Mar 31, 2018
INDEPENDENT AUDITORâS REPORT
To the Members of Prima Plastics Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of Prima Plastics Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (herein after referred to as âStandalone Ind AS financial statementsâ).
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Company''s 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 that give a true and fair view of the financial position, 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) prescribed 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; the selection and application of appropriate accounting policies; making judgments and the estimates that are reasonable and prudent; and the 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.
Auditorsâ 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 auditor''s 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 Company''s 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 Company''s 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 including the Ind AS, of the financial position of the Company as at March 31, 2018, and its 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 31, 2017 and the transition date opening Balance Sheet as at April 01, 2016 included in these Standalone Ind AS financial statements, are based on the previously issued statutory standalone financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by G.P Kapadia & Co., Chartered Accountants (predecessor auditor) for the year ended March 31, 2017 and for the year ended March 31, 2016, whose reports dated May 29, 2017 and May 30, 2016 respectively, expressed an unmodified opinion on those 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. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s 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, the Cash Flow Statement and the 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 prescribed under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
(f) 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; and
(g) With respect to the other matters to be included in the Auditors'' 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 the financial position in its Standalone Ind AS financial statements - Refer Note 33 (a) 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 derivative contracts. The Company has long-term contracts for which there were no material foreseeable losses - Refer Note 54 to the Standalone Ind AS 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; and
iv. The disclosure requirement in the Standalone Ind AS financial statements as envisaged in Notification G.S.R 308(E) dated March 30, 2017 as to holdings as well as dealings in Specified Bank Notes during the period from November 08, 2016 to December 30, 2016 is relating to F.Y 2016-17 and hence no disclosure on the same has been given - Refer Note 49 the Standalone Ind AS financial statements.
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 all fixed assets are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, certain fixed assets were physically verified by the Management during the year. In our opinion, and according to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) In our opinion and 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.
ii. The inventory has been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. No material discrepancies noticed on verification between the physical stocks and the book records.
iii. In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act, with respect to the loans given, investments made, guarantees given and security provided.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public during the year in terms of the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
vi. We have broadly reviewed the books of account maintained by the Company as specified under Section 148(1) of the Act, for maintenance of cost records in respect of products manufactured by the Company, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company,
amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income-tax, Sales-tax, Service tax, Goods and Service Tax, Duty of Customs, Duty of Excise, Value added tax, Cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales-tax, Service tax, Goods and Service Tax, Duty of Customs, Duty of Excise, Value added tax, Cess and other material statutory dues were in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no dues of Income-tax, Sales-tax, Service tax, Goods and Service Tax, Duty of Customs, Duty of Excise and Value added tax, which have not been deposited as on March 31, 2018 on account of disputes.
viii. According to the information and explanations given to us, and based on the records of the Company, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks, government and dues to debenture holders.
ix. According to the information and explanations given to us, the term loans have been applied by the Company during the year for the purposes for which they were obtained. The Company did not raise money by way of initial public offer or further public offer (including debt instruments) during the year.
x. According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations give 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 Act.
xii. 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 to the Company.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Standalone Ind AS financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given 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, paragraph 3(xiv) of the Order is not applicable to the Company.
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 them. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
xvi. According to the information and explanations given to us, the Company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
We have audited the internal financial controls over financial reporting of Prima Plastics Limited (âthe Companyâ) as at 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 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 (âICAIâ). 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 the 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 Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by the ICAI. 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 Standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that:
(a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
(b) 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
(c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
According to the information and explanation given to us, the Company has framed process document and risk control matrix for certain key processes relating to internal financial controls system over financial reporting. In our opinion, considering the internal control over financial reporting criteria established by the Company and the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI and to justify existence and operative effectiveness of the said controls, the Company need to strengthen the documentation of identified risk & controls to make it commensurate with the size of the Company and nature of its business.
For Khimji Kunverji & Co
Chartered Accountants
Firm''s Registration No: 105146W
Gautam V Shah
Partner
Membership No: 117348
Mumbai
May 28, 2018
Mar 31, 2017
INDEPENDENT AUDITORâS REPORT
To
The Members of Prima Plastics Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Prima Plastics Limited, (âthe Companyâ), which comprise the Balance Sheet as at March 31, 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.
Managementâs 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 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,
2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs 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 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 March 31, 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 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143( of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section143 (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 March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 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 and
(g) 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 does not have any pending litigations which would impact its financial positions.
ii. The Company did not have any long term contracts including derivative contracts as at March 31, 2017 for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
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 program of physical verification of fixed assets by which all fixed assets are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. In our opinion, and according to information and explanations given to us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to 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.
ii. The inventory, except goods-in-transit and stocks lying with third parties, have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. For stocks lying with third parties at the year-end, written confirmations have been obtained and in respect of goods-in-transit, subsequent goods receipt have been verified or confirmations have been obtained from those parties. The discrepancies noticed on verification between the physical stocks and the book records were not material.
iii. In our opinion and according to information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with provisions of section 185 and 186 of the Act in respect of loans, investments, guarantees and security.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit from the public during the year in terms of the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
vi. We have broadly reviewed the books of account maintained by the Company as specified section 148(1) of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However we have not made a detailed examination of cost records with view to determine whether they are accurate or complete.
vii. (a) According to the information and explanation given to us and on the basis of our examination of the records of the Company,
amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income-tax, Sales-tax, Service tax, Duty of Customs, Duty of Excise, Value added tax, Cess and any other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales-tax, Duty of Customs, Duty of Excise, Value added tax, Cess and any other material statutory dues were in arrears as at March 31, 2017 for a period of more than six months from the date they become payable.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, details of dues which has not been deposited as on March 31, 2017 on account of disputes are given below:
Name of Statute |
Nature of Dues |
Forum where dispute is pending |
Period to which amount relates (Assessment Year) |
Amount ('' |
Income Tax Act, 1961 |
Income Tax |
Income Tax Authorities |
2006-07, |
37,14,015/- |
2007-08, |
||||
2009-10, |
||||
2010-11 |
viii. According to the information and explanations given to us, and based on the records of the Company, the Company has not defaulted in the repayment of loans or borrowings to financial institution, banks, government and debenture holders.
ix. According to the information and explanations given to us, the term loans have been applied by the Company during the year for the purposes for which they were obtained other than temporary deployment pending application. The Company did not raise money by way of initial public offer or further public offer (including debt instruments) during the year.
x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company has not been 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, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. 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 to the Company.
xiii. According to the information and explanations given to us, all transactions with the related parties are in compliance with section 177 and 188 of the Act, and where applicable the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
xiv. According to the information and explanations given 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.
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.
xvi. According to the information and explanations given to us, the Company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls over financial reporting of Prima Plastics Limited (âthe Companyâ) as at March 31, 2017 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.
Managementâs 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 (âICAIâ). 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 Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that:
(a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(b) 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
(c) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, 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 G. P. Kapadia & Co.
Chartered Accountants
Firm''s Registration No: 104768W
Kirit N. Mehta
Partner
Membership No.15759
Mumbai May 29, 2017
Mar 31, 2016
To The Members of Prima Plastics Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Prima Plastics Limited, (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, 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.
Managementâs 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 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs 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 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, 2016, 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 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143( of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section143 (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, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 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 and
(g) 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 does not have any pending litigations which would impact its financial positions.
ii. The Company did not have any long term contracts including derivative contracts as at 31st March 2016 for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
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 program of physical verification of fixed assets by which all fixed assets are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. In our opinion, and according to information and explanations given to us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to 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.
ii. The inventory, except goods-in-transit and stocks lying with third parties, have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. For stocks lying with third parties at the year-end, written confirmations have been obtained and in respect of goods-in-transit, subsequent goods receipt have been verified or confirmations have been obtained from those parties. The discrepancies noticed on verification between the physical stocks and the book records were not material.
iii. In our opinion and according to information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with provisions of section 185 and 186 of the Act in respect of loans, investments, guarantees and security.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit from the public during the year in terms of the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
vi. We have broadly reviewed the books of account maintained by the Company as specified section 148(1) of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However we have not made a detailed examination of cost records with view to determine whether they are accurate or complete.
vii. (a) According to the information and explanation given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income-tax, Sales-tax, Service tax, Duty of Customs, Duty of Excise, Value added tax, Cess and any other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales-tax, Duty of Customs, Duty of Excise, Value added tax, Cess and any other material statutory dues were in arrears as at 31st March 2016 for a period of more than six months from the date they become payable.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, details of dues which has not been deposited as on 31st March 2016 on account of disputes are given below:
Name of Statute |
Nature of Dues |
Forum where dispute is pending |
Period to which the amount relates |
Amount |
Income Tax Act, 1961 |
Income Tax |
Income Tax Authorities |
2006-07, |
3,714,015/- |
|
|
|
2007-08, |
|
|
|
|
2009-10, |
|
|
|
|
2010-11 |
|
viii. According to the information and explanations given to us, and based on the records of the Company, the Company has not defaulted in the repayment of loans or borrowings to financial institution, banks, government and debenture holders.
ix. According to the information and explanations given to us, the term loans have been applied by the Company during the year for the purposes for which they were obtained other than temporary deployment pending application. The Company did not raise money by way of initial public offer or further public offer (including debt instruments) during the year.
x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company has not been 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, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. 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 to the Company.
xiii. According to the information and explanations given to us, all transactions with the related parties are in compliance with section 177 and 188 of the Act, and where applicable the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
xiv. According to the information and explanations given 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.
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.
xvi. According to the information and explanations given to us, the Company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
For G.P. Kapadia & Co.
Chartered Accountants
Firm Regn. No. 104768W
Kirit N. Mehta
Partner
Membership No. 15759
Mumbai,
May 30, 2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Prima Plastics Limited ('the Company'), which comprise the Balance
Sheet as at March 31,2015, 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 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 ActÂ) 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 March 31,2015, and its profit/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
OrderÂ) issued by the Central Government in terms of Section 143(11)
of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section143 (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 March 31,2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 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 does not have any pending litigations which would
impact its financial positions.
ii. The Company did not have any long term contracts including
derivative contract for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
The Annexure referred to in our Independent Auditor's Report to the
members of the Company on the financial statements for the year ended
March 31,2015. We report that:
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The Company has a program of verification of fixed assets to cover
all the items in a phased manner over a period of three years which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. Pursuant to the program, certain fixed assets
were physically verified by the Management during the year. According
to the information and explanations given to us no material
discrepancies were noticed on such verification.
(ii) In respect of its inventories:
(a) The Management has conducted the physical verification of inventory
at reasonable intervals.
(b) As explain to us the procedure of physical verification of
inventory followed by Management is reasonable and adequate in relation
to the size of the Company and the nature of business.
(c) The Company has maintained proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, 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 Act.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of fixed assets and rendering of services. During the
course of our audit, we have not observed any major weakness in such
internal control system.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits as per the
provisions of Sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules,
2014, as amended. Further no directives have been issued to the company
by the Reserve Bank of India. Accordingly, the provisions of Clause
3(v) of the Order are not applicable.
(vi) The Company has maintained cost records as specified by the
Central Government under subsection (1) of section 148 of Companies
Act, 2013. However we have not made a detailed examination of the
records with view to determine to whether they are accurate or
complete.
(vii) According to the information and explanation given to us, in
respect of statutory dues:
(a) The Company is regular in depositing undisputed statutory dues,
including Provident Fund, employee's state insurance, Income-tax, Sales
Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added
Tax, Cess and other statutory dues with the appropriate authorities.
According to the information and explanation given to us, no undisputed
amounts payable in respect of Provident Fund, employee's state
insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Value Added Tax, Cess and other material statutory
dues were in arrears as at March 31,2015 for a period of more than six
months for the date they become payable.
(b) According to the information and explanations given to us there are
no material dues of Wealth Tax, Service Tax, Sales Tax, Value Added Tax
which have not been deposited with the appropriate authorities on
account of any dispute. However, according to the information and
explanations given to us the following dues of Income Tax have not been
deposited by the Company on account of disputes:
Name of Statute Nature of Amount
Dues
Income Tax Act, 1961 Income Tax 37,14,015
Name of Statute Period to which the Forum where dispute
amount relates is pending
Income Tax Act, 1961 Ass Yr 2006-07, 2007-08, Income Tax
2009-10, 2010-11 Authorities
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1of 1956) and rules there under has been
transferred to such fund within time.
(viii) The Company does not have any accumulated losses at the end of
the financial year March 31, 2015 and has not incurred cash losses in
the financial year and immediately preceding financial year.
(ix) The Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
(x) In our opinion and according to the information and explanation
given to us, the Company has not given any guarantee for loans taken by
others from banks and financial institutions.
(xi) The term loans have been applied by the Company during the year
for the purposes for which they were obtained.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For G.P. Kapadia & Co.
Chartered Accountants
Firm Regn. No. 104768W
Kirit N. Mehta
Partner
Membership No. 15759
Mumbai,
May 29, 2015
Mar 31, 2014
We have audited the accompanying financial statements of PRIMA PLASTICS
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2014, the Statement of Profit and Loss and the Cash Flow Statement
for the year then ended, and a summary of the significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in s ub Section
(3C) of section 211 of the Companies Act, 1956 ("the Act") read with
the General Circular 15/2013 dated September 13, 2013 of the Ministry
of Company 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 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
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 the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation of the
financial statements.
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 Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
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 it appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the balance sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub section (3C) of section 211of the Act read with the
General Circular 15/2013 dated September 13, 2013 of the Ministry of
Company Affairs in respect of Section 133 of the Companies Act, 2013;
and
e) On the basis of the written representation received from the
directors as on March 31, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014
form being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT
Referred to in our Report of even date:
1. In respect of its fixed assets:
a) The Company has generally maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
b) As explained to us, some of the fixed assets have been physically
verified by the Management at reasonable intervals having regard to
size of company and nature of its assets and no material discrepancies
have been noticed during such verification.
c) In our opinion the disposal of fixed assets during the year does not
affect the going concern assumption.
2. In respect of its inventories:
a) As explained to us, inventories were physically verified during the
year by the management at reasonable intervals. In our opinion our
frequency is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures followed for physical verification of
inventories, by the management, are reasonable and adequate, in
relation to the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories. As explained to us, there is no material discrepancies
noticed on physical verification of inventory, as compared to book
records.
3. In respect of 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 granted loan to two parties covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 2,61,77,258/- and the year-end
balance of loans granted to such parties was Rs. 2,48,05,500/-
b) In our opinion, the rate of interest and other terms and conditions
of such loans are not, prima facie, prejudicial to the interest of the
company.
c) The parties have repaid the principal amounts as stipulated and have
also been regular in the payment of interest to the company.
d) There is no overdue amount in excess of Rs. 1 lakh in respect of
loans granted to company, listed in the register maintained under
section 301 of the Companies Act, 1956.
e) The company has not taken loan from parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly
clauses (iii) (f) to (iii) (g) of CARO are not applicable.
4. In our opinion and according to the information given to us, there
are adequate internal control procedures, commensurate to the size of
the Company and nature of its business, for the purchase of inventory
and fixed assets and for sale of goods. During the course of our audit,
no major weakness has been noticed in the internal controls.
5. (a) According to the information and explanations given to us, the
transactions that needs to be entered in the register maintained under
Section 301 of the Companies Act, 1956, have been so entered.
(b) According to the information and explanations given to us, the
transactions entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding Rs 5,00,000/- in respect of each
party are at market prices for such goods and materials or the prices
at which transactions for similar goods have been made with other
parties.
6. The Company has not accepted any deposit from the public.
7. In our Opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. According to the information and explanation given to us, and based
on primary verification of records the company has maintained cost
records under Section 209 (1) (d) of the Companies Act, 1956, However
we have not made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. According to the information and explanations given to us in respect
of statutory dues
a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Profession Tax,
Income-Tax, Sales-Tax, Value Added Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues applicable to
it with the appropriate authorities.
b) There are no material dues of Custom Duty, Excise Duty and Cess
which have not been deposited with the appropriate authorities on
account of any dispute. However according to information and
explanation given to us, the following dues of Income Tax have not been
deposited on account of disputes
Name of Nature of Amount (Rs.) Period to which Forum where
statue dues the amount dispute is
relates pending
Income Income Tax 37,14,015 Ass Yr 2006-07, Income Tax
Tax Act, 2007-08, 2009-10, Authorities
1961 2010-11
10. In our opinion and according to the information and explanations
given to us, the Company does not have any accumulated losses at the
end of the financial year and has not incurred cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks.
12. In our opinion and according to the information and explanations
given to us and based on our examination of records, 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. In our opinion and explanation given to us, the Company is not a
chit fund/nidhi/mutual benefit/society.
14. In our opinion and according to the information and explanations
given to us, the company has maintained proper records of transactions
and contracts for dealing or trading in shares, securities, debentures
and other investments and timely entries have been made therein. The
shares, securities, debentures and other securities have been held by
the company in its own name.
15. In our opinion and according to the information and explanations
given to us and based on our examination of records, the company has
not given any guarantee for loans taken by others from banks or
financial institutions.
16. In our opinion and according to the information and explanations
given to us, the company did not have any term loan outstanding during
the year.
17. In our opinion and according to the information and explanations
given to us and based on our examination of records, we report that no
funds raised on short-term basis have been used for long term
investments.
18. In our opinion and according to the information and explanations
given to us, the Company has not made any preferential allotment of
shares to parties and companies covered in the register maintained
under Section 301 of the Act.
19. The Company has not issued debenture during the year.
20. The Company has not raised any money by public issue during the
year.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanation given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year nor
have we been informed of such case by the management.
For G. P. KAPADIA & Co.
Chartered Accountants
(Firm Registration no. 104768W)
Kirit N. Mehta
Partner
Mumbai Membership No. 15759
May 30, 2014
Mar 31, 2013
Report on the financial statement
We have audited the accompanying financial statements of PRIMA PLASTICS
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2013, the Statement of Profit and Loss and the Cash Flow Statement
for the year then ended, and a summary of the significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in 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 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 the
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 the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation of the
financial statements.
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 Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
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 it appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.;
d) In our opinion, the Balance sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub section (3C) of section 211of the Act;
e) On the basis of the written representation received from the
directors as on March 31, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2013
form being appointed as a director in terms of section 274 (1) (g) of
the Act.
ANNEXURE TO THE AUDITOR''S REPORT
Referred to in paragraph 3 of our Report of even date on the accounts
of Prima Plastics Limited for the year ended March 31, 2013:
1. In respect of its fixed assets:
(a) The Company has generally maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
(b) As explained to us, some of the fixed assets have been physically
verified by the Management at reasonable intervals having regard to
size of company and nature of its assets and no material discrepancies
have been noticed during such verification.
(c) In our opinion the disposal of fixed assets during the year does
not affect the going concern assumption.
2. In respect of its inventories:
(a) As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures followed for physical verification of
inventories, by the management, are reasonable and adequate, in
relation to the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories. As explained to us, there is no material discrepancies
noticed on physical verification of inventory, as compared to book
records.
3. In respect of 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 granted loan to Prima FZE, UAE Company covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 13,46,569/- and the
year-end balance of loans granted to such parties was Rs. 13,46,569/-.
(b) The company has granted loan to Prima Deelite Plastics Pvt. Ltd., A
Joint Venture Company set up in Cameroon with local partner is covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs. 2,08,48,500/-
and the year-end balance of loans granted to such parties was Rs.
2,08,48,500/-.
(c) In our opinion, the rate of interest and other terms and conditions
of such loans are not, prima facie, prejudicial to the interest of the
company.
(d) The parties have repaid the principal amounts as stipulated and
have also been regular in the payment of interest to the company.
(e) There is no overdue amount in excess of Rs. 1 lakh in respect of
loans granted to company, listed in the register maintained under
section 301 of the Companies Act, 1956.
(f) The company had not taken loan from parties covered in the register
maintained under section 301 of the Companies Act, 1956.
Accordingly clauses (iii) (f) to (iii) (g) of CARO are not applicable.
4. In our opinion and according to the information given to us, there
are adequate internal control procedures, commensurate to the size of
the Company and nature of its business, for the purchase of inventory
and fixed assets and for sale of goods. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. (a) According to the information and explanations given to us, the
transactions that needs to be entered in the register maintained under
Section 301 of the Companies Act, 1956, have been so entered.
(b) According to the information and explanations given to us, the
transactions entered in the register maintained under Section 301 are
at market prices for such goods and materials or the prices at which
transactions for similar goods have been made with other parties.
6. The Company has not accepted any deposit from the public to which
the provisions of sections 58A and 58AA of Companies Act, 1956 and the
Companies (Acceptance of Deposit) Rules, 1975 apply.
7. In our Opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. According to the information & explanation given to us, and based
on primary verification of records the company has maintained cost
records under Section 209 (1) (d) of the Companies Act, 1956, However
we have not made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. According to the information and explanations given to us in
respect of statutory dues
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Profession Tax,
Income-Tax, Sales-Tax, Value Added Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues applicable to
it with the appropriate authorities.
(b) There was no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at March 31, 2013 for a period of more than six
months from the date they became payable.
10. In our opinion and according to the information and explanations
given to us, the Company does not have any accumulated losses at the
end of the financial year and has not incurred cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks.
12. In our opinion and according to the information and explanations
given to us and based on our examination of records, 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. In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
14. In our opinion and according to the information and explanations
given to us, the company has maintained proper records of transactions
and contracts for dealing or trading in shares, securities, debentures
and other investments and timely entries have been made therein. The
shares, securities, debentures and other securities have been held by
the company in its own name.
15. In our opinion and according to the information and explanations
given to us and based on our examination of records, the company has
not given any guarantee for loans taken by others from banks or
financial institutions.
16. In our opinion and according to the information and explanations
given to us, the company did not have any term loan outstanding during
the year.
17. In our opinion and according to the information and explanations
given to us and based on our examination of records, we report that no
funds raised on short-term basis have been used for long term
investments.
18. In our opinion and according to the information and explanations
given to us, the company has not made any preferential allotment of
shares to parties and companies covered in the register maintained
under Section 301 of the Act.
19. In our opinion and according to the information and explanations
given to us, the company has not issued debenture during the year.
20. In our opinion and according to the information and explanations
given to us, the company has not raised any money by public issue
during the year.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanation given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year nor
have we been informed of such case by the management.
For G. P. Kapadia & Co.
Chartered Accountants
(Firm Registration no. 104768W)
Kirit N. Mehta
Partner
Membership No. 15759
Mumbai May 29, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of PRIMA PLASTICS LIMITED
("the Company") as at March 31, 2012, the Profit and Loss Account
and the Cash Flow Statement of the Company for the year ended on that
date, both 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 the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also
includes assessing the accounting principles used and the significant
estimates made by the Management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
As required by the Companies (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 it appears from our examination of
those books;
iii. the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv. in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956.
v. 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
(b) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date;
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
vi. On the basis of the written representations received from the
Directors as on March 31, 2012 taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 2012 from being appointed as a director in terms of Section
274(1 )(g) of the Companies Act, 1956.
Referred to in paragraph 3 of our Report of even date on the accounts
of Prima Plastics Limited for the year ended March 31, 20
1. In respect of its fixed assets:
(a) The Company has generally maintained proper records showing full
particulars, including quantitative details and situati of its fixed
assets.
(b) As explained to us, some of the fixed assets have been physically
verified by the Management at reasonable interv; having regard to size
of Company and nature of its assets and no material discrepancies have
been noticed during su verification.
(c) In our opinion the disposal of fixed assets during the year does
not affect the going concern assumption.
2. In respect of its inventories:
(a) As explained to us, inventories were physically verified during the
year by the Management at reasonable intervals.
(b) In our opinion and according to the, information and explanations
given to us, the procedures followed for physical verificatic of
inventories, by the management, are reasonable and adequate, in
relation to the size of the Company and the natui of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper recorc of its
inventories. As explained to us, there is no material discrepancies
noticed on physical verification of inventory, a compared to book
records.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to / from Companies, firms or other partie covered in the
register maintained under section 301 of the Companies Act, 1956.
(a) The Company has granted loan to Prima FZE, UAE Company covered in
the register maintained under section 301 of thi Companies Act, 1956.
The maximum amount involved during the year was Rs. 13,46,569/- and the
year-end balance c loans granted to such parties was Rs. 13,46,569/-.
(b) The Company has granted loan to Prima Deelite Plastics Pvt. Ltd., A
Joint Venture Company set up in Cameroon with loca partner is covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involvec during the year was Rs.2,01,45,000/-
and the year-end balance of loans granted to such parties was
Rs.2,01,45,000/-.
(c) In our opinion, the rate of interest and other terms and conditions
of such loans are not, prima facie, prejudicial to the interest of the
Company.
(d) The party have repaid the principal amounts as stipulated and have
also been regular in the payment of interest to the Company.
(e) There is no overdue amount in excess of Rs. 1 lakh in respect of
loans granted to Company, listed in the register maintained under
section 301 of the Companies Act, 1956.
(f) The Company had not taken loan from parties covered in the register
maintained under section 301 of the Companies Act, 1956.
Accordingly clauses (iii) (f) to (iii) (g) of CARO are not applicable.
4. In our opinion and according to the information given to us, there
are adequate internal control procedures, commensurate to the size of
the Company and nature of its business, for the purchase of inventory
and fixed assets and for sale of goods.
During the course of our audit, no major weakness has been noticed in
the internal controls.
5. (a) According to the information and explanations given to us, the
transactions that needs to be entered in the register maintained under
Section 301 of the Companies Act, 1956, have been so entered.
(b) According to the information and explanations given to us, the
transactions entered in the register maintained under Section 301 are
at market prices for such goods and materials or the prices at which
transactions for similar goods have been made with other parties.
6. The Company has not accepted any deposit from the public to which
the provisions of sections 58A and 58AA of Companies Act, 1956 and the
Companies (Acceptance of Deposit) Rules, 1975 apply.
7. The Company needs to strengthen Internal Audit system commensurate
to the size of the Company and nature of the business.
8. According to the information & explanation given to us, and based
on primary verification of records the Company has maintained cost
records under Section 209 (1) (d) of the Companies Act, 1956, however
we have not made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. According to the information and explanations given to us in
respect of statutory dues
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income-Tax, Sales-Tax,
Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty,
Cess and other material statutory dues applicable to it with the
appropriate authorities.
(b) There was no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at March 31, 2012 for a period of more than six
months from the date they became payable.
10. In our opinion and according to the information and explanations
given to us, the Company does not have any accumulated losses at the
end of the financial year and has not incurred cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks. .
12. In our opinion and according to the information and explanations
given to us and based on our examination of records, 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. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
14. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of transactions
and contracts for dealing or trading in shares, securities, debentures
and other investments and timely entries have been made therein. The
shares, securities, debentures and other securities have been held by
the Company in its own name.
15. In our opinion and according to the information and explanations
given to us and based on our examination of records, the Company has
not given any guarantee for loans taken by others from banks or
financial institutions.
16. In our opinion and according to the information and explanations
given to us, the Company did not have any term loan outstanding during
the year.
17. In our opinion and according to the information and explanations
given to us and based on our examination of records, we report that no
funds raised on short-term basis have been used for long term
investments.
18. In our opinion and according to the information and explanations
given to us, the Company has not made any preferential allotment of
shares to parties and Companies covered in the register maintained
under Section 301 of the Act.
19. In our opinion and according to the information and explanations
given to us, the Company has not issued debenture during the year.
20. In our opinion and according to the information and explanations
given to us, the Company has not raised any money by public issue
during the year.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanation given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year nor
have we been informed of such case by the management.
For G.P. Kapadia & Co.
Chartered Accountants
Firm Regn.No.104768W
Kirit N. Mehta
Mumbai Partner
May 28, 2012 M. No.15759
Mar 31, 2010
We have audited the attached Balance Sheet of PRIMA PLASTICS LIMITED,
as at 31st March, 2010 and also the Profit & Loss Account of the
Company, for the year ended on that date annexed thereto and the cash
flow statement for the year ended on that date and annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on the
financial statements based on our audit.
We have conducted the audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain a reasonable assurance about whether the
financial statements are free of any 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 the significant estimates
made by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government in terms of the sub section (4A) of section 227
of the Companies Act, 1956 we enclose in the Annexure a statement on
the matters specified in the paragraphs 4 & 5 of the said order.
Further to our comments in the Annexure referred to above, we report
that:
1) 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.
2) 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
the Books.
3) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement withthe Books of Accounts.
4) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in compliance with the Accounting
Standards referred to in sub section (3C) of section 211 of the
Companies Act, 1956.
5) On the basis of written representations received from the Directors
and taken on record by the Board of Directors, we report that none of
the Directors are disqualified as on 31st March 2010 from being
appointed as a Director of the Company under section 274 (1)(g) of the
Companies Act, 1956.
6) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
notes appearing in schedules therein, 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:
a. In the case of the Balance Sheet, of the state of affairs of the
Company, as at 31st March, 2010; and
b. In the case of the Profit & Loss Account, of the Loss 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.
ANNEXURE TO THE AUDITORS REPORT Referred to in paragraph 3 of our
Report of even date on the accounts of Prima Plastics Limited for the
year ended March 31, 2010:
1. In respect of its fixed assets:
(a) The Company has generally maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets on the basis of available information.
(b) As explained to us, all the fixed assets have been physically
verified by the Management at reasonable intervals having regard to
size of company and nature of its assets and no material discrepancies
have been noticed during such verification.
(c) In our opinion the disposal of fixed assets during the year does
not affect the going concern assumption.
2. In respect of its inventories:
(a) As explained to us, physical verification of inventories has been
conducted by the management, at reasonable intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures followed for physical verification of
inventories, by the management, are reasonable and adequate, in
relation to the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory. As
explained to us, there is no material discrepancies noticed on physical
verification of inventory, as compared to book records.
3. According to the information and explanations given to us, the
Company has not granted or taken secured or unsecured loans to / from
Companies, firms or other parties covered in the Register maintained
under Section 301 of the Company Act,1956. Accordingly clauses (iii)
(b) to (iii) (g) of CARO are not applicable.
4. In our opinion and according to the information given to us, there
are adequate internal control procedures, commensurate to the size of
the Company and nature of its business, for the purchase of inventory
and fixed assets and for sale of goods. During the course of our audit,
no major weakness has been noticed in the internal controls.
5. (a) According to the information and explanations given to us, the
transactions that needs to be entered in the register maintained under
Section 301 of the Companies Act, 1956, have been so entered.
(b) According to the information and explanations given to us, the
transactions entered in the register maintained under Section 301
during the year have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time at which
transactions for similar goods have been made with others parties.
6. The Company has not accepted any deposit from the public to which
the provisions of sections 58A and 58AA of Companies Act, 1956 and the
Companies (Acceptance of Deposit) Rules, 1975 do not apply.
7. The Company needs to strengthen Internal Audit system commensurate
to the size of the Company and nature of the business.
8. According to the information & explanation given to us, and based
on primary verification of records the company has maintained cost
records under Section 209 (1) (d) of the Companies Act, 1956, However
we have not made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. In respect of statutory dues:
a. According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other Statutory Dues applicable to it with
the appropriate authorities. There were no arrears as at 31st March
2010 for a period of more than six months from the date they became
payable.
b. In our opinion and according to the information and explanations
given to us, there are no dues in respect of Income Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty and Cess that have not been
deposited on account of any dispute.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institution, bank.
12. Based on our examination of records and 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. In our opinion, the company is not a chit fund or a Nidhi / mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
14. According to the information and explanations given to us, the
Company is not dealing or trading in Shares, Securities, Debentures and
Other investments. Accordingly, paragraph 4(xiv) of the order is not
applicable.
15. According to the information and explanation given to us and
records examined by us, the company has not given any guarantee for
loans taken by others from banks or financial institutions.
16. According to the information and explanations given to us, the
company has not borrowed any money on term loan.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long term
investments.
18. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act.
19. The company has not issued debenture during the year.
20. The company has not raised any money by public issue during the
year.
21. According to information and explanations given to us, no fraud on
or by the company has been noticed or reported during the course of our
audit.
For G. P. Kapadia & Co.
Chartered Accountants
FirmRegn. No. 104768W
Kirit N. Mehta
Partner
M. No. 15759
Mumbai
May 29, 2010
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