Home  »  Company  »  Integrated Therm  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Integrated Thermoplastic Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of M/s. INTEGRATED THERMOPLASTICS LIMITED ("The Comapny") which comprise of the Balance Sheet as at 31st March 2014, the statement of Profit and Loss and also the cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.

2) Management''s Responsibility for the Financial Statements:

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"). This responsibility includes the design, implementation and maintenance of internal controls relevant to the preparation and presentation of the financial statements that give a true and fair view and free from material misstatement, either due to fraud or error.

3) Auditors Responsibility:

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Accounting issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with the 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, either due to fraud or error. In making the risk assessment, 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.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

4) Opinion:

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

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 loss 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.

5) Report on Other Legal and Regulatory Requirements:

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 the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

As required by Section 227(3) of the Act, we report that:

i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

ii) In our opinion, proper books of accounts as required by law have been kept by the Company so far as it appears from our examination of these books.

iii) 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 accounts.

iv) 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.

v) 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.

ANNEXURE TO THE AUDITOR''S REPORT

(Referred to point no. 5 of our report of even date)

1. a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed Assets.

b) According to the information and explanations given to us the fixed assets have been physically verified by the management during the year and no discrepancies were noticed on such verification.

c) No Substantial part of fixed assets have been disposed off during the year.

2. a) The Inventories have been physically verified by the management during the year. In our opinion the frequency of verification is reasonable and adequate.

b) The procedure of physical verification of inventories followed by the management is reasonable and adequate having regard to the size of the company, the nature and volume 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.

3. a) The Company has taken interest free unsecured loan from companies, listed in the register maintained under sec. 301 of companies Act, 1956. The amount involved and outstanding is Rs. 205.40 lacs and repaid during the year. The company has not granted loan to companies, firms or other parties listed in the register maintained under sec. 301 of Companies Act, 1956.

b) The rate of interest and other terms and conditions of loans given or taken by the company, secured or unsecured are prima facie not prejudicial to the interests of the company.

c) The payments of the principal amount and interest amount are regular.

d) There are no over due amounts of more than rupees one lac.

4. In our opinion, according to the information and explanation given to us there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and for sale of goods. During the course of our audit, no major weakness has been observed in the internal control

5. a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into Register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions with parties with whom transactions exceeding the value of rupees five lacs have been entered into during the financial year at prices are reasonable, having regard to the prevailing market prices at the relevant time.

6. The provisions of section 58A and 58AA of the Companies Act, 1956 are not applicable, as the Company has not accepted deposits from the public.

7. The Company does not have a formal internal audit system.

8. Cost records under Section 209 (1) (d) of the Companies Act 1956, are not prescribed for the business carried out by this Company.

9. a) According to the information and explanations given to us the company is regular in depositing undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax/VAT, Wealth Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities, which were outstanding as at 31st March 2014 for a period of more than six months from the date they become payable except the following;

STATEMENT OF ARREARS OF STATUTORY DUES OUTSTANDING FOR MORE THAN SIX MONTHS:

S. Nature of Dues Amount Period to which the No. amount relates to

1. APGST (ST Deferment) 3114718 1998-1999

2. APGST (ST Deferment) 12329041 1999-2000

3. APGST (ST Deferment) 19792919 2000-2001

4. Income Tax 4328070 2010-11

5. Income Tax 3417967 2011-12

6. Income Tax 3749686 2012-13

b) According to the information and explanation given to us the following are the disputed dues relating to Income Tax, Wealth Tax, Cess and Sales Tax, Service Tax, Central Excise as on 31.03.2014.

S. Nature of Statute Nature of Amount Period to Forum Where No. Dues (Rs. in which the Dispute is Lacs) amount Pending Relates

1 APGST/VAT Act Sales Tax 66.42 2001-02 Appeal in STAT

2 Central Excise Act Excise Duty 1.04 1998-99 Department Appeal in CESTAT

3 Central Excise Act Excise Duty 89.00 Jan''05 to Department June''05 Appeal in CESTAT

4 The Finance Act Service Tax 2.09 2003-04 Appeal in to 2007-08 CESTAT

10. The Company has incurred cash losses of Rs. 1,38,82,547/- during the year. The accumulated losses are Rs. 2,41,75,668/- as against the net worth of Rs. 6,28,89,000/-.

11. Based on our audit procedures and the information and explanations given by the management, the company has default in repayment of dues to financial institutions i.e., A.P.S.F.C Rs. 3,41,21,661/- (Instalment Rs. 1,79,29,919/- and Interest due Rs. 1,61,91,742/-).

12. According to the information and explanations given to us the company has not granted loans and advances on the basis of securities by way of pledge of shares, debentures and others securities.

13. Clause No. XIII of CARO 2003 is not applicable to the company, as this company is not a chit fund/nidhi/mutual benefit fund/society.

14. Clause No. XIV of CARO 2003 is not applicable to the company, as this company is not dealing in shares, securities, debentures and other investment.

15. According to the information and explanations given to us the company has not given any guarantee for loans taken by others from bank or financial institutions.

16. In our opinion the term loans have been applied for the purpose for which they were raised.

17. The funds raised on short-term basis have not been used for long-term investment.

18. The company has not made any preferential allotment of shares during the year.

19. The company has not issued Debentures.

20. The company has not raised any money through public issue during the year.

21. Based upon the audit procedures performed and information and explanations given by the management, we report that, no fraud and or by the company has been noticed or reported during the year.

For L.B. REDDY & CO., Chartered Accountants Firm''s Registration No. 8611S

Sd/- Place : Hyderabad M. THIRUPALU REDDY Date : 01-09-2014 Partner, M.No. 203098


Mar 31, 2012

We have audited the attached Balance Sheet of M/s. INTEGRATED THERMOPLASTICS LIMITED, as at 31st March 2012 and the annexed Profit and Loss Account of the Company for the Year ended on that date. The 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.

We conducted our audit in accordance with the 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 examination 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 statements presentation. We believe that our audit provides a reasonable basis for our opinion.

In accordance with the provisions of Section 227 of the Companies Act, 1956, we report as under :

1. As required by the Companies (Auditor's Report) Order, 2003 Issued by the Central Govt, under Section 227 (4A) of the Companies Act 1956, we enclose in the Annexure to our report the matters specified in the said Order.

2. Further to our comments in the Annexure referred to in paragraph 1 above :

a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit:

b) In our opinion, proper books of accounts as required by law have been kept by the company so far as it appears from our examination of those books;

c) The said Balance Sheet and Profit and Loss Account referred to in this report are in agreement with the books of accounts;

d) The said Profit and Loss Account and Balance Sheet comply with the Accounting Standards referred to section 211 (3C) of the Companies Act, 1956 except in case of Accounting Standard AS-15 Accounting for Retirement Benefits in the Financial Statement of employers. The Company accounts for leave encasement on cash basis and provisions required at 31st March, 2012 have not been ascertained, hence we are unable to express our opinion in respect thereof (refer note no 21 (A)(2)).

e) In our opinion, as per the information furnished to us no Director is disqualified from being appointed as a Director under clause (g) of sub-section (1) of section 274.

f) Subject to the foregoing, in our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with significant accounting policies in schedule 16 (A), and notes on accounts in schedule 16 (B) give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view;

i) In the case of the Balance Sheet, of the State of affairs of the Company as at 31st March 2012 and

ii) In the case of the Profit and Loss Account, of the Profit of the Company for the year ended on that date.

ANNEXURE TO THE AUDITOR'S REPORT

(Referred to in paragraph 1 of our report of even date)

ANNEXURE REFERRED TO IN PARAGRAPH 1 OF AUDITOR'S REPORT OF EVEN DATE

1 a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed Assets.

b) According to the information and explanations given to us the fixed assets have been physically verified by the management during the year and no discrepancies were noticed on such verification.

c) No Substantial part of fixed assets have been disposed off during the year, which has bearing on the going concern assumption.

2. a) The stock of finished goods, stores, spare parts and raw materials have been physically verified by the Management during the year. In our opinion the frequency of verification is reasonable and adequate.

b) The procedure of physical verification of stock followed by the management is reasonable and adequate having regard to the size of the company, the nature and volume of its business.

c) The Company is maintaining proper records of inventory and the discrepancies noticed on verification between the physical stocks and the book records were not material and the same have been properly dealt with in the books of accounts.

3. a) The Company has taken loan from companies, listed in the register maintained under sec. 301 of companies Act, 1956, and the company has not granted loan to companies, firms or other parties listed in the register maintained under sec. 301 of Companies Act, 1956.

b) The rate of interest and other terms and conditions of loans given or taken by the company, secured or unsecured are prima facie not prejudicial to the interest of the company.

c) The payments of the principal amount and interest amount are regular.

d) There are no over due amounts of more than rupees one lac.

4. In our opinion, according to the information and explanation given to us there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and for sale of goods. During the course of our audit, no major weakness has been observed in the internal control

5. a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into Register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions with parties with whom transactions exceeding the value of rupees five lacs have been entered into during the financial year at prices are reasonable, having regard to the prevailing market prices at the relevant time.

6. The provisions of section 58A and 58AA of the Companies Act, 1956 are not applicable, as the Company has not accepted deposits from the public.

7. The Company does not have a formal internal audit department but the Company's internal control procedures can be considered as an adequate internal audit system commensurate with the size and nature of its business through personal supervision of management in respect of purchase of stores, raw material including components, trading goods, plant & machinary and other assets and for the sale of goods.

8. Cost records under Section 209 (1) (d) of the Companies Act 1956, are not prescribed for the business carried out by this Company.

9. a) According to the information and explanations given to us the company is regular in deposting undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax/VAT, Wealth Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities, which were outstanding as at 31 st March 2012 for a period of more than six months from the date they become payable.

b) There are no disputed statutory duties under Sales Tax/VAT / Income Tax Custom Tax / Wealth Tax / Excise Duty / Cess Duty pending for payment.

10. The Company has not incurred cash losses during the year and in the preceding year. The accumulated losses are Rs.13688393.59 as against the net worth of Rs.63059288.42.

11. Based on our audit procedures and the information and explanations given by the management, the company has not defaulted in repayment of dues to financial institutions.

12. According to the information and explanations given to us the company has not granted loans and advances on the basis of securities by way of pledge of shares, debentures and others securities

13. Clause No. XIII of CARO 2003 is not applicable to the company, as this company is not a chit fund/nidhi/mutual benefit fund/society.

14. Clause No. XIV of CARO 2003 is not applicable to the company, as this company is not dealing in shares, securities, debentures and other investment.

15. According to the information and explanations given to us the company has not given any guarantee for loans taken by others from bank or financial institutions.

16. Clause No. 4 (CVI) of the CARO-2003 is not applicable, as the company is not having term loans.

17. The funds raised on short-term basis have not been used for long-term investment and vice versa.

18. The company has not made any preferential allotment of shares during the year.

19. The company has not issued Debentures.

20. The company has not raised any money through public issue during the year.

21. Based upon the audit procedures performed and information and explanations given by the management, we report that, no fraud and or by the company has been noticed or reported during the year.

For L.B.REDDY & CO.,

Chartered Accountants

Sd/-

Place : Hyderabad M. THIRUPALU REDDY

Date : 14-08-2012 Partner, M.No. 203098


Mar 31, 2010

We have audited the attached Balance Sheet of M/s. INTEGRATED THERMOPLASTICS LIMITED, as at 31st March 2010 and the annexed Profit and Loss Account of the Company for the Year ended on that date. The financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the 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 examination 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 statements presentation. We believe that our audit provides a reasonable basis for our opinion.

In accordance with the provisions of Section 227 of the Companies Act, 1956, we report as under:

1. As required by the Companies (Auditors Report) Order, 2003 Issued by the Central Govt, under Section 227 (4A) of the Companies Act 1956, we enclose in the Annexure to our report the matters specified in the said Order.

2. Further to our comments in the Annexure referred to in paragrap 1 above :

a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit :

b) In our opinion, proper books of accounts as required by law have been kept by the company so far as it appears from our examination of those books;

c) The said Balance Sheet and Profit and Loss Account referred to in this report are in agreement with the books of accounts;

d) In addition to our observations in para 10 of Annexure to the Auditors Report, attention is invited to notes 1 of Schedule 16(B) regarding the company becoming a sick industrial company within the meaning of clause (o) of sub-section 3 of the Sick Industrial Companies (Special provisions) Act, 1985;

e) The said Profit and Loss Account and Balance Sheet comply with the Accounting Standards referred to section 211 (3C) of the Companies Act, 1956 except in case of Accounting Standard AS-15 Accounting for Retirement Benefits in the Financial Statement of employers. The Company accounts for leave encasement on cash basis and provisions required at 31st March, 2009 have not been ascertained, hence we are unable to express our opinion in respect thereof (refer schedule 16 (B) note 3);

f) In our opinion, as per the information furnished to us no Director is disqualified from being appointed as a Director under clause (g) of sub-section (1) of section 274.

3. Subject to the foregoing, in our opinion and to the best of our

information and according to the explanations given to us, the said accounts, read together with significant accounting policies in schedule 16 (A), and notes on accounts in schedule 16 (B) give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view;

i) In the case of the Balance Sheet, of the State of affairs of the Company as at 31st March 2010 and

ii) In the case of the Profit and Loss Account, of the Profit of the Company for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 1 of our report of even date)

ANNEXURE REFERRED TO IN PARAGRAPH 1 OF AUDITORS REPORT OF EVEN DATE

1 a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed Assets.

b) According to the information and explanations given to us the fixed assets have been physically verified by the management during the year and no discrepancies were noticed on such verification.

c) No Substantial part of fixed assets have been disposed off during the year, which has bearing on the going concern assumption.

2. a) The stock of finished goods, stores, spare parts and raw materials have been physically verified by the Management during the year. In our opinion the frequency of verification is reasonable and adequate.

b) The procedure of physical verification of stock followed by the management is reasonable and adequate having regard to the size of the company, the nature and volume of its business.

c) The Company is maintaining proper records of inventory and the discrepancies noticed on verification between the physical stocks and the book records were not material and the same have been properly dealt with in the books of accounts.

3. a) The Company has taken loan from companies, listed in the register

maintained under sec. 301 of companies Act, 1956, and the company has not.granted loan to companies, firms or other parties listed in the register maintained under sec. 301 of Companies Act, 1956.

b) The rate of interest and other terms and conditions of loans given or taken by the company, secured or unsecured are prima facie not prejudicial to the interest of the company.

c) The payments of the principal amount and interest amount are regular.

d) There are no over due amounts of more than rupees one lac.

4. In our opinion, according to the information and explanation given to us there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and for sale of goods. During the course of our audit, no major weakness has been observed in the internal control

5. a) According to the information and explanations given to us, we are of

the opinion that the transactions that need to be entered into Register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions with parties with whom transactions exceeding the value of rupees five lacs have been entered into during the financial year at prices are reasonable, having regard to the prevailing market prices at the relevant time.

6. The provisions of section 58A and 58AA of the Companies Act, 1956 are not applicable, as the Company has not accepted deposits from the public.

7. The Company does not have a formal internal audit department but the Companys internal control procedures can be considered as an adequate internal audit system commensurate with the size and nature of its business through personal supervision of management in respect of purchase of stores, raw material including components, trading goods, plant & machinary and other assets and for the sale of goods.

8. Cost records under Section 209 (1) (d) of the Companies Act 1956, are not prescribed for the business carried out by this Company.

9. a) According to the information and explanations given to us the

company is regular in deposting undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax/VAT, Wealth Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities, which were outstanding as at 31st March 2010 for a period of more than six months from the date they become payable.

b) There are no disputed statutory duties under Sales Tax/VAT / Income Tax / Custom Tax / Wealth Tax / Excise Duty / Cess Duty are pending for payment.

10. The Company has incurred cash losses in earlier year and has accumulated losses of Rs.3,01,41,207.98/-

11. Based on our audit procedures and the information and explanations given by the management, the company has not defaulted in repayment of dues to financial institutions.

12. According to the information and explanations given to us the company has not granted loans and advances on the basis of securities by way of pledge of shares, debentures and others securities

13. Clause No. XIII of CARO 2003 is not applicable to the company, as this company is not a chit fund/nidhi/mutual benefit fund/society.

14. Clause No. XIV of CARO 2003 is not applicable to the company, as this company is not dealing in shares, securities, debentures and other investment.

15. According to the information and explanations given to us the company has not given any guarantee for loans taken by others from bank or financial institutions.

16. Clause No. 4 (CVI) of the CARO-2003 is not applicable, as the company is not having term loans.

17. The funds raised on short-term basis have not been used for long-term investment and vice versa.

18. The company has not made any preferential allotment of shares during the year.

19. The company has not issued Debentures.

20. The company has not raised any money through public issue during the year.

21. Based upon the audit procedures performed and information and explanations given by the management, we report that, no fraud and or by the company has been noticed or reported during the year.

for MTR & ASSOCIATES Chartered Accountants



Place : Hyderabad (M. THIRUPALU REDDY) Date : 30-06-2010 Proprietor M.No.203098