INDEPENDENT AUDITOR'S REPORT
To the Members of
UNION QUALITY PLASTICS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M^s. UN ION QUALITY PL A5TFC5 LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2016r the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies aid outcry exp I a n story information ,
Management' s Responsibility for the Financial Statements
The management and Board of Directors of the Company are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (’the act') with respect to the preparation of these financia1 statements that gift B true and fair vim worth? fining. position, financial performance a nor cash flow of the Company in accordance with the accounting principles genera fly accepted son India, including the Accounting Standards specified under Section n 133 of the Act, read with rule 7 of Companies {Accounts} Rules, 2014. This responsibility 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 nth*?*- Irregularities; selection and application of appropriate ate accounting policies; making judgments and estimates that are reasonable and prudent; design, implementation and maintenance of adequate internal financial controls, that are 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 fare view and are freeform material misstatement, whether due to fraud overran.
Auditors' Responsibility
Our responsibility is to express an op: man on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Art 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 company with ethical requirements and plan and perform the audit to obtain reasonable assurance a:jout whether the financial statements are free from material misstatement
An audit invokes performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, Inducing 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 financia1 control' relevant to the£ Company's preparation of me financial- statements, that give a true and far 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 placeman adequate internal financial controls system over financial reporting and the operating effectiveness of such controls An audit also includes evaluating the appropriateness of accounting polities used and the reasonableness of the accounting estimates made ay the Company's management and Board of Directors, as well as evaluating the overall presentation of the financial statements
We believe t list the and I (evidence we have obtained is sufficient and appropriate to provide ? basis forum’' and opinion,
Opinion
In our opinion and to the best of our information and according to the explanations given at us, the aforesaid financial statements give the 'n formation required by the Act in the manners required and give a true and fair view in conformity waif the accounting principles generally accepted in India of the state of affairs of the Company as at 31st March 2016, its profit and cash flow for the year ended on that date.
Emphasis of Matter We draw attention to
a} Note No. 24 to the financial statements which describes that the Balance of Debtors,
Creditors, Loans & Advances and Investments are subject to confirmation and re con citation, if any. Hence, the effect thereof, on Profit/ Loss, Assets and Liabilities, lf any is not ascertainable,
b) Note No, 3 (A) (sub note 1 ft 2) read with Note No 24 (&)- 13 {v> to the financial statements regarding the classification of loans taken from Ambient Media Pvt, Ltd in the financial Statements as Secured Lang Term Borrowings for the Loans repayable on demand.
Report an Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2016 (''the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of tithe Act, we give in the Annexure A, a statement on the matters Specified in paragraphs 3 annual A of the Order,
As required by section 143(3) of the Act, we furthe1' report that:
a) we have sought and obtained all the information and explanations which to the best of our k n awl edge a n d belief were necessary for the purpose of our audit;
b) in our portion proper books of account as required by law have been kept by the Company so far as appears from our exanimation of those books;
c) the Balance Sweetest March 31,2016, this Statement of Profit and Loss and Cash Flow Statement for the year then ended dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid financial statements comply with the applicable Accounting Standards speeded under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2011; subject to the no incompliance by the company of the Accounting Standard 15 relating to n o n o revision of I eave salary which his being accounting by the company on c ash basis instead of accrual basis (liability quantum not ascertained) and provision for gratuity is not mares on actuarial basis.
(e) on the basis of written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 201Grfrom being appointed as a director in tern tip Section 164(2}of the Act;
f) with respect to the adequacy of tan£ internal financial! controls over financial reporting of the company and the operative effectiveness of such controls, refer to our septet report t Annexure B; and
g) in our opinion and to the best of our information and according to the explanations given tons, we report asunder with respect to others alters to be Included in the Auditor's fetor in accordance with Rowell of the Companies (Audit and Auditors) Rules, 2014;
I. The Com d any does not have any pending litigations which would impact its financial position, excess for those mentioned in Note No. 24 <B}-2 to the Financial Statements on Contingent Liabilities.
l|, the Commanded not have any long term contracts including derivative contracts; such the question of ornamenting go any material foresee able oases thereon does notarise
111. There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. Title question of delay ii transferring such sums does not arise.
[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Require me its' In the
Independent Auditors Report of even date;.
On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that:
1. In respect of its fixed assets
a) Thee Company is in the process of updating of Fixed Asset Register to show full particulars including d etas and situation of fixe d assets;
b) As explained to us, Fixed assets have been physically verified by the management at regular intervals: as informed to us no material discrepancies were noticed on such verification;
r) As explanation to us, the title deeds of all the Improvable properties are held in the name of the company, except for the Leasehold Land, as per Mote a to the Financial Statements, which have been taken on lease by the company flora term of 39 years.
2. In respect of its inventories
As explained to us, inventories have been physically verified during the year by the management at reasonable intervals. As informed to us, no material discrepancies were noticed on physical verification of inventories by the management as compared to book records,
3. According to the information and explanations given to us and based on our examination of the records of the Company, the company has not granted any loans, under section 189 of the Companies Act, 2013.
A. According to the information and explanations given to us and based on our examination of the records of the Company, in respect of loans/ investments, guarantees and security given/ made by the company, during the year, the company has compared with the provisions of Section & 136 of the Companies Act, 2013.
5. The Company has not accepted any deposits from the public covered under the directives issued by the; Reserve Bank Of Linda and the revisions of petition 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under further no order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any at the' tribunal on the company. Hence* P a rag rap h3{v) of toe Order is not applicable,
The Centre; Government of India has not prescribed the maintenance of cost records under sub section (l)of Section 14SoflbeCorrpaniesAct, 2013 for any of the products of the Company.
7. In respect of Statutory Dues:
a) According to the information and explanations given to us and based on the records of the company examined by us, the company is irregular in depositing the undisputed statutory dues,
Including Provident Fund, Fops oyees1 State Insurance, Income-tax, alps tax, Wealth lax, Service Tax, Custom Duty, Excise Duty and other materia1 statutory dues, as applicable, with the appropriate authorities in India; According to the information made available to us, no undiluted arrears of statutory dues are outstanding as at 31st March 2015 for more than six months, from the date when they became except for Professional Tax liability of Rs. 2,00,340/- and fax Deducted at Soloed (IDS} off- 3,03,265/ .
b) According to the information and explanations given to us there are no amounts in respect of 5a:es Tax, Custom duty. Wealth tax. Excise duty and Cess that have not been deposited with the appropriate authorities on account of any dispute, except for some dues as mentioned below:
8. According to the records of the company examined by us and as ear the information and explanations given to us, the company has not defaulted In repayment of bans or borrowings to any financial institution, banks or government. The coronary has also not issued debentures. Hence Paragraph 3 {viii} of the Orders not applicable.
9. According to the records of the company examined by us and as per the information and explanations given to us, the Company did not raise any money by way of initial: public offer or further public offer {including debt instruments} during the year and Chef term loans raised during the year were applied for the purpose for which those went raised.
10. During the course of our examination of the books and records of the company, carried in accordance with the auditing standards generally accepted in India, we have neater come across any instance of fraud an oar by the Company noticed or reported during the course of our audit nor have Webern informative any such instance by the Management.
11. According to the Information and explanations given to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Sec 197 read with Schedule to the Act,
1?, In our opinion and according to the information and explanations given to usthe Company is nota Nidhi company, Accordingly, paragraph 3{xi’) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of this Company, all transactions with their acted parties art incompliance with sections 177 and ]S0 of Companies Act,, 2013 where applicable and the details have been disclosed 'H the Financial Statements etc., as required by the applicable accounting standards,
14. According to the information and explanations given to us and based on our examination of the records of tire Company, the Company has not read any preferential allotment O' private placement of shades they or partly convertible debentures during the year.
lb. 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. According, paragraph 3(xv} is not applicable.
lb. The Company Is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.
We have audited the interim, financial controls over financial reporting of UNION QUALITY PLASTICS LIMITED ("the Company,,',)as if March 31, 2016 1 conjunction with ouraud'tofthr:1 financial statements of the Company for the yearend don that date.
Management's Responsibility for Internal I Financial Controls
The Company's management !s responsible for stabs dishing and .Maintaining internal financ.al 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 go Audit of internal f-manila Controls over Financial Reporting issued by theft Institute of Chartered Accountants of India (ICAf), These responsibilities include the design, or pie mutation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orders 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, girth timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. conducted our audit In accidence with the Guidance Note on Audit of Internal F:nancial Controls Over Financial Reproving (the "Guidance Note") and the Standards on Auditing, issued by CAl and deemed at be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India, Those Standards and the Guidance Note require that we comply with ethical requirements and plan and part firm the audit to obtain reasonable assurance about whether adequate 'internee Finland' controls over financial reporting was established and maintained and if such contrail scope rated effective if in all material respects,
Our audit invokes performing procedures to obtain audit thence about the adequacy aft the Internal financial controls system over fin an day reporting and.
Our audit of internal financial control over financial reporting included obtaining an understanding of internal financial controls aver financial reporting, assessing the risk that a material weakness exists, and testing and evaluating tube design and operating effectiveness of internal control basted and the assessed risk. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material a misstatement of the financials averments, whether due to fraud error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide basis for our audit opinion on the Company's internal financial controls system over financial reporting.
Meaning of Internal I Financial Controls over Financial Reporting
A company's interne 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 n accordance wilts generally accepted accounting principles. A company's internal fintess control Over finances reporting "includes those policies 3nd are codifies that (1) pertain to the maintenance of records that, n reasonable detail, accurately and fairy reflect the transactions and dispositions of tree assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorize aborts of manage Tent and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use,, or disposition of the company's assets that co u d have a material effect on the finance a Statements.
Opinion
In our opinion, the Company has, in general, ins I material respects, an adequate internal financial controls system Diver financial reporting and such intern^: financial contra s over financial reporting found operating effectively as at March 31, 2015, based on the internal control aver financial reporting criteria established by the Company. However the same needs to be further Improved and formally documented in view of the size of the company and nature of its business, considering the essential- components of Internal control stated in the Guidance Mote on Audit If Internal Financial Controls Over Financial Reporting issued by the Institute Of Chartered Accountants of India.
For PAREKH SHAH & LODHA
Chartered Accountants
Ravindra Chaturved
(Partner)
M.Mo,04S350
Firm no,107437W
Place : Mumbai
Date : Date: 27th May 2016
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