Mar 31, 2015
We have audited the accompanying financial statements of Deccan
Polypacks Limited ( "the Company"), which comprise the Balance Sheet as
at March 31, 2015, the Statement of Profit and Loss and the 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 Company's Act, 2013 ( "the Act") with respect
to 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 principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of 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 the fraud 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 the
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 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 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 other operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
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 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
We draw attention to
a) Note 26 to the Financial Statements regarding suspension of
manufacturing operations of the Company and preparation and
presentation of financial statements on a going concern basis for the
reasons stated in ;
b) Note 28 to the Financial Statements regarding impairment of assets
for the reasons stated there in ;
c) Note 29 regarding to the Financial Statements accounting for stock
loss and
d) Note 30 regarding not obtaining confirmation of balances from
company's vendors and customers. Our opinion is not modified in this
regard
Report on Other Legal and Regulatory Requirements
1 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 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 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) The matter described under the Emphasis of Matter Paragraph above
regarding the suspension of manufacturing operations of the Company and
not obtaining confirmation of balances from the company's vendors and
customers, in our opinion, may have an adverse effect on the
functioning of the Company.
f) On the basis of written representations received from the directors
as on 31st March, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of sub-section (2) of Section 164 of
the Act.
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, to the best of our information and according to
the explanations given to us and in our opinion;
i) the company has disclosed the impact of pending litigations on its
financial position in its financial statements - Note 25 to the
financial statements.
ii) the company does not have any long-term contracts including
derivative contracts for which there are any material foreseeable
losses.
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company
I (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) These fixed assets were physically verified by the management
during the year. We have been informed that no material discrepancies
were noticed on such physical verification.
II (a) The inventories have been physically verified during the year by
the management at reasonable intervals. In our opinion the frequency of
verification is reasonable.
(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 and on the basis of our examination of the inventory
records, the company is maintaining proper records. The discrepancies
noticed on physical verification of inventory as compared to book
records were not material in relation to the operations of the company
and the same have been properly dealt within the books of account.
iii) According to the information and explanations given to us, the
Company has not granted any loans secured or unsecured to Companies ,
firms or other parties covered in the register maintained under Section
189 of the Companies Act, 2013. Therefore clause 3 (iii) of the Order
is not applicable.
(iv) in our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and nature of its business , with regard
to the purchase of inventory and fixed assets and for the sale of goods
and services. In our opinion according to the information and
explanation given to us, there has been no continuing failure to
correct major weaknesses in internal control system during the year.
v) According to the information and explanations given to us, the
Company has not accepted deposits from the Public under the provisions
of Section 73 and Section 74 of the Act and the rules framed there
under. Therefore, the provisions of clause 3(v) of the Order are not
applicable.
vi) On the basis of records produced to us, we are of the opinion that
prima facie the cost records and accounts prescribed by the Central
Government under Section 148 (1) of the Companies Act, 2013 have been
maintained . However, we are not required to and have not carried out
any detailed examination of such accounts and records.
vii) (a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, undisputed statutory dues including Provident Fund,
Employees' State Insurance, Income Tax, Sales-Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Value Added Tax, Cess, Investor
Education and Protection Fund and any other statutory dues as
applicable, have been regularly deposited during the year with the
appropriate authorities in India. There are no arrears of Statutory
dues as at 31st March 2015 which are outstanding for a period more than
six months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the company examined by us, there are no dues on account of
Providnet Fund, Employees' State Insurance , Income Tax , Sales Tax.
Wealth Tax , Serivce Tax, Customs Duty, Excise Duty, Value Added Tax,
Cess, Investor Education and Protection Fund as at 31st March, 2015
which have not been deposited on account of any dispute except stated
below
Name of Nature of Dues Amount Forum Where dispute
the statute (Rs. In Lakhs) is pending
Sales Restriction of
set off tax on 3.60 Appellate Tribunal,
Tax prorate basis Andhra Pradesh
(viii) The Company has no accumulated losses as at the end of the
financial year. The Company has incurred cash losses during the period
coverd by the report and immediately preceding the period covered by
the report
(ix) According to the information and explanations given to us and in
our opinion, as at March 31, 2015, there were no default in repayment
of dues to banks. The Company has not issued any debentures.
(x) In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for the loans
taken by others from bank or financial institutions.
(xi) In our opinion and according to the information and explanation
given to us, the loans availed by the Company from banks have been
applied for the purposes for which they were obtained.
(xii) During the course of our examinations of the books and records of
the Company carried out in accordance with the generally accepted
practices in India and according to the information and explanations
given to us , no instance of fraud on or by the company was noticed or
reported during the year, nor have we been informed of such case by the
management.
for M.Bhaskara Rao & Co.,
Chartered Accountants
Firm Registration No : 000459S
V K Muralidhar
Partner
Place: : Hyderabad Membership No 201570
Mar 31, 2013
Report on Financial Statements:
We have audited the accompanying financial statements of Deccan
Polypacks Limited ("the Company"), which comprise the Balance Sheet as
at March 31,2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsiblility 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 Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements''that give a
true and fair view and are free from material misstatment, 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 misstatment.
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 judgement, 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 the
Company''s internal controls. 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, 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
theCompany as atMarch 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 kndwledge 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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply 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.
0 a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
b) These fixed assets were physically verified by the Management during
the year. We have been informed that no material discrepancies were
noticed on such physical verification.
c) In our opinion, the company has not disposed off a substantial part
of fixed assets during the year and the going concern status of the
company is not affected.
ii) a) The inventories have been physically verified during the year by
the management at reasonable intervals. In our opininon the frequency
of verification is reasonable.
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 and on the basis of our examination of the inventory
records, the company is maintaining proper records.The discrepancies
noticed on physical verification of inventory as compared to book
records were not material in relation to the operations of the company
and the same have been properly dealt within the books of account.
iii) a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to parties
covered in the Register maintained under Section 301 of the Companies
Act, 1956. Hence, clause (iii) (b) to (d) of paragraph 4 of the
Companies (Auditor''s Report) Order 2003, as amended is not applicable
to the Company for the current year.
e) According to the information and explanations given to us, the
Company has taken interest free unsecured loan from six parties covered
in Register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 153.50 lakhs and
year end balance was Rs. 32.50 Lakhs
f) Since the loans taken are repayable on demand, question of overdue
amounts does not arise. Therefore commenting under Clause 4 (iii) (g)
of Companies (Auditor''s Report) Order, 2003 as amended does not arise.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and nature of its business, with regard to
the purchase of inventory and fixed assets and for the sale of goods
and services. In our opinion according to the information and
explanation given to us, there has been no continuing failure to
correct major weaknesses in internal control system during the year.
v) a) In our opinion and according to the information and explanations
given to us, and based on the representations by the management, there
are no transactions that needs to be entered into the register in
pursuance of Section 301 of the Companies
Act, 1956. Accordingly clause (v) (b) of this order is not applicable
to the Company for the current year.
vi) In our opinion and according to information and explanation given
to us, the company has not accepted Deposits from public and as such
the provisions of .Section 58A and 58AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public are not applicable to the company.
vii) The Internal Audit of the Company has been conducted by a Firm of
Chartered Accountants.
The scope and coverage of Internal Audit needs * to be enlarged and
strengthened keeping in view the size of the Company and nature of its
business.
viii) In our opinion and as per the information and explanations given
to us, and as informed by the company, the Central Government has not
prescribed the maintenance of cost records under Section 209( 1) (d) of
the Companies Act, 1956 for the products of the company.
ix) a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income Tax, Sales - Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and any other statutory dues as applicable, have been
regularly deposited during the year with the appropriate authorities in
India. There are no arrears of Statutory dues as at 31st March 2013
which are outstanding for a period more than six months from the date
they became payable
b) According to the information and explanations given to us and the
records of the company examined by us, there are no dues oh account of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty , Cess as at 31 st March 2013 which have not been deposited on
account of any dispute except stated below.
Name of Amount Forum Where
the Statute Nature of Dues (Rs. In Dispute
lakhs) is Pending
Sales Restriction of
Set off, 3.60
Appellate Tribunal
Tax tax on prorate
basis Andhra Padesh
x) The Company has no accumulated losses as on 31st March 2013. Further
it has ''not incurred cash losses in the financial year under report and
in the immediately preceding financial year.
xt) Based on our Audit procedures and as per the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institutions or bank or debenture holders during the financial year
under report.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
xiii) In our opinion, the company is not a Chit Fund/ Nidhi / Mutual
Benefit Fund / Society and hence commenting under this clause does not
arise.
xiv) In our opinion and according to the information and explanation
given to us, the company does not deal or trade in shares, securities,
debentures and other investments.
xv) In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for the loans
taken by others from bank or financial institutions.
xvi) The company has not obtained any term loans from banks/ financial
institutions during the year. Hence commenting under this clause does
not arise.
xvii) On die basis of an overall examination of die Balance Sheet of
the Company, in our opinion and according to the information and
explanations given to us, funds raised on short - term basis Tiave not
been used for long-term purpose.
xviii) During die year under report die company has not made any
preferential allotment of shares to parties and companies covered in
die register maintained under Section 301 of me Companies Act, 1956
xix) The Company has not issued any debentures during die year and
hence commenting under mis clasue does not arise.
xx) The company has not raised any money by public issue during die
year and hence commenting under mis clause does not arise.
xxi) According to die information and explanations given to us, no fraud
on or by die company has been noticed or reported during die course of
our audit.
for M. BHASKAR RAO & CO.,
CHARTERED ACCOUNTANTS
Place : Hyderabad VRAGHUNANDAN
Date: 30.05.2013 Partner
Membership No. 26255
Firm Regn. No. 000459S
Mar 31, 2012
We have audited the attached Balance Sheet of Deccan Polypacks Limited,
as at 31st March, 2012, the Statement of Profit & Loss and Cash Flow
Statement of the company for the year ended on that date annexed
thereto. These financial statements are 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 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 misstatement. 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 the management, as well as evaluating overall financial statement
presentation. We believe that our audit provides a reaonable basis for
our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 as
amended, issued by the Central Government in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, 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 knoweldge 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 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 & Loss and
Cash Flow Statement comply with the accounting standards referred to
in Sub-section (3C) of Section 211 of Companies Act, 1956
e) On the basis of written representations ' received from the
Directors as on 31 st March,
2012 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 Directors in terms of Clause (g) of Sub -section( 1) of
Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet, Statement of
Profit & Loss and Cash Flow Statement read with notes thereon and the
significant accounting policies give the information required by the
Companies Act, 1956 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 the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2012;
n) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the Cash Flows for die
year ended on that date.
Annexure to the Auditors'Report
(Statement Referred To in Paragraph (1) of Our Report Of Even Date)
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) These fixed assets were physically verified by die Management during
the year. We have been informed that no material discrepancies were
noticed on such physical verification.
c) In our opinion, the company has not disposed off a substantial part
of fixed assets during the year and the going concern status of the
company is not affected.
ii) a) The inventories have been physicglly verified during the year by
me management , at reasonable intervals. In our opininon the frequency
of verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by die 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 explanation
given to us and on the basis of bur examination of the inventory
records, the company is maintaining proper records. The discrepancies
noticed on physical verification of inventory as compared to book
records were not material in relation to the operations of the company
and the same have been properly dealt within the books of account.
iii) a) According to the information and explanations given to us, the
company has granted loans to six parties covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during die year was Rs. 170 lakhs and die year end
balance of such loans was Rs.25 Lakhs.
The Company has taken interest free un secured loans from five parties
covered in register maintained under Section 301 of the Companies Act
1956. The maximum amount involved during the year was Rs.32.51 Lakhs
and the year end balance was Rs. 32.50 Lakhs
b) The rate of interest and other terms and conditions of loans given
or taken by the company, secured or unsecured, are not prima facie
prejudicial to the interest of the company.
c) Since the loans taken are repayable on demand, question of overdue
amounts does not arise.
d) In the absence of amounts becoming overdue, commenting under tius
clause does not arise.
iv) In our opinion and according to the information and explanations
given to us, mere is adequate internal control system commensurate with
the size of me Company and nature of its business, witii regard to die
purchase of inventory and fixed assets and for the sale of goods and
services. In our opinion according to the information and explanation
given to us, there has been no continuing failure to correct major
weaknesses in internal control system during the year.
v) a) In our opinion and according to the information and explanations
given to us, - and based on the representations by the management,
there are no transactions (except loans mentioned under clasue (iii)
above ) that needs to be entered into the register in pursuance of
Section 301 of the Companies Act, 1956. Accordingly clause (v) (b) of
this order is not applicable to the Company for the current year.
vi) In our opinion and according to information and explanation given
to us, the company has not accepted Deposits from public and as such
the provisions of Section 58A and 58AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public are not applicable to the company.
vii) The Internal Audit of the Company has been conducted by a Firm of
Chartered Accountants. The Scope and coverage of Internal Audit needs
to be enlarged and strengthened keeping in view the size of the Company
and nature of its business.
viii) In our opinion and as per the information and explanations given
to us, and as informed by the company, the Central Government has not
prescribed the maintenance of cost records under Section 209(1) (d) of
the Companies Act, 1956 for the products of the company.
ix) a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance,
Income Tax, Sales - Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and any other statutory dues as applicable, have been
regularly deposited during the year with the appropriate authorities in
India. There are no arrears of Statutory dues as at 31 st March 2012
which are outstanding for a period more than six months from the date
they became payable
. b) According to the information and
emanations given to us and the records of the company examined by us,
there are no dues on account of Income Tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty , Cess as at 31st March 2012
which have not been deposited on account of any dispute except stated
below.
Name of Amount Forum Where
the Statute Nature of Dues (Rs. In Dispute
lakhs) is Pending
Sales Restriction of Set off 5.41 Appellate Tribunal
Tax tax on prorate basis Andhra Padesh
x) The Company has no accumulated losses as on 31st March 2012. Further
it has not incurred cash losses in the financial year under r%port and
n the immediately preceding financial year.
m) Based on our Audit procedures and as per the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institutions or bank or debenture holders during the financial year
under report.
xi) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
xiii) In our opinion, the company is not a Chit Fund/ Nidhi / Mutual
Benefit Fund / Society and hence commenting under this clause does,,
not arise.
xiv) In our opinion and according to the information and explanation
given to us, the company does not deal or trade in shares, securities,
debentures and other investments.
xv) In our opinion and according tj the information and explanation
given to us, the company has not given any guarantee for the loans
taken by others from bank or financial institutions.
xvi) The company has not obtained any term loans from banks/ financial
institutions during the year. Hence commenting under this clause does
not arise.
xvii) On the basis of an overall examination of the Balance Sheet of
the Company, in our opinion and according to the information and
explanations given to us, funds raised on short - term basis have not
been used for longterm purpose.
xviii) During the year under report the company has not made any
preferential allotment of shares to parties and companies covered in
the register maintained under Section 301 of the Companies Act, 1956
xix) The Company has not issued any debentures during the year and
hence commenting under this clasue does not arise.
xx) The company has not raised any money by public issue during the
year and hence commenting under this clause does not arise.
xx According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
for M. BHASKAR RAO & CO.,
CHARTERED ACCOUNTANTS
Place : Hyderabad VRAGHUNANDAN
Date: 30.05.2012 Partner
Membership No. 26255
FirmRegn. No. 000459S
Mar 31, 2010
We have audited the attached Balance Sheet of Deccan Polypacks Limited,
as at 31st March, 2010, the Profit & Loss Account and Cash Flow
Statement of the Company for the year ended on that date annexed
thereto. These financial statements are responsibility of the companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with 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 misstatement. 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 the management, as well as evaluating overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 as
amended, issued by the Central Government in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, 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, Profit and 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, Profit & Loss account and Cash
Flow Statement comply with the accounting standards referred to in
Sub-section (3C) of Section 211 of Companies Act, 1956
e) On the basis of written representations received from the Directors
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2010 from being appointed as Directors in terms of Clause (g) of
Sub-section (1) of Section 274 of the Companies Act,1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and the Profit &
Loss Account, and Cash Flow Statement read with notes thereon and the
significant accounting policies give the information required by the
Companies Act, 1956 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 the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010
ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Annexure to the Auditors Report
(Statement Referred To in Paragraph (1) Of Our Report Of Even Date)
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) These fixed assets were physically verified by the Management
during the year. We have been informed that no material discrepancies
were noticed on such physical verification.
(c) In our opinion, the company has not disposed off a substantial part
of fixed assets during the year and the going concern status of the
company is not affected.
ii) (a) The inventories have been physically verified during the year
by the management at reasonable intervals. In our opinion the frequency
of verification is reasonable.
(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 and on the basis of our examination of the inventory
records, the company is maintaining proper records. The discrepancies
noticed on physical verification of inventory as compared to book
records were not material in relation to the operations of the company
and the same have been properly dealt within the books of account.
iii) (a) According to the information and explanations given to us, the
company has granted loan to a party covered in the register maintained
under section 301 of the Companies Act, 1956. The maximum amount
involved during the year and the year end balance of such loan was Rs.
41.83 lakhs.
The Company has taken interest free unsecured loans from eight parties
covered in register maintained under Section 301 of the Companies Act
1956. The maximum amount involved during the year in respect of loans
taken in the previous years is Rs.40.51 lakhs and the year end balance
was Rs.32.51 lakhs.
(b) The rate of interest and other terms and conditions of loans given
or taken by the company, secured or unsecured, are not prima facie
prejudicial to the interest of the company.
(c) Since the loans taken are repayable on demand, question of overdue
amounts does not arise.
(d) In the absence of amounts becoming overdue, commenting under this
clause does not arise.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and nature of its business, with regard to
the purchase of inventory and fixed assets and for the sale of goods
and services. In our opinion according to the information and
explanation given to us, there has been no continuing failure to
correct major weaknesses in internal control system during the year.
v) (a) In our opinion and according to the information and explanations
given to us, and based on the representations by the management, there
are no transactions (except loans mentioned under clause (iii) above)
that needs to be entered into the register in pursuance of Section 301
of the Companies Act, 1956. Accordingly clause (v) (b) of this order is
not applicable to the Company for the current year,
vi) In our opinion and according to information and explanation given
to us, the company has not accepted Deposits from public and as such
the provisions of Section 58 A and 58 AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public are not applicable to the company.
vii) The Internal Audit of the Company has been conducted by a Firm of
Chartered Accountants. The scope and coverage of Internal Audit needs
to be enlarged and strengthened keeping in view the size of the Company
and nature of its business.
viii)In our opinion and as per the information and explanations given
to us, and as informeil b the company, the Central Government has not
prescribed the maintenance of cost records under Section 209 (1) (d) of
the Companies Act, 1956 for the products of the company.
ix) (a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income tax, Sales-tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, C^ss and any other statutory dues as applicable, have been
regularly deposited during the year with the appropriate authorities in
India. There are no arrears of Statutory dues as at 31st March 2010
which are outstanding for a period more than six months from the date
they became payable.
(b) According to the information and explanations given to us and the
records of the company examined by us, there are no dues on account of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess as at 31s* March 2010 which have not been deposited on
account of any dispute.
x) The Company has no accumulated losses as on 31st March 2010. Further
it has.not incurred cash losses in the financial year under report and
in the immediately preceding financial year.
xi) Based on our Audit procedures and as per the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institutions or bank or debenture holders during the financial year
under report.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a Chit Fund / Nidhi / Mutual
Benefit Fund / Society and hence commenting under this clause does not
arise.
xiv) In our opinion and according.to information * and explanation
given to us, the company does not deal or trade in shares, securities,
debentures and other investments.
xv) In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for the loans
taken by others from bank or financial institutions.
xvi) The Company has not obtained any term loans from banks / financial
institutions during the year. Hence commenting under this clause does
not arise.
xvii) On the basis of an overall examination of the Balance Sheet of
the Company, in our opinion and according to the information and
explanations given to us, funds raised on short-term basis have not
been used for long- term purposes.
xviii) The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
xix) The Company has not issued any debentures during the year and
hence commenting under this clause does not arise.
xx) The Company has not raised any money by public issue during the
year and hence commenting under this clause does not arise.
xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
for M. BHASKARA RAO & CO.,
CHARTERED ACCOUNTANTS
Place: Hyderabad V RAGHUNANDAN
Date : 31.05.2010 Partner
Membership No. 26255
FirmRegn.No. 000459S
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