To the Members of
CKP Products Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone Financial Statements of CKP Products
Limited ("the Company"), which comprise the standalone balance sheet as at
March 31, 2019, the standalone statement of profit and loss and the standalone statement
of cash flows for the year then ended and notes to the standalone Financial Statements,
including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given
to us, the standalone Financial Statements give the information required by the Companies
Act, 2013, as amended
("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, 2019; and its profit / (loss) and cash flows for
the year ended on that date.
Basis for opinion
We have conducted our audit of the standalone Financial Statements in accordance with
the Standards on Auditing ("SAs") as specified under section 143(10) of the Act.
Our responsibilities under those Standards are further described in the ‘Auditors
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 audit opinion on the standalone Financial Statements.
Managements Responsibility for the Standalone Financial Statements
The Companys 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, 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 the Companies (Accounts) Rules, 2014.
This responsibility also includes the maintenance of adequate accounting records in
accordance with the provision of the Act for safeguarding of the assets of the Company and
for preventing and detecting the 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 control, 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, the management is responsible for assessing the
Companys 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
Companys financial reporting process.
Auditors 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 auditors 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
scepticism 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 managements 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 Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors 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
auditors 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors 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 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 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 standalone balance sheet, the standalone statement of profit and loss 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
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 31 March,
2019, taken on record by the Board of Directors, none of the directors is disqualified as
on 31 March, 2019, 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".
g) In our opinion, the managerial remuneration for the year ended 31st March, 2019 has
been paid / provided by the Company to its directors in accordance with the provisions of
Section 197 read with Schedule V of the Act;
h) with respect to the other matters to be included in Auditors 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 explanations given to us:
i. The Company does not have any pending litigations which would impact its financial
position; ii. The Company did not have any long term contracts including derivative
contracts for which there were any material foreseeable losses; iii. There were no amounts
which were required to be transferred to the Investor Education and
Protection Fund by the Company.
For R T Jain & Co. LLP
Chartered Accountants
FRN: 103961W / W100182
(CA Bankim Jain)
Partner
Mem No.: 139447
Mumbai, June 20, 2019
Annexure A to the Independent Auditors Report
Referred to in paragraph 1 under the heading "Report on Other Legal and Regulatory
Requirements" of our report of even date on the accounts of the company for the year
ended 31st March, 2019
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that
: i. (a) The company has maintained proper records showing full particulars including
quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by the management
during the year; no material discrepancies were noticed on such verification.
(c) Based on our audit procedures and the information and explanation received by us,
we report that the company does not own any immovable properties held as fixed assets.
Thus no opinion on the validity of the title of the company on immovable properties is
given.
ii. (a) As explained to us, inventories of oil and agro products except goods in
transit and stock lying with third parties, have been physically verified during the year
by the management at reasonable intervals.
(b) In our opinion and on the basis of our examination of the records, no material
discrepancy was noticed on physical verification of stocks by the management as compared
to book records.
iii. According to the information and explanations given to us and on the basis of our
examination of the books of account, the Company has not granted any loan to any associate
concern covered in the register maintained under Section 189 of the Companies Act, 2013.
iv. According to the information and explanations given to us, the Company has complied
with provisions of Section 185 and 186 of the Act in respect of grant of loans, making
investments and providing guarantees and securities, as applicable.
v. In our opinion, the company has not accepted any deposits within the meaning of Rule
2 (b) of Companies (Acceptances of Deposits) Rules, 2014.
vi. According to the information and explanations provided by the management, the
company is not engaged in production of goods or provision of any such services for which
the Central Government has prescribed particulars relating to utilization of material or
labour or other items of cost. Hence, the provisions of section 148(1) of the Companies
Act, 2013 do not apply to the company. Hence, in our opinion, no comment on maintenance of
such records is required.
vii. (a) According to the records of the company, undisputed statutory dues including
Provident Fund,
Investor Education and Protection Fund, Employees State Insurance, Income-tax,
Sales-tax, Service Tax, Goods and Service Tax, Custom Duty, Excise Duty, cess to the
extent applicable and any other statutory dues have generally been regularly deposited
with the appropriate authorities. According to the information and explanations given to
us there are following outstanding statutory dues as on 31st of March, 2019 for a period
of more than six months from the date they became payable.
| Particulars |
Amount |
| Profession Tax |
Rs. 43,567/- |
| Labour Welfare Fund |
Rs. 60/- |
| Income Tax (as per return filed for A. Y. 17-18) |
Rs. 80,27,150/- |
| Income Tax (as per return filed for A. Y. 18-19) |
Rs. 84,64,990/- |
(b) According to the information and explanations given to us, there is no amounts
payable in respect of income tax, service tax, goods and service tax, sales tax, customs
duty and excise duty which have not been deposited on account of any disputes.
Viii .Based on our audit procedures and the information and explanations given by the
management, we are of the opinion that, the company has not defaulted in repayment of any
dues to any financial institution, bank or debenture holders.
ix. Based on records of the company, the company has neither raised any moneys by way
of Initial Public Offer or Further Public Offer or term loan during the year.
x. Based on the audit procedures performed and the information and explanations given
to us, we report that no fraud on or by the Company has been noticed or reported during
the year.
xi. According to information and explanations given to us, in our opinion, the company
has paid managerial remuneration in accordance with the requisite approvals mandated by
the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
xii. The Company is not a nidhi company. Therefore, the provision of this clause of the
Companies (Auditors Report) Order, 2016 is not applicable to the Company.
xiii. Based on our audit procedures and on the information given by the management, the
company has complied with the sections 177 and 188 of the Companies Act, 2013 for all the
transactions with the related parties and the details of such transactions have been
properly disclosed in the standalone Financial Statements as required by the applicable
accounting standards.
xiv. The Company has not made any preferential allotment of shares during the year to
parties covered in register maintained under section 189 of the Companies Act, 2013.
xv. The company has not entered into any non-cash transactions with directors of the
company or its subsidiary or persons connected with them.
xvi. The Company is not required to be registered under Section 45-IA of Reserve Bank
of India Act, 1934.
For R T Jain & Co LLP
Chartered Accountants
FRN : 103961W / W100182
(CA Bankim Jain)
Partner
Mem No. : 139447
Mumbai, June 20, 2019
Annexure - B to the Independent Auditors Report
Referred to in paragraph 2(f) under the heading "Report on Other Legal and
Regulatory Requirements" of our report of even date on the accounts of the company
for the year ended 31st March, 2019
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of CKP
Products Limited ("the Company") as of March 31, 2019 in conjunction with
our audit of the standalone financial statements of the Company for the year ended on that
date.
Managements Responsibility for Internal Financial Controls
The Companys 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 companys 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 Companys 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 "Guidance Note")
and the Standards on Auditing, issued by ICAI and 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 auditors judgment, including the assessment of the risks of
material misstatement of the standalone 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 Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of standalone Financial Statements for external purposes in accordance with
generally accepted accounting principles. A companys 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 standalone
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 companys assets that could have a material effect on the standalone
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. However, the Company does not have
appropriate system manuals or predefined standard operation procedure to maintain the
efficacy and effectiveness of the internal financial controls throughout the year. Thus,
the company does not have formal internal financial controls over financial reporting
based on our verification.
For R T Jain & Co LLP
Chartered Accountants
FRN: 103961W/W100182
(CA Bankim Jain)
Partner
Mem No.: 139447
Mumbai, June 20, 2019
+91-9892691696
