We have audited the accompanying financial statements of JOLLY PLASTIC
INDUSTRIES LIMITED which comprise the Balance Sheet as at 31st March
2015, the Statement of Profit and Loss, the Cash Flow Statement for the
year ended, and a summary of the 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 stated
in section 134(5) of the Companies Act'' 203 with respect to the
preparation of these financial Statements that give a true and fair
view of the financial position, financial performance and cash flow 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 of the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of
appropriate accounting policies ; judgments and estimate that are
reasonable and prudent: and design implementation of adequate 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 view and 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 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
statement, 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 is
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 financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations to 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 31st
March, 2015, and its profit/loss and for the ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2013 (the
Order), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
Further to our comments in the aforesaid annexure, as required by
section 143(3) of the Act, we report that:
1. 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.
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
those books.
3. The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
4. 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) Rule, 2014.
5. On the basis of the written representations received from the
directors is not disqualified as on 31st March, 2015 from being
appointed as directors in terms of section 164(2) of the Act.
6. 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)
Rule, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
a) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements Refer Note XX to the
financial statements;
b) The Company has made provision, as required under the applicable law
or accounting standards, for material foreseeable losses, if any, on
long-term contracts for including derivative contracts Refer Notes XX
to the financial statements;[or the Company did not have any long-term
contracts including derivative contracts for which there were any
material foreseeable losses.]
c) There has been no delay in transferring amounts, required to be
transferred, to the investor education and Protection Fund by the
Company {or, following are the instances of delay in transferring
amounts, required to be transferred, to the investor Education and
Protection fund by the Company or there were no amounts which were
required to be transferred to the investor Education and Protection
Fund by the Company].
Referred to in paragraph 1 under the heading of Report on Other Legal
and Regulatory Requirements of our report of even date
(i) (a) The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) These fixed assets have been physically verified by the management
at reasonable intervals; any material discrepancies were noticed on
such verification and if so, the same have been properly dealt with in
the books of account;
(ii) (a) Physical verification of inventory has been conducted at
reasonable intervals by the management;
(b) The procedures of physical verification of inventory followed by
the management is reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) The company has granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act. If so,
(a) receipt of the principal amount and interest arc also regular; and
(b) If overdue amount is more than rupees one lakh, reasonable steps
have been taken by the company for recovery of the principal and
interest;
(iv) 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,
there is a continuing failure to correct major weaknesses in internal
control system.
(v) In case the company has accepted deposits, the directives issued by
the Reserve Bank of India and the provisions of sections 73 to 76 or
any other relevant provisions of the Companies Act and the rules framed
there under, where applicable, have been complied with.
(vi) Maintenance of cost records has been specified by the Central
Government under sub-section (1) of section 148 of the Companies Act,
such accounts and records have been made and maintained;
(vii) (a) The company is regular in depositing undisputed statutory
dues 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 with the appropriate
authorities and if not, 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, shall
be indicated by the auditor.
(b) In case dues of income tax or sales tax or wealth tax or service
tax or duty of customs or duty of excise or value added tax or cess
have not been deposited on account of any dispute, then the amounts
involved and the forum where dispute is pending shall be mentioned. (A
mere representation to the concerned Department shall not constitute a
dispute).
(c) the amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under has been
transferred to such fund within time.
(viii) In case of a company which has been registered for a period not
less than five years, its accumulated losses at the end of the
financial year are not less than fifty per cent of its net worth and it
has incurred cash losses in such financial year and in the immediately
preceding financial year;
(ix) The company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
(x) The company has not given any guarantee for loans taken by others
from bank or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the company;
(xi) Term loans were not applied for the purpose for which the loans
were obtained;
(xii) No fraud on or by the company has been noticed or reported during
the year.
For M/s D. Khurana & Company
CHARTERED ACCOUNTANTS
Firm Reg. No. 022696
Sd-
CA. Deepak Khurana
Place: New Delhi (Partner)
Date: 30/05/2015 M. NO. 512849
