You are here » Home » Companies ยป Company Overview » Western India Plywoods Ltd

Western India Plywoods Ltd.

BSE: 538415 Sector: Others
NSE: WIPL ISIN Code: INE215F01023
BSE 05:30 | 01 Jan Western India Plywoods Ltd
NSE 00:00 | 08 Feb 80.40 0
(0.00%)
OPEN

77.00

HIGH

80.40

LOW

77.00

OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Western India Plywoods Ltd. (WIPL) - Auditors Report

Company auditors report

To The Members of

The Western India Plywoods Limited

Report on the Audit of the standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of THE WESTERNINDIA PLYWOODS LIMITED ("the Company") which comprises the StandaloneBalance Sheet as at 31st March 2021 and the Standalone Statement of Profit andLoss (including other comprehensive income) the Standalone Statement of Changes inEquity and the Standalone Statement of Cash flow for the year then ended and notes to theStandalone Financial Statement including a summary of the 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 the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ('Act') in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted in India including the(Indian Accounting Standards) Rules 2015 as amended ("Ind AS") and therelevant rules issued thereunder of the state of affairs of the Company as at 31stMarch 2021 and its income (including other comprehensive income) changes in equity andcash 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. Our responsibilities under thosestandards are further described in the Auditor's Responsibilities for the audit of thestandalone financial statements section of our report. We are independent of the companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the rules madethere under and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on thestandalone financial statements.

Emphasis of Matter

We draw attention to Note No 44 of the statement which describes the impact of COVID-19on the company's business and the appropriateness of preparing these financial statementson a going concern basis which is more fully described.

Our opinion is not modified in respect of the above referred matter.

Key Audit Matters

Key audit matters are those matters that in our Professional judgement were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. For each matter below our description of how our audit addressed thematter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the Financial Statements section of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the Standalone Financial Statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying Standalone Financial Statements.

S.No The Key Audit Matters How the matter was addressed in our audit
1. Impairment testing of investment in subsidiary Our Audit procedure included but were not limited to the following;
Refer note no 4.02 to the accompanying standalone financial statements The equity as well as the preference shares investment in the subsidiary company named Mayabandar Doors limited account for a significant percentage of the company's total investments. As at 31 March 2021 the carrying amount of equity investment in subsidiary company Viz. Mayabandar Doors Limited is Rs. 23225459/-. • We Evaluated the Company's process regarding the impairment assessment and fair valuation by involving independent expert to confirm that the assessment are made in line with the relevant IND AS
Further the company has also invested in 6% Non-cumulative redeemable as well as 8% redeemable cumulative preference share capital of the above said subsidiary the carrying amount of which as at 31st March 2021 is Rs.34000000/- as well as Rs.18000000/- respectively. • We assessed the carrying value/fair value calculation of the investment in subsidiary to determine whether the valuation is within the acceptable range determined by us.
As the carrying amount of the investment in the above said subsidiary exceeds the carrying amounts in the financial statements of the subsidiaries Net assets the management has performed an impairment assessment and has estimated the recoverable amount of its investment in subsidiaries through an independent valuer. • We assessed the professional competence objectivity and capabilities of the valuation specialist engaged by the management.
The accounting for investment in above subsidiary is a Key Audit Matter as the estimation of recoverable amount involve the use of significant estimate and assumptions that are dependent on expected future market and economic conditions. As per such assessment done by the management there is no impairment loss as disclosed in note 4.02 To this standalone financial statement. • We evaluated the adequacy of disclosure made in the standalone financial statement.
Based on the above procedure performed we did not identify any significant exception in the management's assessment in relation to the impairment loss and the carrying value of investments in subsidiary.
2. Recoverability of insurance claim receivable
Refer note no 14.01 to the accompanying standalone financial statements As on 31st March 2021 as per the financial statement an amount of Rs. 21036634/- is outstanding as insurance claim and interest receivable from the insurance company based on the judgement in favour of the company by the Kerala State Consumer Disputes Redressal Commission. Our audit procedures included but were not limited to the following;
However the insurance Company filed an appeal against the above said judgement and the condonation petition in respect of the same is yet to be heard. • We have assessed and reviewed the issue in detail and discussed with management the recent developments and the present status.
Considering the materiality involved and the uncertainty about the ultimate outcome of the appeal the above matter is identified as Key Audit matters. • Considered the Judgment in favor of the company by the Kerala State Consumer Disputes Redressal Commission.
• We considered external legal opinions where relevant obtained by management.
• We assessed the adequacy of the company's disclosures in the financial statement
Based on our above procedure the management's assessment and disclosure in respect of the above matter is considered to be reasonable.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Board Report including Annexure toBoard's Report Management Discussion and Analysis Business Responsibility ReportCorporate Governance and Shareholder's Information but does not include the standalonefinancial statements and our auditor's report thereon. The above referred information isexpected to be made available to us after the date of this auditor's report.

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 identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated. When we read the information If we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance and take appropriate actions necessitated by the circumstances and theapplicable laws and regulation.

Responsibilities of Management and those charged with governance for the StandaloneFinancial Statements

The Company's Board of Directors are 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 total comprehensive income changes in equity and Cashflow of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards specified under section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provision 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 financial controlthat were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatement that give true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements the Board of Directors is responsible forassessing the company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to ceases operations orhas no realistic alternative but to do so.

Those Board of Directors are responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism 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 controls relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing an opinion on whetherthe company 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 the 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 conditions maycause 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.

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 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 about thematter or when 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 Companies Act 2013 we give in the "Annexure A'" a statementon the matters specified in the paragraph 3 and 4 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 purpose of our audit;

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

c) The standalone Balance Sheet standalone Statement of Profit and Loss (includingother comprehensive income) the standalone statement of Cash Flows and the standalonestatement of changes in Equity dealt with by this Report are in agreement with the booksof account;

d) In our opinion the aforesaid standalone financial statements comply with IndianAccounting Standards specified under Section 133 of the Act read with rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on March312021 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312021 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 with reference tostandalone financial statement of the Company and the operating effectiveness of suchcontrols refer to our separate report in "Annexure B".

g) With respect to the others matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended

In our opinion and to the best of our information and according to the explanationgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

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 does not have any pending litigations which would impact its financialposition.

(II) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses and

(III) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the company.

"ANNEXURE - A" TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 1 of Report on Other Legal and Regulatory Requirements of ourReport of even date to the members of M/S THE WESTERN INDIA PLYWOODS LIMITED on theaccounts of the Company for the year ended 31st March 2021]

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

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

(b) In our opinion The fixed assets of the company are physically verified by themanagement in accordance with a phased programme at reasonable intervals and that nomaterial discrepancies have been noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company and based on the details of land and buildingsfurnished to us by the company the title deeds of immovable properties are held in thename of the Company.

(ii) In our opinion the physical verification of inventory (other than stock of timberlying in the pond and goods in transit) has been conducted by the management at reasonableinterval during the year and no material discrepancies between physical inventory and bookrecords were noticed on physical verification.

(iii) According to the information and explanations given to us and the records of thecompany examined by us during the year the Company has not granted any loans secured orunsecured to companies firms limited liability partnership or other parties covered inthe register maintained under section 189 of the Companies Act 2013. Accordingly thereporting requirements under clauses (iii) (a) to (c) of paragraph 3 of the order are notapplicable.

(iv) According to the information and explanations given to us and the records of thecompany examined by us the company has not granted any loans or given any security orguarantee for which the provisions of sections 185 and 186 of the Act are applicable andthe Company has complied with the provisions of section 186 of the Act in respect ofinvestments as applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposits within the meaning of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed thereunder. Hence theprovisions of clause (v) of paragraph 3 of the Order are not applicable to the company.

(vi) To the best of our knowledge and according to the information and explanationgiven to us the Central Government has not prescribed the maintenance of cost recordsunder section 148 (1) of the Act for the company at this stage.

(vii) (a) As per the information and explanation furnished to us and according to ourexamination of the records of the Company The company has been generally regular indepositing undisputed statutory dues including Provident Fund Employees State insuranceIncome Tax Sales Tax Service Tax Goods & Service Tax Duty of Customs Duty ofExcise Value added Tax Cess and the other statutory dues as applicable to the companyto the appropriate authorities during the year.

There are no arrears of undisputed statutory dues outstanding at the last day of thefinancial year for a period of more than six months from the date on which they becomepayable. (b) According to the information and explanations given to us and the records ofthe Company examined by us there are no disputed amounts due to be deposited under Salestax service tax duty of customs duty of excise value added tax and income tax.

(viii) In our opinion and according to the information and explanations given to us andthe records of the company examined by us the company has not defaulted in repayment ofloans or borrowings to financial institution or banks. The company has not taken any loansor borrowings from government or raised any money by way of issue of debentures.

(ix) According to the information and explanations given to us and the records of thecompany examined by us no moneys were raised by way of initial public offer or furtherpublic offer (including debt instruments) in our opinion the term loan was applied forthe purpose for which the loan was obtained.

(x) During the course of our examination of the books and records of the companycarried out in accordance with generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the company or on the company by its officers or employeesnoticed or reported during the year nor have been informed of any such case by themanagement.

(xi) According to the information and explanations give 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 to the Act.

(xii) The Company is not a nidhi company. Accordingly the reporting requirement underparagraph 3(xii) of the 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 Note No. 36 to the standalone financial statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanations given to us and the records of thecompany examined by us the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.Accordingly the reporting requirements under clause (xiv) of the paragraph 3 of the orderare not applicable.

(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 any non-cashtransactions with directors or persons connected with the directors. Accordingly thereporting requirement under paragraph 3(xv) of the Order is not applicable.

(xvi) According to the information and explanations given to us and records of thecompany examined by us the company is not required to be register under section 45-IA ofthe Reserve Bank of India Act 1934. Accordingly the reporting requirement underparagraph 3 (xvi) of the order is not applicable.

"ANNEXURE B" TO THE INDEPENDENT AUDITORS' REPORT

REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING "REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS" OF OUR INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF THE WESTERN INDIA PLYWOODS LIMITED FOR

THE YEAR ENDED 31st MARCH 2021

Report on the Internal Financial Controls with reference to these Standalone FinancialStatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls system with reference to standalonefinancial statements reporting of THE WESTERN INDIA PLYWOODS LIMITED ("theCompany") as of 31st March 2021 in conjunction with our audit of the Standalonefinancial 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 controls with reference to financial statementreporting 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 ('ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols system with reference to the standalone financial statements reporting based onour audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting (the "Guidance Note") andthe Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls with reference to Standalone financial Statements. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols system with reference to these standalone financial statements was establishedand maintained 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 with reference to these standalone financialstatements reporting and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements included obtaining anunderstanding of internal financial controls with reference to the standalone financialstatements 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 standalone financial statements whether due tofraud 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 systemwith reference to these standalone financial statements.

Meaning of Internal Financial Controls with reference to these Standalone Financialstatements

A company's internal financial control system with reference to these standalonefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of Standalone financial statementsfor external purposes in accordance with generally accepted accounting principles. Acompany's internal financial controls with reference to standalone financial statementsreporting 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 standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations 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 standalone financial statements.

Inherent Limitations of Internal Financial Controls with reference to StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls system withreference to the standalone financial statements including the possibility of collusionor improper management override of controls material misstatements due to error or fraudmay occur and not be detected. Also projections of any evaluation of the internalfinancial controls with reference to standalone financial statements to future periods aresubject to the risk that the internal financial controls system with reference tostandalone financial statements may become inadequate because of changes in conditions orthat the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystems with reference to these standalone financial statements and such internalfinancial controls system with reference to these standalone financial statements wereoperating effectively as at 31 March 2021 based on the internal control with reference tothese standalone financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Emphasis of Matter

We draw attention to Note No 41 to the Standalone financial statements regarding theexistence of adequate internal controls system with reference to standalone financialstatements which has been reviewed/tested by the management/internal auditors on anongoing basis based on which there are no material weakness/deficiencies and that furtherstrengthening of the internal control system/ improvements thereof are beingassessed/carried out by the management on a continuing basis.

For Sankar & Moorthy
Chartered Accountants
Firm Reg. No. 003575S
Sd/-
Vineeth Krishnan KV FCA DISA
(Partner)
Place: Kannur Mem. No. 232371
Date: 14th June 2021 UDIN: 21232371AAAADS3213

.