging Industries Ltd
OPEN 26.40
PREVIOUS CLOSE 27.75
VOLUME 10
52-Week high 35.45
52-Week low 16.80
P/E
Mkt Cap.(Rs cr) 12
Buy Price 26.50
Buy Qty 1.00
Sell Price 26.40
Sell Qty 2452.00
OPEN 26.40
CLOSE 27.75
VOLUME 10
52-Week high 35.45
52-Week low 16.80
P/E
Mkt Cap.(Rs cr) 12
Buy Price 26.50
Buy Qty 1.00
Sell Price 26.40
Sell Qty 2452.00

Raj Packaging Industries Ltd. (RAJPACKAGING) - Auditors Report

Company auditors report

To

The Members of

Raj Packaging Industries Limited Report on the Financial Statements Opinion

We have audited the accompanying financial statements of Raj Packaging IndustriesLimited ("the Company") which comprise the Balance Sheet as at 31st March2019 the Statement of Profit and Loss Other Comprehensive Income the Statement ofChanges in Equity and the Cash Flow Statement for the year then ended and notes to thefinancial statements including a summary of the significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2019 and its loss changes in equity andits Cash Flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial 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 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.

Key Audit Matter Auditor's Response
Appropriateness of the Expected Credit Loss ("ECL") provision in respect of trade receivables carried at amortized cost: Our procedures in relation to testing of ECL provision recognised included the following:
(Refer Note 8 and Note 31 to the financial statements) Understanding and evaluating the design and testing the operating effectiveness of controls in respect of ECL provision for trade receivables carried at amortised cost
The Company has trade receivables aggregating to Rs. 670.54 lakhs as at March 31 2019 in respect of which the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments and recognises expected lifetime losses from initial recognition of the receivables. The provision for ECL as at March 31 2019 is Rs. 8.70 lakhs. Reading of the underlying sale orders and invoices as applicable to understand the nature of trade receivables and the dates on which the payments fall due Assessing the appropriateness of the credit loss provisioning methodology used by the Management which involves the use of historical trends such as cash collection performance of the current year against historical trends and the level of credit loss over time
This is determined as a key audit matter as determination of the ECL provision involved application of judgment by Management in respect of matters such as maximum contractual period of credit risk and probability of credit loss given the significant number of aged receivables from customers. Based on the above procedures performed we did not find any significant exceptions to the ECL provision recognised in respect of trade receivables carried at amortized cost.

Information other than the 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 ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report but doesnot include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position and financial performance changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding 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 financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditors' Responsibility for the Audit of 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 SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany 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 financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 Act and on the basis of such checks of books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the "Annexure A" attached hereto our comments on the matters specifiedin paragraphs 3 and 4 of the said Order.

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 the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act;

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Section 197(16) of the Act as amended: In our opinionand to 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.

h) With respect to the other matters to be included in the Auditors' 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 does not have any pending litigations which would impact its financialposition.

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

For SVP & Associates
FRN: 003838N
Chartered Accountants
Sd/-
Yogesh Kumar Singhania
Place : Mumbai Partner
Date : May 30 2019 Membership No. : 111473

‘''ANNEXURE A'' REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHERLEGAL AND REGULARITY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF RAJPACKAGING INDUSTRIES LIMITED

On the basis of our examination of the books and records of the Company carried out inaccordance with the auditing standards generally accepted in India and according to theinformation and explanations given to us we state that:

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

(b) All the fixed assets have been physically verified by the management at regularintervals during the year which in our opinion is reasonable having regard to the size ofthe Company and nature of its fixed assets. According to the information and explanationsgiven to us no discrepancy between the book records and physical inventory was noticed onsuch verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of all the immovable propertiescomprising of Freehold Land and Buildings are held in the name of the Company.

(ii) According to the information and explanations given to us and in our opinion themanagement has conducted physical verification of inventory at reasonable intervals duringthe year. Inventory lying with third parties and in-transit have been verified by themanagement with reference to the confirmations received from them and/or with reference tosubsequent receipt of goods. The discrepancies noticed on verification between thephysical stock and book records were not material in relation to the operations of theCompany and have been properly dealt with in the books of account.

(iii) According to the information and explanations given to us during the year theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the Act. Accordingly reporting requirements of paragraph 3(iii) of the Order arenot applicable to the Company.

(iv) In our opinion and according to the information and explanations given to usduring the year the Company has not given any loans made investments issued guaranteesand security in terms of Section 185 and 186 of the Act. Accordingly reportingrequirements of paragraph 3(iv) of the Order are not applicable to the Company.

(v) We have broadly reviewed the books of account maintained by the Company pursuant tothe Rules made by the Central Government for the maintenance of cost records under Section148(1) of the Act in respect of Company's products and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We are howevernot required to and have not made a detailed examination of the cost records with a viewto determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income-tax goods and services tax sales-tax service tax duty of customsduty of excise value added tax cess and any other statutory dues applicable havegenerally been regularly deposited with the appropriate authorities. According to theinformation and explanations given to us there were no outstanding statutory dues as on31st March 2019 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income tax or goods and services tax salestax or service tax or duty of customs or duty of excise or value added tax or goods andservice tax which have not been deposited on account of any dispute except the following:

Name of the Statute Nature of dues Financial Year Amount (INR in lakhs) Forum where the dispute is pending
Andhra Pradesh Value Added Tax Act 2005 Sales Tax 2003-04 0.71 Sales Tax Appellate Tribunal
Andhra Pradesh Value Added Tax Act 2005 Sales Tax 2004-05 2.04 Sales Tax Appellate Tribunal

(viii) According to the records maintained by the Company and information andexplanations given to us the Company has not defaulted in repayment of dues to a bank.The Company does not have any loan or borrowing from financial institution Government ordues to debenture holders.

(ix) According to the information and explanations given to us the Company has notraised any money by way of initial public offer or further public offer (including debtinstruments) during the year. In our opinion the term loans have been applied for thepurpose for which they were raised.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the Company or on the Company by its officers or employees nor havewe been informed of such case by the management.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V of the Act.

(xii) The Company is not a Nidhi Company and hence reporting under clause 3(xii) ofthe Order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards. (Refer Note 35 to the financial statements).

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company during the year under review the Company hasnot made any preferential allotment or private placement of shares or fully or partlyconvertible debentures. Accordingly reporting requirement under paragraph 3(xiv) of theOrder are not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them as per the provisions ofSection 192 of the Act. Accordingly reporting requirements under paragraph 3(xv) of theOrder are not applicable to the Company.

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

For SVP & Associates
FRN: 003838N
Chartered Accountants
Sd/-
Yogesh Kumar Singhania
Place : Mumbai Partner
Date : May 30 2019 Membership No. : 111473

ANNEXURE B REFERRED TO IN PARAGRAPH 2(g) UNDER THE HEADING "REPORT ON OTHER LEGALAND REGULARITY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF RAJPACKAGING INDUSTRIES LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/s. RajPackaging Industries Limited ("the Company") as of March 31 2019 inconjunction with our audit of the financial statements of the Company for the year endedon 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 includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such 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 includesobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions 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 authorizations of management and directors of the company; and

3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 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 Institute of CharteredAccountants of India.

For SVP & Associates
FRN: 003838N
Chartered Accountants
Sd/-
Yogesh Kumar Singhania
Place : Mumbai Partner
Date : May 30 2019 Membership No. : 111473