TO MEMBERS OF KAY POWER AND PAPER LIMITED
REPORT ON AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
We have audited the standalone fi nancial statements of Kay Power and Paper Limited
("the Company"), which comprise the balance sheet as at 31st March 2023, and the
statement of Profi t and Loss, Statement of changes in equity and Statement of Cash Flows
for the year then ended, and notes to the fi nancial statements, including a summary of
signifi cant 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 aforesaid standalone fi nancial statements give the information required
by the Companies Act, 2013 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, 2023, and its profi t, changes in equity and its
cash fl ows for the year ended on that date.
BASIS FOR OPINION
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
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
financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfi lled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is suffi 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 most
signifi cance in our audit of the fi nancial statements of the current period. These
matters were addressed in the context of our audit of the fi nancial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
We have determined that there are no key audit matters to communicate in our report.
OTHER INFORMATION
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Directors Report to the members and
Annexures thereto, Report on Corporate Governance, Management Discussion and Analysis, but
does not include the Standalone Financial Statements and our auditors report thereon. Our
opinion on Standalone fi nancial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of fi nancial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the Standalone Financial statements or our knowledge obtained
in the audit or otherwise appear 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.
MANAGEMENTS RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Companys 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 of
these standalone fi nancial statements that give a true and fair view of the fi nancial
position, financial performance, (changes in equity) and cash fl ows of the Company in
accordance with the accounting principles generally accepted in India, including the
accounting Standards specifi ed 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 fi nancial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the fi nancial statement that
give a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the fi nancial statements, 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 fi nancial
reporting process.
AUDITORS RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the fi nancial
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 infl uence the economic decisions of users taken on the
basis of these fi nancial 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 financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is suffi cient 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
Companies Act, 2013, 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 signifi cant 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 fi nancial 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 financial statements,
including the disclosures, and whether the fi nancial 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 signifi cant audit fi ndings, including any
signifi cant defi ciencies 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 signifi cance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors 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 benefi ts of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors Report) Order, 2020 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 specifi ed in paragraphs 3 and 4 of the Order.
2. As required by Section 143(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 Profi t 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, fi nancial statements comply with the Indian Accounting Standards
specifi ed under Section 133 of the Act except Ind AS 19 regarding ‘Employee Benefi
ts on account of non-provision for liability towards post-employment defi ned benefit
plans like gratuity payable to employees as described in the Note 2(j) of Notes to
accounts.
(e) On the basis of written representations received from the directors as on March 31,
2023 and taken on record by the Board of Directors, none of the directors is disqualifi ed
as on March 31, 2023 from being appointed as a director in terms of sub-section (2) of
Section 164 of the Companies Act, 2013
(f) With respect to the adequacy of the internal fi nancial controls over fi nancial
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 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 the explanations given to us:
i. The Company did not have any pending litigation as on March 31, 2023 having material
impact on its fi nancial position.
ii. The Company did not have any long term contracts including derivative contracts for
which there were any material foreseeable losses as on March 31, 2023.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company during the year ended on March 31, 2023.
iv. a. The management has represented that, to the best of their knowledge and belief,
no funds 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 or
e n t i t y, i n c l u d i n g f o r e i g n 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 identifi ed in
any manner whatsoever by or on behalf of the company ("Ultimate Benefi ciaries")
or provide any guarantee, security, or the like on behalf of the Ultimate Benefi ciaries.
b. The management has represented that, to the best of its knowledge and belief, no
funds have been received by the company from any person or entity 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 i d e n t i f i e d i n a n y m a n n e r whatsoever
by or on behalf of the
F u n d i n g P a r t y ( " U l t i m a t e Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Benefi ciaries,
c. Based on such audit procedures 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 (iv)(a) and (iv)(b) above contain any material
misstatement.
v. There are no events of dividend declared and paid by the Company during the year
until the date of this report, hence compliance with provisions of section 123 of the
Companies Act, 2013 is not required.
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 April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules,2014 is
not applicable for the fi nancial year ended March 31, 2023
|
For Godbole & Co. |
|
Chartered Accountants |
| Place : Satara |
Ashutosh Godbole |
| Date : May 29, 2023 |
Proprietor |
|
Mem. No.104822 |
|
FRN : 117969W |
UDIN: 23104822BGUWGE2303 |
Annexure A to the Auditors Report
Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory
Requirements Section of our Report of even date to the Members of Kay Power And Paper
Limited for the year ended on 31st March, 2023
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the fi nancial statements of the Company and taking into
consideration the information and explanations given to us and the books of account and
other records examined by us in the normal course of audit, and to the best of our
knowledge and belief, we report that:
i. a) The Company has maintained proper records showing full particulars
including quantitative details and situation of property, plant and equipment and
intangible assets. b) As per our information and explanations given to us, property, plant
and equipment have been physically verifi ed by the management during the year and no
material discrepancies were noticed on such verifi cation. ln our opinion, the frequency
of verifi cation of the property, plant and equipment is reasonable having regard to the
size of the Company and the nature of its assets. c) According to the information and
explanations given to us, the records examined by us and based on the examination of the
conveyance deeds/ registered sale deed provided to us, we report that, the title deeds,
comprising all the immovable properties of land and buildings which are freehold, are held
in the name of the Company as at the balance sheet date. d) The company has not revalued
its Property, Plant and Equipment (including Right of Use assets) or intangible assets or
both during the year. e) No proceedings have been initiated or are pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and rules made thereunder as such this clause is not applicable to the
company for the year. i
i. a) According In our opinion and according to the information and
explanation given to us, the management has conducted the physical verifi cation of
inventory at reasonable intervals and no material discrepancies of 10% or more in the
aggregate for each class of inventory between the books record and physical verification
noticed. In our opinion coverage and procedure of such verifi cation by the management is
appropriate. b) During any point of time of the year, the company has not been sanctioned
any working capital limits in excess of fi ve crore rupees, in aggregate, from any banks
or financial institutions on the basis of security of current assets ii
i. a) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans, secured or unsecured to companies, fi
rms, limited liability partnerships and other parties. b) In our opinion and according to
the information and explanation given to us, during the year under audit the company has
not made any investments, guarantees provided, security given to any third party in
relation to loans and advances. c) As company has not given any loans sub-clause c, d, e
and f of clause 3
(iii) is not applicable for the year.
i
v. In respect of loans, investments, guarantees, and security, provisions
of sections 185 and 186 of the Companies Act have been complied with by the company.
Company has not given any loans in violation of section 185 and 186 of the Companies Act
2013.
v. In our opinion and according to information and explanations given to
us, the Company does not have any deposits accepted from the public within the meaning of
section 73 to 76 or any other relevant provisions of the Companies Act and the rules made
thereunder. v
i. The Company is maintaining cost records as prescribed under Section 148
(1) of the Companies Act, 2013. However, we have not verified the same for
completeness or accuracy. vi
i. a) According to records of the Company, it is regular in depositing
with appropriate authorities undisputed statutory dues including Goods and Services Tax,
provident fund, employees state insurance, income-tax, duty of customs, duty of excise,
value added tax, cess. No amount is outstanding as at 31/3/2023 for a period more than 6
months from the date they become payable. b) According to information and explanations
given to us, there are no dues payable in respect of statutory dues referred to in
sub-clause
(a) which have not been deposited on account of any dispute. vii
i. vii
i. No any transactions recorded in the books of account have been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961), and there was no previously unrecorded income has been
recorded in the books of account during the year.
i
x. a) As per Information and explanation sought by us, and given by the
company and books of accounts and records examined by us in the normal course of audit and
to the best of our knowledge and belief, the company has not defaulted in repayment of
loans or other borrowings or in the payment of interest thereon to any lender or bank
during the year. b) According to the information and explanation given to us, the company
has not been declared as wilful defaulter by any bank, fi nancial Institution and other
lenders. c) During the year company has not applied for any term loans as such this clause
of utilization of term loan for the same purpose does not apply to the company. d)
According to the information and explanation given to us, the company has not utilised
funds raised on short term basis for long term purposes, e) According to the information
and explanation given to us, the company has not raised any fund to meet the obligation of
its subsidiaries, associates or joint ventures. f) According to the information and
explanation given to us, the company has not raised loan during the year on the pledge of
securities held in its subsidiaries, joint venture or associate company.
x. a) A c c o r d i n g t o i n f o r m a t i o n a n d explanations given
to us the company has not raised any moneys by way of initial public offer or further
public offer (including debt instruments) during the year. b) The company has not made any
preferential allotment or private placement of shares or convertible debentures (fully,
partially or optionally convertible) during the year. x
i. a) Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud by the company or no fraud
on the company by any person has been reported. b) As there is no fraud in terms of
section 143
(12) of the Act, so reporting in Form ADT-4 by an auditor was not required
during the year c) Based upon the audit procedure performed and the information and
explanations given by the management of the company we have not come across any
whistle-blower complaints during the year. xi
i. The company is not a Nidhi Company. Therefore, the provisions of clause
3
(xii) of the order are not applicable to the company. xii
i. Based upon the audit procedure performed and the information and
explanations given by the management of the company, all transactions with the related
parties are in compliance with sections 177 and 188 of Companies Act wherever applicable.
x
i
v. x
i
v. Even though the company has not appointed external ‘internal
auditor, the company has an in-house internal audit system, which in our opinion,
commensurate with the size and nature of its business. No material deficiency was observed
during internal audit. x
v. According to information and explanations given to us, in our opinion,
during the year under audit, the company has not entered into any non-cash transactions
with directors or persons connected with him as such, the provisions of section 192 of
Companies Act have been complied with. xv
i. In our opinion, the company is not required to be registered under
section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) as the nature of the
business is not of banking and fi nance and therefore provisions of clause 3
(xvi) of the order are not applicable to the company. xvi
i. The company has not incurred any cash losses in the fi nancial year and
in the immediately preceding fi nancial year. xvii
i. No statutory auditor has resigned during the year, as such this clause
is not applicable. x
i
x. According to the information and explanations given to us and on the
basis of the fi nancial ratios, ageing and expected dates of realization of fi nancial
assets and payment of fi nancial liabilities, other information accompanying the fi
nancial statements, our knowledge of the Board of Directors and management plans and based
on our examination of the evidence supporting the assumptions, nothing has come to our
attention, which causes us to believe that any material uncertainty exists as on the date
of the audit report that company is not capable of meeting its liabilities existing at the
date of balance sheet as and when they fall due within a period of one year from the
balance sheet date. We, however, state that this is not an assurance as to the future
viability of the company. We further state that our reporting is based on the facts up to
the date of the audit report and we neither give any guarantee nor any assurance that all
liabilities falling due within a period of one year from the balance sheet date, will get
discharged by the company as and when they fall due. x
x. According to information and explanations given to us and on the basis
of our examination of the books of account, and records, the Company is not liable to
spend amount as specified under section-135 of the act, in pursuance of its corporate
social responsibility policy.
|
For Godbole & Co. |
|
Chartered Accountants |
| Place : Satara |
Ashutosh Godbole |
| Date : May 29, 2023 |
Proprietor |
|
Mem. No.104822 |
|
FRN : 117969W |
UDIN: 23104822BGUWGE2303 |
Annexure - B to the Auditors Report
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 fi nancial controls over fi nancial reporting of Kay Power
and Paper Limited ("the Company") as of 31 March 2023 in conjunction with our
audit of the standalone fi nancial 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 fi
nancial controls based on the internal control over fi nancial 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 fi nancial
controls that were operating effectively for ensuring the orderly and effi cient 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 fi nancial information,
as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal fi nancial
controls over fi nancial 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 deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the
extent applicable to an audit of internal fi nancial 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 fi nancial controls over fi nancial 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
fi nancial controls system over fi nancial reporting and their operating effectiveness.
Our audit of internal fi nancial controls over fi nancial 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 fi nancial statements, whether due to fraud or error. We believe that
the audit evidence we have obtained is suffi cient and appropriate to provide a basis for
our audit opinion on the Companys internal fi nancial controls system over fi nancial
reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal fi nancial control over fi nancial reporting is a process designed
to provide reasonable assurance regarding the reliability of fi nancial reporting and the
preparation of fi nancial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal fi nancial control over fi nancial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly refl ect 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
companys assets that could have a material effect on the fi nancial 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 fi nancial controls over fi nancial
reporting to future periods are subject to the risk that the internal fi nancial control
over fi nancial 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 fi nancial reporting and such internal fi nancial controls
over fi nancial reporting were operating effectively as at 31 March, 2022 based on the
internal control over fi nancial 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 Godbole & Co. |
|
Chartered Accountants |
| Place : Satara |
Ashutosh Godbole |
| Date : May 29, 2023 |
Proprietor |
|
Mem. No.104822 |
|
FRN : 117969W |
UDIN: 23104822BGUWGE2303 |
+91-9892691696
