We have audited the attached Balance Sheet of M/S JINDAL POLY FILMS
LIMITED as at 31st March, 2012 and also the annexed Statement of Profit
and Loss Account and the Cash Flow Statement for the year ended on that
date (together referred to as ''financial statements''). 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. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of 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 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, issued by
the Central Government of India in terms of Section 227(4A), of the
Companies Act 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said order.
Further to our comments in the Annexure referred to above, we report
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
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 such
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
flow Statement dealt with by this report have been prepared in
compliance with the Accounting Standards referred to in Sub Section
(3C) of Section 211 of the Companies Act, 1956.
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the said directors are disqualified as on 31st March, 2012 from
being appointed as directors in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with significant accounting policies and other notes (note no.
1 to 30) 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:
i. In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012 and,
ii. In the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date.
iii. In case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS'' REPORT OF JINDAL POLY FILMS LIMITED (Annexure
referred to in our report of even date)
1. In respect of 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 phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As explained to us,
the management during the year has physically verified all the fixed
assets of the Company and no material discrepancies between the book
records and the physical verification were noticed on such
(c) Fixed assets disposed off during the year, were not substantial
and, therefore, it does not affect the going concern assumption.
2. In respect of its inventories:
(a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of the loans:
(a) The company has granted loans to one company during the year. The
maximum amount involved during the year was Rs.77, 655,068/- the
year-end balance of loan granted to such companies was Rs.
77,655,068/-. The company has not taken any loans during the year
secured or unsecured to any Company, firm or party covered in register
maintained under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions are
not prima facie prejudicial to the interest of the company
(c) In respect of loans granted by the company the interest payments
are regular and the principal amounts are being received /renewed on
the due dates. In respect of loans taken by the company, the interest
payments are regular and the principal amount is repayable on demand.
(d) There is no overdue amount in respect of the above loans.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control
procedure commensurate with the size of the Company and the nature of
its business for the purchase of stores, raw material including
components, plant and machinery, equipment and other assets and for the
sale of goods. Further, on the basis of our examination of the books
and records of the company in accordance with the generally accepted
auditing practices, we have neither come across, nor have we been
informed the existence of major weakness in the internal control
procedures and systems. However, the corrective actions were taken
against the minor weaknesses as noticed and informed to them.
5. (a) As per the audit procedures applied by us, and according to the
information and explanations given to us by the
management, the transactions made in pursuance of contracts or
arrangements that needed to be entered in the register maintained under
section 301 of the Companies Act, have been so entered.
(b) As per the audit procedures applied by us and as per the
information and explanations given to us, with respect to the
transactions as entered in the register maintained under section 301,
exceeding the value of five lac rupees in respect to any party during
the financial year, the prices at which these have been made are
reasonable having regard to the prevailing market prices at that time.
6. According to the information and explanations given to us, the
company has not accepted any deposits from the public. Therefore, the
provisions of Clause (vi) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
7. In our opinion the company has an internal audit system
commensurate with the nature and size of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the order made by the Central Government for the
maintenance of cost records u/s 209(1)(d) of the Companies Act, 1956
and are of opinion that prima –facie the prescribed records and
accounts have been maintained by the company. However, we have not made
a detailed examination of these records to verify whether they are
accurate or complete.
9. (a) The company is regular in depositing the undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income-Tax, Sales Tax, Wealth-tax, Custom
Duty, Excise Duty, Cess and other statutory dues have been regularly
deposited with the appropriate authorities during the year. According
to the information and explanations given to us, no undisputed amounts
payable in respect of the aforesaid dues were outstanding as at 31st
March 2012 for a period of more than six months from the date of
(b) According to the information and explanation given to us, details
of dues of income tax, sales tax, excise, customs, wealth tax and
service tax which have not been deposited on account of any dispute are
Nature of the
Statute Nature of
the dues Amount
Disputed Forum where
(Rs/Lacs) is pending
1. Income Tax
Act Income Tax
demand 391.45 ITAT F.Y.1998-99
demand 17.08 CIT F.Y.2004-2005
demand 2.44 ITAT F.Y.2000-2001
demand 15.51 ITAT F.Y 1997-98
demand 0.70 CIT(A) F.Y 2005-06
demand 0.87 CIT(A) F.Y 2000-01
demand 1.0 CIT(A) F.Y 2003-04
demand 68.23 CIT(A) F.Y 2006-2007
demand 82.46 CIT(A) F.Y 2007-08
demand 1.52 CIT(A) F.Y 2008-09
Tax Act Sales Tax
Demand 1811.59 Sales Tax Tribunal
(2002-03 TO 2007-2008)
Law Act Demand 613.66 Asst. Commissioner
10. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
11. According to the information and explanations given to us and as
per the books of accounts examined by us, the company has not defaulted
in the repayment of dues to the financial institutions or to the banks
or to the debenture holders.
12. According to 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/Nidhi/Mutual Fund/
Society. Therefore, clause 4(xiii) of the Companies (Auditor''s Report)
Order, 2003 is not applicable to the company.
14. The Company has maintained proper records of transactions and
contracts in respect of trading in securities, debentures and other
investments timely entries have been made therein. All shares,
debentures, and other investments have been held by the Company in its
15. According to the information and explanations given to us, the
Company has not given any guarantees against loans taken by others from
banks & financial institutions.
16. Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
17. According to the information and explanations given to us and as
per the books and records examined by us, as on the date of balance
sheet, the funds raised by the company on short-term basis have not
been applied for long-term investments and vice versa.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The company does not have any debentures outstanding as on the
Balance Sheet date, hence, the clause 4(xix) of the order is not
20. The company has not raised any money through a public issue during
21. According to the information and explanations given to us, and on
the basis of our examination of the books and records of the company
carried out in accordance with the generally accepted auditing
practices in India, we have not come across any such instance of fraud
on or by the company, noticed and reported during the year.
For KANODIA SANYAL & ASSOCIATES
Firm Registration No.008396N
Place: New Delhi (R.K KANODIA)
Dated: 01st September, 2012 PARTNER
Membership No. 016121