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Emami Paper Mills Ltd.

BSE: 533208 Sector: Industrials
NSE: EMAMIPAP ISIN Code: INE830C01026
BSE 00:00 | 24 Apr 2020 Emami Paper Mills Ltd
NSE 05:30 | 01 Jan 1970 Emami Paper Mills Ltd

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OPEN 83.85
PREVIOUS CLOSE 79.90
VOLUME 204
52-Week high 174.75
52-Week low 47.45
P/E 23.69
Mkt Cap.(Rs cr) 507
Buy Price 83.85
Buy Qty 1612.00
Sell Price 71.00
Sell Qty 1.00
OPEN 83.85
CLOSE 79.90
VOLUME 204
52-Week high 174.75
52-Week low 47.45
P/E 23.69
Mkt Cap.(Rs cr) 507
Buy Price 83.85
Buy Qty 1612.00
Sell Price 71.00
Sell Qty 1.00

Emami Paper Mills Ltd. (EMAMIPAP) - Auditors Report


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Company auditors report

To the Members of

EMAMI PAPER MILLS LIMITED

Report on the IndAS Financial Statements

We have audited the accompanying Ind AS ! nancial statements of EMAMI PAPER MILLSLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2019 and the Statement of Pro! t and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of the signi! cant accounting policies and other explanatory information.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS ! nancial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the ! nancial position of theCompany as at 31st March 2019 and its pro! t total comprehensive income its cash" ows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) speci! edunder section 143(10) of the Companies Act 2013. We are independent of the Group inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia and we have ful! lled our other ethical responsibilities in accordance with theprovisions of the Companies Act 2013. We believe that the audit evidence we have obtainedis su# cient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsigni! cance in our audit of the ! nancial statements of the current ! nancial year. Thesematters were addressed in the context of our audit of the ! nancial statements as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters.

1. New Regulation-Timing of Revenue Recognition

Key Audit Matter Response to KAM
Accuracy of recognition measurement presentation and Principal Audit Procedures disclosures of revenues and other related balances in view Ind AS 115 "Revenue from Contracts with Customers" impact of adoption of (new revenue accounting standard) We assessed the Company's process to identify the of adoption of the new revenue accounting standard.
The application of the new revenue accounting standard involves certain key judgements relating to identi!cation of distinct performance obligations determination of transaction price of the identi!ed performance obligations the appropriateness of the basis used to measure revenue recognized over a period or on point in time. Additionally new revenue accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satis!ed subsequent to the balance sheet date. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing.
If a performance obligation is not satis!ed over time an entity satisfied the performance obligation at a point in time. To determine the point in time at which a customer obtains control of a promised asset and the entity satisfied a performance obligation the entity shall consider the requirements for control and shall consider indicators of the transfer of control Sample of revenues disaggregated by type and service offerings was tested with the performance obligations specified in the underlying contracts.
Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.
We reviewed the collation of information and the logic of the report generated used to prepare the disclosure relating to the periods over which the remaining performance obligations will be satis!ed subsequent to the balance sheet date.
which include but are not limited to (a) The entity has a present right to payment for the asset (b) The customer has legal title to the asset (c) The entity has transferred physical possession of the asset (d) The customer has the signi!cant risks and rewards of ownership of the asset (e) The customer has accepted the asset We reviewed the incidence of transfer of control through satisfaction of performance obligation and the point of time at which the right to payment occurs.
Conclusion
The assumption applied by the company were taken into consideration and we agree with management evaluations.
2. Input Tax Credit
Key Audit Matter Response to KAM
Non reconciliation of Input Tax Credit receivable with GSTR-2A Principal Audit Procedures
The Company has accounted for Input Tax Credit on the basis of invoices received from suppliers of goods and services. However some of these suppliers are yet to !le GSTR-1 re"ecting the supplies made by them to the company leading to di$erences between credit recognized by the company and that shown in GSTR 2A. We have checked the GSTR-1 and GSTR-3B !led by the Company and vouched a sample population of Invoices on the basis of invoices received from suppliers Input Tax Credit was accounted for .
The company is in the process of reconciling the GST Input Tax credit for the years 2017-18 and 2018-19. However this process cannot be completed till an end date being declared by authorities for !ling GSTR1 for a particular period. In view of the present scenario and the various changes being implemented in the GST law it was found prudent not to account for the di$erence till the situation crystallizes.
Conclusion
The assumption applied by the company were taken into consideration and we agree with management evaluations.
3. Interest Rate Risk Mitigation
Key Audit Matter Response to KAM
The company uses derivative financial instruments to hedge interest rate risks arising from loans taken in the ordinary course of business. Management's hedging policy is documented in corresponding internal guidelines and serves as the basis for these transactions. The means of limiting this risk include entering into cross-currency interest rate swaps. The companies enter into interest rate hedges for the purpose of achieving an economically sensible ratio of "oating to !xed interest rate exposures. As a part of our audit procedures among other things we assessed the contractual and financial parameters and evaluated the accounting treatment including the effects on equity and pro!t or loss of the various hedging relationships.
Conclusion
We agree with management's evaluation.
Asset/(Liability) in respect of those interest rate swaps are measured at fair value (i.e. Mark To Market value). Any change in Mark To Market value of those swaps are recognized in Other Comprehensive Income when those qualify for hedge accounting and designated as hedge instrument by the company; in other cases the change in Mark To Market value is recognized in Pro!t and Loss Statement. Accordingly the company is carrying interest rate swap assets of INR 6.18 Crores and interest rate swap liability of INR 4.02 Cr as at 31.03.19; the change in fair value amounting to INR 4.68 Cr is recognized in Other Comprehensive Income and that amounting to INR 2.43 Cr is recognized in Pro!t and Loss Statement. We also evaluated the Company's internal control system with regard to derivative financial instruments including the internal activities to monitor compliance with the hedging policy. In addition to evaluating the internal control system we obtained bank con!rmations for the hedging instruments in order to assess completeness. With regard to the expected cash flows and the assessment of the e$ectiveness of hedges we essentially conducted a retrospective assessment of past hedging levels. In doing so we were able to satisfy ourselves that the estimates and assumptions made by management were substantiated and sufficiently documented.

 

4. Foreign Currency Exposure-Currency Swaps
Key Audit Matter Response to KAM
The company has earned a gain of Rs. 2.70 Crores from fair value (MTM Value) change in Currency Swaps which is recognized in Pro!t and Loss Statement. The company has liability of INR 4.48 Crores as at 31.03.19 which is measured at MTM value. MTM asset/(Liability) are measured at fair value as of the balance sheet date. For Currency rate Swaps the negative Fair Values as of the Balance Sheet date amount to Rs. 4.48 Crores. Principal Audit Procedures
As a part of our audit procedures we assessed the contractural and financial parameters and evaluated the accounting treatment including the effects on equity and pro!t or loss and the rationale behind not designating derivative as hedge. For the purpose of auditing the fair value mesurement of financial instruments we also assessed the methods of calculation employed on the basis of market data. In addition to evaluating the internal control system we obtained bank con!rmations for the derivative instruments in order to assess completeness.
On the basis of principle of conservatism it would had been more appropriate and rationale to designate these derivatives as hedged instruments.
Conclusion
The assumption applied by the company were taken into consideration and we agree with management evaluations.

Information Other than the Financial Statements and Auditor's Report Thereon

• The Company's Board of Directors is responsible for the other information. Theother information comprises the information included in the Annual Report for exampleCorporate Overview Key Highlights Board of Director's Report Report on CorporateGovernance Management Discussion & Analysis Report Business Responsibility Reportetc. but does not include the financial statements and our auditor's report thereon.

• Our opinion on the financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

• In connection with our audit of the financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

• If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of the Management and Those Charged with Governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating e$ectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to in"uence the economic decisions of users taken on thebasis of these annual financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal controls relevant to the audit in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast signi!cant doubt on the ability ofthe company to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the financial statements or if such disclosures are inadequate to modifyour opinion. Our conclusions are based on the audit evidence obtained up to the date ofour auditor's report. However future events or conditions may cause the company to ceaseto continue as a going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and signi!cant audit !ndings including anysigni!cant de!ciencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most signi!cance inthe audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbene!ts of such communication.

Report on other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit we report to theextent applicable that:

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

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

c) The Balance Sheet the Statement of Pro!t and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the relevant books of accounts.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards prescribed 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 31stMarch 2019 taken on record by the Board of Directors none of the Directors isdisquali!ed as on 31st March 2019 from being appointed as a director in terms of Section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A". Our report expresses an unmodi!ed opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

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

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

h) With respect to the other matters to be included in the Auditor's Report inaccordance with the Rule 11 of the Companies (Audit and Auditors) rules 2014 in ouropinion 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 financialposition in its financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses on long term contracts including derivativecontracts.

iii. There has been no delay in transferring amounts which were required to betransferred to the Investor education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

For Agrawal Subodh & Co.
Chartered Accountants
Firm's Registration No : 319260E
Subodh Kumar Agrawal
Place: Kolkata Partner
Date: 08th May 2019. Membership No. : 054670

Annexure "A" to the Independent Auditors' Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' Section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act").

We have audited the internal financial controls over financial reporting of Emami PaperMills Limited ("the Company") as of 31st March 2019 in conjunction with ouraudit of the Ind AS financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India.

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating e$ectively for ensuring the orderly ande#cient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated e$ectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly re"ect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial e$ect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialcontrols over financial reporting to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating e$ectively as at 31st March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Agrawal Subodh & Co.
Chartered Accountants
Firm's Registration No : 319260E
Subodh Kumar Agrawal
Place: Kolkata Partner
Date: 08th May 2019. Membership No. : 054670

Annexure "B" to the Independent Auditors' Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

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

(b) The Company has a regular programme of physical veri!cation of its !xed assets bywhich all !xed assets are veri!ed in a phased manner over a period of three years. Inaccordance with this programme certain !xed assets were veri!ed during the year and nomaterial discrepancies were noticed on such veri!cation. In our opinion this periodicityof physical veri!cation is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and the records examinedby us including registered title deeds we report that the title deeds comprising allthe immovable properties of land and buildings which are freehold are held in the name ofthe Company as at the Balance Sheet date. In respect of immovable properties of land thathave been taken on lease and disclosed as property plant and equipment in the financialstatements the lease agreements are in the name of the Company where the Company is thelessee in the agreement except for one plot of leasehold land which is in the process ofbeing registered since 2010-11 the gross block and net block of which amounts to Rs.15.23lacs and Rs.12.82 lacs respectively as on 31st March 2019.

ii. According to the information and explanations given to us the inventory has beenphysically veri!ed during the year by the management. In our opinion the frequency ofsuch veri!cation is reasonable. The discrepancies noticed on veri!cation between thephysical stocks and the book records were not material and have been dealt with in booksof accounts.

iii. The Company has granted loans to 2 (two) companies listed in the registermaintained under Section 189 of the Companies Act2013. In our opinion

a) the terms and conditions on which the loans had been granted were not prima faciaprejudicial to the interest of the company.

b) the borrowers have been regular in the payment of principal and interest asstipulated

c) there are no overdue amounts for more than 90 days from the due date of each suchloans

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public in accordance with the provisions ofSections 73 to 76 or any other relevant provisions of the Act and the rules framedthereunder. Accordingly paragraph 3(v) of the Order is not applicable to the Company.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 as amended prescribed by the CentralGovernment under sub-section (1) of Section 148 of the Companies Act 2013 and are of theopinion that prima facie the prescribed cost records have been made and maintained.

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

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Service TaxCustoms Duty Excise Duty Value Added Tax Goods and Service Tax Cess and otherstatutory dues to the appropriate authorities during the year. There were no undisputedamounts payable in respect of Provident Fund Employees' State Insurance Income TaxSales Tax Service Tax Customs Duty Excise Duty Value Added Tax Goods and Service TaxCess and other statutory dues in arrears as at 31st March 2019 for a period of more thansix months from the date they became payable.

(b) Details of dues of Central Sales Tax Service Tax Excise Duty Entry Tax and ValueAdded Tax which have not been deposited as on 31st March 2019 on account of disputes aregiven below:

Particulars Financial year to which the matter pertains Forum where matter is pending Amount (र. in Lacs) Amount Unpaid (र. in Lacs)
The Central Excise Act 1994 & Service Tax (Finance Act 1994) 1994-95 ACCE 0.87
2008-09 to Oct'2012 Comm. Appeals 0.07
2012-13 & 2014-15 Comm. Appeals 2.67 3.61
2006-07 Tribunal 110.64 74.81
Case to be !led before
2011-12 & 2012-13 CESTAT Kolkata 9.09 8.18
2010-11 to 2012-13 Commissioner (A) BBSR 19.03 18.32
2011-12 CESTAT Kolkata 4.46 3.67
2014-15 Assistant Commissioner 18.62 2.43
(CGST & Customs) Balasore
2014-15 Assistant Commissioner 45.76 5.97
(CGST & Customs) Balasore
Central Sales Tax 1993-94 Tribunal 20.26 16.26
2004-05 DCCT 1.99 0.53
2009-10 Comm. Appeals 19.62 17.12
2010-11 Tribunal (Cuttack) 2.58 1.88
2015-16 Tribunal (Cuttack) 2.17 1.15
2016-17 DCCT Balasore 31.85 28.66
2017-18 Comm. Appeals 3.69 3.69
Value Added Tax 2006-07 Comm. Appeals 0.64 0.59
Act (Orissa) 2009-10 Comm. Appeals 10.79 10.79
2011-12 Comm. Appeals 1.98 1.78
Orissa Sales Tax 1989-90 High Court 2.01 0.79
ESIC 1996-97 ESIC Court 0.25 0.22
Entry Tax Act 2013-14 High Court 89.39 81.29
(West Bengal) 2014-15 High Court 83.48 83.48
2015-16 High Court 82.42 82.42
2016-17 High Court 56.99 56.99
2017-18 High Court 14.28 14.28

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted during the year in repayment of loans or borrowings to financialinstitutions bankers and the government. The Company did not have any outstandingdebentures during the year.

ix. The Company did not raise any money by way of initial public o$er and furtherpublic o$er (including debt instrument). To the best of our knowledge and belief andaccording to the information and explanations given to us term loans availed by thecompany were applied for the purpose for which the loans were obtained.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company and no fraud on the Company by its Officers or employeeshas been noticed or reported during the year.

xi. According to the information and explanations given to us the company has paid/provided for managerial remunerations in accordance with the requisite approvals mandatedby the provisions of Sec 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3 (xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Ind AS Financial Statements as required by theapplicable Indian Accounting Standards.

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

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3 (xv)of the Order is not applicable.

xvi. According to information and explanations given to us the Company is not requiredto be registered under Section 45 IA of the Reserve Bank of India Act 1934.

For Agrawal Subodh & Co.
Chartered Accountants
Firm's Registration No : 319260E
Subodh Kumar Agrawal
Place: Kolkata Partner
Date: 08th May 2019. Membership No. : 054670


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