We have audited the accompanying financial statements of POLYMECHPLAST
MACHINES LTD. (''The Company"), which comprises the Balance Sheet as at
31st March 2015, the Statement of Profit and Loss for the period from
1st April 2014 to 31st March 2015, the Cash Flow Statement for the year
ended, and a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013('the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting, Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India;
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
b) In the case of the Statement of Profit and Loss, of the profit for
the period from 1st April, 2014 to 31st March 2015; and
c) In the case of the Cash Flow Statement, of the cash flows for the
period from 1 st April, 2014 to 31 st March 2015.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
financial statements:
a) On account of certainty of ultimate collection regarding disputed
flood insurance claim, which has been settled in the favour of the
company in district court during the year, the company has recognized
insurance claim receivable as revenue amounting to Rs. 40,28,289/-
towards claim and Rs. 1,24,08,230/- towards interest on such claim and
reimbursement of expense. (Refer Note no. 19)
Our opinion in not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements:
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 appears from our examination of those
books
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, non of
the directors is disqualified as on 31 March, 2015, from being
appointed as director in terms of Section 164(2) of the Act.
respect to the other matters included in the Auditor's Report and to
our best of our information and according to the explanations given to
us:
i) The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
ii) There were no amounts which are required to be transferred, to the
Investor's Education and Protection Fund by the company.
ADDITIONAL INFORMATION ANNEXED TO THE INDEPENDENCE AUDITOR'S REPORT
1 In respect of its Fixed Assets:
(a) The Company has not maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) As proper records showing full particulars including the
quantitative details are not maintained by the management therefore we
are not in a position to comment on the physical verification of Fixed
Assets.
(c) No significant part of the fixed assets has been disposed off or
revalued during the year.
2. In respect of its Inventories:
(a) As explained to us, the inventories were physically verified during
the year by the Management at regular intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management were 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 inventory and
material discrepancies noticed on physical verification were duly taken
care of by the management.
3. The Company has neither granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under Section 189 of the Companies Act, 2013.
4. In our opinion and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services and during the course of our audit we have not observed any
continuing failure to correct major weakness in such internal control
system.
5. In respect of contracts or arrangements entered in the Register
maintained in pursuance of section 189 of the Companies Act, 2013, to
the best of our knowledge and belief and according to the information
and explanations given to us, there are no contracts or arrangements
that need to be entered in the Register maintained under said section.
6. The Company has not accepted any deposits during the year from the
public.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records for
services carried out by the Company.
9. (a) According to the information and explanation given to us and
records examined by us, there are no undisputed statutory dues payable
in respect of Provident Fund, Investors Education & Protection Fund,
Employees' State Insurance, Income Tax, Wealth Tax, Value Added Tax,
Custom Duty, Excise Duty, Service Tax, cess or any other statutory dues
with the appropriate authorities as at the last day of the financial
year concerned for a period of more than six months from the date they
became payable.
Name of Statute Name of the Dues Amount(Rs.)
VAT-Mumbai VAT 10,118
CST-Mumbai CST 9,850
(b) According to the information and explanation given to us, there are
no disputed statutory dues payable in respect of Provident Fund,
Investors Education & Protection Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Value Added Tax, Custom Duty, Excise
Duty, Service Tax, cess or any other statutory dues with the
appropriate authorities to the extent of the arrears of outstanding
statutory dues as at the last day of the financial year concerned for a
period of more than six months from the date they became payable,
except following:
Sr. Statutory Dues Dispute Pending with Amount (Rs.)
No.
1 Underwritten Commission Civil Court-Vadodara 86,000
2 Income Tax Commissioner Appeals 3,79,650
10. In respect of Accumulated/Cash Losses:
The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and the financial year immediately preceding such 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 bank
or financial institution.
12. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
13. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
14. The Company has not issued debentures during the year and hence
requirement of reporting regarding creation of securities in respect of
debentures issued does not arise.
15. Company has not raised any money by public issue during the year.
16. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
Parikh Mehta & Associates
Chartered Accountants
Firm Registration No. 112832 W
Ashish Parikh
Partner
Membership No. 116745
Place : Vadodara
Date : 29-5-2014
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