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West Coast Paper Mills Ltd.

BSE: 500444 Sector: Industrials
NSE: WSTCSTPAPR ISIN Code: INE976A01021
BSE 00:00 | 11 Dec 309.25 4.25
(1.39%)
OPEN

296.50

HIGH

314.05

LOW

295.20

NSE 00:00 | 11 Dec 306.80 3.60
(1.19%)
OPEN

297.00

HIGH

315.00

LOW

293.70

OPEN 296.50
PREVIOUS CLOSE 305.00
VOLUME 12459
52-Week high 414.55
52-Week low 225.00
P/E 6.94
Mkt Cap.(Rs cr) 2,043
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 296.50
CLOSE 305.00
VOLUME 12459
52-Week high 414.55
52-Week low 225.00
P/E 6.94
Mkt Cap.(Rs cr) 2,043
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

West Coast Paper Mills Ltd. (WSTCSTPAPR) - Auditors Report

Company auditors report

To the members of

WEST COAST PAPER MILLS LIMITED

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone Ind AS financial statements of WestCoast Paper Mills Limited ('the Company') which comprise the Balance Sheet as at 31 March2018 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

2. 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 of thesestandalone financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards ('IndAS') specified under Section 133 of the Act. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding 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 standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthese standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on these standalone financial statements.

Opinion

8. 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 theaccounting principles generally accepted in India including Ind AS specified under Section133 of the Act of the state of affairs (financial position) of the Company as at 31 March2018 and its profit (financial performance including other comprehensive income) itscash flows and the changes in equity for the year ended on that date.

Other Matter

9. The audited standalone financial statements for the year ended 31 March 2017 wascarried out and reported by

erstwhile auditors vide their unmodified audit report dated 25th May 2017 whosereport has been furnished to us by the management and which has been relied upon by us forthe purpose reporting previous year numbers and our audit of the standalone financialstatements. Our audit report is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of Section 143(11) of the Act we give in theAnnexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.

11. Further to our comments in Annexure A as required by Section 143(3) of the Act wereport 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 it appears from our examination of those books;

c) the standalone financial statements dealt with by this report are in agreement withthe books of account;

d) In our opinion the aforesaid standalone financial statements comply with Ind ASspecified under Section 133 of the Act;

e) on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31 March2018 from being appointed as a director in terms of Section 164(2) of the Act;

f) we have also audited the internal financial controls over financial reporting(IFCOFR) of the Company as on 31 March 2018 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date and ourreport as per Annexure B expressed Unmodified opinion;

g) 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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

i. the Company has disclosed the impact of pending litigations on its financialposition in the standalone financial statements.

ii. the Company has made provision as required under the applicable law or Ind AS formaterial foreseeable losses if any on long-term contracts including derivativecontracts;

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company;

iv. the disclosure requirements relating to holdings as well as dealings in specifiedbank notes were applicable for the period from 8 November 2016 to 30 December 2016 whichare not relevant to these standalone financial statements. Hence reporting under thisclause is not applicable.

For Singhi & Co.

Chartered Accountants

Firm Registration Number: 302049E

Nikhil Singhi

Partner

Membership Number: 061567

Date : 21st May 2018

Place : Kolkata

Annexure A

to the independent auditors' report (Referred to in paragraph 10 with the heading'Report on Other Legal and Regulatory Requirements' section of our report of even date)

We report that:

i. In respect of its fixed assets:

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

b) As explained to us the fixed assets have been physically verified by management atreasonable intervals under a phased programme of verification. In accordance with thisprogram certain fixed assets have been physically verified by the management during theyear and no material discrepancies have been noticed on such verification. In our opinionthis periodicity of physical verification is reasonable having regard to the size ofcompany and nature of its assets.

c) According to the information and explanations given to us and on the basis of ourexamination title deeds of the immovable property other than self - constructed immovableproperty (buildings) as disclosed in schedule of fixed assets to the financial statementsare held in the name of the Company except for 109.10 acres of leasehold land for whichthe lease agreement is expired and pending to be renewed and registered with thegovernment authority and 289.68 acres of factory land renewal of which is approved byGovernment for 30 years but lease agreement is pending to be executed.

ii. As explained to us the physical verification of inventories has been conducted bythe management at reasonable intervals during the year. The discrepancies noticed onphysical verification of inventories as compared to book records were not material andhave been properly dealt with in the books of account.

iii. As informed to us the Company has granted unsecured loans to one Company coveredin the register maintained under Section 189 of the Companies Act:

a) In our opinion and according to the information and explanations given to us theterms and conditions of the aforesaid loans granted by the Company are not prima facieprejudicial to the interest of the Company.

b) The loan is repayable in a single instalment along with interest after 365 days andthere are no amounts overdue at balance sheet date.

iv. In our opinion and according to the information and explanations given to us inrespect of loans investments guarantees and securities the provisions of section 185and 186 of the Act have been complied with.

v. According to the information and explanations given to us the Company has notaccepted any deposits from the public within the meaning of sections 73 to 76 of the Actand the Companies (Acceptance of Deposits) rules 2014 (as amended).

vi. We have broadly reviewed the books of account maintained by the Company in respectof products for which maintenance of prescribed cost record is mandated by Government ofIndia U/S 148 (1) of the Act. We have however not made a detailed examination of theserecords with a view to determine whether they are accurate or complete.

vii. According to the information and explanations given to us and the records of theCompany examined by us:

a) The Company has been generally regular in depositing amounts deducted/accrued in thebooks of accounts in respect of undisputed statutory dues including Provident FundEmployees' State Insurance Investor Education and Protection Fund Income tax Sales taxService Tax Custom Duty Excise Duty cess Goods & Service Tax and other statutorydues as applicable.

b) According to the records examined and information and explanations given to us noundisputed amount payable in respect of Provident Fund Investor Education and ProtectionFund Employees' State Insurance Income Tax Sales Tax Service Tax Customs Duty ExciseDuty Cess Goods & Service Tax and other material statutory dues is outstanding as at31st March 2018 for a period of more than six months from the date they became payable.

c) There are no dues of Income tax sales tax Wealth tax Service tax Customs dutyExcise duty and Cess Goods & Service Tax which have not been deposited with theappropriate authorities on account of any dispute except as mentioned below:

Name of the Statute Period to which the amount relates Forum where dispute is pending Amount in dispute unpaid
Income Tax Act 1961 1999-00 to 2014-15 Commissioner Appeals ITAT Flonourable High Court Nil (Paid under protest Rs. 2284 lacs)
Central Excise Act 1944 2008-09 to 2012-13 Commissioner- CESTAT Rs. 65.15 lacs
The Custom Act 1962 2013-14 & 2016-17 Flonourable Supreme Court Commissioner of Customs (Appeals) Rs. 490.27 lacs (Paid under protest Rs. 71.48 lacs)
The Tamilnadu General Sales Tax Act 2005-06 Madras High Court Rs. 30.66 lacs
Service tax under Finance Act 1994 2011-12 2015-16 & 2016-17 Commissioner Appeals CESTAT Rs. 1.23 lacs (Paid under protest Rs. 0.45 lacs)
Entry Tax under Karnataka Special Entry Tax Act 2004-05 and 2005-06 Flonourable High Court Bengaluru Rs. 112.98 lacs (Paid under protest Rs. 16.21 lacs)
Karnataka Forest Act 1963 2017-18 Flonourable High Court Bengaluru Rs. 34.16 lacs

viii. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not defaulted in repayment ofloans or borrowings to any financial institution bank or Government. The Company hadneither any outstanding debenture at the beginning of the year nor has it issued anydebenture during the year.

ix. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company did not raise any money by way ofinitial public offer or further public offer (including debt instruments) during the year.The term loans were applied for purpose for which they were raised.

x. To the best of our knowledge and according to the information and explanations givento us no material fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the course of our audit.

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 to the Act.

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.

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 Ind AS Financial Statements as required by theapplicable Indian accounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

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 him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

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

For Singhi & Co.

Chartered Accountants

Firm Registration Number: 302049E

Nikhil Singhi

Partner

Membership Number: 061567

Date : 21st May 2018

Place : Kolkata

1. We have audited the internal financial controls over financial reporting of WestCoast Paper Mills Limited ('the Company') as of 31st March 2018 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

2. 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 Act.

Auditor's Responsibility

3. 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 deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 contral 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.

5. 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

6. 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 thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. 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

8. 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 2018 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 Singhi & Co.

Chartered Accountants

Firm Registration Number: 302049E

Nikhil Singhi

Partner

Membership Number: 061567

Date : 21st May 2018

Place : Kolkata