Mar 31, 2015
We have audited the accompanying financial statements of M/s. SSK
Lifestyles Limited ("the Company"), which comprises the Balance Sheet
as at March 31,2015, and the Statement of Profit and Loss and Cash Flow
statement for the year ended, and summary of significant accounting
policies and other explanatory information.
Management 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 financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with 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 the maintenance of
adequate records in accordance with the provision of the Act for
safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of 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 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 audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
Specified under sec 143(10) of the Act. Those Standards require that we
comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the company has in place an adequate internal financial control
over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by 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 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, 2015, and its Loss and its cash flows for the year ended
on the date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor's Report) Order, 2015 (the
Order) issued by the Central Government of India in terms of
sub-section(11) of section 143 of the Act, we give in the annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d. In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement 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 written representations received from the directors
as on 31st March 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on 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 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 does not have any pending litigations which would
impact its financial position.
ii. The Company does not have any long term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There were no amounts which required to be transferred to the
Investor Education and protection fund by the company
Annexure to Independent Auditor's Report
Referred to in paragraph 1 under heading of "Report on other legal and
regulatory requirements" of our report of even date:
(i) a) The Company has sold all the fixed assets and there were no
fixed assets as on 31st March 2015.
b) The Fixed assets have been physically verified by the management
during the year in accordance with a phased program of verification and
no material discrepancies have been noticed on such verification.
(ii) a) The Company has no Inventory as on 31st March, 2015.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion, the company has maintained proper records of
inventories and as explained to us there was no material discrepancy
noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013. Therefore the provisions
of Clause iii(a), iii(b) and iii(c) of the said order are not
applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business, with
regard to purchase of inventory and fixed assets and for the sale of
goods. During the course of the audit we have not observed any major
weaknesses in the internal control system.
(v) In our opinion and according to the explanations given to us, the
company has not accepted any deposits from Public.
(vi) The Central Government has not prescribed the maintenance of cost
record under section 148(1) of the Companies Act, 2013.
(vii) a) According to the records of the company and explanations given
to us and on the basis of our examination of the records of the company,
undisputed statutory dues including provident fund, Income - tax, Value
Added Tax, and other material statutory dues applicable to it have been
regularly deposited with the appropriate authorities. Further, as
explained to us, no undisputed statutory dues were in arrears as at 31st
March 2015 for a period of more than 6 months from the date they become
payable.
b) According to the information and explanation given to us details of
dues of income-tax, wealth- tax, sales tax, custom duty, excise duty
and any other statutory dues, which have not been deposited as on 31st
March 2015 on account of any dispute are given below:
S. No. Name of the statute Amount under dispute not yet
deposited (Rs.)
i Sales Tax 47.24 Lakhs (including Rs. 40.32
Lakhs towards interest)
ii Income Tax 7,78,320
c) According to the information and explanation given to us there were
no amount transferred to investor education and protection fund.
(viii) The company has accumulated losses of Rs.7,09,15,256 as at the
end of the financial year and it accumulated losses are above 50% of
its net worth and the company has incurred cash losses of Rs.23,56,840
during the current financial year covered by our audit and in the
immediately preceding financial year.
(ix) Based on our audit procedures and on the information and
explanation given to us, we are of the opinion the company did not have
any dues to financial institutions, bankers or debentures holders
during the year.
(x) According to the information and explanations given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions.
(xi) According to the information and explanations given to us, no term
loans were raised during the year.
(xii) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the company has been noticed or reported during the course of our
audit.
For Ramasamy Koteswara Rao & Co
Chartered Accountants FRN:010396S
Hyderabad, 30th May 2015
SD/-
C V Koteswara Rao
Partner
M.No:028353
Mar 31, 2014
We have audited the accompanying Financial Statements of M/s. FINE
PLAST POLYMERS LIMITED ("The Company"), which comprise the Balance
Sheet as at 31st March 2014, the statement of Profit and Loss and Cash
Flow Statement for the year then and a summary of significant
accounting policies and other explanatory information.
MANGAEMENT''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 section 211(3C) of the Companies
Act, 1956 ("The Act") read with the general circular No.15/2013 of
Ministry of Corporate Affairs In respect of section 133 of Companies
Act, 2013. The responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the Financial Statement that give a true and fair view
and are 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
ethical requirements and plan and perform the audit to obtain
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 Auditors judgment, including the assessment of
the risk of material misstatement of the Financial Statements, whether
due to Fraud or Error. In making those risk assessments the auditor
considers the internal control relevant to the companies 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 our audit opinion.
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 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 Balance Sheet, of the state of affairs of the Company
as at 31st March, 2014;
ii) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors'' Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we give in the annexure a statement on the matters
specified in the paragraph 4 and 5 of the said 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 accounts 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 & Loss and The Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, the statement of Profit & Loss,
and the Cash Flow Statement dealt with by this report comply with the
accounting standards notified under the Act read with the General
Circular No. 15/2013 of Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013.
e) On the basis of written representations received from the Directors
of the Company as on 31st March, 2014 and taken on record by the Board
of Directors, We report that none of the Directors is disqualified as
on 31st March, 2014 from being appointed as Directors in terms of the
Clause (g) of subsection (1) of Section 274 of the Companies Act, 1956.
Annexure To The Independent Auditors'' Report
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date:
1. In respect of its Fixed Assets:
a) The Company has updated the records related to the additions/changes
made in the year to the fixed assets.
b) The Company has a phased program of physical verification of its
Fixed Assets, which, in our opinion is reasonable having to regard to
the size of the Company and nature of its assets.
c) During the year, the Company has not disposed of any
substantial/major part of the Fixed Assets.
2. In respect of its Inventories:
a) According to the information and explanations furnished to us, the
Company has physically verified its inventories during the year. In our
opinion, the frequency of such verification to the extent carried out
is reasonable.
b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c) According to the information furnished to us, the Company is
maintaining proper records of inventory. The discrepancies noticed on
verification between the physical stocks and the book records, which
were not material, have been properly dealt with in the books of
account.
3. In respect of the Loans, Secured or unsecured, granted or taken by
the Company to/from Companies, Firms or other Parties covered in the
Register maintained under section 301 of the Companies Act, 1956:
a) During the year under review the company has taken an amount of Rs.
1,26,928/- from P. Arun Kumar, Rs. 4,77,127/- from P. Mastan Rao and
Rs. 1,17,146/- from P. Srikanth (directors and relatives of the
directors of the company) and the balances as on 31-3-2014 are Rs.
7,00,000/- from K. Ratnakara Rao, Rs. 5,61,558/- from P. Arun Kumar,
Rs. 22,56.000/- from P. Mastan Rao and Rs. 4,44,697/- from P. Srikanth
(directors and relatives of the directors of the company).
b) In our opinion, the rate of interest and other the terms and
conditions on which loans have been taken from the Directors and their
relatives listed in the register maintained under section 301 of the
Companies Act, 1956 are not prima facie, prejudicial to the interest of
the Company. The Loans are interest free Loans.
4. In our opinion and according to the information and explanations
given to us there are adequate internal control procedures commensurate
with the size of the company and the nature of its business for the
purchase of Services, fixed assets and also for the sale of Services.
During the Course of our audit, no major weakness has been noticed in
the internal controls.
5. In respect of transactions covered under section 301 of the
companies Act 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that needed to be entered into the register maintained
under section 301 of the companies Act 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements, entered in the register maintained under section 301
of the companies Act 1956 and exceeding the value of rupees five Lakhs.
6. As explained to us and according to our information, the Company has
not accepted any deposits from the public.
7. During the year, the Company has no internal audit system.
8. As explained to us and according to our information, maintenance of
cost records as prescribed u/s.209 (1)(d) of the companies act are not
applicable to the Company.
9. In respect of Statutory payments:
a) According to the information and explanations given to us and the
records of the company examined by us, in our opinion, the company is
generally regular in depositing undisputed statutory dues including
provident fund, employee''s state insurance, income-tax, Sales-tax,
wealth tax, service tax, custom duty, and other material statutory
dues, as applicable, with the appropriate authorities. There are no
undisputed amounts payable in respect of such applicable statutory dues
as at March 31, 2014 for a period of more than six months from the date
they became payable.
b) According to the information and explanation given to us details of
dues of income tax, sales tax, wealth tax, excise duty, customs duty,
and any other statutory dues, which have not been deposited as on
31.03.2014 on account of any dispute are given below:
I) Sales Tax:Rs.47.24 Lakhs (including Rs.40.32 Lakhs towards Interest)
ii) Income Tax: Rs.7,78,320/-
10. The company has accumulated losses of Rs.675.94 Lacs (including the
cash loss of Rs. 46.31 lacs incurred the current financial year) as at
the end of the year which is more than 100% of the net worth.
11. Based on our audit procedures and to the best of our knowledge and
belief and according to the information and explanations given to us,
we are of the opinion that the company has not defaulted in the
repayment of dues to the financial institutions and banks.
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, Nidhi or Mutual Benefit
Fund/Societies. Accordingly the provisions of clause 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
15. 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. Hence the requirements of clause
4(xv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, during the year the Company
has not availed term loan from financial institutions and banks.
Accordingly the provisions of clause 4(xvi) of the Companies (Auditors
Report) Order, 2003 are not applicable.
17.To the best of the information and according to the explanations
given to us, the Company has not utilized the funds raised on short
term basis for long term investment.
18. During the year, the company has not made any preferential
allotment to parties and companies covered under register maintained
under section 301 of the companies act, 1956.
19. The company has not raised/issued debentures during the year and
there is no outstanding liability related to the debentures issued in
the earlier years. Therefore, clause 4 (xix) of the companies
(Auditor''s Report) Order, 2003 is not applicable to the company.
20. The company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year.
For Sanjeeva Rao and Associates
Chartered Accountants
Sd/-
K Sanjeeva Rao
Partner
M.No.: 211604
Hyderabad, 30th May 2014
Mar 31, 2013
REPORT ON FINANCIAL STATEMENTS
We have audited the accompanying Financial Statements of FINE PLAST
POLYMERS LIMITED ("The Company"), which comprise the Balance Sheet as
at 31st March 2013, the statement of Profit and Loss and Cash Flow
Statement for the year then and a summary of significant accounting
policies and other explanatory information.
MANGAEMENT''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 section 211(3C) of the Companies
Act, 1956 ("The Act"). The responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the Financial Statement that give a
true and fair view and are 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
ethical requirements and plan and perform the audit to obtain
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 Auditors judgment, including the assessment of
the risk of material misstatement of the Financial Statements, whether
due to Fraud or Error. In making those risk assessments the auditor
considers the internal control relevant to the companies 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 our audit opinion.
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 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 Balance Sheet, of the state of affairs of the Company
as at 31st March, 2013;
ii) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors'' Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we give in the annexure a statement on the matters
specified in the paragraph 4 and 5 of the said 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 accounts 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 & Loss and The Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, the statement of Profit & Loss,
and the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Act.
e) On the basis of written representations received from the Directors
of the Company as on 31st March, 2013 and taken on record by the Board
of Directors, We report that none of the Directors is disqualified as
on 31st March, 2013 from being appointed as Directors in terms of the
Clause (g) of subsection (1) of Section 274 of the Companies Act, 1956.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date:
1. In respect of its Fixed Assets :
a) The Company has updated the records related to the additions/changes
made in the year to the fixed assets.
b) The Company has a phased program of physical verification of its
Fixed Assets, which, in our opinion is reasonable having to regard to
the size of the Company and nature of its assets.
c) During the year, the Company has not disposed of any
substantial/major part of the Fixed Assets.
2. In respect of its Inventories:
a) According to the information and explanations furnished to us, the
Company has physically verified its inventories during the year. In our
opinion, the frequency of such verification to the extent carried out
is reasonable.
b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c) According to the information furnished to us, the Company is
maintaining proper records of inventory. The discrepancies noticed on
verification between the physical stocks and the book records, which
were not material, have been properly dealt with in the books of
account.
3. In respect of the Loans, Secured or unsecured, granted or taken by
the Company to/from Companies, Firms or other Parties covered in the
Register maintained under section 301 of the Companies Act, 1956:
a) The company has taken an amount of Rs. 7,00,000/- from Mr. K.
Ratnakar Rao, Rs. 3,00,000/- from P. Arun Kumar, Rs. 14,29,000/- from
P. Mastan Rao and Rs. 4,03,824/- from Smt. P.V. Subbamma directors and
relatives of the directors of the company during 2012-13 and the
balances as on 31-3- 2013 are Rs. 7,00,000/-, Rs. 4,34,630/-, Rs.
17,78,873/- and Rs. 7,90,824/- respectively.
b) In our opinion, the rate of interest and other the terms and
conditions on which loans have been taken from the Directors and their
relatives listed in the register maintained under section 301 of the
Companies Act,1956 are not prima facie, prejudicial to the interest of
the Company. The Loans are interest free Loans.
4. In our opinion and according to the information and explanations
given to us there are adequate internal control procedures commensurate
with the size of the company and the nature of its business for the
purchase of Services, fixed assets and also for the sale of Services.
During the Course of our audit, no major weakness has been noticed in
the internal controls.
5. In respect of transactions covered under section 301 of the
companies Act 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that needed to be entered into the register maintained
under section 301 of the companies Act 1956 have been so entered.]
b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements, entered in the register maintained under section 301
of the companies Act 1956 and exceeding the value of rupees five Lakhs.
6. As explained to us and according to our information, the Company has
not accepted any deposits from the public.
7. During the year, the Company has no internal audit system.
8. As explained to us and according to our information, maintenance of
cost records as prescribed u/s.209 (1)(d) of the companies act are not
applicable to the Company.
9. In respect of Statutory payments:
a) Presently the Company is generally regular in depositing the
statutory dues. But however there are old statutory dues are there as
per the information given below;
b) According to the information and explanations given to us, details
of undisputed amounts payable in respect of the aforesaid dues that
were outstanding as at 31st March, 2013 for a period of more than six
months from the date of becoming payable are as follows:
10. The company has accumulated losses of Rs.675.94 Lacs (including
the cash loss of Rs. 46.31 lacs incurred the current financial year) as
at the end of the year which is more than 50% of the net worth.
11. Based on our audit procedures and to the best of our knowledge and
belief and according to the information and explanations given to us,
we are of the opinion that the company has not defaulted in the
repayment of dues to the financial institutions and banks.
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, Nidhi or Mutual Benefit
Fund/Societies. Accordingly the provisions of clause 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
15. 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. Hence the requirements of clause
4(xv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, during the year the Company
has not availed term loan from financial institutions and banks.
Accordingly the provisions of clause 4(xvi) of the Companies (Auditors
Report) Order, 2003 are not applicable.
17. To the best of the information and according to the explanations
given to us, the Company has not utilized the funds raised on short
term basis for long term investment.
18. During the year, the company has not made any preferential
allotment to parties and companies covered under register maintained
under section 301 of the companies act, 1956.
19. The company has not raised/issued debentures during the year and
there is no outstanding liability related to the debentures issued in
the earlier years. Therefore, clause 4 (xix) of the companies
(Auditor''s Report) Order, 2003 is not applicable to the company.
20. The company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year.
For Sanjeeva Rao and Associates
Chartered Accountants
Sd/-
14-08-2013 K SANJEEVA RAO
Partner
Hyderabad M.No.: 211604
Mar 31, 2012
1. We have audited the attached Balance Sheet of Fine Plast Polymers
Ltd, Hyderabad. As at 31st March 2012 and also the Profit and Loss
Account for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order,2003 and
amendments thereto issued by the Central Government of India in terms
of Sec 227(4A) of The Companies Act 1956, we annex hereto a statement
on the matters specified in the paragraphs 4 and 5 of the said order,
to the extent applicable to the Company.
4. We further report that :
(i) 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;
(ii) 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;
(iii) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
(iv) In our opinion, the Balance Sheet and Profit and Loss account
dealt with by this report comply with the accounting standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 31st March
2012, and taken on record by the Board of Directors, we report that
none of the directors is disqualified as on 31st March 2012 from being
appointed as a director in terms of clause (g) of sub-section(1) of
section 274 of the Companies Act, 1956;
5. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet of the state of affairs of the
Company as at 31st March 2012; and
(ii) in the case of Profit and Loss Account, of the Profit for the year
ended on that date.
Annexure to Auditor''s Report
Annexure referred to in paragraph 2 of the auditors report to the
members of Fine Plast Polymers Ltd., for the year ended 31st March,
2012
As required by the companies (Auditor Report) Order, 2003 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(I) a The Company has maintained proper record showing full particulars
including quantitative details and situations of fixed assets.
b All the assets have been physically verified by the management in
accordance with a phased program of verification, which in our opinion
is reasonable, considering the size and the nature of business.The
frequency of verification is reasonable and no material discrepancies
have been noticed on such physical verification.
c The assets disposed during the year are not significant and therefore
do not affect the on going concern assumptions.
(ii) a The inventories have been physically verified by the management
during the year at reasonable intervals.
b The procedure of physical verification of the inventories followed by
the management is reasonable and adequate in relation to the size of
the Company and the nature of its business.
c The Company has maintained proper records of inventories and
discrepancies noticed on physical verification of inventories as
compared to books records were not material.
(iii) a The Company has not granted unsecured loan to party covered in
the register maintained under section 301 of the Companies Act, 1956.
b In view of our comments in Para (iii) (a) above, clauses 4 (iii) (b)
(c) and (d) of the said order are not applicable to the Company.
c The Company has taken unsecured loan from nine parties covered in the
register maintained under section 301 of the Companies Act, 1956 on all
basis. The Maximum amount outstanding during the year was
Rs.58,85,300/- and the year ended balance was also Rs.48,79,202/-.
d The other terms and conditions on which the loans have been taken are
prima facie, not prejudicial to the interest of the Company;
e In view of our comments in Para (iii) (c) and (d) above, clause (iii)
(g) of the said order is not applicable to the Company
(iv) a There are adequate internal control systems commensurate with
the size of the Company and the nature of its business with regard to
purchase of inventories, fixed assets and for the sale of goods and
services. During the course of our audit no major weakness has been
observed in the internal control system.
(v) a There are adequate internal control systems commensurate with the
size of the Company and the nature of its business with regard to
purchase of inventories, fixed assets and for the sale of goods and
services. During the course of our audit no major weakness has been
observed in the internal control system.
b The transactions made in pursuance of contract or arrangements that
need to be entered into the register maintained under section 301 of
the Companies Act, 1956 has been recorded in the register.
(vi) a The Company has not accepted any deposits from the public within
the meaning of the sections 58A, 58AA or any other relevant provision
of the Act and the rules framed there under any directives report
issued by the Reserve Bank of India. No order in relation thereto has
been passed by the Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any Court or any other Tribunal.
(vii) a The Company has no internal audit system commensurate with its
size and nature of its business.
(viii) a The Central Government has not prescribed for maintenance of
cost records under section 209
(1) (d) of the Companies Act, 1956 for the Company
(ix) a According to the records of the Company, the Company has to pay
the undisputed statutory dues of Rs. 68,619/- towards PF (Employees),
PF (Employer) of Rs. 77,492/- and Sales Tax of Rs.1,50,713/-. Other
than those there are no any other undisputed statutory dues including
Employees State Insurance, Income Tax, Wealth Tax, Service Tax, Custom
Duty and Excise Duty, Cess have regularly deposited with the
appropriate authorities.
b There are disputed amounts of Rs.14,47,271/- towards sales tax and an
amount of Rs 40,32,280/- towards interest for which the company has
made provision during this year based on the notice issued by the
Commercial Taxes Department dated 29-2-2012.
(x) The Company has accumulated losses of Rs.650.40 Lakhs at the end of
the financial year 2011-12 and it has earned Net Loss of Rs. 65.58
lakhs in current financial year due to capital gains.
(xi) The Company has settled its dues to banks and financial
institutions under OTS scheme and presently there are no dues to the
banks and financial institutions.
(xii) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi Fund or Mutual Benefit Fund/Societies are not applicable to the
Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) The Company has not given any guarantee for loan taken by others
from banks and financial institutions.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) On an overall examination the Balance Sheet of the Company, we
report that no fund raised on short term basis have been used for long
term investment.
(xviii) The Company has not issued any equity shares and debentures
during the year.
(xix) The Company has not raised any money by way of public issue
during the year.
(xx) 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 material fraud on or by the Company, noticed or reported during the
year.
For Sanjeeva Rao & Associates
Chartered Accountants
Hyderabad 14-08-2012 Sd/-
K. Sanjeeva Rao
Partner
M No.211604