We have audited the attached Balance Sheet of M/s. KCCL PLASTIC LTD. as
at 31st March, 2013 and also the Profit and Loss account of the year
ended on the date annexed thereto and cash flow statement for the year
ended on that date. 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 auditing standards generally
accepted in India. Those 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
1. We have obtained all the information and explanations which, to the
best of our knowledge and belief were necessary for the purpose of our
2. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as it appears from our examination of
3. The said Balance Sheet and Profit & Loss Account are in agreement
with the books of accounts.
4. In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
5. On the basis of written representations received from the
Directors, as on 31st March, 2013 and taken on record by the Board of
Directors, We report that none of the directors is disqualified as on
31st March 2013, from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
6. As required by the Companies (Auditor''s Rep[ort) order, 2003
issued by the central government of India in terms of sub-section (4A)
of the section 227 of the Companies Act, 1956. We enclose in the
annexure a statement on the matters specified in paragraph 4 and 5 of
the said order.
7. In our opinion and to the best of our information and according to
the explanations given to us, the Accounts together with the schedules
annexed thereto read with the notes on account made thereon subject to
annexure attached to this report and notes in the Notes of Accounts,
given the information required by the Companies Act, 1956, in the
manner so required and give a true and fair view in conformity with
accounting principles generally accepted in India:
i. In the case of the Balance Sheet, of the state of the affairs of
the Company as at 31st March 2013 and;
ii. In the case of the Profit and Loss Account of the profit for the
year ended on that date.
iii. In the case of the Cash Flow Statement for the year ended on that
Annexure to the Auditors'' Report For the Year Ended on 31-03-2013
(Referred to in paragraph (3) of our report of even date)
(i) (a) The Company has maintained proper record to show full
particulars including quantitative details and situation of fixed
(b) The fixed assets have been physically verified by the management.
In our opinion, the frequency of verification is reasonable. No
material discrepancies have been noticed on such verifications.
(ii) (a) As explained to us, physical verification of the inventory
(except material in transit and lying with third parties) has been
conducted by the management at reasonable intervals. In our opinion,
the frequency of verification is reasonable.
(b) In our opinion, 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 the business.
( c) On the basis of our examination of the records of inventory, we
are of the opinion that the company is maintaining proper records of
inventory. However no verification of inventory took place during the
(iii) (a) (i) The Company has not granted any loans secured or
unsecured to Companies, firm or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956 and as such
information regarding rate of interest, overdue amounts and other terms
& conditions of loans granted is not required to be furnished.
(ii) The Company has not taken any loans during the year from the
parties covered in the registered maintained u/s. 301 of the Companies
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from Companies, firms or other parties
listed in the register maintained u/s. 301 are prima facia not
prejudicial to the interest of the Company.
(c) in our opinion, the company is regular in replying the principal
amounts as per stipulations & has been regular in payment of interest
(d) As per records, of the company, there is no overdue amounts of loan
taken from companies firms or other parties listed in the register
maintained u/s. 301 of the companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us. There are adequate internal control system commensurate
with size of the company and the nature of its business with regards to
purchase of inventory and fixed assets and for the sale of goods and
services. Further on the basis of our examination of the books and
records of the company carried out in according with the auditing
standards generally accepting in India, we have not observed any
continuing failure to correct major weaknesses in the foresaid internal
(v) (a) According to the information and explanations given to us we
are of the opinion that the transactions that need to be entered into
the registered maintained u/s. 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, no transactions of purchase and sale of goods materials
and services, made in pursuance of contracts or arrangements to be
entered into the registered maintained u/s. 301 of the Companies Act,
1956, aggregate during the year to Rs. 5 Lacs in respect of any party.
(vi) In our opinion and according to the information and explanation
given to us, the company has not accepted any deposit within the
provision of section 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposit) Rules 1975.
(vii) In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the books of account 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 we are of the opinion that prima facia the prescribed
accounts and records have been made and maintained.
(ix) (a) According to the records of the Company and as explained to
us, the company is regular in depositing with the appropriate
authorities undisputed statutory dues including Provident Funds,
Service tax, Investor Education and Provident Fund, Employees State
Insurance, Income Tax, Wealth Tax, Custom Duty, Excise Duty, Cess, and
other Statutory dues to the extent applicable to it.
(b) According to the information and explanation given to us, there are
no undisputed amounts payable in respect of income tax, wealth tax,
custom duty, excise duty and cess were outstanding as at 31st March
2013 for a period or more than six months from the date they become
(x) The company has incurred losses in previous years and it has
accumulated losses. However the company has earned the profit during
(xi) Based on our examination of documents and record maintained by the
company, we are of the opinion that since the company has not granted
any loan and advance on the basis of security by way of pledge of
shares, debenture and other securities, it is not required to maintain
records in respect thereof.
(xii) In our opinion, the company is neither a chit fund nor nidhi /
mutual benefit fund / Society and hence clause 4 (xii) of the Order is
(xiii) The company is dealing in or trading in share, securities,
debentures and other investments and accordingly the company has
maintained sufficient records showing quantity and value of shares
purchased and sold. The investments made by the company are held in the
name of the company.
(xiv) Based on our examination of the records, we are of the opinion
that the company has not given any guarantee for loans taken by others
from banks or financial institutions.
(xv) According to the information and explanations given to us and on
over all examination of the balance sheet of the company we report that
the funds raised on short term basis have not been used for long term
(xvi) During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained u/s. 301 of the Companies Act, 1956.
(xvii) During the year the company has not issued any debenture.
(xviii) During the year under review no money was raised by public
(xix) During the course of examination of the books and records of the
company, carried out in accordance with auditing standards generally
accepted in India, we have neither come across any instance of fraud by
the Company, noticed or reported during the year not have been informed
of such case by the management.
PLACE : AHMEDABAD FOR SHIRISH DALAL & ASSOCIATES
DATE : 01.08.2013 CHARTERED ACCOUNTANTS
SHIRISH DALAL (PROPRIETOR)