Mar 31, 2018
Independent Auditor''s Report To The Members of ECOPLAST LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Ecoplast Limited (''the Company''), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and statement of changes in equity for the year then ended and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''the Act'') with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance), cash flow sand changes in equity of the company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (''Ind AS'') specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether these standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the 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 controls relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on these standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs(financial position)of the Company as at 31st March 2018;
b) in the case of the Statement of Profit and Loss, of the profit(financial performance including other comprehensive income),for the year ended on that date;
c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date, and Changes in equity for the year ended on that date.
d) Changes in equity for the ended on that date.
Other matters
The audited standalone financial statements for the year ended 31 March 2017, was carried out and reported by Akkad Mehta & Co., vide their unmodified audit report dated 22nd May, 2017, whose report has been furnished to us by the management and which has been relied upon by us for the purpose of our audit of the standalone financial statements. Our audit report is not qualified in respect of this matter.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (''the Order'') issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account
d) In our opinion, the aforesaid Standalone financial statements comply with Ind AS specified under Section 133 of the Act;
e) On the basis of written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
f) we have also audited the internal financial controls over financial reporting (IFCoFR) of the Company as on 31
March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date and our report as per Annexure B expressed Unmodified opinion;
g) With respect to the other matters included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors'') Rules, 2014 (as amended), in our opinion and to our best of our information and according to the explanations given to us:-
I. The pending litigation as disclosed in notes to the Standalone Financial Statements would not impact Financial Position of the Company.
II. The Company did not have any long-term contracts including derivatives contracts for which there were 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.
IV. The disclosure requirements relating to holdings as well as dealings in specified bank notes were applicable for the period from 8 November 2016 to 30 December 2016 which are not relevant to these standalone financial statements. Hence, reporting under this clause is not applicable.
Matters specified in paragraph 3 of Order
1) In respect of its fixed assets:
a) On the basis of available information, the Company has maintained proper records showing full particulars including quantitative details and situations of fixed assets.
b) According to the information and explanation given to us, the Company has formulated a regular program of verification by which all the assets of the Company shall be verified in a phased manner over a period of once in every three years, which, in our opinion is reasonable having regard to the size of the Company and nature of assets and no material discrepancies were noticed on verification conducted during the year as compared with the book records.
c) According to the information and explanation given to us and on the basis of our examination of the record of the company, the title deeds of the immovable properties are held in the name of the company.
2) In respect of its inventories:
a) The inventories, except goods-in-transit have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. As per the information and explanation given to us, no material discrepancies were noticed on physical verification.
3) The Company has not granted loans, secured or unsecured, to companies, firms, and limited liability partnerships or other parties listed in the register maintained U/s 189 of the Companies Act, 2013. Therefore, the provisions of sub clause 3(a), 3(b) & 3(c) are not applicable to the company.
4) According to the information and explanations given to us, the Company has not given any loan, security or guarantee to directors of any other body corporate as referred to in section 185 and 186 of the Companies Act, 2013. However, the Company had granted Loans to wholly owned subsidiary company under the erstwhile provision of Section 372A of the Companies Act, 2013. As per Rule 11 of the Companies (Meeting of Board and its power) Rules, 2014, Loans, Investments and guarantees given to wholly owned subsidiary is exempted from complying the provision of Section 186(3) of the Act.
5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6) We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the Rules made by the Central Government of India, the maintenance of cost records has been prescribed under subsection (1) of Section 148 of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
7) In respect of statutory dues:
a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March 2018 for a period of more than six months from the date of becoming payable.
b) According to the information and explanation given to us, there are no dues of income tax, sales tax, wealth tax, service tax, custom duty, excise duty and Cess which have not been deposited on account of dispute. However, according to information and explanation given to us dues of Service Tax have not been deposited by the Company on account of disputes are as follows :-
Name of the Statute |
Nature of the dues |
Amount in (Rs.) |
F. Y. to which the amount relates |
Forum where dispute is pending |
Finance Act, 1994 |
Service Tax Credit On The Service Of Custom Housing Agent |
3,17,688.00 |
F.Y.2010-11 |
Superintendent, C.Ex. Valsad |
Finance Act, 1994 |
Service Tax Credit On The Service Of Custom Housing Agent |
51,560.00 |
F.Y.2012-13 |
Superintendent, C.Ex.Valsad |
Finance Act, 1994 |
Service Tax Credit On The Service Of Custom Housing Agent |
74,376.00 |
F.Y.2013-14 |
Superintendent, C.Ex.Valsad |
Finance Act, 1994 |
Service Tax Credit On The Service Of Custom Housing Agent |
31,164.00 |
F.Y.2014-15 |
Superintendent, C.Ex.Valsad |
Finance Act, 1994 |
Service Tax Credit On The Service Of Custom Housing Agent |
55,725.00 |
F.Y.2014-15 |
Superintendent, C.Ex.Valsad |
Finance Act, 1994 |
Service Tax Credit On The Service Of Custom Housing Agent |
67,507.00 |
F.Y.2015-16 |
Superintendent, C.Ex.Valsad |
Finance Act, 1994 |
Service Tax Credit On The Service Of Custom Housing Agent |
71,358.00 |
F.Y.2015-16 |
Superintendent, C.Ex.Valsad |
Finance Act, 1994 |
Cenvat Credit Of Service Tax Paid To Commission Agent |
54,075.00 |
F.Y.2010-11 to F.Y.2013-14 |
Deputy Commissioner, C.Ex. Valsad |
Finance Act, 1994 |
Cenvat Credit Of Service Tax Paid To Commission Agent |
12,400.00 |
F.Y.2014-15 |
Superintendent, C.Ex.Valsad |
Finance Act, 1994 |
Cenvat Credit Of Service Tax Paid To Commission Agent |
16,769.00 |
F.Y.2015-16 |
Superintendent, C.Ex.Valsad |
Finance Act, 1994 |
Cenvat Credit Of Service Tax Paid To Commission Agent |
6,235.00 |
F.Y.2016-17 |
Superintendent, C.Ex.Valsad |
TOTAL |
7,58,857.00 |
8) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
9) The company has not raised any funds by public offer during the year. The company has also not raised any term loan during the year, therefore, this clause is not applicable.
10) In our opinion and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.
11) According to the information and explanation give to us and based on our examination of the records of the Company, the Managerial remuneration has been paid and provided by the Company in accordance with the requisite approvals mandated by the provisions of Section 197 of the Act read with Schedule V to the Act.
12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 12 of the Order are not applicable to the Company.
13) According to the information and explanation given to us and based on our examination of the records the company, transaction with the related parties are in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable and details of such transaction have been disclosed in the Note No. 31 of financial statement as required by the applicable accounting standards.
14) Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 14 of the Order are not applicable to the Company and hence not commented upon.
15) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 15 of the Order are not applicable to the Company and hence not commented upon.
16) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 16 of the Order are not applicable to the Company and hence not commented upon.
Independent Auditor''s report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (the âActâ)
We have audited the internal financial controls over financial reporting of ECOPLAST LIMITED (âthe Companyâ) as of 31st March 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for the Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2018 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Y. B. Desai and Associates
Chartered Accountants
Firm Registration No. 102368W
Name :- CA Mayank Y. Desai
Partner
Membership No. :- 108310
Date :- 28,h May, 2018
Place :- Mumbai
Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of
Ecoplast Limited ('the Company'), which comprise the Balance Sheet as
at 31st March 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these Standalone Financial
Statements that give a true and fair view of the Financial position,
Financial performance and Cash Flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal Financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the Financial
Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these Standalone
Financial Statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the Financial Statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the Financial Statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the Financial
Statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal Financial control relevant
to the Company's preparation of the Financial Statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
Financial controls system over Financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the Financial Statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Standalone
Financial Statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid Standalone Financial Statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015 and its Profit and its 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, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
Statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
(c) the Balance sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
(d) in our opinion, the aforesaid Standalone Financial Statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
(f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The pending litigations as disclosed in Point no. (iv) of Note No.
38 of Financial Statements would not impact Financial position of the
Company.
ii. The Company did not have any long-term contract including
derivative contracts for which there were 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.
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the Standalone Financial Statements for the
year ended 31 March 2015, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including Quantitative details and situation of fixed
assets.
(b) The Company has programme of physical verification of its fixed
assets by which fixed assets are verified once in every three years. In
our opinion, periodicity and procedures of physical verification is
reasonable having regard to the size of the Company and the nature of
its assets.
(ii) (a) The inventory, except goods-in-trans it has been physically
verified by the management at reasonable intervals during the current
year. In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and have been properly dealt with in
the books of accounts.
(iii) The Company has not granted loans, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013 ('the Act') during the
year. However the Company had granted loans to Wholly owned Subsidiary
Company under the erstwhile provisions of section 372A of the Companies
Act,1956.
(a) In the case of the loans granted to the Wholly Owned Subsidiary
Company, the principal amounts are repayable over a period of two to
five years or such tenure as may be mutually agreed upon from time to
time. The loan was given interest free as per provisions of erstwhile
section 372A(8) of Companies Act,1956.
(b) There are no overdue amounts of more than rupees one lakh in
respect of the loans granted to the bodies corporate listed in the
register maintained under section 189 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and sale of goods and
services. We have not observed any major weakness in the internal
control system during the course of the audit.
(v) The Company has not accepted any deposits from the public during
the year. Accordingly, the provision of clause 3(v) of the Order is not
applicable to the Company.
(vi) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under subsection (1) of Section 148 of the Act, and are of
the opinion that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, income tax, sales tax, wealth
tax, service tax, duty of customs, duty of Excise, value added tax,
cess and other material statutory dues have been regularly deposited
during the year by the Company with the appropriate authorities. As
explained to us, the Company did not have any dues on account of
employees' state insurance.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
sales tax, wealth tax, service tax, duty of customs, duty of Excise,
value added tax, cess and other material statutory dues were in arrears
as at 31 March 2015 for a period of more than six months from the date
they became payable.
(b) According to the information and explanations given to us, there
are no material dues of sales tax or wealth tax or service tax or duty
of customs or duty of Excise or value added tax or cess which have not
been deposited with the appropriate authorities on account of any
dispute. However, according to information and explanations given to
us, the following dues of income tax and Central Excise have not been
deposited by the Company on account of disputes:
Name of the Statute Nature of dues Amount in Period to which
(Rs.) the amount
relates
Income Tax Act,1961 Tax on Regular 8,38,320 01.04.2011 to
Assessment 31.03.2012
Central Excise Act,1944 Disallowance of 12,400 Feb-14 to
Service tax credit Dec-14
taken on Sales
Commission
Central Excise Act,1944 Disallowance of 54,075 2010-11 to
Service tax credit 2013-14
taken on Sales
Commission
Name of the Statute Forum where dispute
is pending
Income Tax Act,1961 Commissioner of
Income tax (Appeal)
Central Excise Act,1944 The Superintendent
of Central Excise
Central Excise Act,1944 The Deputy
Commissioner
of Central Excise
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund within time.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding Financial year.
(ix) The Company has not defaulted in repayment of dues to Financial
institutions or banks during the year. The Company did not have any
outstanding dues of debenture holders.
(x) The Company has given corporate guarantee of Rs.2 Crores to North
Eastern Development Finance Corp. Ltd., Assam, and renewed the
Corporate guarantee of Rs. 4.06 Crores to Bank of Baroda (including
lien on Fixed Deposits of Rs. 10 lacs) during the year on behalf of
Synergy Films Pvt. Ltd., a Subsidiary Company as a collateral security
for Term Loan Facility and Working Capital Loan availed by it. In our
opinion based on the information and explanations received, the terms
and conditions of these guarantees are not prejudicial to the interest
of the company.
(xi) In our opinion and according to the explanations given to us, the
term loans obtained during the year have been applied for the purpose
for which they were raised.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For AKKAD MEHTA & CO
Chartered Accountants
Firm ICAI Registration No. 100259W
SANJAY MEHTA
Partner
Membership No. 016859
Mumbai, 28th May, 2015.
Mar 31, 2014
1. We have audited the accompanying financial statements of ECOPLAST
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st
March 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information, which we have
signed under reference to this report.
Management''s Responsibility for the Financial Statements
2. The Company''s 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 Section
211(3C) of the Companies Act,1956 ("the Act") which, as per
clarification issued by the Ministry of Corporate Affairs, continues to
apply under section 133 of the Companies Act 2013. 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
misstatement, whether due to fraud or error.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal 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 control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
8. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the 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 which as per clarification issued by the Ministry of Corporate
Affairs, continues to apply under section 133 of the Companies Act 2013
(which has superseded section 211(3C) of the Companies Act, 1956 w.e.f.
12th September 2012).
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
I. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there are procedures of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. The discrepancies noticed on such verification
were not material and have been properly dealt with in the books of
account.
(c) The fixed assets disposed off during the year do not constitute a
substantial part and therefore, in our opinion, the disposal does not
affect the going concern assumption.
ii. (a) The inventory, except goods-in-transit has been physically
verified by the management at reasonable intervals during the current
year. In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and have been properly dealt with in
the books of accounts.
iii. In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956:
(a) The Company has given loans to a subsidiary company. In respect of
the said loans, the maximum amount outstanding at any time during the
year was Rs. 372.19 lacs and the year-end balance is Rs. 372.19 lacs
(including interest Rs.4.29 lacs.).
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the company, are not prima facie prejudicial to the
interest of the company.
(c) The principal amounts are repayable over a period of two to five
years or such tenure as may be mutually agreed upon from time to time.
The interest was charged up to 12th June, 2013 and the loan was made
interest free w.e.f. 13th June 2013 as Loanee became Wholly Owned
Subsidiary Company.
(d) In respect of the said loan and interest there on, there are no
overdue amounts.
(e) The company has not taken any loan from companies, firms or other
parties covered in Register maintained under Section 301 of the
companies Act 1956. Consequently, the requirements of Clauses (iii) (f)
and (iii) (g) of paragraph 4 of the Order are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system.
v. (a) In our opinion, there are no contracts or arrangements that
need to be entered in the register maintained under section 301 of the
Companies Act,1956. Accordingly, the provisions of clause 4(v)(b) of
the Order is not applicable to the company and hence not commented
upon.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
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. Accordingly, there have been no proceedings before the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal in this matter.
vii. In our opinion, the internal audit functions carried during the
year by firm of Chartered Accountant appointed by the management have
been commensurate with the size of the Company and nature of its
business.
viii. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of subsection
(1) of Section 209 of the Act, and are of the opinion that prima facie,
the prescribed accounts and records have been made and maintained. We
have not, however, made a detailed examination of the records with a
view to determine whether they are accurate or complete.
ix. (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, income tax, sales tax, wealth tax, custom
duty, service tax, excise duty, cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, service tax, excise duty and cess were in arrears,
as at 31st March, 2014 for a period of more than six months from the
date they became payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
x. The Company does not have any accumulated losses at the end of the
financial year and the Company has not incurred cash losses in the
financial year and immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us the Company has not defaulted in repayment of dues to
banks. The Company does not have any borrowings from financial
institutions or by way of debentures.
xii. According to the information and explanation given to us, the
Company has not granted 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 or a nidhi/mutual
benefit fund/society.
xiv. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments.
xv. The Company has given a corporate guarantee of Rs.2 Crores to North
Eastern Development Finance Corp. Ltd., Assam, and Rs. 2.10 Crores to
Bank of Baroda on behalf of Synergy Films Pvt. Ltd., a Subsidiary
Company as a collateral security for Term Loan Facility and Working
Capital Loan availed by the Subsidiary Company. In our opinion based on
the information and explanations received, the terms and conditions of
this guarantee are not prejudicial to the interest of the company.
xvi. In our opinion and according to the explanations given to us, the
term loans obtained during the year have been applied for the purpose
for which they were raised.
xvii.According to the information and explanations given to us and an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short-term basis to have been used for long term
investment.
xviii. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Act.
xix. The company has not issued debentures and hence no securities have
been created.
xx. The company has not raised any money by public issue during the
year.
xxi. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of any such case by the management.
For Akkad Mehta & Co.
Chartered Accountants
(Firm Registration No.100259W)
Sanjay N. Mehta
Partner
Membership No. 016859
Mumbai, 28th May, 2014
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of ECOPLAST
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st
March 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information, which we have
signed under reference to this report.
Management''s Responsibility for the Financial Statements
2. The Company''s 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 Section
211(3C) of the Companies Act, 1956 (Âthe ActÂ). 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
misstatement, whether due to fraud or error.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal 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 control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 (Âthe
OrderÂ) issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
8. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there are procedures of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. The discrepancies noticed on such verification
were not material and have been properly dealt with in the books of
account.
(c) The fixed assets disposed off during the year do not constitute a
substantial part and therefore, in our opinion, the disposal does not
affect the going concern assumption.
ii. (a) The inventory has been physically verified by the management at
reasonable intervals during the current year. In our opinion, the
frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and have been properly dealt with in
the books of accounts.
iii. In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956:
(a) The Company has given loans to a subsidiary company. In respect of
the said loans, the maximum amount outstanding at any time during the
year was Rs. 287.20 lacs and the year-end balance is Rs. 266.93 lacs
(including interest Rs.22.47 lacs.).
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the company, are not prima facie prejudicial to the
interest of the company.
(c) The principal amounts are repayable over a period of two to five
years, while interest is payable annually at the discretion of the
company.
(d) In respect of the said loan and interest there on, there are no
overdue amounts.
(e) The company has not taken any loan from companies, firms or other
parties covered in Register maintained under Section 301 of the
companies Act 1956. Consequently, the requirements of Clauses (iii) (f)
and (iii) (g) of paragraph 4 of the Order are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system.
v. (a) On the basis of the audit procedures performed by us, and
according to the information, explanations and representations made to
us, we are of the opinion that, the particulars of contracts or
arrangements in which directors were interested as contemplated under
section 297 and sub-section (6) of section 299 of the Companies Act,
1956 and which were required to be entered in the register maintained
under section 301 of the said Act, have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time, other than certain purchases which are of
a special nature for which comparable quotations are not available and
in respect of which we are, therefore, unable to comment.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
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. Accordingly, there have been no proceedings before the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal in this matter.
vii. In our opinion, the internal audit functions carried during the
year by firm of Chartered Accountant appointed by
the management have been commensurate with the size of the Company and
nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of subsection (1) of Section 209 of the
Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made
a detailed examination of the records with a view to determine whether
they are accurate or complete.
ix. (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, income tax, sales tax, wealth tax, custom
duty, service tax, excise duty, cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, service tax, excise duty and cess were in arrears,
as at 31st March, 2013 for a period of more than six months from the
date they became payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
x. The Company does not have any accumulated losses at the end of the
financial year and the Company has not incurred cash losses in the
financial year and immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us the Company has not defaulted in repayment of dues to
banks. The Company does not have any borrowings from financial
institutions or by way of debentures.
xii. According to the information and explanation given to us, the
Company has not granted 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 or a nidhi/
mutual benefit fund/society.
xiv. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments.
xv. The Company has given a corporate guarantee of Rs.2 Crores to North
Eastern Development Finance Corp. Ltd., Assam, and Rs. 2.10 Crores to
Bank of Baroda on behalf of Synergy Films Pvt. Ltd., a Subsidiary
Company as a collateral security for Term Loan Facility and Working
Capital Loan availed by the Subsidiary Company. In our opinion based on
the information and explanations received, the terms and conditions of
this guarantee are not prejudicial to the interest of the company.
xvi. In our opinion and according to the explanations given to us, the
term loans obtained during the year have been applied for the purpose
for which they were raised.
xvii. According to the information and explanations given to us and an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short- term basis to have been used for long term
investment.
xviii. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Act.
xix. The company has not issued debentures and hence no securities have
been created.
xx. The company has not raised any money by public issue during the
year.
xxi. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of any such case by the management.
For AKKAD MEHTA & CO
Chartered Accountants
Firm ICAI Registration No. 100259W
SANJAY MEHTA
Partner
Membership No. 16859
Mumbai, 28th May, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Ecoplast Ltd as at
31st March, 2012 the Profit and Loss Account and also the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 (as
amended) issued by the Central Government of India in terms 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.
4. Further to our comments in the Annexure referred to 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 it appears from our examination of
these books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet and Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(e) On the basis of the written representations received from the
directors, and taken on record by the Board of Directors, we do hereby
certify that none of the directors of the company, as on 31st March,
2012 is disqualified for appointment as a director in the
aforementioned company in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956 on the said date.
(f) Without qualifying our opinion, we draw the attention to the fact
that as referred to in Note 9 of Notes to Accounts in Schedule 16
regarding diminution in the value of investment made in the Joint
Venture Company, Synergy Film Pvt. Ltd due to more than 100% erosion of
the Net Worth of the said company on account of accumulated losses
based on unaudited accounts as at 31st March, 2012. However having
regard to the continued long-term strategic involvement, Management is
of the view that no provision is necessary for any diminution in the
value of Investments.
(g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 so far as it relates to the Balance Sheet, of the state of
affairs of the company as at 31st March, 2012
ii) in so far as it relates to the Profit and Loss Account, of the
Profit of the company for the year ended on that date.
and
iii) in so far as it relates to the Cash Flow Statement, of the cash
flows for the year ended on that date.
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there are procedures of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. The discrepancies noticed on such verification
were not material and have been properly dealt with in the books of
account.
(c) The fixed assets disposed off during the year do not constitute a
substantial part and therefore, in our opinion, the disposal does not
affect the going concern assumption.
ii) (a) The inventory has been physically verified by the management at
reasonable intervals during the current year. In our opinion, the
frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and have been properly dealt with in
the books of accounts.
iii) In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956:
(a) The Company has given loans to a subsidiary company. In respect of
the said loans, the maximum amount outstanding at any time during the
year was Rs. 225.61 lacs and the year end balance is Rs.225.61 lacs
(including interest Rs.6.07 lacs.).
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the company, are not prima facie prejudicial to the
interest of the company.
(c) The principal amounts are repayable over a period of two to five
years, while interest is payable annually at the discretion of the
company.
(d) In respect of the said loan and interest there on, there are no
overdue amounts.
(e) The company has not taken any loan from companies, firms or other
parties covered in Register maintained under Section 301 of the
companies Act 1956. Consequently, the requirements of Clauses (iii) (f)
and (iii) (g) of paragraph 4 of the Order are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system.
v) (a) On the basis of the audit procedures performed by us, and
according to the information, explanations and representations made to
us, we are of the opinion that, the particulars of contracts or
arrangements in which directors were interested as contemplated under
section 297 and sub-section (6) of section 299 of the Companies Act,
1956 and which were required to be entered in the register maintained
under section 301 of the said Act, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the aforesaid transactions have been made at prices which
are reasonable having regard to the market prices prevailing at the
relevant time as evaluated on the basis of prices charged by the
Company in case of similar transactions during the year.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
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. Accordingly, there have been no proceedings before the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal in this matter.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of subsection (1) of Section 209 of the
Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
ix) (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees' state insurance, income tax, sales tax, wealth tax, custom
duty, service tax, excise duty, cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, service tax, excise duty and cess were in arrears,
as at 31st March, 2012 for a period of more than six months from the
date they became payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
(x) The Company does not have any accumulated losses at the end of the
financial year and the Company has not incurred cash losses in the
financial year and immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us the Company has not defaulted in repayment of dues to
banks. The Company does not have any borrowings from financial
institutions or by way of debentures.
(xii) According to the information and explanation given to us, the
Company has not granted 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 or a nidhi/mutual
benefit fund/society.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments.
(xv) The Company has given a corporate guarantee of Rs.4 Crores to
North Eastern Development Finance Corp. Ltd., Assam on behalf of
Synergy Films Pvt. Ltd., a Subsidiary Company as a collateral security
for Term Loan Facility availed by the Subsidiary Company. In our
opinion based on the information and explanations received, the terms
and conditions of this guarantee are not prejudicial to the interest of
the company.
(xvi) In our opinion and according to the explanations given to us, the
term loans obtained during the year have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us and an
overall examination of the Balance Sheet of the Company, we report that
the funds raised on short- term basis to the extent of 106.97 lacs have
been have been used for long term investment.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Act.
(xix) The company has not issued debentures and hence no securities
have been created.
(xx) The company has not raised any money by public issue during the
year.
(xxi) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
For AKKAD MEHTA & CO
Chartered Accountants
Firm ICAI Registration No. 100259W
SANJAY MEHTA
Partner
Membership No. 16859
Mumbai, 28th May, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of Ecoplast Ltd as at
31st March, 2011 the Profit and Loss Account and also the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms 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.
4. Further to our comments in the Annexure referred to 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 it appears from our examination of
these books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet and Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(e) On the basis of the written representations received from the
directors, and taken on record by the Board of Directors, we do hereby
certify that none of the directors of the company, as on 31st March,
2011 is disqualified for appointment as a director in the
aforementioned company in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956 on the said date.
(f) Without qualifying our opinion, we draw the attention to the fact
that as referred to in Note 9 of Notes to Accounts in Schedule 16
regarding diminution in the value of investment made in the Joint
Venture Company, Synergy Film Pvt. Ltd due to more than 100% erosion of
the Net Worth of the said company on account of accumulated losses
based on unaudited accounts as at 31st March, 2011. However having
regard to the continued long-term strategic involvement, Management is
of the view that no provision is necessary for any diminution in the
value of Investments.
(g) Without qualifying our opinion, we draw the attention to the fact
that as stated in Note 16 of the Notes to Accounts in Schedule 16, the
audited financial statements are not available in respect of Joint
Venture Company. Consequently the unaudited financial statements of the
said joint venture company for the year ended March 31, 2011 as
certified by the Management has been used for disclosure and we have
relied upon the same.
(h) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 so far as it relates to the Balance Sheet, of the state of
affairs of the company as at 31st March, 2011
ii) in so far as it relates to the Profit and Loss Account, of the
Profit of the company for the year ended on that date.
and
iii) in so far as it relates to the Cash Flow Statement, of the cash
flows for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date)
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there are procedures of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. The discrepancies noticed on such verification
were not material and have been properly dealt with in the books of
account.
(c) The fixed assets disposed off during the year do not constitute a
substantial part and therefore, in our opinion, the disposal does not
affect the going concern assumption.
ii) (a) The inventory has been physically verified by the management at
reasonable intervals during the current year. In our opinion, the
frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and have been properly dealt with in
the books of accounts.
iii) (a) The Company has not granted any loans, secured or unsecured to
companies, firms and other parties covered in the Register maintained
under section 301 of the Companies Act, 1956.
Accordingly, clauses (iii) (b) to (iii) (d) of paragraph 4 of the Order
are not applicable to the Company for the current year.
(b) In respect of loans, secured or unsecured, taken by the company
from companies, firms or other parties covered in the register
maintained u/s.301 of the Companies Act, 1956, according to the
information and explanations given to us.
(i) The Company has taken unsecured loan from one party. At the year
end, the outstanding balance of such loan taken was Nil and the maximum
amount involved during the year was Rs. 85 lacs.
(ii) The rate of interest and other terms and conditions of such loan
is, in our opinion, prima- facie not prejudicial to the interest of the
company.
(iii) The payment of principal amounts and interest in respect of such
loan is regular/as per stipulations.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system.
v) (a) On the basis of the audit procedures performed by us, and
according to the information, explanations and representations made to
us, we are of the opinion that, the particulars of contracts or
arrangements in which directors were interested as contemplated under
section 297 and sub-section (6) of section 299 of the Companies Act,
1956 and which were required to be entered in the register maintained
under section 301 of the said Act, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the aforesaid transactions have been made at prices which
are reasonable having regard to the market prices prevailing at the
relevant time as evaluated on the basis of prices charged by the
Company in case of similar transactions during the year.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
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. Accordingly, there have been
no proceedings before the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal in
this matter.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) In our opinion, the Company is not required to maintain cost
records under section 209 (1)(d) of the Companies Act, 1956.
ix) (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income tax, sales tax, wealth tax, custom
duty, service tax, excise duty, cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, service tax, excise duty and cess were in arrears,
as at 31st March, 2011 for a period of more than six months from the
date they became payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
(x) The Company does not have any accumulated losses at the end of the
financial year and the Company has not incurred cash losses in the
financial year and immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us the Company has not defaulted in repayment of dues to
banks. The Company does not have any borrowings from financial
institutions or by way of debentures.
(xii) According to the information and explanation given to us, the
Company has not granted 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 or a nidhi/
mutual benefit fund/society.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments.
(xv) The Company has given a corporate guarantee of Rs.4 Crores to
North Eastern Development Finance Corp. Ltd., Assam on behalf of
Synergy Films Pvt. Ltd., a Joint Venture Company as a collateral
security for Term Loan and Working Capital Facility availed by the
Joint Venture Company. In our opinion based on the information and
explanations received, the terms and conditions of this guarantee are
not prejudicial to the interest of the company.
(xvi) In our opinion and according to the explanations given to us, the
term loans obtained during the year have been applied for the purpose
for which they were raised.
(xvii) According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised on short- term basis have not, prima facie, been
used during the year for long-term investment except permanent working
capital.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Act.
(xix) The Company has not issued debentures and hence no securities
have been created.
(xx) The Company has not raised any money by public issue during the
year.
(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 AKKAD MEHTA & CO
Chartered Accountants
Firm ICAI Registration No. 100259W
SANJAY MEHTA
Partner
Membership No. 16859
Mumbai, 28th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Ecoplast Ltd as at
31st March, 2010 the Profit and Loss Account and also the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms 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.
4. Further to our comments in the Annexure referred to 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 it appears from our examination of
these books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet and Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(e) On the basis of the written representations received from the
directors, and taken on record by the Board of Directors, we do hereby
certify that none of the directors of the company, as on 31" March,
2010 is disqualified for appointment as a director in the
aforementioned company in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956 on the said date.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 so far as it relates to the Balance Sheet, of the state of
affairs of the company as at 31st March, 2010
ii) in so far as it relates to the Profit and Loss Account, of the
Profit of the company for the year ended on that date.
and
iii) in so far as it relates to the Cash Flow Statement, of the cash
flows for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our
report of even date)
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there are procedures of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. The discrepancies noticed on such verification
were not material and have been properly dealt with in the books of
account.
(c) The fixed assets disposed off during the year do not constitute a
substantial part and therefore, in our opinion, the disposal does not
affect the going concern assumption.
ii) (a) The inventory has been physically verified by the management at
reasonable intervals during the current year. In our opinion, the
frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and have been properly dealt with in
the books of accounts.
iii) (a) The Company has not granted any loans, secured or unsecured to
companies, firms and other parties covered in the Register maintained
under sectiori 301 of the Companies Act, 1956.
Accordingly, clauses (iii) (b) to (iii) (d) of paragraph 4 of the Order
are not applicable to the Company for the current year.
(e) According to the information and explanations given to us, the
Company has not taken any loan from companies, firms and other parties
covered in the Register maintained under section 301 of the Companies
Act, 1956.
Accordingly, clauses (iii) (f) to (iii) (g) of paragraph 4 of the Order
are not applicable to the Company for the current year.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system.
v) According to the information and explanation provided by the
management , there have been no contracts or arrangements during the
year that need to be entered into the register maintained under section
301 of the Companies Act, 1956. Therefore, the provisions of clause (v)
(a) and (b) of the Companies (Auditors Report) Order, 2003 (as
amended) are not applicable.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
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. Accordingly, there have been no proceedings before the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal in this matter.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) In our opinion, the Company is not required to maintain cost
records under section 209 (1 )(d) of the Companies Act, 1956.
ix) (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income tax, sales tax, wealth tax, custom
duty, service tax, excise duty, cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, service tax, excise duty and cess were in arrears,
as at 31" March, 2010 for a period of more than six months from the
date they became payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
(x) The Company does not have any accumulated losses at the end of the
financial year and the Company has not incurred cash losses in the
financial year and immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us the Company has not defaulted in repayment of dues to
banks. The Company does not have any borrowings from financial
institutions or by way of debentures.
(xii) According to the information and explanation given to us, the
Company has not granted 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 or a nidhi/mutual
benefit fund/society.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments.
(xv) The Company has given a corporate guarantee of Rs.4 Crores to
North Eastern Development Finance Corp. Ltd., Assam on behalf of
Synergy Films Pvt. Ltd., a Joint Venture Company as a collateral
security for Term Loan and Working Capital Facility availed by the
Joint Venture Company. In our opinion based on the information and
explanations received, the terms and conditions of this guarantee not
prejudicial to the interest of the company.
(xvi) In our opinion and according to the explanations given to us, the
term loans obtained during the year have been applied for the purpose
for which they were raised.
(xvii) According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised on short- term basis have not, prima facie, been
used during the year for long-term investment except permanent working
capital.
(xviii)According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Act.
(xix) The company has not issued debentures and hence no securities
have been created.
(xx) The company has not raised any money by public issue during the
year.
(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 AKKAD MEHTA & CO
Chartered Accountants
Firm ICAI Registration No. 100256W
SANJAY MEHTA
Partner Membership No. 16859
Mumbai, 30th July, 2010