You are here » Home » Companies » Company Overview » Yash Pakka Ltd

Yash Pakka Ltd.

BSE: 516030 Sector: Industrials
NSE: N.A. ISIN Code: INE551D01018
BSE 10:37 | 25 Oct 76.00 0.35
(0.46%)
OPEN

75.65

HIGH

77.00

LOW

74.05

NSE 05:30 | 01 Jan Yash Pakka Ltd
OPEN 75.65
PREVIOUS CLOSE 75.65
VOLUME 17038
52-Week high 110.40
52-Week low 55.00
P/E 10.33
Mkt Cap.(Rs cr) 268
Buy Price 75.50
Buy Qty 5.00
Sell Price 75.95
Sell Qty 75.00
OPEN 75.65
CLOSE 75.65
VOLUME 17038
52-Week high 110.40
52-Week low 55.00
P/E 10.33
Mkt Cap.(Rs cr) 268
Buy Price 75.50
Buy Qty 5.00
Sell Price 75.95
Sell Qty 75.00

Yash Pakka Ltd. (YASHPAKKA) - Auditors Report

Company auditors report

TO THE MEMBERS OF

YASH PAKKA LIMITED (Formerly known as "Yash Papers Limited")

Report on the Audit of the Financial Statements Opinion

We have audited the accompanying Financial Statements of Yash Pakka Limited [Formerlyknown as "Yash Papers Limited"] ("the Company") which comprise theBalance Sheet as at 31st March 2020 the Statement of Profit and Loss(including Other Comprehensive Income) the Statement of Changes in Equity and theStatement of Cash Flows for the year then ended and notes to the Financial Statementsincluding a summary of significant accounting policies and other explanatory information(hereinafter referred to as " Financial Statements"). In our opinion and to thebest of our information and according to the explanations given to us the aforesaidfinancial statements give the information required by the Companies Act 2013 (the"Act") in the manner so required and give a true and fair view in conformitywith the Indian 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 2020 the net Profit and total comprehensive incomechanges in equity and its 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 (SAs) specified under section 143(10) of the Act. 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 together with the independence requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion on the financial statements.

Emphasis of Matter

On account of ours as well as the Company's inability to conduct a physicalverification as on 31st March 2020 owing to the lockdown restrictions imposedby the Government we have relied on alternate audit procedures and details as provided bythe management to obtain comfort over the existence and condition of inventory at the yearend. Our opinion is not modified in respect of this 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. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Sr no Key Audit Matter Auditor's Response
1. Impairment of Property Plant and Equipment (PPE) Principal Audit Procedures
Our Audit approach included in the following:
The Company has assessed the items of PPE for indications of impairment by assessing the recoverable amount of PPE by estimating its value in use vis-- vis its fair value less cost of disposal. Based on the said assessment the man- agement has concluded that there is no impairment as at 31st March 2020. Assessing design and implementation of key controls for the impairment review process;
Refer Note 2 to the financial statements Reviewing the key assumptions used in the forecasts and assessing the ac- curacy to determine the value in use and the fair value less cost disposal as required under Ind AS 36 ‘Impairment of Non-financial Assets'.
2. Evaluation of uncertain tax positions and other litigations Principal Audit Procedures
The Company has_ several_ litigations which also include matters under dispute which involves significant management judgement and estimates on the possible outcome of the litigations and consequent provisioning thereof or disclosure as contingent liabilities. Our audit approach for the above consists of the following audit procedures:
• Evaluation and testing of the design of internal controls followed by the Company relating to_litigations and_open tax positions for direct and in- direct taxes and process followed to decide provisioning or disclosure as Contingent Liabilities;
Refer Note 40 to the financial statements. • Discussed with Company's legal team and taxation team for sufficient un- derstanding of on-going and potential legal matters impacting the Company.
• We involved our internal team to evaluate the management's underlying judgements in_making their estimates with regard to such matters._

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in Director's Report including AnnexuresManagement Discussion and Analysis Report Corporate Governance Report and Shareholder'sInformation but does not include the financial statements and our auditor's reportthereon. Our opinion on the financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in audit or otherwise appears to be materiallymisstated. 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.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India including the accountingStandards specified under Section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Financial Statements that give a true and fair viewand are free from material misstatement whether due to fraud or error; In preparing thefinancial statements management is responsible for assessing the Company's ability tocontinue as a going concern disclosing as applicable matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso; The Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities 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 control 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 our 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 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;Materiality is the magnitude of misstatements in the financial statements thatindividually 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 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 alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards; From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits 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 statement on the mattersspecified in paragraphs 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 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 (including other comprehensiveincome) the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the relevant books of account;

(d) In our opinion the aforesaid Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;.

(e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in termsof Section 164(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";

(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; and

(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 41 to the Financial Statements;

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses;

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

For C N K & Associates LLP
Chartered Accountants
Firm Registration No. 101961W/W-100036
Himanshu Kishnadwala
Partner
Place: Mumbai
Membership No.037391
Date: 20th June 2020 UDIN: 20037391AAAACV8158

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in Para 1 ‘Report on Other Legal and Regulatory Requirements' in ourIndependent Auditor's Report to the members of the Company on the Financial Statements forthe year ended 31st March 2020.

I. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets;

(b) As informed to us the process of physical verification of fixed assets undertakenby the Company could not be completed in view of the lockdown imposed by the Government.The management has however assured that no material discrepancies would be noticed onsuch verification which would be completed in the subsequent year;

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the confirmations from the banks provided to us wereport that the title deeds comprising all the immovable properties which are freeholdare held in the name of the Company as at the Balance Sheet date;

II. As per the information and explanations given to us and read along-with ourcomments in Emphasis of Matter paragraph in the main report physical verification ofinventory has been conducted at reasonable intervals by the management and no materialdiscrepancies were noticed on such physical verification;

III. The Company has not granted any loans secured or unsecured to companies firmsand limited liability partnerships or other parties covered in the register maintainedunder section 189 of the Act. Accordingly para 3(iii) of the Order is not applicable tothe Company;

IV. The Company has not granted any loans or provided any guarantees or security to theparties covered under section 185. The Company has neither made any investments nor givenany loans guarantees or provided security to the parties covered under section 186;

V. The Company has not accepted any deposits during the year and therefore theprovisions of sections 73 to 76 or any other relevant provisions of the Companies Act2013 and the rules framed thereunder are applicable;

VI. As informed to us the Company is not required to maintain cost records that havebeen specified by the Central Government under sub-section (1) of section 148 of CompaniesAct 2013;

VII. According to the information and explanations given to us in respect of statutorydues:

(a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund income-tax Goods and Service Tax (GST) customduty cess and other statutory dues and there are no undisputed statutory dues outstandingas at 31st March 2020 for a period of more than six months from the date theybecame payable;

(b) According to the information and explanations given to us and the records examinedby us the statutory dues not deposited on account of disputes pending before appropriateauthorities are as under:

Name of Statute Nature of Dues Amount Demanded Amount paid in dispute Period to which the amount relates Forum from where the dispute is pending
(Rs. In lakhs) (Rs. In lakhs)
UP VAT Act 2008 Tax on purchase of Paddy Husk 164.03 - 2009-10 Additional Commissioner (Appeals) Grade – 2 Com- mercial Tax Ayodhya Ut- tar Pradesh
Non-submission of statu- tory forms 2.03 2.03 2012-13
6.69 2.70 2014-15
3.17 1.52 2015-16
1.42 0.72 2016-17
Disallowance of Input Tax Credit 3.92 1.57 2013-14
Entry Tax 0.68 0.68 2013-14
Incorrect Input Tax Credit Claimed 1.88 0.94 2016-17
9.12 4.56
Input Tax Credit mismatch 0.25 0.25 2017-18
9.43 4.66 2015-16

VIII. Based on our audit procedure and according to the information and explanationgiven by the management we are of the opinion that the Company has not defaulted inrepayment of dues to financial institutions or banks or Government. The Company has notissued any debentures;

IX. According to the information and explanations given to us the Company has notraised money by way of initial public offer or further public offer or further publicoffer including debt instruments. In our opinion the term loans issued during the yearhave been applied for the purpose for which they were raised;

X. During the course of our examination of the books of account and records of theCompany carried out in accordance with the generally accepted auditing practices in Indiaand according to the information and explanations given to us we have neither came acrossany incidence of fraud on or by the Company noticed or reported during the year nor wehave been informed of any such case by the management;

XI. In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act;

XII. In our opinion and according to the information and explanation given to us theprovisions related to Nidhi Company are not applicable;

XIII. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Financial Statements as required by the applicableaccounting standards;

XIV. According to the information and explanations given to us and based on ourexamination of records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year;

XV. According to the information and explanation given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withthe directors or persons connected with them. Hence the provisions of Section 192 of theAct are not applicable;

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

For C N K & Associates LLP
Chartered Accountants
Firm Registration No. 101961W/W-100036
Place: Mumbai
Date: 20th June 2020 Himanshu Kishnadwala
Partner
Membership No.037391
UDIN: 20037391AAAACV8158

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

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 the Companyas of 31st March 2020 in conjunction with our audit of the FinancialStatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls with reference to financial statements of the Company that wereoperating 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 Act.

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 prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to financial statements of the company were establishedand maintained and if such controls operated effectively in all material respects. Ouraudit involves performing procedures to obtain audit evidence about the internal financialcontrols with reference to financial statements of the company 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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance 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 unauthorised 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

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 to the best of our information and according to the explanations givento us the Company has in all material respects an internal financial controls withreference to financial statements of the Company and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2020 based onthe 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 ICAI.

For C N K & Associates LLP
Chartered Accountants
Firm Registration No. 101961W/W-100036
Himanshu Kishnadwala
Place: Mumbai Partner
Membership No.037391
Date: 20th June 2020 UDIN: 20037391AAAACV8158

.