Mar 31, 2015
We have audited the accompanying financial statements of PANKAJ
POLYPACK 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 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 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 the
maintenance of adequate accounting 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 of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial control,
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
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 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
system 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 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 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 March 31,2015, and its loss and its cash flows for the year ended on
that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in Annexure a
statement on matters specified in paragraphs 3 and 4 of the Order to
the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books
c. the Balance Sheet, the Statement of Profit and Loss, and 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 written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the other matters included in the Auditor's Report
and in accordance with Rule 11 of Companies (Audit and Auditors) Rules,
2014 and in our opinion and to the best of our information and
explanations given to us:
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did 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 referred to in paragraph 1 of our report of even date RE:
Pankaj Polypack Limited
i. a) The Company has maintained proper records showing full particular
including quantitative details and situation of fixed assets.
b) As explained to us, the fixed assets have been physically verified
by the management according to the phased program designed to cover all
the fixed assets over the year. In respect of fixed assets verified
according to this program, which we consider reasonable, no material
discrepancies were noticed on such verification.
ii. a) As explained to us, inventories have been physically verified
during the year by the management.
In our opinion, the frequency of verification is reasonable.
b) The procedures explained to us, which are followed by the management
for physical verification of inventories, are in our opinion 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 and no
material discrepancies were noticed on physical verification.
iii. No loans were granted by the Company, to any of the parties
covered in the register maintained under section 189 of the Act. Hence
we have not reported on the related matters of this clause and
sub-clauses (a) and (b).
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 sale of goods. We
have not observed any major weakness in the internal control system
during the course of the audit.
v. The Company has not accepted any deposits from the public within
the meaning of sections 73 to 76 or any other relevant provisions of
the Act and rules framed there under.
vi. Maintenance of Cost Records under Section 148(1) of the Act, is
not required for the activity carried out by the Company.
vii. a) The Company is regular in depositing undisputed statutory dues
with appropriate authorities including provident fund, employees' state
insurance, income tax, sales tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax, cess and any other statutory
dues applicable to it.
b) According to the information and explanations given to us, amount of
Rs.73,02,911/- along with interest payable to Commercial Taxes
Department for which a demand has been raised is due by the company and
which is undisputed. Apart from this there are no undisputed amounts
payable in respect of income tax, sales tax, wealth tax, service tax,
duty of customs, duty of excise, value added tax or cess were in
arrears as at 31st March, 2015 for a period more than six months from
the date they became payable.
c) According to the information and explanations given to us, there are
no dues of income tax, sales tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax or cess which have not been
deposited on account of any dispute.
d) In our opinion, there are no amounts required to be transferred to
the investor education and protection fund by the Company.
viii. The Company's accumulated losses at the end of the financial year
does not exceed fifty percent of its net worth and it has not incurred
cash losses during the year covered by audit and in the immediately
preceding financial year.
ix. According to the records of the Company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders, as applicable, as at the Balance sheet date.
x. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
xi. No term loans were obtained by the Company according to the
information and explanations given to us.
xii. During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Accounting Practice in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company noticed or reported during the year, nor
have we been informed of such case by the management.
FORLUHARUKA & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN:-01882S
Sd /-
Place: Secunderabad (RAMESHCHAND JAIN)
Date: 25.05.2015 (PARTNER)
(M. NO. 23019)
Mar 31, 2014
We have audited the accompanying financial statements of PANKAJ
POLYPACK LIMITED (''the Company'') which comprise the Balance Sheet as at
31st March 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under 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 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 conducted our audit in accordance with the Standards on Auditing
issued by the Institute of Chartered Accountants of India. Those
Standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
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 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 entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the 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 loss for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act, 1956 read with the General Circular 15/ 2013 dated
13 September 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013; and
e) on the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITORS'' REPORT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT
OF EVEN DATE
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a) The inventories have been physically verified during the year by the
Management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties in the register
maintained Under Section 301 of the Companies Act, 1956:
(a) The company has given loans to 1 party. In respect of the said
loan, the maximum amount outstanding at any time during the year was
Rs.21.28 lakhs and the year end balance is Rs.13.18 lakhs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loan given by the company, are not prima facie prejudicial in the
interest of the company.
(c) The company has taken loan from 1 party during the year. In respect
of the said loan, the maximum balance outstanding at any tine during
the year was Rs. 25 lacks and the year end balance is Rs.25 lacks.
(d) In our opinion the rate of interest and other terms and conditions
on which loans have been taken from companies, or firms or other
parties are not prima facie prejudicial in the interest of the company.
(e) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest, wherever
applicable.
4. 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 for the
purchases of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. In respect of the contracts or arrangements referred to in 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 contractors /
arrangements that need to be entered in 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, the transactions made in pursuance of contracts /
arrangements entered in the Register maintained Under Section 301 of
the Companies Act, 1956 and exceeding the value of in Rs. 5, 00,000 in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the Company.
6. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the company.
7. In our opinion, The Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the companies (Cost accounting records) Rules, 2011
prescribed by the Central Government under section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they-are accurate or complete.
9. In respect of statutory dues
a) According to the records of title Company, undisputed statutory dues
including Provident Fund, Employees'' State Insurance, Income Tax, Sales
Tax, Service Tax, Customs Duty, Excise Duty, Cess, and other statutory
dues have been generally regularly deposited with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2014 for a period of more than 6 months
from the date of becoming payable.
b) According to the information and explanations given to us, there are
no dues of Wealth Tax, Income Tax, Excise Duty, Sales Tax, Customs
Duty, Service Tax and Cess which have not been Deposited on Account of
any dispute.
10. The accumulated losses at the end of the financial year are not
more than 50% of the Company''s Net Worth. The Company has not incurred
Cash losses during the Financial Year covered by the Audit as well as
in preceding financial year.
11 .Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions, banks and
debenture.
1 2. In our opinion and according to the explanations given to us and
based on the information available, no loans and advance have been
granted by the company on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion, the company is not a chit fund/ nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the order are not applicable to the company.
14. The company has maintained proper records of the transactions and
contracts in respect of dealing or trading in Shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the company in its own name.
15. According to the information and explanations given to us, the
company has not given guarantees for loans taken by others from bank or
financial institutions, the terms and conditions thereof in our opinion
are not prima facie prejudicial to the interest of the company .
1 6.The company has not raised any Term Loans during the year.
17. According to the information and explanations given to us and on
an overall examination of the Balance sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long term investment.
18. The Company has not made any preferential Allotment of shares to
parties and companies covered in the Register maintained under Section
301 of the Companies Act, 1956,
19. The Company has not issued any debentures during the year.
20. The Company has not raised any monies by way of public issue
during the year.
21.In our opinion and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
For LUHARUKA & ASSOCIATES
CHARTERED ACCOUNTANTS
(Firm Registration No 01882S)
Sd/-
Place: Secunderabad Rameshchand Jain
Date: 29-05-2014 (Partner) (M. No. 023019)
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