Mar 31, 2023
JK Paper Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements of JK Paper Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (herein after referred to as "standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial 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 conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2023, its Profit (including Other comprehensive income), changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report:-
S.No. |
Description of Key Audit Matter |
How our audit addressed the key audit matters |
1 |
Revenue is recognised when the control of the products being sold has transferred to the customer. Revenue is measured net of any discounts and rebates. Recognition and measurement of discounts and rebates accruals, involves judgement and estimates. This leads to a risk of revenue being misstated due to inaccurate estimation over discounts and volume rebates. (Refer Note 1(II) (i) of accounting policy and Note - 41 (B) in standalone financial statements) We identified the recognition of revenue from sale of products as a key audit matter because: |
Our audit procedures includes: ¦ Assessing the compliance of revenue recognition accounting policies, including those relating to discounts and rebates, with reference to Ind AS 115 Revenue from contracts with customers (applicable accounting standard); ¦ Evaluating the design, testing the implementation and operating effectiveness of the Company''s internal controls over recognition of revenue and computing discounts and volume rebates in the general ledger accounting system; ¦ Performing substantive testing (including for period end cut-off) by selecting statistical samples of revenue transactions recorded for the year and agreeing to the underlying documents, which included sales invoices and shipping documents; |
S.No. |
Description of Key Audit Matter |
How our audit addressed the key audit matters |
¦ The Company and its external stakeholders focus on revenue as a key performance indicator. This could create an incentive for higher revenue to be recognised throughout the period (including period end), i.e., before the control of underlying goods have been transferred to the customer |
¦ Performing substantive testing by agreeing statistical samples of discounts and rebate accruals and disbursements to underlying documents; Performing a retrospective assessment of discounts and rebate accruals with prior period to evaluate the historical accuracy; and Assessing manual journals posted to revenue to identify unusual items. ¦ Evaluating adequacy of disclosures given in Note to the standalone financial statements. |
Information Other than the Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the standalone financial statements and our auditor''s report thereon. Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibility of Management and Those Charged with Governance for the Standalone Financial Statements
The Company''s management and Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position/state of affairs, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial
statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management and Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
¦ Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
¦ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
¦ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
¦ Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone 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''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
¦ Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably
knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), 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 the matters specified 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 best of 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 the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2023 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B" Our report expresses unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its standalone financial statements - Refer Note No. 36 to the standalone financial statements;
ii. The Company has made provision, as required under the applicable law or Indian accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31st March, 2023.
iv. a) The management has represented that to the best
of its knowledge and belief, no funds (which are material either individually or in aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
b) The management has represented that, no funds (which are material either individually or in aggregate) have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
c) Based on such audit procedures that we have considered reasonable and appropriate in the circumstances, nothing has come to our notice that
has caused us to believe that the representations under sub-clause (a) and (b) above as required by Rule 11 (e ) of Companies (Audit & Auditors) Rules, 2014, as amended, contain any material mis-statement.
v. (a) The dividend paid during the year by the Company
is in compliance with section 123 of the Companies Act, 2013.
(b) The interim dividend declared and paid by the Company during the year and until the date of this report is in compliance with Section 123 of the Act.
(c) The Board of Directors of the Company have proposed dividend for the year which is subject to the approval of the members in the ensuing General meeting. The amount of dividend proposed is in accordance with section 123 of the Companies Act, 2013.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from 1st April , 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.
h) In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 read with Schedule V to the Act.
For LODHA & CO.
Chartered Accountants
Firm''s Registration No. 301051E
(N. K. Lodha)
Partner
Membership No. 085155
UDIN: 23085155BGXASU1121
Place: New Delhi
Date: 16th May, 2023
Mar 31, 2022
Report on the Audit of the Standalone FinancialStatementsOpinion
We have audited the accompanying standalone financial statements of JK Paper Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2022, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (herein after referred to as "standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial 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 conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2022, its Profit (including Other comprehensive income), changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report:-
Description of Key Audit Matter |
Audit procedures to Address the key audit matter |
Valuation of financial instruments (held at fair value including securities and financial Guarantees) The company has provided / offered letter of comfort to the bankers against borrowing facilities extended to a step down subsidiary of H409.68 crore (PY H431.50 crore). The Company has also invested H121 crore up to year end in to the preference share capital of subsidiaries (including a step down subsidiary). We have considered the valuation of financial instruments as key audit matter considering complexities and financial impact involved over financial statements. |
Our audit procedures includes: Control testing: ⢠We tested the design and operating effectiveness of key Controls. ⢠Controls over the validation, completeness, implementation and usage of valuation models. Independent reperformance: ⢠Our own valuation specialists independently challenged management on the valuations where they were found outside our expected range. Methodology choice: ⢠In the context of observed industry practice, our own valuation specialists assisted us in challenging the appropriateness of significant models and methodologies used by an independent valuer in calculating fair values, risk exposures, completeness of risk factors, and in calculating Fair Value Assessments (FVAs). |
Information Other than the Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the standalone financial statements and our auditor''s report thereon. The Annual Report is expected to be made available to us after the date of this Auditors'' Report. Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibility of Management and Those Charged with Governance for the Standalone Financial Statements
The Company''s management and Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position/state of affairs, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management and Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone 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''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), 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 the matters specified 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 best of 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 the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2022 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B" Our report expresses unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its standalone financial statements - Refer Note No. 35 to the standalone financial statements;
ii. The Company has made provision, as required under the applicable law or Indian accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31st March, 2022.
iv. a) The management has represented that to the best of its knowledge and belief, no funds (which are material either individually or in aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
b) The management has represented that, no funds (which are material either individually or in aggregate) have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
c) Based on such audit procedures that we have considered reasonable and appropriate in the circumstances, nothing has come to our
notice that has caused us to believe that the representations under sub-clause (a) and (b) above as required by Rule 11 (e ) of Companies (Audit & Auditors) Rules, 2014, as amended, contain any material mis-statement.
v. (a) The dividend paid during the year by the Company is in compliance with section 123 of the Act.
(b) The Board of Directors of the Company have proposed dividend for the year which is subject to the approval of the members in the ensuing General meeting. The amount of dividend proposed is in accordance with section 123 of the Companies Act, 2013.
h) In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 read with Schedule V to the Act.
For LODHA & CO.
Chartered Accountants
Firm''s Registration No: 301051E
N. K. Lodha
Partner
Membership No: 085155
UDIN: 22085155AIXPHI7899
Place: New Delhi
Date: 13th May, 2022
Mar 31, 2018
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of JK Paper Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âstandalone financial statementsâ).
MANAGEMENTâS RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the financial position of the Company as at March 31, 2018, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
OTHER MATTER
Corresponding figures for the year ended March 31, 2017 included in the standalone financial statements were audited by another auditor who expressed an unmodified opinion dated 16th May 2017.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143(3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of 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 the Company so far as it appears from our examination of those books.
(c) the Balance Sheet, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act read with relevant rule issued thereunder.
(e) on the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 Financial position in its standalone financial statements- Refer Note 35 to the standalone Financial Statements.
ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure - A to the Auditorsâ Report
The Annexure referred to in Independent Auditorsâ Report to the members of the JK Paper Limited on the standalone financial statements for the year ended March 31, 2018, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management according to the program of periodical verification in phased manner which in our opinion is reasonable having regard to the size of the company and the nature of its fixed assets. The discrepancies noticed on such physical verification were not material.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company as at Balance Sheet date except the following
Particular |
Total No. |
Gross Book Value |
Net Book Value |
of Cases |
(Rs. In Crore) |
(Rs. In Crore) |
|
Freehold Land* |
1 |
20.24 |
20.24 |
*Also Refer Note No. 2(a) of standalone financial statements.
(ii) The inventories of the Company (except stock in transit, which has been verified from receipt of material) have been physically verified by the management at reasonable intervals and the procedures of physical verification of inventory followed by the Management are reasonable in relation to the size of the Company and nature of its business. The discrepancies noticed on such physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of accounts.
(iii) The Company has not granted any loans to bodies corporate covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ), hence other parts of this clause are not applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) In our opinion and according to the information and explanations given to us, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of Section 73 to76 of the Act or any other relevant provisions of the Act and the rules framed there under with regard to deposits accepted from the public. We have been informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or other Tribunal in this regard.
(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of the cost records under section 148(1) of the act in respect of the companyâs products to which the said rules are made applicable and are on the opinion that prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
(vii) (a) According to the records of the company, the company is regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, custom duty, excise duty, value added tax, entry tax, goods and service tax, cess and other material statutory dues, with the appropriate authorities to the extent applicable and there are no undisputed statutory dues payable for a period of more than six months from the date they become payable as at March 31, 2018.
(b) According to the records and information & explanations given to us, there are no dues in respect of income tax, sales tax, service tax, goods and service tax, duty of excise and value added tax that have not been deposited with the appropriate authorities on account of any dispute except as given below.
Name of the statute |
Nature of dues |
Period to which amount relates |
Amount involved (Rs. in Crores) |
Forum where dispute is pending |
||
1981-1983 |
0.70 |
Deputy Commissioner Central Excise, Raygada |
||||
1982-1983 |
0.41 |
Supreme Court |
||||
1986-1995 |
1.31 |
High Court, Cuttack |
||||
Central Excise Act, 1944 |
Central Excise |
2005-2010 |
0.05 |
CESTAT Ahmedabad |
||
2007-2010 |
3.37 |
CESTAT Ahmedabad |
||||
2008-2010 |
6.22 |
Commissioner Excise, Bhubaneshwar |
||||
2008-2012 |
0.69 |
CESTAT Ahmedabad |
||||
2009-2010 |
0.08 |
CESTAT Ahmedabad |
||||
|
2010-2011 |
0.1 6 |
CESTAT Ahmedabad |
|||
2011-2012 |
0.1 8 |
CESTAT Ahmedabad |
||||
2011-2012 |
0.08 |
CESTAT Ahmedabad |
||||
2012-2013 |
0.1 9 |
CESTAT Ahmedabad |
||||
2012-2014 |
0.1 6 |
CESTAT Ahmedabad |
||||
Central Excise Act, 1944 |
Central Excise |
201 3-201 4 |
0.1 8 |
CESTAT Ahmedabad |
||
2014-2015 |
0.08 |
Commissioner (Appeals), Surat |
||||
2015-2016 |
0.07 |
Commissioner (Appeals), Surat |
||||
2014-2015 |
0.10 |
Commissioner (Appeals), Surat |
||||
2004-2010 |
0.20 |
CESTAT ,Ahmedabad |
||||
2011-2015 |
2.59 |
Commissioner (Appeals), Surat |
||||
Custom Act, 1962 |
Custom Duty |
2011-2012 & 2012-2013 |
0.69 |
CESTAT Ahmedabad |
||
2009-2010 |
0.25 |
Commissioner (Appeals), Surat |
||||
1983-84/ 1987-88 |
0.05 |
Sales Tax Department - Delhi |
||||
1997-98 |
0.10 |
Sales Tax Tribunal - Cuttack |
||||
2002-2003 |
0.01 |
Deputy Commissioner, Delhi |
||||
Sales Tax |
Sales Tax |
2005-2009 |
0.16 |
Sales Tax Tribunal - Cuttack |
||
2006-2007 |
0.55 |
Gujarat Vat (Tribunal) Ahmedabad |
||||
2007-2009 |
0.25 |
High Court Allahabad |
||||
2012-2013 |
5.85 |
Additional Commissioner, Cuttack |
||||
Income Tax Act, 1961 |
Income Tax |
FY 2012-13 |
2.51 |
CIT(Appeals) |
||
(viii) In our opinion, on the basis of audit procedures and according to the information and explanation given to us, the company has not defaulted in repayment of loans and borrowings to financial institutions and banks. The company has neither taken any loan from the government nor having any outstanding debentures during the year.
(ix) On the basis of information and explanation given to us, term loans have been applied for the purposes for which they were obtained. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments).
(x) Based on the audit procedures performed and on the basis of information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) On the basis of records and information and explanations made available and based on our examinations of the records of the company, the company has paid / provided managerial remuneration, in accordance with the requisite approvals mandated under Section 197 read with Schedule V of the Act. (Refer Note no.49(b))
(xii) On the basis of information and explanation given to us , the Company is not a Nidhi Company. Accordingly, reporting under clause 3 (xii) of the said order is not applicable.
(xiii) As per the information and explanations and records made available by the management of the company and audit procedures performed, for the related parties transactions entered during the year, the company has complied with the provisions of section 177 and 188 of the Act, where applicable. As explained and as per the records / details, the related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards (Refer Note no.49).
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records , the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, clause 3(xv) of the Order is not applicable.
(xvi) According to the information and explanation given to us , the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
We have audited the internal financial controls over financial reporting of JK Paper Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
MANAGEMENTâS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORSâ RESPONSIBILITY
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For LODHA & CO.
Chartered Accountants
FRN:301051E
N. K. Lodha
Place: New Delhi Partner
Dated:14th May 2018 Membership No.085155
Mar 31, 2017
Independent Auditor''s Report
To
The Members JK Paper Limited
REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS
We have audited the accompanying standalone Ind AS financial statements of JK Paper Limited ("the Company") which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss (including Other Comprehensive Income). The Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these Standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and change in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these Standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the financial position of the Company as at March 31,
2017, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
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 of the Act, we give in the "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of 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 the Company so far as it appears from our examination of those books;
(c) The balance sheet, the statement of profit and loss, the cash flow statement and the statement of changes in equity dealt with by this report are in agreement with the books of account;
(d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with relevant rule issued thereunder;
(e) On the basis of written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of section 164(2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B", and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its standalone Ind AS financial statements - refer note 37 to the standalone Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 19 and 24 to the standalone Ind AS financial statements;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and
iv. The Company has provided requisite disclosures in its standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30,
2016 and these are in accordance with the books of accounts maintained by the Company. Refer note 63 to the standalone Ind AS financial statements.
The Annexure as referred in paragraph (1) ''Report on Other Legal and Regulatory Requirements of our Independent Auditors'' Report to the members of JK Paper Limited on the standalone Ind AS financial statements for the year ended March 31, 2017, we report that:
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management according to programme of periodical verification in phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its Fixed Assets. The discrepancies, if any, noticed on such physical verification have been properly dealt with in the books of accounts.
(c) The title deeds of immovable properties are held in the name of the Company, except in the following case:
Particular |
Total No. |
Gross Book Value |
Net Book Value |
of Cases |
(H In Crore) |
(H In Crore) |
|
Free hold Land1 |
1 |
20.24 |
20.24 |
*Also refer Note No. 2(a)
ii. We have been explained by the management that the inventory have been physically verified at reasonable intervals during the year. As far as we can ascertain and according to information and explanations given to us, the discrepancies, whenever material, noticed on such physical verification of inventory as compared to book records were properly dealt within the books of accounts.
iii. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (c) of the Order are not applicable to the Company.
iv. According to the information and explanations given to us, the Company have complied with the provisions of sections 185 and I86 of the Act with respect to the loans, investments made.
v. In our opinion and according to the information and explanations given to us, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Act and the rules framed there under with regard to deposits accepted from the public. We have been informed that no order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal in this regard.
vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by Central Government for the maintenance of cost records under section 148(1) of the Act in respect to the Company''s products to which said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have however not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to
us and on the basis of examination of the records of the Company, the Company is generally regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, sales-tax, income tax, service tax, custom duty, excise duty, value added tax, cess and any other material statutory dues with the appropriate authorities to the extent applicable and further, there are no undisputed statutory dues payable for a period of more than six months from the date they become payable as at March 31, 2017.
(b) According to the records and information and explanations given to us, there are no dues in respect of income tax, sales tax, service tax, duty of excise, duty of custom, or value added tax which have not been deposited on account of any dispute except as given below:
Name of the statute |
Nature of dues |
Period to which amount relates |
Amount involved (H in Crores)* |
Forum where dispute is pending |
Central Excise Act, 1944 |
Central Excise |
1981-1983 |
0.70 |
Deputy Commissioner Central Excise, Rayagada |
1982-1983 |
0.41 |
Supreme Court |
||
1986-1995 |
1.31 |
High Court, Cuttack |
||
2004-2007 |
0.07 |
High Court, Gujrat |
||
2005-2010 |
0.05 |
CESTAT Ahmedabad |
||
2007-2010 |
3.37 |
CESTAT Ahmedabad |
||
2008-2010 |
6.22 |
Commissioner Excise, Bhubaneswar |
||
2008-2012 |
0.69 |
CESTAT Ahmedabad |
Central Excise Act, 1944 |
Central Excise |
2009-2010 |
0.08 |
CESTAT Ahmedabad |
2010-2011 |
0.43 |
CESTAT Ahmedabad |
||
2011-2012 |
0.18 |
CESTAT Ahmedabad |
||
2011-2012 |
0.08 |
CESTAT Ahmedabad |
||
2012-2013 |
0.20 |
CESTAT Ahmedabad |
||
2012-2014 |
0.16 |
CESTAT Ahmedabad |
||
2013-2014 |
0.18 |
CESTAT Ahmedabad |
||
2014-2015 |
0.09 |
Commissioner (Appeals),Surat |
||
2015-2016 |
0.07 |
Commissioner (Appeals),Surat |
||
2014-2015 |
0.11 |
Commissioner (Appeals),Surat |
||
Custom Act, 1962 |
Custom Duty |
2011-2012 & 2012-2013 |
0.72 |
CESTAT Ahmedabad |
Finance Act 1944 |
Service Tax |
2007-2009 |
0.15 |
CESTAT Ahmedabad |
2009-2010 |
0.31 |
Commissioner (Appeals),Surat |
||
Sales Tax |
Sales Tax |
1983 84/1987-88 |
0.05 |
Sales Tax Department- Delhi |
1997-98 |
0.10 |
Sales Tax Tribunal, Cuttack |
||
2002-2003 |
0.01 |
Deputy Commissioner, Delhi |
||
2005-2009 |
0.16 |
Sales Tax Tribuna Cuttack |
||
2006-2007 |
0.55 |
Gujarat Vat (Tribunal) Ahmedabad |
||
2006-2007 |
1.05 |
High Court Allahabad |
||
2007-2009 |
0.24 |
High Court Allahabad |
||
2012-13 |
5.85 |
Additional Commissioner, Cuttack |
||
Income Tax Act, 1961 |
Income Tax |
FY 2008-09 |
0.72 |
CIT (Appeals) |
FY 2010-11 |
0.18 |
CIT (Appeals) |
||
FY 2012-13 |
3.81 |
CIT (Appeals) |
officers or employees has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the record of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.
xiv. Based upon the audit procedures performed and the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debenture during the year under review. Accordingly, paragraph 3(xiv) of the Order is not applicable.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act") as referred to in paragraph 2(f) of ''Report on Other Legal and Regulatory Requirements'' section
We have audited the internal financial controls over financial reporting of JK Paper Limited ("the Company") as of March 31, 2017 in conjunction with our audit of the standalone Ind AS 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 internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company''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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For SS KOTHARI MEHTA & CO.
Chartered Accountants
Firm''s Registration Number: 000756N
K. S. Mehta
Place: New Delhi Partner
Date: May 16, 2017 Membership Number: 008883
Mar 31, 2016
We have audited the accompanying standalone financial statements of JK Paper Limited ("the
Company"), which comprise the Balance Sheet as at March 3 1,2016, the Statement of Profit and Loss,
Cash Flow Statement for the year then ended, and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these
Standalone Financial Statements that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under Section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other irregularities, selection
and application of appropriate accounting policies, making judgments and estimates that are
reasonable and prudent, and design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these Standalone Financial Statements based on our
audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the provisions of the Act and
the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under sub-section 10
of section 143 of the Act. Those Standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend on the auditor''s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal financial
control relevant to the Company''s preparation of the financial statements that give a true and fair
view in order to design audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of the accounting policies used and the reasonableness of
the accounting estimates made by the Company''s Directors, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us,
the aforesaid Standalone financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as at March 31, 2016, and it''s
profit and it''s cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to Note No.33 (b) of the Financial Statements regarding assets held for sale
grouped under ''Other Current Assets'' amounting to Rs. 157.57 Crores pending for disposal since
September, 2013.
Our opinion is not qualified in respect of the above matter.
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 (I I) of section 143 of the Act, we give in the
"Annexure A" a statement on the matters specified 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 best of 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 the Company so far
as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by
this report are in agreement with the books of account.
(d) In our opinion, the aforesaid Standalone financial statements comply with the Accounting
Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
(e) On the basis of written representations received from the directors as on March 3 1, 2016 taken
on record by the Board of Directors, none of the directors is disqualified as on March 3 1,2016
from being appointed as a director in terms of sub-section 2 of section 164 of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure
B".
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with
Rule I I of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its
financial statements - Refer Note 30 to the financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term contracts including derivative contracts
- Refer Note 5 and 8 to the financial statements.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company.
The Annexure as referred in paragraph (1) ''Report on Other Legal and Regulatory Requirements of our
Independent Auditors'' Report to the members of JK Papers Limited on the standalone financial
statements for the year ended March 31, 2016, we report that:
i. (a) The Company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management according to the programme of
periodical verification in phased manner which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its Fixed Assets. The discrepancies, if any, noticed on such
physical verification have been properly dealt with in the books of accounts.
(c) The title deeds of immovable properties are held in the name of the Company, except in the
following case:-
Total No. Gross Net Book
Particular of Cases Book Value Value
Free hold
land 1 Rs. 2.89 Crore Rs. 2.89 Crore
*Also refer Note No. 10(a)
ii. We have been explained by the management that the inventory have been physically verified at
reasonable intervals during the year. As far as we can ascertain and according to information and
explanations given to us, the discrepancies, whenever material noticed on such physical
verification of inventory as compared to book records were properly dealt within the books of
accounts.
iii. The Company has not granted any loans, secured or unsecured to companies, firms, Limited
Liability partnerships or other parties covered in the Register maintained under section 189 of the
Act. Accordingly, the provisions of clause 3 (iii) (a) to (c) of the Order are not applicable to
the Company.
iv. According to the information and explanations given to us, the Company have complied with the
provisions of section 185 and 186 of the Act with respect to the loans, investments made.
v. In our opinion and according to the information and explanations given to us, the Company has
complied with the directives issued by the Reserve Bank of India and the provisions of Section 73
to 76 or any other relevant provisions of the Act and the rules framed there under with regard to
deposits accepted from the public. We have been informed that no order has been passed by Company
Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal in this regard.
vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules
made by Central Government for the maintenance of cost records under section 148(1) of the Act in
respect to the Company''s products to which said rules are made applicable and are of the opinion
that prima facie, the prescribed records have been made and maintained. We have however not made a
detailed examination of the said records with a view to determine whether they are accurate or
complete.
vii. (a) According to the information and explanations given to us and on the basis of examination
of the records of the Company, the Company is generally regular in depositing undisputed statutory
dues including provident fund, employees'' state insurance, sales- tax, income tax, service tax,
custom duty, excise duty, value added tax, cess and any other material statutory dues with the
appropriate authorities to the extent applicable and further, there are no undisputed statutory
dues payable for a period of more than six months from the date they become payable as at March 31,
2016.
(b) According to the records and information and explanations given to us, there are no dues in
respect of income tax, sales tax, service tax, duty of excise, duty of custom, or value added tax
which have not been deposited on account of any dispute except as given below:
NAME of Nature of Period to Amount Forum where dipute
the statute dues which involved is pending
amount (Rs, in
relate Crores)*
1983-1984
0.05 Sales Tax
Department, Delhi
1987-1988
1997-1998 0.10 Sales Tax
Tribunal, Cuttack
2002-2003 0.01 Deputy Commissioner,
Delhi
2004-2005 0.46 High Court, Allahabad
Sales 2005-2009 1.46 Additional
Commissioner, Cuttack
Tax Sales Tax 2005-2009 0.16 Sales Tax Tribunal,
Cuttack
Act 2006-2007 1.05 High Court, Allahabad
2006-2007 0.12 Gujarat Vat
(Tribunal), Ahmedabad
2007-2008 &
2008-2009 0.24 High Court, Allahabad
2009-2010 0.08 High Court, Allahabad
2012-2013 5.85 Additional Commi
ssioner, Cuttack
1981-1982 Deputy Commissioner
Central
1982-1983 0.70 Excise, Rayagada
1982-1983 0.41 Supreme Court
1986-1995 1.31 High Court, Cuttack
2004-2007 0.07 CESTAT, Ahmedabad
2005-2007 0.03 CESTAT, Ahmedabad
2005-2010 0.05 CESTAT, Ahmedabad
2007-2010 3.37 CESTAT, Ahmedabad
2012-2014 0.16 CESTAT, Ahmedabad
Central
Excise Excise 2011 2012 0.09 Commissioner (Appeals),
Act, Duty Bhubaneswar
1944 2009-2010 0.08 CESTAT, Ahmedabad
2010-2011 0.53 CESTAT, Ahmedabad
2011-2012 0.18 CESTAT, Ahmedabad
2008-2010 6.22 Commissioner Excise,
Bhubaneswar
2012-2013 0.21 Commissioner
(Appeals), Surat
2013-2014 0.19 Commissioner
(Appeals), Surat
2014-2015 0.09 Commissioner
(Appeals), Surat
2011-2012 0.08 Commissioner
(Appeals), Surat
2008-2012 0.73 Commissioner
(Appeals), Surat
Custom Custom 2011-2012 & 0.72 CESTAT, Ahmedabad
Act Duty 2012-2013
Finance Service 2009-2010 0.31 Commissioner
(Appeals), Surat
Act Tax 2007-2009 0.15 CESTAT, Ahmedabad
Income Income
Tax Act, 2010-2011 0.46 CIT (Appeals)
1961
*Net of payment
viii. In our opinion, on the basis of audit procedures and according to the information and
explanations given to us, the Company has not defaulted in repayment of loan or borrowing to any
banks and financial institutions and dues to debenture/bond holders. The Company does not have any
loans or borrowings from the government.
ix. According to the information and explanations given to us, the Company has not raised moneys by
way of initial public offer or further public offer (including debt instruments) during the year.
The term loans have been applied for the purpose for which they were raised.
x. According to the information and explanations given to us, no instance of fraud by the Company
or on the Company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on our examination of the
records of the Company, the Company has paid/ provided for managerial remuneration in accordance
with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the
Act.
xii. In our opinion and according to the information and explanations given to us, the Company is
not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the
record of the Company, transactions with the related parties are in compliance with section 177 and
188 of the Act where applicable and details of such transactions have been disclosed in the
financial statements as required by the applicable accounting standards.
xiv. Based upon the audit procedures performed and the information and explanations given to us,
the Company has made the preferential allotment of shares during the year under review. The
requirement of section 42 of the Act have been complied with and the amount raised has been used
for the purposes for which the funds were raised.
xv. According to the information and explanations given to us and based on our examination of the
records of the Company, the Company has not entered into non-cash transactions with directors or
persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India
Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 ("the Act") as referred to in paragraph 2(f) of ''Report on Other Legal and
Regulatory Requirements'' section
We have audited the internal financial controls over financial reporting of JK Paper Limited ("the
Company") as of March 31, 2016 in conjunction with our audit of the standalone 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 internal financial
controls based on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued by the Institute of Chartered
Accountants of India (ICAI). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for ensuring
the orderly and efficient conduct of its business, including adherence to Company''s policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over
financial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting and the Standards on Auditing, issued by ICAI and deemed to be prescribed
under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal
financial controls, both applicable to an audit of Internal Financial Controls and, both issued by
the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the
internal financial controls system over financial reporting and their operating effectiveness. Our
audit of internal financial controls over financial reporting included obtaining an understanding
of internal financial controls over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal
control based on the assessed risk. The procedures selected depend on the auditor''s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion on the Company''s internal financial controls system over financial
reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting
principles A Company''s internal financial control over financial reporting includes those policies
and procedures that (I) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2)
provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the Company are being made only in accordance with authorizations of management
and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the Company''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 financial reporting,
including the possibility of collusion or improper management override of controls, material
misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are
subject to the risk that the internal financial control over financial reporting may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial reporting were
operating effectively as at March 31, 2016, based on the internal control over financial reporting
criteria established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India.
For S.S. KOTHARI MEHTA & CO.
Chartered Accountants
Firm Registration Number: 000756N
K.S. MEHTA
Partner
Membership Number: 008883
Place: New Delhi
Date: May 6,2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of JK
Paper Limited ("the Company"), which comprise the Balance Sheet as at
31st March 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities, selection and application of appropriate accounting
policies, making judgments and estimates that are reasonable and
prudent, and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from materia]
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act Those Standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015, and it's loss and it's cash flows for the year
ended on that date.
Emphasis of Matter
a) We draw attention to Note No.34 (e) of the accompanying financial
statements. As per the scheme of Arrangement approved by the Hon'ble
High Court of Gujarat and accounting treatment sanctioned therein, the
company has withdrawn Rs. 5.04 crores from the Security Premium Account
to the Statement of Profit & Loss towards diminution in the value of
investments in JK Enviro-Tech Limited. There is no specific accounting
treatment prescribed in the Accounting standards specified in the
Companies Act, 2013 and consequent to this treatment, the loss for the
year ended March 31, 2015 is lower by the said amount with a
corresponding reduction in security premium reserve.
b) We draw attention to Note No.33 (b) of the Financial Statements
regarding assets held for sale grouped under 'Other Current Assets*
amounting to Rs. 157.84 Crore. pending for disposal since September,
2013.
Our opinion is not qualified in respect of the above matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order,20l5 ("the
Order")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
statement on 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 best of 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 the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements - Refer Note 30 to the
financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts - Refer Note 5
and 8 to the financial statements.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31st March 2015, we report that:
i. (a) The Company has maintained proper records in respect of its
fixed assets showing full particulars including quantitative details
and situation of fixed assets.
(b) The fixed assets have been physically verified by the management
according to the programme of periodical verification in phased manner
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its Fixed Assets. The discrepancies, if any,
noticed on such physical verification have been properly dealt with in
the books of accounts.
ii. (a) We have been explained by the management that the inventory has
been physically verified at reasonable intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventory. As
far as we can ascertain and according to information and explanations
given to us by the management, the discrepancies, whenever material
noticed on such physical verification of inventory as compared to book
records were properly dealt within the books of accounts.
iii. According to the information and explanations given to us, the
Company has not granted loan to companies, firms or other parties
covered in the register maintained under section 189 of the Companies
Act, 2013. Therefore, provision of clause 3(iii)(a) and 3(iii)(b) of
Companies (Auditor's Report) Order, 2015 are not applicable.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature where suitable alternative sources do
not exist for obtaining comparable quotations, there is reasonable
internal control system commensurate with the size of the Company and
the nature of its business, for the purchase of inventory and fixed
assets and for the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
v. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 73 to 76 or any
other relevant provisions of the Companies Act and the rules framed
there under with regard to deposits accepted from the public. We have
been informed that no order has been passed by Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any Court or
any other Tribunal in this regard.
vi. We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by Central Government for die
maintenance of cost records under section 148( 1) of the Act in respect
to the Company's products to which said rules are made applicable and
are of the opinion that prima facie, the prescribed records have been
made and maintained. We have however not made a detailed examination of
the said records with a view to determine whether they are accurate or
complete.
vii. (a) According to the information and explanations given to us and
on the basis of examination of the records of the Company, the company
is generally regular in depositing undisputed statutory dues including
provident fund, employees* state insurance, sales-tax, wealth tax,
income tax, service tax, custom duty, excise duty, value added tax,
cess and any other material statutory dues with the appropriate
authorities to the extent applicable and further, there are no
undisputed statutory dues payable for a period of more than six months
from the date they become payable as at 31st March 2015.
(b) According to the records and information and explanations given to
us, there are no material dues in respect of wealth tax and income tax
which have not been deposited with the appropriate authorities on
account of any dispute and the dues in respect of sales tax, excise
duty, custom duty, service tax and cess that have not been deposited
with the appropriate authority on account of dispute and the forum
where the dispute is pending are given below:
Name Nature Period to Amount Forum where dispute
of the of dun which Involved Is pending
statute amount (Fts. In
relates Crores)
Saju Sales Tax 1983-64/
1987-88 0.05 Sales Tax Department- Delhi
Tax 1997-98 0.1 Sales Tax Tribunal. Cutacfe
Act 2002-2003 0.01 Deputy Commissioner. Delhi
2004-2005 0.46 High Court Allahabad
200S-2009 1.46 Additional Commissioner,
Cuttack
2005-2009 0.14 Sales Tax Tribunal Cuttack
2006-2007 1.05 High Court Allahabad
2006-2007 0.12 jolntCommlsskxier Appeals
Vadodara
2007-2008
2008-2009 0.24 High Court Allahabad
2009-2010 0.08 High Court Allahabad
2012-12 5.85 Additional Commissioner,
Cuttack
Central Excise 1981-1982/
1982-1983 0.7 Deputy Commissioner Central
Excise.
Excite Duty Rayagada
Act 1944 1982-1983 0.41 Supreme Court
1984-1987*
1994-1995 1.31 High Court. Cuaack
2004-2007 0.05 CESTAT Ahmadabad
2005-2007 0.03 CESTAT Ahmadabad
2005-2009 0.05 CESTAT Ahmadabad
2007-2009 0.9 CESTAT Ahmadabad
2007-2009/
2008-2009 0.15 CSSTAT Ahmadabad
2007-2009 2.47 CESTAT Ahmadabad
2008-20094
2009-2010 4.22 CESTAT Kol lata
2009-2010 0.08 CESTAT Ahmadabad
2010-2011 0.53 CESTAT Ahmadabad
2011-2012 0.2* CESTAT Ahmadabad
2012-2013 0.02 CESTAT Ahmadabad
2012-2014 0.17 CESTAT Ahmadabad
2008-2012 0.7* Commissioner (Apoeals).Surat
Custom Custom 2012-2013 0.72 Commlsilonar (Appeals)
Custom.
Act Duty Ahmadabad
Finance Service 2009-2010 0.27 Com mlsstoner (Appeals) Sura
Act Tax
Water Cess 2001-2002 to
2014-15 0.81 Cess Appdhte Committee,
OSPC8.
(PCP) Bhut-aneswar
Ceaa
Act,
1977
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the Investor Education
and Protection Fund in accordance with the relevant provisions of the
Companies Art, 1956 ( I of 1956) and rules made there under has been
transferred to such fund within time.
viii. The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
ix. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of any dues to banks, financial institutions and
debenture/bond holders.
x. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xi. In our opinion and on the basis of information and explanations
given to us, the term loans were applied for the purposes for which
they were obtained.
xii. According to the information and explanation given to us, no
instance of fraud on or by the company, noticed or reported during the
year.
For S. S. KOTHAR1 MEHTA & CO.
Chartered Accountants
Firm Reg. No.: 000756N
K.S. MEHTA
Partner
Membership No.: 008883
Place: New Delhi
Date: 16th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of JK Paper
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and Notes to Financial Statements comprising
of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal controls relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211
of the Companies Act, 1956 read with General Circular 15/2013 dated
13th September 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956;
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in paragraph (1) of our Report of even date of JK PAPER
LIMITED for the year ended 31st March, 2014)
1) (a) The Company has maintained proper records in respect of its
fixed assets showing full particulars including quantitative details
and situation of fixed assets.
(b) The fixed assets have been physically verified by the Management
according to the programme of periodical verification in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its Fixed Assets. The discrepancies, if any,
noticed on such physical verification have been properly dealt with in
the books of accounts.
(c) As per the records and information and explanations given to us,
fixed assets disposed off during the year were not substantial.
2) (a) We have been explained by the management that the inventory has
been physically verified at reasonable intervals during the year and
confirmations are obtained where inventory are lying with third
parties.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventory. As
far as we can ascertain and according to information and explanations
given to us by the management, the discrepancies whenever material
noticed on such physical verification of inventory as compared to book
records were properly dealt within the books of accounts.
3) (a) As informed to us, the Company has given unsecured loan to a
Company covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year in
respect of said Company is Rs. 20.06 Crores and the year- end balance
of such loan is Rs. 12.15 Crores.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms & conditions on which
aforesaid loan has been given are not, prima facie, prejudicial to the
interest of the Company.
(c) In respect of aforesaid loan, the repayment of principal as well as
interest is regular.
(d) In respect of the loan given by the Company, no amount, principal
as well as interest, is overdue and therefore provisions of clause
4(iii) (d) of the Order is not applicable.
(e) As informed to us, the Company has not taken any loan, secured or
unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii) (f) and (g) of the Order
are not applicable to the Company.
4) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature where suitable alternative sources do
not exist for obtaining comparable quotations, there is reasonable
internal control system commensurate with the size of the Company and
the nature of its business for the purchase of inventory and fixed
assets and for the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
5) (i) According to the information and explanations provided by the
management and based upon audit procedures performed, we are of the
opinion that the particulars of contracts or arrangements referred to
in Section 301 of the Act have been entered in the register required to
be maintained under that section; and
(ii) In our opinion and according to information and explanations given
to us, the transactions, made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Act and
exceeding the value of five lacs rupees in respect of each party during
the financial year, have been made at prices which are reasonable (read
with Para 4 above and Note no. 49 (b) of the accompanying financial
statements) having regard to prevailing market price at the relevant
time.
6) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58 A and 58 AA or
any other relevant provisions of the Act and the rules framed there
under with regard to deposits accepted from the public. We have been
informed that no order has been passed by Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal in this regard.
7) The Company has an internal audit system which is commensurate with
the size of the Company and nature of its business.
8) We have broadly reviewed the books of account and records maintained
by the Company pursuant to the rules made by the Central Government for
the maintenance of cost records under Section 209(1)(d) of the Act in
respect of the Company''s products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the said records with a view to
determine whether they are accurate and complete.
9) (a) According to the records of the Company, the company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Sales Tax, Wealth Tax, Income Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues with the
appropriate authorities to the extent applicable and further, there are
no undisputed statutory dues payable for a period of more than six
months from the date they become payable as at 31st March 2014.
(b) According to the records and information and explanations given to
us, there are no dues in respect of Wealth Tax, Service Tax and Custom
Duty that have not been deposited with the appropriate authorities on
account of any dispute and the dues in respect of Sales Tax, Excise
Duty, Income Tax and Cess that have not been deposited with the
appropriate authority on account of dispute and the forum where the
dispute is pending are given below:
Nature of Nature of Period for which Amount Forum where
dispute
statute dues amount relates involved is pending
(Rs. in
Crores)
Sales Tax Sales 1983-84/1987-88 0.05 Sales Tax
Department-
Delhi
Act Tax 1997-98 0.10 Sales Tax
Tribunal,
Cuttack
2002-2003 0.01 Deputy
Commissioner,
Delhi
2004-2005 0.46 High Court
Allahabad
2005- 2009 1.46 Additional
Commissioner,
Cuttack
2005- 2009 0.16 Sales Tax
Tribunal
Cuttack
2006-2007 1.05 High Court
Allahabad
2006-2007 2.21 Joint Commi
-ssioner
Appeals,
Vadodara
2007- 2008 &
2008-2009 0.24 High Court
Allahabad
2009-2010 0.08 High Court
Allahabad
2012-13 5.85 Additional
Commissioner,
Cuttack
Central Excise 1981-1982/1982-1983 0.70 Deputy Commi
-ssioner
Central Excise,
Excise Duty Rayagada
Act 1982-1983 0.41 Supreme Court
1986-1987 &
1994-1995 1.31 High Court,
Cuttack
2004- 2007 0.05 CESTAT
Ahmedabad
2005- 2007 0.03 CESTAT
Ahmedabad
2005-2009 0.05 CESTAT
Ahmedabad
2007-2009 0.90 CESTAT
Ahmedabad
2007-2008/2008-2009 0.15 CESTAT
Ahmedabad
2007-2009 2.47 CESTAT
Ahmedabad
2008-2009 & 2009-2010 6.22 CESTAT
Kolkata
2009- 2010 0.08 CESTAT
Ahmedabad
2010- 2011 0.53 CESTAT
Ahmedabad
2011-2012 0.32 CESTAT
Ahmedabad
2012-2013 0.02 CESTAT
Ahmedabad
Water Cess 2001- 2002 to 2013-14 1.11 Cess Appel
-late Commi
-ttee, OSPCB,
(PCP) Bhubaneswar
Cess Act,
1977
10) The Company does not have accumulated losses and has not incurred
cash losses during the current year and in the immediately preceding
financial year.
11) In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of any dues to banks, financial institutions and
debenture/bond holders.
12) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13) The Company is not a chit fund or a nidhi /mutual benefit fund
/society, therefore, the provisions of clause 4 (xiii) of the Order are
not applicable to the Company.
14) According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
15) According to the information and explanations given to us, the
Company has given an undertaking to IDFC Limited against loan given to
JK Enviro- Tech Limited, the current outstanding is Rs. 11.76 Crore, as
stated in Note 31(a) of the accompanying financial statements. Further,
during the year the Company has agreed with HDFC Limited that on
happening of certain events, it will take all steps as may be required
to ensure the timely repayment of loan obligations of its Subsidiaries
for the loan availed by them from HDFC Limited, the current outstanding
is Rs. 36.09 Crore, as stated in Note 31(b) of the accompanying
financial statements. In our opinion, the terms and conditions of above
are not, prima facie, prejudicial to the interest of the Company.
16) In our opinion and on the basis of information and explanations
given to us, the term loans were applied for the purposes for which
they were obtained.
17) According to information and explanations given to us and on an
overall examination of the Financial Statements of the Company, no
funds raised on short-term basis have been used for long-term
investment.
18) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19) According to the information and explanations given to us and the
records examined by us, the Company has no outstanding secured
debentures; however adequate amount is kept in reserve as security in
respect of unsecured bonds outstanding at year end.
20) The Company has not raised any money by public issues during the
year.
21) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For S.S. KOTHARI MEHTA & CO.
Chartered Accountants
Firm Reg. No. 000756N
K.S. MEHTA
Partner
Membership No. 008883
Place : New Delhi
Date : 21st May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of JK Paper
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2013, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and Notes to Financial Statements comprising
of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal controls
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement complies with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
(Referred to in paragraph (1) of our Report of even date of JK PAPER
LIMITED for the year ended 31st March, 2013)
1) (a) The Company has maintained proper records in respect of its
fixed assets showing full particulars including quantitative details
and situation of fixed assets.
(b) The fixed assets have been physically verified by the Management
according to the programme of periodical verification in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its Fixed Assets. The discrepancies, if any,
noticed on such physical verification have been properly dealt with in
the books of accounts.
(c) As per the records and information and explanations given to us,
fixed assets disposed off during the year were not substantial.
2) (a) We have been explained by the management that the inventory has
been physically verified at reasonable intervals during the year and
confirmations are obtained where inventory are lying with third
parties.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventory. As
far as we can ascertain and according to information and explanations
given to us by the management, the discrepancies whenever material
noticed on such physical verification of inventory as compared to book
records were properly dealt within the books of accounts.
3) (a) As informed to us, the Company has given unsecured loan to a
Company covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year in
respect of said Company is Rs. 23.03 Crores and the year- end balance
of such loan is Rs. 20.06 Crores.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms & conditions on which
aforesaid loan has been given are not, prima facie, prejudicial to the
interest of the Company.
(c) In respect of aforesaid loan, the repayment of principal as well as
interest is regular.
(d) In respect of the loan given by the Company, no amount, principal
as well as interest, is overdue and therefore provisions of clause
4(iii) (d) of the Order is not applicable.
(e) As informed to us, the Company has not taken any loan, secured or
unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii) (f) and (g) of the Order
are not applicable to the Company.
4) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature where suitable alternative sources do
not exist for obtaining comparable quotations, there is reasonable
internal control system commensurate with the size of the Company and
the nature of its business for the purchase of inventory and fixed
assets and for the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
5) (i) According to the information and explanations provided by the
management and based upon audit procedures performed, we are of the
opinion that the particulars of contracts or arrangements referred to
in Section 301 of the Act have been entered in the register required to
be maintained under that section; and
(ii) In our opinion and according to information and explanations given
to us, the transactions, made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Act and
exceeding the value of five lacs rupees in respect of each party during
the financial year, have been made at prices which are reasonable (read
with Para 4 above and Note no. 35 (b) of the accompanying financial
statements) having regard to prevailing market price at the relevant
time.
6) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58 A and 58 AA or
any other relevant provisions of the Act and the rules framed there
under with regard to deposits accepted from the public. We have been
informed that no order has been passed by Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal in this regard.
7) The Company has an internal audit system which is commensurate with
the size of the Company and nature of its business.
8) We have broadly reviewed the books of account and records maintained
by the Company pursuant to the rules made by the Central Government for
the maintenance of cost records under Section 209(1)(d) of the Act in
respect of the Company''s products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the said records with a view to
determine whether they are accurate and complete.
9) (a) According to the records of the Company, the company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Sales Tax, Wealth Tax, Income Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues with the
appropriate authorities to the extent applicable and there are no
undisputed statutory dues payable for a period of more than six months
from the date they become payable as at 31st March 2013.
(b) According to the records and information and explanations given to
us, there are no dues in respect of wealth tax, service tax and Custom
Duty that have not been deposited with the appropriate authorities on
account of any dispute and the dues in respect of Sales Tax, Excise
Duty, Income Tax and cess that have not been deposited with the
appropriate authority on account of dispute and the forum where the
dispute is pending are given below:
Nature of Nature of Period for which
status dues amount relates
Sales Tax Sales 1983-84/1987-88
Act Tax 1997-98
2001-2002
2002-2003
2003-2004
2004-2005
2004-2005
2005-2009
2005-2009
2006-2007
2006-2007
2007-2008 & 2008-2009
2009-2010
Central Excise 1981-1982/1982-1983
Excise Duty
Act 1982-1983
1986-1987 & 1994-1995
2004-2007
2005-2007
2005-2009
2007-2009
2007-2008/2008-2009
2007-2009
2008-2009 & 2009-2010
2009-2011
2009-2012
2009-2012
2010-2011
2010-2012
Water Cess 2001 - 2002
(PCP)
Cess Act,
1977
Income Income A.Y 2002-2003 to
Tax Act, Tax 2005-2006
1961 A.Y 2010-2011
Name of Status Amount Forum where dispute
involved is pending
(Rs. in
Crores)
Sales Tax Act 0.05 Sales Tax Department- Delhi
0.16 Sales Tax Tribunal, Cuttack
0.11 Sales Tax Tribunal, Cuttack
0.01 Deputy Commissioner, Delhi
0.01 Sales Tax Tribunal, Cuttack
0.46 High Court Allahabad
0.03 Sales Tax Tribunal, Cuttack
1.46 Additional Commissioner, Cuttack
0.16 Sales Tax Tribunal Cuttack
1.05 High Court Allahabad
2.21 Joint Commissioner Appeals, Vadodara
0.48 High Court Allahabad
0.10 High Court Allahabad
Central Excise Act 0.70 Deputy Commissioner Central Excise,
Rayagada
0.41 Supreme Court
1.31 High Court, Cuttack
0.06 CESTAT Ahmedabad
0.03 CESTAT Ahmedabad
0.05 Commissioner (Appeals), Surat
0.90 CESTAT Ahmedabad
0.15 CESTAT Ahmedabad
2.47 Commissioner (Appeals), Surat
6.22 CESTAT Kolkata
0.20 Commissioner (Appeals), Surat
0.23 Commissioner (Appeals), Surat
0.20 Commissioner (Appeals), Surat
0.26 Commissioner (Appeals), Surat
0.02 Commissioner (Appeals), Surat
Water Cess Act 1977 1.08 Cess Appellate Committee, OSPCB,
Bhubaneswar
Income Tax Act 1961 0.13 High Court Ahmedabad
1.16 CIT (Appeal)
Read with Note no. 30 of the accompanying financial statements.
10) The Company does not have accumulated losses and has not incurred
cash losses during the current year and in the immediately preceding
financial year.
11) In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of any dues to banks, financial institutions and
debenture/bond holders.
12) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13) The Company is not a chit fund or a nidhi/mutual benefit
fund/society, therefore, the provisions of clause 4 (xiii) of the Order
are not applicable to the Company.
14) According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
15) According to the information and explanations given to us, the
Company has given an undertaking to Infrastructure Development Finance
Company Limited against loan given to JK Enviro -Tech Limited, the
current outstanding is Rs. 17.17 Crore, as stated in Note 31(a) of the
accompanying financial statements. Further, during the year the Company
has agreed with HDFC Limited that on happening of certain events, it
will take all steps as may be required to ensure the timely repayment
of loan obligations of its Subsidiaries for the loan availed by them
from HDFC Ltd., the current outstanding is Rs. 38.40 Crore, as stated
in Note 31(b) of the accompanying financial statements. In our opinion,
the terms and conditions of above are not, prima facie, prejudicial to
the interest of the Company.
16) In our opinion and on the basis of information and explanations
given to us, the term loans were applied for the purposes for which
they were obtained.
17) According to information and explanations given to us and on an
overall examination of the Financial Statements of the Company, no
funds raised on short-term basis have been used for long-term
investment.
18) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19) According to the information and explanations given to us and the
records examined by us, the Company has no outstanding secured
debentures; however adequate amount is kept in reserve as security in
respect of unsecured bonds outstanding at year end.
20) According to the information and explanations given to us and the
records examined by us, the Company had raised money through Rights
issue of Rs. 245.58 Crore in previous year out of which balance Rs.
97.31 Crore has been fully utilized during the year. (Refer Note No. 53
of the accompanying financial statements).
21) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For S.S. KOTHARI MEHTA & CO.
Chartered Accountants
Firm Reg. No. 000756N
K.S. MEHTA
Partner
Membership No. 008883
Place : New Delhi
Date : 21st May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of JK PAPER LIMITED, as at
31st March, 2012, the Statement of Profit and Loss and also the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the 'Order') issued by the Central Government of India in
terms of Section 227 (4 A) of the Companies Act, 1956 (The Act), we
enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of 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 the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211 (3 C) of the Companies
Act, 1956;
(e) On the basis of written representations received from the Directors
of the Company and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March 2012 from
being appointed as a Director in terms of clause (g) of sub section (1)
of Section 274 of the Companies Act, 1956;
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with
Accounting Policy and Notes thereon, give the information required by
the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India;
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March 2012;
ii) In the case of the Statement of Profit & Loss, of the Profit for
the year ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph (1) of our Report of even date of JK PAPER
LIMITED for the year ended 31st March, 2012)
1) (a) The Company has maintained proper records in respect of its
fixed assets showing full particulars including quantitative details and
situation of fixed assets.
(b) The fixed assets have been physically verified by the Management
according to the programme of periodical verification in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its Fixed Assets. The discrepancies, if any,
noticed on such physical verification have been properly dealt with in
the books of accounts.
(c) As per the records and information and explanations given to us, no
substantial part of fixed assets has been disposed off during the
year.
2) (a) We have been explained by the management that the inventory has
been physically verified at reasonable intervals during the year and
confirmations are obtained where inventory are lying with third
parties.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventory.
As far as we can ascertain and according to information and
explanations given to us by the management, the discrepancies whenever
material noticed on such physical verification of inventory as
compared to book records were properly dealt within the books of
accounts.
3) (a) As informed to us, the Company has given unsecured loan to a
Company covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year in
respect of said Company is Rs. 26.63 Crores and the year end balance of
such loan is Rs. 23.03 Crores.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms & conditions on which
aforesaid loan has been given are not, prima facie, prejudicial to the
interest of the Company.
(c) In respect of aforesaid loan, the repayment of principal as well as
interest is regular.
(d) In respect of the loan given by the Company, no amount, principal
as well as interest, is overdue and therefore provision of clause
4(iii) (d) of the order is not applicable.
(e) As informed to us, the Company has not taken any loan, secured or
unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii) (f) and (g) of the Order
are not applicable to the Company.
4) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature where suitable alternative sources do
not exist for obtaining comparable quotations, there is reasonable
internal control system commensurate with the size of the Company and
the nature of its business for the purchase of inventory and fixed
assets and for the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
5) (a) According to the information and explanations provided by the
management and based upon audit procedures performed, we are of the
opinion that the particulars of contracts or arrangements that needs to
be entered into register maintained pursuant to Section 301 of the Act
have been so entered; and
(b) In our opinion and according to information and explanations given
to us, the transactions, made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Act and
exceeding the value of five lacs rupees in respect of each party
during the year have been made at prices which are reasonable (read
with Para 4 above) having regard to prevailing market price at the
relevant time.
6) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58 A and 58 AA or
any other relevant provisions of the Act and the rules framed there
under with regard to deposits accepted from the public. We have been
informed that no order has been passed by Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal in this regard.
7) The Company has an internal audit system which is commensurate with
the size and nature of its business.
8) We have broadly reviewed the books of account and records maintained
by the Company pursuant to the rules made by the Central Government for
the maintenance of cost records under Section 209(1) (d) of the Act in
respect of the Company's products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the said records with a view to
determine whether they are accurate and complete.
9) (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Sales Tax, Wealth Tax, Income Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues with the
appropriate authorities and there are no undisputed statutory dues
payable for a period of more than six months from the date they become
payable as at 31st March 2012.
(b) According to the records and information and explanation given to
us, there are no dues in respect of Wealth Tax, Service Tax and Custom
Duty that have not been deposited with the appropriate authorities on
account of any dispute and the dues in respect of Sales Tax, Income
Tax, Excise Duty, Provident Fund and Cess that have not been deposited
with the appropriate authority on account of dispute and the forum
where the dispute is pending are given below:-
Nature of Nature of Period For Which Amount Forum Where Dispute
Statue Dues Amount Relates Involved Is Pending
(Rs. in
Crore)
Sales Tax Sales 1983-84/1987-88 0.05 Sales Tax
Act Tax Department Delhi
1997-98/2002-07 0.12 Sales Tax Tribunal
Cuttack
2002-03 0.01 Deputy Commissioner
Delhi
2004-05 0.46 High Court Allahabad
2005-2009 1.46 Additional
Commissioner,
Cuttack
2005-2009 0.16 Sales Tax Tribunal
Cuttack
2006-07 1.05 High Court Allahabad
2006-07 2.21 Joint Commissioner
Appeals-Vadodara
2007-08 &
2008-09 0.48 High Court Allahabad
2009-10 0.10 High Court Allahabad
Central Excise 1979-80/1981-82 0.70 Deputy Commissioner
Excise Duty Central Excise,
Act Rayagada
1982-83 0.41 Supreme Court
1986-87 &
1994-95 1.31 High Court, Cuttack
2004-07 0.06 CESTAT, Ahmadabad
2005-07 0.03 CESTAT, Ahmadabad
2005-09 0.04 Commissioner
(Appeals), Surat
2007-09 0.49 CESTAT, Ahmadabad
2007-09 0.41 CESTAT, Ahmadabad
May 2008-
March 2011 0.17 Asst. Commissioner,
Bhubaneshwar
2008-09 &
2009-10 6.29 CESTAT, Kolkata
2008-09 0.15 CESTAT, Ahmadabad
2005-06 &
2010-11 0.05 Asst. Commissioner
Central Excise,
Surat
2005-06 &
2010-11 0.35 Commissioner
(Appeals), Surat
Provident Provident 1971-72/
Fund Act Fund 1977-78 0.12 PF Commissioner,
Surat High Court
2006-07 0.28 Orissa Cuttack
Water Cess 2001-02 0.82 Cess Appellate
(PCP) Committee, OSPCB,
Cess Act, Bhubaneswar
1977
10) The Company does not have accumulated losses and has not incurred
cash losses during the current year and in the immediately preceding
financial year.
11) In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of any dues to banks, financial institutions
and debenture/bond holders.
12) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13) The Company is not a chit fund or a nidhi /mutual benefit fund
/society, therefore, the provisions of clause 4 (xiii) of the Order are
not applicable to the Company.
14) According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
15) (a) According to the information and explanations given to us, the
Company has given an undertaking to Infrastructure Development Finance
Company Limited against loan given to JK Enviro-tech Limited amounting
to Rs. 40.00 Crore as stated in Note No. 31. In our opinion, the terms
and conditions on which the Company has given the undertaking is not,
prima facie, prejudicial to the interest of the Company.
(b) As explained to us, the Company has not given any guarantee for
loans taken by others from banks and financial institution.
16) In our opinion and on the basis of information and explanations
given to us, the term loans were applied for the purposes for which
they were obtained. However as represented by the management,
unutilized amount of loans obtained for project purposes are
temporarily deployed in short term investment pending utilization.
17) According to information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, funds raised
on short-term basis have not been used for long-term investment.
18) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19) According to the information and explanations given to us and the
records examined by us, adequate amount is kept in reserve as security
in respect of bond holders outstanding at year end.
20) According to the information and explanations given to us and the
records examined by us, the Company has raised money through Rights
Issue of Rs. 245.58 Crore out of which Rs. 148.27 Crore has been
utilized upto the end of the year. (Refer Note No. 51 (a)).
21) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For LODHA & CO. Chartered Accountants
N.K. LODHA
Partner
Firm Registration No.:- 301051E
Membership No.: - 85155
Place : New Delhi
Date : 14th May, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of JK PAPER LIMITED, as at
31st March, 2011, the Profi t and Loss Account and also the Cash Flow
Statement for the year ended on that date annexed thereto. These fi
nancial statements are the responsibility of the CompanyÃs management.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the fi
nancial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and signifi cant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (AuditorÃs Report) Order, 2003 as
amended by the Companies (AuditorÃs Report) (Amendment) Order, 2004
(together the ÃOrderÃ) issued by the Central Government of India in
terms of Section 227 (4A) of the Companies Act, 1956 (The Act), we
enclose in the Annexure a statement on the matters specifi ed in
paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of 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 the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profi t & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profi t & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in Section 211 (3C) of the Companies Act, 1956;
(e) On the basis of written representations received from the directors
of the Company and taken on record by the Board of Directors, we report
that none of the directors is disqualifi ed as on 31st March 2011 from
being appointed as a director in terms of clause (g) of sub section (1)
of section 274 of the Companies Act, 1956;
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with
Accounting Policy and Notes thereon, give the information required by
the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India;
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March 2011;
ii) In the case of the Profi t & Loss Account, of the Profi t for the
year ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph (I) of our Report of even date of JK PAPER
LIMITED for the year ended 31st March 2011)
1) (a) The Company has maintained proper records
in respect of its fixed assets showing full particulars including
quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the Management
according to the programme of periodical verification in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its Fixed Assets. The discrepancies, if any,
noticed on such physical verification have been properly dealt with in
the books of accounts.
(c) As per the records and information and explanations given to us, no
substantial part of fixed assets has been disposed off during the year
read with note no. B5 of Schedule 20.
2) (a) We have been explained by the management
that the inventory has been physically verified at reasonable intervals
during the year and confirmations are obtained where inventory are lying
with third parties.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and accordingto the information and explanations
given to us, the Company has maintained proper records of inventory.
As far as we can ascertain and according to information and
explanations given to us by the management, the discrepancies whenever
material noticed on such physical verification of inventory as compared
to book records were properly dealt within the books of accounts.
3) (a) As informed to us, the Company has given unsecured loan to a
Company covered in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year in respect of said Company is
Rs 2,776.86 Lac and the year end balance of such loan is Rs 2,655.3
Lac.
(b) In our opinion and according to the
information and explanations given to us, the rate of interest and
other terms & conditions on which aforesaid loan has been given are
not, prima facie, prejudicial to the interest of the Company.
(c) In respect of aforesaid loan, the repayment of principal as well as
interest is regular.
(d) In respect of the loan given by the Company, no amount, principal
as well as interest, is overdue and therefore provision of clause
4(iii) (d) of the order is not applicable.
(e) As informed to us, the Company has not taken any loan, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii) (f) and (g) of the Order
are not applicable to the Company.
4) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature where suitable alternative sources do
not exist for obtaining comparable quotations, there is reasonable
internal control system commensurate with the size of the Company (read
with note no. B16 of schedule 20) and the nature of its business for
the purchase of inventory and fixed assets and for the sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5) (a) According to the information and explanations
provided by the management and based upon audit procedures performed,
we are of the opinion that the particulars of contracts or arrangements
that needs to be entered into register maintained pursuant to Section
301 of the Act have been so entered; and
(b) In our opinion and according to information and explanations given
to us, the transactions, made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Act and
exceeding the value of fi ve lac rupees in respect of each party during
the year have been made at prices which are reasonable (read with Para
4 above) having regard to prevailing market prices at the relevant
time.
6) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of section 58A and 58AA or any
other relevant provisions of the Act and the rules framed there under
with regard to deposits accepted from the public. We have been informed
that no order has been passed by Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal in this regard.
7) The Company has an internal audit system which is commensurate with
the size and nature of its business.
8) We have broadly reviewed the books of account and records maintained
by the Company pursuant to the rules made by the Central Government for
the maintenance of cost records under Section 209(1)(d) of the Act in
respect of the CompanyÃs products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the said records with a view to
determine whether they are accurate and complete.
9) (a) According to the records of the Company,
the Company is generally regular in depositing undisputed statutory
dues including Providend Fund, Investor Education and Protection Fund,
Employeesà State Insurance, Sales Tax, Wealth Tax, Income Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
with the appropriate authorities and there are no undisputed statutory
dues payable for a period of more than six months from the date they
become payable as at 31st March 2011.
(b) According to the records and information and explanation given to
us, there are no dues in respect of Wealth Tax, Service Tax and Custom
Duty that have not been deposited with the appropriate authorities on
account of any dispute and the dues in respect of Sales Tax, Income
Tax, Excise Duty and Cess that have not been deposited with the
appropriate authority on account of dispute and the forum where the
dispute is pending are given below:-
Nature of Nature of Period to which Amount Forum where dispute is
statute dues the amount relates Involved pending
(Rs. in
Lac)
Sales Tax Sales Tax 2002-03 0.73 Dy. Commissioner, Delhi
Act 1 997-98/2002-07 12.11 Sales Tax Tribunal,
Cuttack
2004/2005-06/
2008 176.32 High Court, Allahabad
1983-84/1987-88 4.93 Sales Tax Deptt. Delhi
2005-2009 161.21 Addl. Commissioner-
Cuttak
2009-10 10.40 Dy. Commissioner Delhi
2006-07 336.51 Joint Commisioner
Appeals-Vadodra
Central Excise 1979-80/1981-82 89.20 Dy. Commissioner
Excise
Act Duty Central Excise Rayagada
1982-83 40.75 Supreme Court
1987-94 130.63 High Court Orrisa Cuttak
2005-07 3.01 Commissioner (Appeals)-
Surat
2004-07 6.20 Addl. Commissioner-
Surat
2008-09 555.00 CESTAT, Kolkata
2005-09 129.85 Commissioner (Appeals)-
Surat
2009-10 6.95 Commissioner of
Customs, Chennai
Income Income 2005-06 78.44 Commissioner (Appeals),
Tax Act Tax Surat
2007-08 23.48 Commissioner (Appeals),
Surat
Provident Provident 2006-07 28.24 High Court Orrisa Cuttak
Fund Act Fund
1971-72/
1977-78 11.60 PF Commissioner, Surat
Water Cess 2000-05/
2010-11 49.21 Cess Appellate
(PCP) Committee,
Cess Act OSPCB, Bhubaneshwar
10) The Company does not have accumulated losses and has not incurred
cash losses during the current year and in the immediately preceding fi
nancial year.
11) In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of any dues to banks, financial institutions
and debenture/bond holders.
12) According to the information and explanations given to us,the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13) The Company is not a chit fund or a nidhi /mutual
benefit fund /society, therefore, the provisions of clause 4 (xiii) of
the Order are not applicable to the Company.
14) According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
15) (a) According to the information and explanations
given to us, the Company has given an undertaking to Infrastructure
Development Finance Company Limited against loan given to JK
Enviro-tech Limited amounting to Rs. 4,000 Lac as stated in note no. B3
(b) of schedule 20. In our opinion, the terms and conditions on which
the Company has given the undertaking is not, prima facie, prejudicial
to the interest of the Company.
(b) As explained to us, the Company has not given any guarantee for
loans taken by others from banks and financial institution.
16) In our opinion and on the basis of information
and explanations given to us, the term loans were applied for the
purposes for which they were obtained.
17) According to information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, funds raised
on short-term basis have not been used for long-term investment.
18) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19) According to the information and explanations given to us and the
records examined by us, no security or charge is required to be created
in respect of the debentures/bonds issued/ outstanding as at year end.
20) The Company has not raised any money through a public issue during
the year.
21) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For LODHA & CO.
Chartered Accountants
(N.K. LODHA)
Partner
Firm Registration No.:- 301051E
Membership No.: - 85155
Place: New Delhi
Date: 29th April, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of JK PAPER LIMITED, as at
31st March, 2010, the Profi t and Loss Account and also the Cash Flow
Statement for the year ended on that date annexed thereto. These fi
nancial statements are the responsibility of the CompanyÃs management.
Our responsibility is to express an opinion on these fi nancial
statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the fi
nancial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the fi nancial statements. An audit also includes
assessing the accounting principles used and signifi cant estimates
made by management, as well as evaluating the overall fi nancial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (AuditorÃs Report) Order, 2003 as
amended by the Companies (AuditorÃs Report) (Amendment) Order, 2004
(together the ÃOrderÃ) issued by the Central Government of India in
terms of Section 227 (4A) of the Companies Act, 1956 (The Act), we
enclose in the Annexure a statement on the matters specifi ed in
paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of 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 the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profi t & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profi t & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in Section 211 (3C) of the Companies Act, 1956;
(e) On the basis of written representations received from the directors
of the company and taken on record by the Board of Directors, we report
that none of the directors is disqualifi ed as on 31st March 2010 from
being appointed as a director in terms of clause (g) of sub section (1)
of section 274 of the Companies Act, 1956;
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with Notes
thereon, give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March 2010;
ii) In the case of the Profi t & Loss Account, of the Profi t for the
year ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO THE AUDITORSÃ REPORT (Referred to in paragraph (1) of our
Report of even date of J.K. PAPER LIMITED for the year ended 31st March
2010)
1) (a) The Company has maintained proper records in respect of its fi
xed assets showing full particulars including quantitative details and
situation of fi xed assets.
(b) The fi xed assets have been physically verifi ed by the Management
according to the programme of periodical verifi cation in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its Fixed Assets. The discrepancies, if any,
noticed on such physical verifi cation have been properly dealt with in
the books of accounts.
(c) As per the records and information and explanations given to us, no
substantial part of fi xed assets has been disposed off during the
year.
2) (a) We have been explained by the management that the inventory has
been physically verifi ed at reasonable intervals during the year and
confi rmations are obtained where inventory are lying with third
parties.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verifi cation of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventory.
As far as we can ascertain and according to information and
explanations given to us by the management, the discrepancies whenever
material noticed on such physical verifi cation of inventory as
compared to book records were properly dealt with in the books of
accounts.
3) (a) As informed to us, the Company has given unsecured loan to a
Company covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year in
respect of said Company is Rs 2,739.27 Lac and the year end balance of
such loan is Rs 2,739.27 Lac.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms & conditions on which
aforesaid loan has been given are not, prima facie, prejudicial to the
interest of the company.
(c) In respect of aforesaid loan, the amount of principal as well as
interest is regular.
(d) In respect of the loan given by the Company, no amount, principal
as well as interest, is overdue and therefore provision of clause
4(iii) (d) is not applicable.
(e) As informed to us, the Company has not taken any loan, secured or
unsecured from companies, fi rms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii) (f) and (g) of the Order
are not applicable to the Company.
4) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature where suitable alternative sources do
not exist for obtaining comparable quotations, there is reasonable
internal control system commensurate with the size of the Company (read
with note no. B 16 of schedule 20) and the nature of its business for
the purchase of inventory and fi xed assets and for the sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5) (i) According to the information and explanations provided by the
management and based upon audit procedures performed, we are of the
opinion that the particulars of contracts or arrangements that needs to
be entered into register maintained pursuant to section 301 of the Act
have been so entered; and
(ii) In our opinion and according to information and explanations given
to us, the transactions, made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Act and
exceeding the value of fi ve lac rupees in respect of each party during
the year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time (read with para 4 above).
6) In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India and the provisions of section 58A and 58AA or any
other relevant provisions of the Act and the rules framed there under
with regard to deposits accepted from the public. We have been informed
that no order has been passed by Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal in this regard.
7) The Company has an internal audit system which is commensurate with
the size and nature of its business.
8) We have broadly reviewed the books of account and records maintained
by the Company pursuant to the rules made by the Central Government for
the maintenance of cost records under Section 209(1)(d) of the Act in
respect of the CompanyÃs products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the said records with a view to
determine whether they are accurate and complete.
9) (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Providend Fund, Investor Education and Protection Fund, EmployeesÃ
State Insurance, Sales Tax, Wealth Tax, Income Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues with the
appropriate authorities and there are no undisputed statutory dues
payable for a period of more than six months from the date they become
payable as at 31st March 2010.
(b) According to the records and information and explanation given to
us, there are no dues in respect of Wealth Tax, Service Tax and Custom
Duty that have not been deposited with the appropriate authorities on
account of any dispute and the dues in respect of Sales Tax, Income
Tax, Excise Duty and Cess that have not been deposited with the
appropriate authority on account of dispute and the forum where the
dispute is pending are given below:-
Nature Nature of Period to which Amount
of statute dues the amount Involved
relates (Rs. in Lac)
Sales Tax Sales Tax 2002-03 0.73
Act 1997-98/2002-07 12.11
2004 22.99
2005-06 14.99
2006-07 105.08
2001-02 60.10
1983-84/1987-88 4.93
Central Excise 1979-80/1981-82 89.20
Excise duty
Act 1982-83 40.75
1987-94 130.63
2005-07 3.01
2004-07 8.32
Income Income 2004-05 6.98
Tax Act Tax
Provident Provident 2006-07 28.24
Fund Act Fund 1971-72/1977-78 11.60
Water Cess 2000-05/2009-10 26.99
(PCP)
Cess Act
Nature of statue Forum where dispute is
pending
Sales Tax
Act Dy. Commissioner, Delhi
Sales Ta x Tribunal, Cuttack
High Court, Allahabad
Dy. Commissioner, Delhi
High Court, Allahabad
Sales Ta x Tribunal, Chennai
Commissioner Sales
Tax, Delhi
Central
Excise
Act Commissioner Central
Excise, Bhubneshwar
Supreme Court
High Court, Orissa
Commissioner (Appeals)-Surat
Addl. Commissioner-Surat
Income
Tax Act Appellate Tribunal
Provident
Fund Act High Court, Orissa
PF Commissioner, Surat.
Water
(PCP)
Cess Act Cess Appellate Committee,
OSPCB, Bhubneshwar
10) The Company does not have accumulated losses and has not incurred
cash losses during the current year and in the immediately preceding fi
nancial year.
11) In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of any dues to banks, fi nancial institutions
and debenture/bond holders.
12) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13) The Company is not a chit fund or a nidhi /mutual benefi t fund
/society, therefore, the provisions of clause 4 (xiii) of the Order are
not applicable to the Company.
14) According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
15) (a) According to the information and explanations given to us, the
Company has given an undertaking to Infrastructure Development Finance
Company Limited against loan given to JK Enviro-tech Limited amounting
to Rs. 4,000 Lac as stated in note no. B.3 (b) of schedule 20. In our
opinion, the terms and conditions on which the company has given the
undertaking is not, prima facie, prejudicial to the interest of the
company.
(b) The Company has not given any guarantee for loans taken by others
from banks & Financial Institutions, as explained to us.
16) In our opinion and on the basis of information and explanations
given to us, the term loans were applied for the purposes for which
they were obtained.
17) According to information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, funds raised
on short-term basis have not been used for long- term investment.
18) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
19) According to the information and explanations given to us and the
records examined by us, no security or charge is required to be created
in respect of the debentures/bonds issued/ outstanding as at year end.
20) The Company has not raised any money through a public issue during
the year.
21) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For LODHA & CO.
Chartered Accountants
(N.K. LODHA)
Partner
Firm Registration No.:- 301051E
Membership No.: - 85155
Place: New Delhi
Date: 17th May, 2010
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