| We have audited the accompanying financial statements of PANKAJ
POLYMERS LIMITED ("The Company"), which comprise the Balance Sheet as
at 31st March 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors are responsible for the matters stated
in section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes the
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding of the assets of the Company and
for preventing and detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial control,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view,
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial control
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the management as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, 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, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in Annexure a
statement on matters specified in paragraphs 3 and 4 of the Order to
the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 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 31st March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the other matters included in the Auditor's Report
and in accordance with Rule 11 of Companies (Audit and Auditors) Rules,
2014 and in our opinion and to the best of our information and
explanations given to us:
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There were no amounts which required to be transferred to the
Investor Education and Protection Fund by the Company
Annexure referred to in paragraph 1 of our report of even date RE:
Pankaj Polymers Limited
i. a) The Company has maintained proper records showing full
particular including quantitative details
and situation of fixed assets.
b) As explained to us, the fixed assets have been physically verified
by the management according to the phased program designed to cover all
the fixed assets over the year. In respect of fixed assets verified
according to this program, which we consider reasonable, no material
discrepancies were noticed on such verification.
ii. a) As explained to us, inventories have been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b) The procedures explained to us, which are followed by the management
for physical verification of inventories, are in our opinion reasonable
and adequate in relation to the size of the company and nature of its
business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii. No loans were granted by the Company, to any of the parties
covered in the register maintained under section 189 of the Act. Hence
we have not reported on the related matters of this clause and
sub-clauses (a)and(b).
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for sale of goods and
power. We have not observed any major weakness in the internal control
system during the course of the audit.
v. The Company has not accepted any deposits from the public within
the meaning of sections 73 to 76 or any other relevant provisions of
the Act and rules framed there under.
vi. Maintenance of Cost Records under Section 148(1) of the Act, is
not required for the activity carried out by the Company.
vii. a) The Company is regular in depositing undisputed statutory dues
with appropriate authorities including Provident Fund, Employees' State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of
Customs, Duty of Excise, Value Added Tax, Cess and any other statutory
dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth
Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax or
Cess were in arrears as at 31st March, 2015 for a period more than six
months from the date they became payable.
c) According to the information and explanations given to us, there are
no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of
Customs, Duty of Excise, Value Added Tax or Cess which have not been
deposited on account of any dispute other then mention below.
S Name of the Nature of Amount Forum where dispute
No Statute Dues (in Rs) is pending
1. Sales Tax Act Sales Tax 843346/- Appellate
Jurisdiction
d) In our opinion, there are no amounts required to be transferred to
the Investor Education and Protection Fund by the Company.
viii. The Company has no accumulated losses at the end of the financial
year and it has not incurred cash loss during the year covered by audit
and in the immediately preceding financial year.
ix. According to the records of the Company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders, as applicable, as at the Balance sheet date.
x. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
xi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xii. During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Accounting Practice in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company noticed or reported during the year, nor
have we been informed of such case by the management.
FOR LUHARUKA& ASSOCIATES
CHARTERED ACCOUNTANTS
FRN:-01882S
Sd/-
(RAMESH CHAND JAIN)
Place: Secunderabad (PARTNER)
Date: 25.05.2015 (M. NO. 23019) |