Mar 31, 2018
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
We have audited the accompanying standalone Ind AS financial statements of POLYPLEX CORPORATION LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31st, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âstandalone Ind AS financial statementsâ).
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements to give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and 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, read with relevant rules issued thereunder.
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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS 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 of the standalone Ind AS financial statements 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS 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 Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 (financial position) of the Company as at March 31st, 2018, and its profit (financial performance including other comprehensive income),its cash flows and the changes in equity for the year ended on that date.
Other Matter
The comparative financial information of the Company for the year ended March 31st, 2017 and the transition date opening balance sheet as at April 1st, 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended March 31st, 2017 and March 31st, 2016 dated May 19th, 2017 and May 30th, 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 (including other Comprehensive Income), and the Statement of Cash Flow and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with relevant rule issued thereunder.
e) On the basis of the written representations received from the directors as on March 31st, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31st, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31st, 2018 on its financial position in its standalone Ind AS financial statements - Refer Note 42 to the standalone Ind AS financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including long term derivative contracts.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv. The reporting on the disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2018.
i. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets
(b) The Company has a regular programme of Physical Verification of its Fixed assets by which fixed asset have been verified by the management according to the programme of periodical physical verification in a phased manner which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. The discrepancies noticed on such physical verification were not material.
(c) According to the information and explanation given to us and on the basis of examination of title deeds / sale deed / transfer deed / conveyance deed / possession letter / allotment letter and other relevant records evidencing title/ possession provided, we report that the title deeds of the immovable properties are held in the name of the Company except in two cases amounting to RS.8.79 Lacs where the title deed is not in the name of the company. Refer Note 4 to the Standalone Ind AS Financial Statements.
ii. The inventories of the Company (except stock lying with the third parties and in transit) have been physically verified by the management at reasonable intervals. In our opinion, the procedures of physical verification of inventory followed by the Management are reasonable in relation to the size of the Company and nature of its business. The discrepancies noticed on such physical verification of inventory as compared to book records were not material.
iii. The Company has granted unsecured loans to one body corporate covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ).
(a) According to the information and explanations given to us and based on the audit procedures conducted by us, we are of the opinion that the terms and conditions of loans granted by the Company are not prejudicial to interest of the Company.
(b) In respect of aforesaid loan, repayment of principal and payment of interest has been stipulated, principal is not due for repayment and receipt of interest on the said loan has been fully received.
(c) There is no amount overdue for more than 90 days as on the date of Balance Sheet.
iv. According to the information, explanations and representations provided by the Management and based upon audit procedures performed, we are of the opinion that in respect of loans and investments the Company has complied with the provisions of the Section 185 and 186 of the Companies Act, 2013.The Company has not provided any guarantees or security as specified under Section 185 and 186 of the Companies Act, 2013.
v. According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of sections 73 to 76 of the Companies Act, 2013 and the rules framed there under. Accordingly, the provisions of clause 3 (v) of the Order are not applicable to the Company.
vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules prescribed by the Central Government of India for the maintenance of cost records under sub-section 1 of Section 148 of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed records and accounts have been made and maintained. However, we have not carried out a detailed examination of such records with a view to determining whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and on the basis of examination of the records of the Company, the company is generally regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, sales-tax, income tax, service tax, custom duty, excise duty, value added tax, goods and service tax with effect from July 1st, 2017 and other material statutory dues with the appropriate authorities to the extent applicable
(b) According to the information and explanations given to us and on the basis of examination of the records of the Company there are no undisputed statutory dues payable for a period of more than six months from the date they become payable as at March 31st, 2018
(c) According to the records and information and explanations given to us, there are no dues in respect of income tax, sales tax, service tax, duty of excise, goods and service tax, duty of custom, or value added tax which have not been deposited on account of any dispute except as given below:
Name of Statute |
Nature of Dues |
Period (F.Y.) |
Amount (Rs. in Lacs) |
Amount deposited (Rs. in Lacs) |
Forum where pending |
The Central Sales Tax Act, 1944 and State VAT Act |
Sale Tax |
1996-1997 |
28.08 |
9.68 |
High Court |
The Central Sales Tax Act, 1944 and State VAT Act |
Sale Tax |
1997-1998 |
32.74 |
4.19 |
Deputy Commissioner (Appeal) |
The Central Sales Tax Act, 1944 and State VAT Act |
Sale Tax |
1998-1999 |
29.05 |
- |
Deputy Commissioner (Appeal) |
The Central Sales Tax Act, 1944 and State VAT Act |
Sale Tax |
2009-2010 |
1.34 |
- |
Jt. Commissioner (Appeal) |
The Central Sales Tax Act, 1944 and State VAT Act |
Sale Tax |
2009-2010 |
0.97 |
- |
Jt. Commissioner (Appeal) |
The Central Sales Tax Act, 1944 and State VAT Act |
Sale Tax |
2010-2011 |
3.42 |
1.71 |
Deputy Commissioner (Appeal) |
The Central Sales Tax Act, 1944 and State VAT Act |
Sale Tax |
2011-2012 |
1.12 |
1.12 |
Deputy Commissioner (Appeal) |
The Central Sales Tax Act, 1944 and State VAT Act |
Sale Tax |
2013-2014 |
1.49 |
- |
Jt. Commissioner (Appeal) |
The Central Sales Tax Act, 1944 and State VAT Act |
Sale Tax |
2015-2016 |
7.82 |
2.93 |
Jt. Commissioner (Appeal) |
The Central Sales Tax Act, 1944 and State VAT Act |
Sale Tax |
2016-2017 |
0.43 |
0.43 |
Deputy Commissioner (Appeal) |
The Central Sales Tax Act, 1944 and State VAT Act |
Sale Tax |
2017-2018 |
1.16 |
1.16 |
Deputy Commissioner (Appeal) |
The Central Excise Act, 1994 |
Excise Duty |
2009-2010 |
19.91 |
- |
Additional Commissioner |
The Central Excise Act, 1994 |
Excise Duty and Penalty |
2010-2011 |
18.45 |
9.22 |
CESTAT |
The Central Excise Act, 1994 |
Excise Duty and Penalty |
2014-15 |
2.84 |
0.11 |
Commissioner |
The Central Excise Act, 1994 |
Excise Duty |
2014-15 |
70.12 |
Jt. Commissioner (Appeal) |
|
The Central Excise Act, 1994 |
Excise Duty |
2017-18 |
27.26 |
- |
Jt. Commissioner (Appeal) |
The Service Tax Act, 1994 |
Service Tax |
2014-15 |
269.68 |
- |
Appellate Tribunal |
The Service Tax Act, 1994 |
Service Tax |
2015-16 |
5.65 |
3.52 |
Commissioner |
The Income Tax Act, 1961 |
Income Tax, |
2009-10 |
159.13 |
159.13 |
ITAT |
The Income Tax Act, 1961 |
Income Tax, |
2010-11 |
149.79 |
149.79 |
ITAT |
The Income Tax Act, 1961 |
Income Tax, |
2011-12 |
344.85 |
61.00 |
CIT(Appeals) |
The Income Tax Act, 1961 |
Income Tax |
2012-13 |
39.32 |
14.30 |
CIT (Appeals) |
viii. In our opinion, on the basis of audit procedures and according to the information and explanations given to us, the Company has not defaulted in repayment of loan or borrowing to any banks or financial institutions during the year. The Company has not obtained any loans from debenture holders or government.
ix. According to the information and explanations given to us, the company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year. The term loans have been applied for the purpose for which they were raised.
x. 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, we have neither come across any instance of fraud by the company or on the Company by its officers or employees noticed or reported during the year, nor have we been informed of such case by the Management.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the record of the company, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and details of such transactions have been disclosed in the Financial Statements as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified under section 133 of the Act.
xiv. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, clause 3(xiv) of the Order is not applicable.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, clause 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi) of the Order is not applicable.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ) as referred to in paragrapRs.2(f) of âReport on Other Legal and Regulatory Requirementsâ
We have audited the internal financial controls over financial reporting of POLYPLEX CORPORATION LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs 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. 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 companyâs 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs 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) issued by the Institute of Chartered Accountants of India and the Standards on Auditing, prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 auditorâs judgement, 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs 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 companyâs 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs 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 March 31, 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 S. S. Kothari Mehta & Co.
Chartered Accountants
Firm Registration No. 000756N
Yogesh K. Gupta
Place: Noida Partner
Dated: May 30th, 2018 Membership No. 093214
Mar 31, 2017
TO THE MEMBERS OF POLYPLEX CORPORATION LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of Polyplex Corporation Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss, the Cash Flow Statement 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 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. 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 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, 2017, 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, 2016 ("the Order") issued by the Central Government of India in terms of sub-Section (11) of Section 143 of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us during the course of audit, we give in the Annexure ''A'' a statement on the matters specified in the paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 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 31st March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) As required by Section 143(3)(i) of the Companies Act, 2013, and based on the checking of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, our report on the Internal Financial Controls over Financial Reporting is as per Annexure ''B.
(h) 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 Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements - Refer Note no. 27(B)(i) to the financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standard, for material foreseeable losses, if any, on long- term contracts including derivative contracts. Refer Note No. - 27(I)
(i)&(ii) to the Financial Statements.
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 Company has provided requisite disclosures in its Standalone Financial Statements as to holdings as well as dealings in Specified Bank Notes during the period from 08th November, 2016 to 30th December, 2016 and these are in accordance with the books of accounts maintained by the Company. (Refer Note no.27(W) to Standalone Financial Statements)
1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of Physical Verification of its Fixed assets by which fixed asset have been verified by the management according to the programme of periodical physical verification in a phased manner which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. The discrepancies noticed on such physical verification were not material.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company. Read with footnote 1 & 2 of Note No. 11 of the Standalone Financial Statements.
2. The inventories of the Company (except stock lying with the third parties and in transit for which confirmations have been received / materials received) have been physically verified by the management at reasonable intervals. In our opinion, the procedures of physical verification of inventory followed by the Management are reasonable in relation to the size of the Company and nature of its business. The discrepancies noticed on such physical verification of inventory as compared to book records were not material.
3. The Company has granted unsecured loans to one body corporate covered in the register maintained under section 189 of the Companies Act, 2013 (''the Act'').
(a) According to the information and explanations given to us and based on the audit procedures conducted by us, we are of the opinion that the terms and conditions of loans granted by the Company are not prejudicial to the interest of the Company.
(b) In respect of aforesaid loan, repayment of principal and payment of interest has been stipulated, principal is not due for repayment and receipt of interest on the said loan has been fully received.
(c) As principal and interest is not overdue for period over 90 days, we are not offering comments with respect to recovery of principal & interest.
4. According to the information, explanations and representations provided by the Management and based upon audit procedures performed, we are of the opinion that in respect of loans, investments, guarantees and security, the Company has complied with the provisions of the Section 185 and 186 of the Companies Act, 2013.
5. In our opinion and according to the information and explanations given to us, the Company has complied with the directive issued by the Reserve Bank of India and the provisions of Section 73 to 76 of the Act or any other relevant provisions of the Act and the Rules framed there under (to the extent applicable) with regard to deposits accepted from public. We have been informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or other Tribunal in this regard.
6. We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act in respect of the Company''s products to which they said Rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
7. (a) According to the records of the Company, the Company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues with the appropriate authorities to the extent applicable and there are no undisputed statutory dues payable for a period of more than six months from the date they become payable as at 31st March, 2017.
(b) According to the records and information & explanations given to us, there are no dues in respect of income tax that have not been deposited with the appropriate authorities to the extent applicable on account of any dispute and the dues in respect of service tax, duty of customs, duty of excise and value added tax that have not been deposited with the appropriate authorities on account of any dispute and the forum where the dispute is pending are given below: -
Name of The Statute |
Nature of Dues |
Period (Financial Year) |
Amount (Rs, In Lacs) |
Forum where disputes are pending |
Sale Tax Act |
Sale Tax |
1996-1997 |
18.40 |
High Court |
1997-1998 |
28.55 |
Deputy Commissioner (Appeal) |
||
1998-1999 |
29.05 |
Deputy Commissioner (Appeal) |
||
2009-2010 |
2.23 |
Jt. Commissioner (Appeal) |
||
2009-2010 |
1.55 |
Jt. Commissioner (Appeal) |
||
2015-2016 |
4.89 |
Jt. Commissioner (Appeal) |
||
2010-2011 |
1.71 |
Jt. Commissioner |
||
Central Excise Act, 1994 |
Excise Duty and Penalty |
2009-2010 |
19.91 |
Additional Commissioner |
Excise Duty and Penalty |
2010-2011 |
9.22 |
CESTAT |
|
Excise Duty |
2010-2011 |
1.35 |
Assistant Commissioner |
|
Excise Duty and Penalty |
2010-2015 |
2.84 |
Assistant Commissioner |
8. In our opinion, on the basis of audit procedures and according to the information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to financial institutions, banks, government. The Company did not have any outstanding debentures during the year.
9. On the basis of information and explanations given to us, term loan were applied for the purpose for which the loans were obtained. No moneys have been raised during the year by way of initial public offer or further public offer.
10. Based on the audit procedure performed and on the basis of information and explanations provided by the management, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the course of the audit.
11. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations and records made available by the management of the Company and audit procedure performed, for transactions with the related parties during the year, the Company has complied with the provisions of Section 177 and 188 of the Act, where applicable. As explained and as per records, details of related party transactions have been disclosed in the Standalone Financial Statements as per the applicable Accounting Standards.
14. According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, we are not offering any comment with respect to compliance of requirement of Section 42 of the Act and utilization of the money.
15. On the basis of records made available to us and according to information and explanations given to us, the Company has not entered into non-cash transactions with the directors or persons connected with him. Accordingly, we are not offering comment with respect to compliance of Section 192 of the Act.
16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the Internal Financial Controls over financial reporting of POLYPLEX CORPORATION LIMITED ("the Company") as of March 31, 2017 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.
Management''s Responsibility for 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.
Auditor''s 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 "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of Internal 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 Controls 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 Controls 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 Controls 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 March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For LODHA & CO.,
Chartered Accountants
Firm''s Registration No. 301051E
GAURAVLODHA
Place: New Delhi Partner
Date: May 19, 2017 Membership No: 507462
Mar 31, 2015
We have audited the accompanying Standalone Financial Statements of
Polyplex Corporation Limited ("the Company"), which comprise the
Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with 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, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us during the course of audit, we give in the Annexure a statement on
the matters specified in the paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(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 Company has disclosed the impact of pending litigations on its
financial position in its standalone financial statements  Refer Note
no. 26 B (i) to the standalone financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts  Refer Note 26 J
(i), (ii) & (iii) to the standalone financial statements.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE FOR THE
YEAR ENDED 31ST MARCH 2015:-
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
according to the programme of periodical physical verification in
phased manner which in our opinion is reasonable having regard to the
size of the Company and the nature of its fixed assets. The
discrepancies noticed on such physical verification were not material.
2. (a) The inventories of the Company (except stock lying with third
parties and in transit for which confirmations have been received /
materials received) have been physically verified by the management at
reasonable intervals.
(b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. The Company has granted unsecured loan to two companies covered in
the register maintained under Section 189 of the Companies Act, 2013.
(a) In respect of aforesaid loan, the receipt of principal amount and
interest amount is regular.
(b) The Recovery of principal amount and interest is as per
stipulation.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, during the
course of audit, we have not observed any continuing failure to correct
major weaknesses in internal control system.
5. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
within the meaning of Section 73 to 76 of the Act or any other relevant
provisions of the Act and the rules framed there under with regard to
deposits accepted from the public. We have been informed that no order
has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or other tribunal in
this regard.
6. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 148(1) of the Act in respect
of the company's products to which they said rules are made applicable
and are of the opinion that prima facie, the prescribed records have
been made and maintained. We have, however, not made a detailed
examination of the said records with a view to determine whether they
are accurate or complete.
7. (a) According to the records of the Company and information and
explanations given to us, the Company is generally regular in
depositing 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 and Cess and
other material statutory dues with the appropriate authorities to the
extent applicable and there were no undisputed statutory dues payable
for a period of more than six months from the date they became payable
as at 31st March, 2015.
(b) According to the records and information & explanations given to
us, there are no dues in respect of Income Tax, Wealth Tax, Service
Tax, Duty of Custom, and Cess that have not been deposited with the
appropriate authorities to the extent applicable on account of any
dispute and the dues in respect of Sales Tax, VAT and Excise duty that
have not been deposited with the appropriate authorities on account of
dispute and the forum where the dispute is pending are given below:-
Name of Nature of Period Amount Forum where
disputes are
the Statute dues (Financial (Rs. in pending
Year) Lacs)
Sale Tax Act Sale Tax 1996-1997 18.40 High Court
1997-1998 28.55 Deputy Commissioner
(Appeal)
1998-1999 29.05 Deputy Commissioner
(Appeal)
2008-2009 1.28 Tribunal
2010-2011 1.71 Jt. Commissioner
U.P. Tax on Entry Tax 2001-2002 0.61 Tribunal
Entry of
Goods Act
Central
Excise Excise Duty 2009-2010 19.91 Additional
Commissioner
Act, 1944 and Penalty
Refer Note No. 26 B(i) to the Standalone Financial Statements.
(c) According to the records of the Company and information and
explanations given to us, the amount required to be transferred to
Investor Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made
there under has been transferred to such fund within time.
8. The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year & in the immediately preceding financial year.
9. In our opinion, on the basis of audit procedure and according to
the information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institutions, banks or
debenture holders.
10. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks and financial institutions.
11. On the basis of information and explanations given to us, the term
loans were applied for the purpose for which the loans were obtained.
12. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, no fraud on or
by the Company has been noticed or reported during the course of our
audit.
For Lodha & Co.,
Chartered Accountants
(Firm Regn. No. 301051E)
N. K. Lodha
Place : New Delhi Partner
Date : May 30, 2015 Membership No. 85155
Mar 31, 2014
We have audited the accompanying Financial Statements of Polyplex
Corporation Limited, which comprise the Balance Sheet as at 31st March
2014, and 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.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these Financial
Statements that give a true and the 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 accounting standards referred to in sub section (3C) of
section 211 of the Companies Act, 1956("the Act"), read with the
General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of 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 free from
material misstatement, whether due to fraud or error.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these Financial
Statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by The Institute of Chartered
Accountants of India. Those standards require that we comply with the
ethical requirements and plan and perform the audit to obtain the
reasonable assurance about whether the Financial Statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the Financial Statements. The procedures
selected depend on the auditor''s judgment, including assessment of
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 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 audit opinion.
OPINION
In our opinion and best to our information and according to the
explanations given to us, the Financial Statements and read together
with the other notes thereon give the information required by Act in
the manner so require 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 the affairs of
the company as at 31st March 2014,
b. In case of the statement of the Profit and Loss, of the Profit for
the year ended on that date, and
c. In case of the cash flow statement, of the cash flows for the year
ended on that date.
REPORT ON OTHER LEGAL AND THE REGULATORY REQUIREMENTS:
1. As required by the Companies (Auditor''s Report) Order, 2003("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give the Annexure a
statement on the, manners specified in the paragraphs 4 and 5 of the
order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which ,to the
best of our 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, Statement of Profit & Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
accounts;
d. In our opinion, Balance Sheet, Statement of Profit & Loss and Cash
Flow Statement referred to in this report comply with the Accounting
Standards referred to in sub- section (3C) of section 211 of Companies
Act, 1956, read with the General Circular 15/2013 dated 13th September
2013 of the Ministry of Corporate Affairs in respect of section 133 of
the Companies Act, 2013;
e. On the basis of the written representations received from the
Directors and taken on records by the Board of Directors, we report
that none of the directors of the Company is disqualified as on 31st
March 2014 from being appointed as a Director of the Company in terms
of clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT FOR THE YEAR ENDED
31.03.2014 :
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) We have been informed by the management that fixed Assets have been
physically verified by the management during the year according to the
regular programme of periodical verification in phased manner which in
our opinion is reasonable having regard to the size of the Company and
the nature of its Fixed Assets. According to the information and
explanations given to us, discrepancies noticed on such physical
verification were not material.
(c) As per the records and information and explanations given to us, no
substantial part of Fixed Assets has been disposed off during the year
and therefore does not affect the going concern assumption.
2. (a) We have been explained by the management that the Inventory of
the Company at all its locations (except stocks lying with third
parties/in transit, which have been verified after subsequent receipt
of material/on confirmation) have been physically verified by the
Management at reasonable intervals.
(b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) In our opinion and according to information and explanations given
to us, the Company is maintaining proper records of inventory and the
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) As informed to us, the Company has granted unsecured loan to a
company covered in the register maintained under Section 301 of the
Act. The maximum amount involved during the year in respect of said
company/person is Rs.2600 Lacs and the year end balance of such loan is
Rs.2500 Lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms & conditions on which
aforesaid loan has been given are not, prima facie, prejudicial to the
interest of the company.
(c) In respect of aforesaid loan, the receipt of principal amount and
interest is regular.
(d) The recovery of principal amount and interest during the year is as
per stipulation.
(e) As informed to us, the company has not taken any loan, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii) (f) and (g) of the Order
are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of specialised nature, taking into consideration the
quality, usage and such other factors, comparative sources/quotations
are not available, the Company has internal control systems
commensurate with the size of the Company and nature of its business
for the purchases of inventory, fixed assets and for the sale of goods
and services. Further, on the basis of examination of the books and
records of the Company and according to the information and
explanations given to us and as per the checking carried out in
accordance with the auditing standards generally accepted in India,
neither we have observed nor we have been informed of any continuing
failure to correct major weaknesses in internal control system.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contract or arrangement
that need to be entered into the register maintained under Section 301
of the Act have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered into the register maintained under section 301 of
the Act and exceeding the value of rupees five Lacs in respect of each
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Section 58A and 58AA or any other relevant
provisions of the Act and rules framed thereunder. We have been
informed that no order has been passed by Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal in this regard.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. The Central Government has prescribed maintenance of cost records
under Section 209(1)(d) of the Act, in respect of Polyester Chips. On
the basis of the records produced and broadly reviewed by us, we are of
the opinion that, prima facie, the prescribed records have been made
and maintained. However, we are not required to and have not carried
out any detailed examination of the said records, with a view to
determine whether they are accurate or complete.
9. (a) In our opinion and according to the information and
explanations given to us, undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income tax, Sales tax, Wealth tax, Service Tax, Custom Duty,
Excise Duty, Cess and any other statutory dues have generally been
deposited in time during the year with the appropriate authorities and
there are no undisputed statutory dues payable for a period of more
than six months from the date they became payable as at 31st March
2014.
(b) In our opinion and according to the information & explanations
given to us, there are no dues in respect of income tax, wealth tax,
service tax and cess that have not been deposited with appropriate
authority on account of any dispute and the dues in respect of sales
tax, customs duty and excise duty that have not been deposited with the
appropriate authorities on account of dispute and the forum where the
dispute is pending are given below:
Name of Nature of Period to
which Amount Forum where disputes are
the Statute dues the Amount (Rs. in pending
Relates Lacs)
U.P. Tax on Entry Tax 2001-02 0.61 Tribunal
Entry of
Goods Act
Sales Tax
Act Sales Tax 1996-97 18.40 High Court
1997-98 28.55 Deputy Commissioner
(Appeals)
1998-99 29.05 Deputy Commissioner
(Appeals)
2008-09 1.28 Tribunal
2010-11 7.00 Joint Commissioner
Central
Excise Excise Duty 2009-10 19.91 Additional Commissioner
Act,
1944 and Penalty
10. The Company does not have accumulated losses as at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of any dues to financial institutions or banks
or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi / mutual benefit fund /
society, therefore, the clause 4 (xiii) of The Order is not applicable
to the Company.
14. According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks and financial institutions.
16. In our opinion and on the basis of information and explanations
given to us, the term loans were applied for the purposes for which the
loans were obtained.
17. On the basis of information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, no funds
raised on short- term basis have been used for long-term investment.
18. The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures.
20. The Company has not raised any money through a public issue during
the year.
21. Based upon the audit procedures performed in accordance with
accepted auditing practices in India, we have neither come across any
instance of fraud on or by the Company, noticed nor reported, during
the year nor we have been informed of such case by the management.
For Lodha & Co.,
Chartered Accountants
(Firm Regn. No. 301051E)
N. K. Lodha
Place : New Delhi Partner
Date : May 30, 2014 Membership No. 85155
Mar 31, 2013
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying Financial Statements of Polyplex
Corporation Limited, which comprise the Balance Sheet as at 31st March
2013, and 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.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these Financial
Statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the accounting principles generally accepted in India, including
accounting standards referred to in Sub-section (3C) of Section 211 of
the Companies Act, 1956 ("the Act"). 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 free from material misstatements, whether due
to fraud or error.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these Financial
Statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by The Institute of Chartered
Accountants of India. Those standards require that we comply with the
ethical requirements and plan and perform the audit to obtain the
reasonable assurance about whether the Financial Statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the Financial Statements. The procedures
selected depend on the auditor''s judgment, including assessment of
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. An audit also
includes evaluating the appropriateness of 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 audit opinion.
OPINION
In our opinion and best to our information and according to the
explanations given to us, the Financial Statements and read together
with the other notes thereon give the information required by the Act
in the manner so require 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 the affairs of
the company as at 31st March 2013,
b. In the case of the Statement of the Profit and Loss, of the Profit
for the year ended on that date; and
c. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the manners specified in the paragraphs 4 and 5 of the
Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our 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, Statement of Profit & Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
accounts;
d. In our opinion, Balance Sheet, Statement of Profit & Loss and Cash
Flow Statement referred to in this report comply with the Accounting
Standards referred to in Sub- section (3C) of Section 211 of Companies
Act, 1956;
e. On the basis of the written representations received from the
Directors and taken on records by the Board of Directors, we report
that none of the directors of the Company is disqualified as on 31st
March 2013 from being appointed as a Director of the Company in terms
of clause (g) of Sub- section (1) of Section 274 of the Companies Act,
1956.
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS" 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) We have been informed by the management that fixed Assets have been
physically verified by the management during the year according to the
regular programme of periodical verification in phased manner which in
our opinion is reasonable having regard to the size of the Company and
the nature of its Fixed Assets. According to the information and
explanations given to us, discrepancies noticed on such physical
verification were not material.
(c) As per the records and information and explanations given to us, no
substantial part of Fixed Assets has been disposed off during the year
and therefore does not affect the going concern assumption.
2. (a) We have been explained by the management that the Inventory of
the Company at all its locations (except stocks lying with third
parties/in transit, which have been verified after subsequent receipt
of material/on confirmation) have been physically verified by the
management at reasonable intervals.
(b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) In our opinion and according to information and explanations given
to us, the Company is maintaining proper records of inventory and the
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) As informed to us, the Company has granted unsecured loan to a
company covered in the register maintained under Section 301 of the
Act. The maximum amount involved during the year in respect of said
company/person is Rs 2600 Lacs and the year end balance of such loan is
Rs 2600 Lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms & conditions on which
aforesaid loan has been given are not, prima facie, prejudicial to the
interest of the company.
(c) In respect of aforesaid loan, the receipt of principal amount and
interest is regular.
(d) The recovery of principal amount and interest during the year is as
per stipulation.
(e) As informed to us, the Company has not taken any loan, secured or
unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii) (f) and (g) of the Order
are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of specialised nature, taking into consideration the
quality, usage and such other factors, comparative sources/quotations
are not available, the Company has internal control systems
commensurate with the size of the Company and nature of its business
for the purchases of inventory, fixed assets and for the sale of goods
and services. Further, on the basis of examination of the books and
records of the Company and according to the information and
explanations given to us and as per the checking carried out in
accordance with the auditing standards generally accepted in India,
neither we have observed nor we have been informed of any continuing
failure to correct major weaknesses in internal control system.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contract or arrangement
that need to be entered into the register maintained under Section 301
of the Act have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered into the register maintained under Section 301 of
the Act and exceeding the value of rupees five lacs in respect of each
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Section 58A and 58AA or any other relevant
provisions of the Act and rules framed thereunder. We have been
informed that no order has been passed by the Company Law Board or the
National Company Law Tribunal or the Reserve Bank of India or any Court
or any other Tribunal in this regard.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. The Central Government has prescribed maintenance of cost records
under Section 209(1)(d) of the Act. On the basis of the records
produced and broadly reviewed by us, we are of the opinion that, prima
facie, the prescribed records have been made and maintained. However,
we are not required to and have not carried out any detailed
examination of the said records, with a view to determine whether they
are accurate or complete.
9. (a) In our opinion and according to the information and explanations
given to us, undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income tax, Sales tax, Wealth tax, Service Tax, Custom Duty, Excise
Duty, Cess and any other statutory dues have generally been deposited
in time during the year with the appropriate authorities and there are
no undisputed statutory dues payable for a period of more than six
months from the date they became payable as at 31st March 2013.
(b) In our opinion and according to the information & explanations
given to us, there are no dues in respect of Income tax, Wealth tax,
Service tax and Cess that have not been deposited with appropriate
authority on account of any dispute and the dues in respect of sales
tax, customs duty and excise duty that have not been deposited with the
appropriate authorities on account of dispute and the forum where the
dispute is pending are given below:
Name of Nature of Period to
which Amount Forum where disputes are
the Statute dues the
Amount (Rs. in pending
Relates Lacs)
U.P. Tax on Entry Tax 2001-02 0.61 Tribunal
Entry of
Goods Act
Sales Tax Act Sales Tax 1996-97 18.40 High Court
1997-98 28.55 Deputy Commissioner
(Appeals)
1998-99 29.05 Deputy Commissioner
(Appeals)
2002-03 2.60 Tribunal
2004-05 35.80 Deputy Commissioner
(Assessment)
2006-07 0.70 Joint Commissioner
(Appeals)
2008-09 1.28 Tribunal
2010-11 7.00 Joint Commissioner
Central
Excise Excise Duty 2009-10 19.91 Additional Commissioner
Act, 1944 and Penalty
10. The Company does not have accumulated losses as at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of any dues to financial institutions or banks
or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi / mutual benefit fund /
society, therefore, the clause 4 (xiii) of The Order is not applicable
to the Company.
14. According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks and financial institutions.
16. In our opinion and on the basis of information and explanations
given to us, the term loans were applied for the purposes for which the
loans were obtained.
17. On the basis of information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, no funds
raised on short- term basis have been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures.
20. The Company has not raised any money through a public issue during
the year.
21. Based upon the audit procedures performed in accordance with
accepted auditing practices in India, we have neither come across any
instance of fraud on or by the Company, noticed nor reported, during
the year nor we have been informed of such case by the management.
For Lodha & Co.,
Chartered Accountants
(Firm Regn. No. 301051E)
N. K. Lodha
Place : New Delhi Partner
Date : May 30, 2013 Membership No. 85155
Mar 31, 2012
We have audited the attached Balance Sheet of Polyplex Corporation
Limited as at 31st March, 2012, the Statement of Profit and Loss and
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.
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.
We report that- 1. As required by the Companies (Auditor's Report)
Order, 2003 (as amended) ("the Order") issued by the Central Government
of India in terms of sub- section (4A) of section 227 of the Companies
Act, 1956 (the Act), we enclose in the Annexure, a Statement on the
matters specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
account;
d) In our opinion, read with Note No. 26 K(III) regarding
capitalization of Foreign Derivative loss incurred in relation to
import of capital goods, the Balance Sheet, Statement of Profit & Loss
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956;
e) According to the information and explanation given to us none of the
directors as on 31st March 2012 is disqualified from being appointed as
director under section 274(1)(g) of the Companies Act, 1956.
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, Notes thereon, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii) in the case of the Statement of Profit & Loss, of the profit for
the year ended on that date; and
iii) in the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph (1) of our Report of even date of Polyplex
Corporation Limited for the year ended 31st March 2012)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) We have been informed by the Management that Fixed Assets have been
physically verified by the Management during the year according to the
regular programme of periodical verification in phased manner which in
our opinion is reasonable having regard to the size of the Company and
the nature of its Fixed Assets. According to the information and
explanations given to us, discrepancies noticed on such physical
verification were not material.
(c) As per the records, information and explanations given to us, no
substantial part of Fixed Assets has been disposed off during the year
and therefore does not affect the going concern assumption.
2. (a) We have been explained by the Management that the Inventory of
the Company at all its locations (except stocks lying with third
parties/in transit) have been physically verified by the Management at
reasonable intervals.
(b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) In our opinion and according to information and explanations given
to us, the Company is maintaining proper records of inventory and the
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) As informed to us, the Company has granted unsecured loan to a
Company covered in the Register maintained under Section 301 of the
Act. The maximum amount involved during the year in respect of said
Company/Person is Rs. 1008.83 Lacs and the year end balance of such
loan is Rs 1000 Lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms & conditions on which
aforesaid loan has been given are not, prima facie, prejudicial to the
interest of the Company.
(c) In respect of aforesaid loan, the receipt of principal amount and
interest is regular.
(d) The recovery of principal amount and interest during the year is as
stipulated.
(e) As informed to us, the Company has not taken any loan, secured or
unsecured from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii) (f) and (g) of the Order
are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of specialised nature, taking into consideration the
quality, usage and such other factors, comparative sources/quotations
are not available, the Company has internal control systems
commensurate with the size of the Company and nature of its business
(read with Note No. 26E) for the purchases of inventory, fixed assets
and for the sale of goods and services which needs to be further
strengthened. Further, on the basis of examination of the books and
records of the Company and according to the information and
explanations given to us and as per the checking carried out in
accordance with the auditing standards generally accepted in India,
neither we have observed nor we have been informed of any continuing
failure to correct major weaknesses in internal control system.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contract or arrangement
that need to be entered into the Register maintained under Section 301
of the Act have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered into the Register maintained under Section 301 of
the Act and exceeding the value of Rupees Five Lacs in respect of each
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Section 58A and 58AA or any other relevant
provisions of the Act and Rules framed thereunder. We have been
informed that no order has been passed by Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal in this regard.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. The Central Government has prescribed maintenance of cost records
under Section 209(1)(d) of the Act. On the basis of the records
produced and broadly reviewed by us, we are of the opinion that, prima
facie, the prescribed records have been made and maintained. However,
we are not required to and have not carried out any detailed
examination of the said records, with a view to determine whether they
are accurate or complete.
9. (a) In our opinion and according to the information and
explanations given to us, undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and any other statutory dues have generally been
deposited in time during the year with the appropriate authorities and
there are no undisputed statutory dues payable for a period of more
than six months from the date they became payable as at 31st March
2012.
(b) In our opinion and according to the information & explanations
given to us, there are no dues in respect of Wealth Tax, Service Tax
and Cess that have not been deposited with appropriate authority on
account of any dispute and the dues in respect of Sales Tax, Customs
Duty, Excise Duty, and Income Tax that have not been deposited with the
appropriate authorities on account of dispute and the forum where the
dispute is pending are given below:
Name of Nature of Period to Amount Forum where
the Statute dues the which (Rs. in disputes are
Amount Lacs) pending
Relates
U.P. Tax on Entry Tax 2001-02 0.61 Tribunal
Entry of
Goods Act
Sales Tax Sales Tax 1996-97 18.40 High Court
Act
1997-98 28.55 Deputy
Commissioner
(Appeals)
1998-99 29.05 Deputy
Commissioner
(Appeals)
2002-03 2.60 Tribunal
2004-05 35.80 Deputy
Commissioner
(Assessment)
2006-07 0.70 Joint
Commissioner
(Appeals)
2006-07 63.04 Deputy
Commissioner
(Appeals)
2008-09 1.28 Tribunal
2010-11 7.00 Joint
Commissioner
Central Excise Duty 2009-10 19.91 Additional
Excise Act, and Penalty Commissioner
1944
10. The Company does not have accumulated losses as at the end of the
Financial Year and has not incurred cash losses in the current
Financial Year and in the immediately preceding Financial Year.
11. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of any dues to financial institutions or banks
or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit fund/
society, therefore, the clause 4 (xiii) of the Order is not applicable
to the Company.
14. According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks and financial institutions.
16. In our opinion and on the basis of information and explanations
given to us, the term loans were applied for the purposes for which the
loans were obtained.
17. On the basis of information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, no funds
raised on short- term basis have been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the Register maintained under Section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures.
20. The Company has not raised any money through a public issue during
the year.
21. Based upon the audit procedures performed in accordance with
accepted auditing practices in India, we have neither come across any
instance of fraud on or by the Company, noticed or reported, during the
year nor we have been informed of such case by the Management.
For Lodha & Co.,
Chartered Accountants
(Firm Regn. No. 301051E)
N.K. Lodha
Partner
Membership No. 85155
Place : New Delhi
Date : May 29, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of Polyplex Corporation
Limited as at 31st March, 2011, the Profit and Loss Account and 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.
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.
We report that- (a) We have obtained all the information and
explanations, which to the best of our knowledge and belief were
necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account;
(d) In our opinion, read with Note No. 13 (d) of Schedule 14A regarding
capitalisation of loss/gain incurred on foreign exchange derivatives in
relation to import of capital goods, the Balance Sheet, Profit & Loss
Account and Cash Flow Statement dealt with by this report comply with
the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) On the basis of written representations received from the directors
of the Company and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March 2011 from
being appointed as a director in terms of clause (g) of sub section (1)
of Section 274 of the Companies Act, 1956;
In our opinion and according to the explanations given to us, the said
accounts read together with significant accounting policies, Notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true
and fair view in conformity with the accounting principles generally
accepted in India :
i) in the case of the Balance Sheet, of the state
of affairs of the Company as at 31st March, 2011;
ii) in the case of the Profit & Loss Account, of
the profit for the year ended on that date; and
iii) in the case of Cash Flow Statement, of the
Cash Flows for the year ended on that date.
(f) As required by the Companies (Auditor's Report)
Order, 2003 ('The Order') (As amended) issued by the Central Government
of India in terms of Section 227 (4A) of the Companies Act, 1956 ('The
Act'), on the matters specified in paragraphs 4 and 5 of the said Order
and on the basis of such checks as we considered appropiate and in
terms of information and explanations provided to us, we further report
that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) We have been informed by the Management that fixed Assets have been
physically verified by the management during the year according to the
regular programme of periodical verification in phased manner which in
our opinion is reasonable having regard to the size of the Company and
the nature of its Fixed Assets. According to the information and
explanations given to us, discrepancies noticed on such physical
verification have been properly accounted.
(c) As per the records, information and explanations given to us, no
substantial part of Fixed Assets has been disposed of during the year
and therefore does not affect the going concern assumption.
2. (a) We have been explained by the Management that the Inventory of
the Company at all its locations (except stocks lying with third
parties/in transit) have been physically verified by the Management at
reasonable intervals.
(b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the
Management are reasonable and adequate in relation to the size of the
Company and nature of its business.
(c) In our opinion and according to information and explanations given
to us, the Company is maintaining proper records of inventory and the
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) As informed to us, the Company has granted unsecured loan to a
company covered in the Register maintained under Section 301 of the
Act. The maximum amount involved during the year in respect of said
company is Rs.800 Lacs and the year end balance of such loan is Nil.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms & conditions on which
aforesaid loan has been given are not, prima facie, prejudicial to the
interest of the Company.
(c) In respect of aforesaid loan, the receipt of principal amount and
interest is regular.
(d) The recovery of principal amount and interest during the year is as
per stipulations.
(e) As informed to us, the Company has not taken any loan, secured or
unsecured from companies, firms or other parties covered in the
Register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii) (f) and (g) of the Order
are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of specialised nature, taking into consideration the
quality, usage and such other factors, comparative sources/quotations
are not available, the Company has internal control systems
commensurate with the size of the Company and nature of its business
(read with Note No. 6 of Schedule 14A) for the purchases of inventory,
fixed assets and for the sale of goods and services which needs to be
further strengthened. Further, on the basis of examination of the books
and records of the Company and according to the information and
explanations given to us and as per the checks carried out in
accordance with the auditing standards generally accepted in India,
neither we have observed nor we have been informed of any continuing
failure to correct major weaknesses in internal control system.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contract or arrangement
that need to be entered into the register maintained under Section 301
of the Act have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered into the Register maintained under section 301 of
the Act and exceeding the value of Rupees five Lacs in respect of each
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Section 58A and 58AA or any other relevant
provisions of the Act and Rules framed thereunder. We have been
informed that no order has been passed by Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal in this regard.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. The Central Government has prescribed maintenance of cost records
under Section 209(1)(d) of the Act, in respect of Polyester Chips. On
the basis of the records produced and broadly reviewed by us, we are of
the opinion that, prima facie, the prescribed records have been made
and maintained. However, we are not required to and have not carried
out any detailed examination of the said records, with a view to
determine whether they are accurate or complete.
9. (a) In our opinion and according to the information and
explanations given to us, undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income tax, Sales tax, Wealth tax, Service Tax, Custom Duty,
Excise Duty, Cess and any other statutory dues have generally been
deposited in time during the year with the appropriate authorities and
there are no undisputed statutory dues payable for a period of more
than six months from the date they became payable as at 31st March,
2011
(b) In our opinion and according to the information & explanations
given to us, there are no dues in respect of Income Tax, Wealth Tax,
Custom Duty, Service Tax and Cess that have not been deposited with
appropiate authoroity on account of any dispute and the dues in respect
of Sales Tax and Excise Duty that have not been deposited with the
appropriate authorities on account of dispute and the forum where the
dispute is pending are given below:
Name of Nature of Period to which Amount Forum where
disputes are
the Statute dues the Amount (Rs. in pending
Relates Lacs)
U.P. Tax on Entry Tax 2001-02 0.61 Tribunal
Entry of
Goods Act
Sales Tax Act Sales Tax 2002-03 2.60 Tribunal
2008-09 1.28 Tribunal
1996-97 18.40 High Court
2006-07 63.08 Joint
Commissioner
(Appeals)
2006-07 0.70 Joint
Commissioner
(Appeals)
2004-05 35.80 Deputy
Commissioner
(Assessment)
2010-11 7.00 Deputy
Commissioner
(Assessment)
1997-98 120.96 Deputy
Commissioner
(Appeals)
1998-99 63.97 Deputy
Commissioner
(Appeals)
Central Excise Excise Duty 2001-02 9.22 Commissioner
(Appeals)
Act, 1944 and Penalty
10. The Company does not have accumulated losses as at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of any dues to financial institutions or banks.
The Company has not borrowed any sums through debentures.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi / mutual benefit fund /
society, therefore, clause 4 (xiii) of The Order is not applicable to
the Company.
14. According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks and financial institutions.
16. In our opinion and on the basis of information and explanations
given to us, the term loans were applied for the purposes for which the
loans were obtained.
17. On the basis of information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, no funds
raised on short-term basis have been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the Register maintained under Section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures.
20. The Company has not raised any money through a public issue during
the year.
21. Based upon the audit procedures performed
in accordance with accepted auditing practices in India, we have
neither come across any instance of fraud on or by the Company, noticed
or reported, during the year nor we have been informed of such case by
the management.
For Lodha & Co.,
Chartered Accountants
Firm Regn. No. 301051E
N.K. Lodha
Place : New Delhi Partner
Dated : May 30, 2011 Membership No. 85155
Mar 31, 2010
We have audited the attached Balance Sheet of Polyplex Corporation
Limited as at 31st March 2010, the Profit and Loss Account and 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.
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.
We report that :-
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account;
(d) In our opinion, read with Note no. 14(d) of schedule 14 regarding
capitalisation of loss/gain incurred on foreign exchange derivatives in
relation to import of capital goods the Balance Sheet, Profit & Loss
Account and Cash Flow Statement dealt with by this report comply with
the accounting standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) On the basis of written representations received from the directors
of the Company and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March 2010 from
being appointed as a director in terms of clause (g) of sub section (1)
of Section 274 of the Companies Act, 1956;
In our information and according to the explanations given to us, the
said accounts read together with significant accounting policies and
Notes thereon, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
ii) in the case of the Profit & Loss Account, of the profit for the
year ended on that date; and
iii) in the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
(f) As required by the Companies (Auditors Report) Order, 2003 (The
Order)(As amended) issued by the Central Government of India in terms
of Section 227 (4A) of the Companies Act, 1956 (The Act), on the
matters specified in paragraphs 4 and 5 of the said Order and on the
basis of such checks as we considered appropiate and in terms of
information and explanations provided to us, we further report that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) We have been informed by the management that fixed Assets have been
physically verified by the management during the year according to the
regular programme of periodical verification in phased manner which in
our opinion is reasonable having regard to the size of the Company and
the nature of its Fixed Assets. According to the information and
explanations given to us, discrepancies noticed on such physical
verification were not material.
(c) As per the records and information and explanations given to us, no
substantial part of Fixed Assets has been disposed off during the year
and therefore does not affect the going concern assumption.
2. (a) We have been explained by the management that the Inventory of
the Company at all its locations (except stocks lying with third
parties/in transit) have been physically verified by the Management at
reasonable intervals.
(b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) In our opinion and according to information and explanations given
to us, the Company is maintaining proper records of inventory (at new
location in initial stage, where records are updated as and when
physically verified) and the discrepancies noticed on physical
verification of inventory as compared to book records were not
material.
3. (a) As informed to us, the Company has granted unsecured loan to a
company covered in the register maintianed under Section 301 of the
Act. The maximum amount involved during the year in respect of said
company is Rs. 1,500 lacs and year end balance of such loan is Nil.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms & conditions on which
aforesaid loan has been given are not, prima facie, prejudicial to the
interest of the company.
(c) In respect of aforesaid loan, the receipt of principal amount and
interest is regular.
(d) The recovery of principal amount and interest during the year is as
per stipulations.
(e) As informed to us, the company has not taken any loan, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii) (f) and (g) of the Order
are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of specialised nature, taking into consideration the
quality, usage and such other factors, comparative sources/quotations
are not available, the Company has internal control systems
commensurate with the size of the Company and nature of its business
(read with note no. 7 of schedule 14A) for the purchases of inventory,
fixed assets and for the sale of goods and services which needs to be
further strengthened . Further, on the basis of examination of the
books and records of the Company and according to the information and
explanations given to us and as per the checking carried out in
accordance with the auditing standards generally accepted in India,
neither we have observed nor we have been informed of any continuing
failure to correct major weaknesses in internal control system.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contract or arrangement
that need to be entered into the register maintained under Section 301
of the Act have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered into the register maintained under section 301 of
the Act and exceeding the value of rupees five lacs in respect of each
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Section 58A and 58AA or any other relevant
provisions of the Act and rules framed there under. We have been
informed that no order has been passed by Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal in this regard.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. The Central Government has prescribed maintenance of cost records
under Section 209(1)(d) of the Act, in respect of Polyester Chips. On
the basis of the records produced and broadly reviewed by us, we are of
the opinion that, prima facie, the prescribed records have been made
and maintained. However, we are not required to and have not carried
out any detailed examination of the said records, with a view to
determine whether they are accurate or complete.
9. (a) In our opinion and according to the information and
explanations given to us, undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income tax, Sales tax, Wealth tax, Service Tax, Custom Duty,
Excise Duty, Cess and any other statutory dues have generally been
deposited in time during the year (except some delay in deposit of
service tax) with the appropriate authorities and there are no
undisputed statutory dues payable for a period of more than six months
from the date they became payable as at 31st March 2010.
(b) In our opinion and according to the information & explanations
given to us, there are no dues in respect of wealth tax, service tax
and cess that have not been deposited with appropiate authority on
account of any dispute and the dues in respect of sales tax, customs
duty, excise duty, and income tax that have not been deposited with the
appropriate authorities on account of dispute and the forum where the
dispute is pending are given below:
Name of Nature of Period to which Amount Forum where
disputes are
the
Statute dues the Amount (Rs. in pending
Relates Lacs)
U.P.
Tax on Entry Tax 2001-02 0.61 Tribunal
Entry of
Goods Act
Sales
Tax Act Sales Tax 2002-03 2.60 Tribunal
2008-09 1.28 Tribunal
1996-97 18.40 Joint Commissioner
(Appeals)
2006-07 0.70 Joint Commissioner
(Appeals)
2004-05 35.80 Deputy
Commissioner
(Assessment)
1997-98 120.96 Deputy
Commissioner
(Appeals)
1998-99 63.97 Deputy
Commissioner
(Appeals)
Central
Excise Excise Duty 2001-02 9.22 Commissioner
(Appeals)
Act, 1944 and Penalty
10. The Company does not have accumulated losses as at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of any dues to financial institutions or banks.
The Company has not borrowed any sums through debentures.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi / mutual benefit fund /
society, therefore, the clause 4 (xiii) of The Order is not applicable
to the Company.
14. According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks and financial institutions.
16. In our opinion and on the basis of information and explanations
given to us, the term loans were applied for the purposes for which the
loans were obtained.
17. On the basis of information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, no funds
raised on short-term basis have been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures.
20. The Company has not raised any money through a public issue during
the year.
21. Based upon the audit procedures performed in accordance with
accepted auditing practices in India, we have neither come across any
instance of fraud on or by the Company, noticed or reported, during the
year nor we have been informed of such case by the management.
For Lodha & Co.,
Chartered Accountants
Firm Regn. No. 301051E
Place : New Delhi N.K. Lodha
Dated : July 20, 2010 Partner
Membership No. 85155