You are here » Home » Companies » Company Overview » Simplex Papers Ltd

Simplex Papers Ltd.

BSE: 533019 Sector: Others
NSE: N.A. ISIN Code: INE456H01011
BSE 10:56 | 28 Nov 25.10 0
(0.00%)
OPEN

24.05

HIGH

26.35

LOW

24.05

NSE 05:30 | 01 Jan Simplex Papers Ltd
OPEN 24.05
PREVIOUS CLOSE 25.10
VOLUME 609
52-Week high 122.70
52-Week low 22.25
P/E
Mkt Cap.(Rs cr) 8
Buy Price 25.10
Buy Qty 329.00
Sell Price 26.20
Sell Qty 1.00
OPEN 24.05
CLOSE 25.10
VOLUME 609
52-Week high 122.70
52-Week low 22.25
P/E
Mkt Cap.(Rs cr) 8
Buy Price 25.10
Buy Qty 329.00
Sell Price 26.20
Sell Qty 1.00

Simplex Papers Ltd. (SIMPLEXPAPERS) - Auditors Report

Company auditors report

To the Members of Simplex Papers Limited

Report on the audit of the Standalone Financial Statements

Opinion

We have audited the accompanying financial statements of Simplex Papers Limited (theCompany’) which comprise the Balance Sheet as at 31st March 2022 the Statement ofProfit and Loss (including Other Comprehensive Income) the Statement of Changes in Equityand the Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information (hereinafter referred to as"the standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theIndian Accounting Standards prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended ("Ind AS") andother accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2022 the loss and total comprehensive income / expense changesin equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013 ("the Act"). Ourresponsibilities under those Standards are further described in the ‘Auditor’sResponsibilities for the Audit of the Financial Statements’ section of our report. Weare independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India together with the ethical requirements thatare relevant to our audit of the financial statements under the provisions of theCompanies Act 2013 and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Emphasis of Matter

We draw attention to the following matters in the Notes to the financial statements:

1. During the year the Company has accumulated losses and its net worth has been fullyeroded. This indicates the existence of uncertainty that may cast doubt about theCompany’s ability to continue as a going concern. However as explained by themanagement in Note No. 19 the financial statements of the Company have been prepared on agoing concern basis for the reason stated in the said note.

2. Attention is drawn on Note no 1 (1(a)) of the Standalone financial statementsrelating to impact of COVID - 19 Pandemic on the Company. In the opinion of theManagement the said Pandemic is not likely to significantly impact the carrying amount ofloans receivables and other assets. The impact of COVID-19 on the Company’sFinancial Statements may differ from that estimated as at the date of approval of thesefinancial statements.

Our opinion is not modified in respect of the aforesaid matter

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.

We have determined that there are no key audit matters to communicate in our report.

Information Other than the Standalone Financial Statements and Auditor’s ReportThereon

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 ReportCorporate Governance and Shareholder’s Information but does not include thestandalone financial statements and our auditor’s 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 our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course 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 Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance (changes in equity) and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror. 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 also responsible for overseeing theCompany’s financial reporting process.

Auditor’s Responsibility for the Audit of the 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 ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal 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 concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (I) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements. We communicate with those chargedwith governance regarding among other matters the planned scope and timing of the auditand significant audit findings including any significant deficiencies in internal controlthat we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor’s report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be 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 ("theOrder"") issued by the Central Government of India in terms of sub-section (11)of Section 143 of the Act we give in the Annexure ‘A’ a statement on thematters specified in Paragraphs 3 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act we report that:

(a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) the Balance Sheet Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account;

(d) in our opinion the aforesaid financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act.

(e) on the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 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 operative effectiveness of such controls refer to ourseparate report in Annexure ‘B’.

(g) As per the information and explanation given and based on our examination Companyhas not paid any managerial remuneration to the Directors and hence reporting clause undersection 197(16) of the Act is not applicable.

(h) with respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note no. 17 to the financial statements;

ii. The Company did not have any longterm contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. a) The management has represented that to the best of its knowledge and belief asdisclosed in note 28 to the accounts no funds have been advanced or loaned or invested(either from borrowed funds or share premium or any other sources or kind of funds) by theCompany to or in any other persons or entities including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall:

• directly or indirectly lend or invest in other persons or entities identified inany manner what so ever ("Ultimate Beneficiaries") by or on behalf of theCompany or

• provide any guarantee security or the like on behalf of the UltimateBeneficiaries.

b) The management has represented that to the best of its knowledge and belief asdisclosed in note 28 to the accounts no funds have been received by the Company from anypersons or entities including foreign entities ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the Company shall:

• directly or indirectly lend or invest in other persons or entities identifiedin any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of theFunding Party or

• provide any guarantee security or the like on behalf of the UltimateBeneficiaries.

c) Based on such audit procedures as considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (iv) (a) and (iv) (b) contain any material mis-statement.

v. The Company has not declared or paid any dividend during the year.

For K.M. Shah & Co.
Chartered Accountants
Firm’s registration number: 109637W
Kantilal M. Shah
Proprietor
Membership number: 003857
Mumbai 14th May 2022
UDIN : 22003857AIZRIE9681

Annexure ‘A’ to the Independent Auditors’ Report to the members of theCompany on the financial statements for the year ended 31st March 2022 referred to inparagraph 1 under the heading "Report on Other Legal and RegulatoryRequirements" of our report of even date.

To the best of our information and according to the explanations provided to us by theCompany and the books of account and records examined by us in the normal course of auditwe state that:

I. a. i. The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.

ii. The Company does not have any Intangible assets.

b. The Property Plant and Equipment have been physically verified by the management atreasonable intervals and as per information and explanation given the discrepanciesnoticed on physical verification as compared to book records maintained were not materialand have been properly dealt with in the books of account.

c. Based on the audit procedure performed and according to the records of the companytitle deeds of all the immovable properties are held in the name of the company.

d. During the relevant year the company has not done revaluation of its propertyplant and equipment (including Right of Use assets) or intangible assets or both.

e. As per the information and explanations given to us as on the date of balancesheet no proceedings have been initiated or are pending against the Company for holdingany benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made thereunder.

ii. a. The Company does not have any inventory during the year. Accordingly clause3(ii)(a) of the Order is not applicable.

b. The company has not been sanctioned working capital limits in excess 5 crore inaggregate at any points of time during the year from banks or financial institutions onthe basis of security of current assets and hence reporting under clause 3(ii)(b) of theOrder is not applicable.

iii. a. During the year the Company has not has made investments in companies firmsLimited Liability Partnerships and not granted unsecured loans to other partiestherefore reporting under clause 3(iii)(a) to 3(iii)(f) of the Order are not applicable.

iv. In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofloans granted investments made and guarantee and securities provided as applicable.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit or amounts which are deemed to be deposits. Hencereporting under clause 3(

v) of the Order is not applicable.

vi. As per information and explanation given to us by the management the provisionsfor maintenance of the cost records under Section 148(1) of the Act are not applicable tothe Company as there is no manufacturing activity during the year under review.

vii. a. According to the information and explanations given to us the Company hasgenerally been regular in depositing undisputed statutory dues including Goods andServices tax Provident Fund Employees' State Insurance Income Tax Sales Tax ServiceTax duty of Custom duty of Excise Value Added Tax Cess and other material statutorydues applicable to it with the appropriate authorities.

There were no undisputed amounts payable in respect of Goods and Service tax ProvidentFund Employees' State Insurance Income Tax Sales Tax Service Tax duty of Custom dutyof Excise Value Added Tax Cess and other material statutory dues in arrears as at March31 2022 for a period of more than six months from the date they became payable.

b. Details of statutory dues referred to in subclause (a) above which have not beendeposited as on March 312022 on account of disputes are given below:

Excise duty

Period to which dues relate Pending before (Rs in ‘000)
1994-2000 CESTAT 333641.22
Total 333641.22

viii. As information and explanation given to us by the management there are notransactions of surrendered or disclosed income in the Income Tax Assessments during theyear which are unrecorded in the books of accounts maintained by the Company.

ix. a. According to the information and

explanations given to us the Company has not committed default in repayment of dues inrespect of its bank borrowings except in respect of the unsecured Sales Tax loan from astate financial institution as at the balance sheet date which is due for more than sixmonths the details of which is as follows:-

Name of the Lender Amount of default as at the balance sheet date (Rs in ‘000) Period of default Remarks if any.
SICOM Ltd. (Sales Tax Loan) now transferred to Directorate of Industries Nagpur Region ' 28199.78 1996 to 2001 The said default is inclusive of interest amounting to '23441.26 thousands w. e. f. 30th June 1996 and the same is disclosed as contingent liability in the notes to the accounts.

b. The Company has not been declared willful defaulter by any bank or financialinstitution or government or any government authority.

c. During the year the company has not availed any term loan and hence clause ix (c)of the Caro 2020 is not applicable.

d. On as overall examination of the financial statements of the Company funds raisedon short term basis have prima facie not been used during the year for long-termpurposes by the Company.

e. As per the information given to us by the management the Company has not borrowedany funds from any entity or person on account of or to meet the obligations of thesubsidiaries associates or joint ventures.

f. As per the information given to us by the management the Company has not raised

loans during the year on the pledge of securities held in its subsidiaries jointventures or associate companies.

x. a. According to the information and the explanations given to us the Company hasnot raised any money by way of initial/further public offer (including debt instruments).

b. The Company has not made any preferential allotment or private placement of sharesor (fully partially or optionally) convertible debentures during the year thereforereporting under clause 3(x)(b) is not applicable.

xi. a. No fraud by the Company and no material fraud on the Company has been noticed orreported during the year.

b. No report under sub-section (12) of section 143 of the Companies Act has been filedin Form ADT- 4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and upto the date of this report.

c. We have taken into consideration the whistle blower complaints if any received bythe Company during the year (and upto the date of this report) while determining thenature timing and extent of our audit procedures.

xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

xiii. In our Opinion the Company is in compliance with Section 177 and 188 of theCompanies Act 2013 with respect to applicable transactions with the related parties andthe details of related party transactions have been disclosed in the standalone financialstatements as required by the applicable accounting standards.

xiv. a. In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its Business.

b. We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.

xv. In our opinion during the year the Company has not entered into any non-cashtransactions with its Directors or persons connected with its directors and henceprovisions of section 192 of the

Companies Act 2013 are not applicable to the Company.

xvi. In our opinion the Company is not required to be registered under section 45-1Aof the Reserve Bank of India Act 1934. Hence reporting under clause 3(xvi) (a) (b) and(c) of the Order is not applicable.

xvii. The Company has incurred cash losses during the financial year covered by ouraudit. However there were no cash losses in the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors of the Company duringthe year.

xix. On the basis of financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information based on ourexamination of the evidence supporting the assumptions we are of the opinion that thereexists material uncertainty as on the date of audit report indicating that Company

is not capable of meeting its liabilities existing as on Balance sheet date as and whenthey fall due within a period of one year from the Balance sheet date.

xx. a. The provisions of clause 3(xx) (a) are not applicable to the company.

b. The provisions of clause 3(xx) (b) are not applicable to the company since there isno amount unspent under sec 135(5) of the Companies Act.

For K.M. Shah & Co.
Chartered Accountants
Firm’s registration number: 109637W
Kantilal M. Shah
Proprietor
Membership number: 003857
Mumbai 14th May 2022
UDIN : 22003857AIZRIE9681

Annexure ‘B’ to the Independent Auditors’ Report of the even date.

The Annexure referred to in our Independent Auditors’ Report to the members of theCompany on the financial statements for the year ended 31st March 2022 we report that:

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of SimplexPapers Limited (‘the Company’) as of 31st March 2022 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 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 assetsthe prevention 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.

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 The Institute ofChartered Accountants of India and deemed to be prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform

the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 control based on the assessed risk. The proceduresselected depend on the auditor’s judgment 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 controlssystem over 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 authorisations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 31st March 2022 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For K.M. Shah & Co.
Chartered Accountants
Firm’s registration number: 109637W
Kantilal M. Shah
Proprietor
Membership number: 003857
Mumbai 14th May 2022
UDIN : 22003857AIZRIE9681

.