We have audited the accompanying financial statements of Pet Plastics
Limited which comprise the balance sheet as at 31 March 2014, the
Statement of Profit And Loss and 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
Management is responsible for 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 Standards referred to in sub-section (3C) of section
211 of the Companies Act, 1956 (the Act). This responsibility
includes the design, implementation and maintenance of internal
control 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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 control relevant to the
Company''s preparation and fair presentation of the financial
statements 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 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2014;
(ii) in the case of the Statement of Profit And Loss, of the Loss for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of ths^sh 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, 2003
(the Order), as amended, issued by the Central Government of
India in terms of sub-section (4A) of section 227 of the Act, we give
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose 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, 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 Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to
in subsection (3C) of section 211 of the Companies Act, 1956; and
e. on the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2014, from
being appointed as a director in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITOR''S REPORT OF EVEN
DATE ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2014 OF M/s. PET
PLASTICS LIMITED.
1. a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed assets of the Company have been physically verified by
the management at reasonable intervals during the year and this
revealed no material discrepancies.
c) No fixed assets have been disposed off during the year.
2. In respect of shares held as stock in trade:
a) As explained to us, the shares were physically verified by the
management at reasonable intervals during the year.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of shares
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
c) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of its shares
and the discrepancies noticed on such physical verification between
the physical stock and book records are not material and have been
adequately dealt within the books of accounts.
3. In our opinion and according to the information and explanations
given to us ,the company has not taken any loans secured or unsecured
from companies, firms or other parties covered in the register
maintained under section 321 of the Companies Act, 1956.Accordingly
paragraphs 4(iii) (c) ,(f) and (g) of the order are not applicable.
4. In our opinion, and according Jo the information and explanation
given to us, we are of the. opinion that there is adequate internal
control commensurate with the size of the company and nature of its
business.
We have not noted any continuing failure to correct major weaknesses
in the internal control.
5. a) In our opinion1 and according to the information and
explanations given to us, the transactions that need to be entered in
the register on pursuance of section 321 of the Act have been so
entered.
b) The transactions have been made at prices which are reasonable with
regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits within the
meaning of section 58A and 58AA of the Companies Act, 1956, and rules
framed there under are not applicable. No order has been passed by the
Company Law Board. The provisions of RBI Act, 1934 regarding
registration of non- banking financial Company are stated yet to be
complied with.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
8. According to the information and explanation given to us, the
Central Government has not prescribed the maintenance of cost records
under clause (d) of sub-section (1) of Section 209 of the Companies
Act, 1956.
9. a) According to the records of the company examined by us and the
information and explanations given to us, no undisputed amounts
payable in respect of income tax, and other statutory dues applicable
to it were outstanding, as at 31st March. 2014 for a period of more
than six months from the date they became payable.
b) According to the records of the company examined by us and the
information and explanations given to us, there are no dues of income
tax and other statutory liabilities, which have not been deposited on
account of any dispute.
10. The Company has accumulated losses at the end of the financial
year. The Company has incurred cash losses in the current financial
year as well as in the immediately preceding 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 a
financial institution, bank or debenture holders.
12. The company has not granted 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 or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to
the company.
14 In our opinion, proper records have been maintained in respect of
transactions and contracts in shares, and timely entries have been
made therein. The shares and other investment have been held by the
company in its own name.
15. In our opinion, the company has not given any guarantee for loans
taken by others from banks of financial institutions
16. The company has not obtained any term loans.
17. According to the information and explanations given to us and on
the basis of an overall examination of the balance sheet of the
Company, in our opinion, generally, there are no funds raised by the
Company on short-term basis, which have been used for long-term
investment.
18. During the year, 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 has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of examination of the books and records of the
Company carried out in accordance with the generally accepted auditing
practices in India, 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 MULRAJ D. GALA
Chartered Accountants
MULRAJ DEVCHAND GALA
(Proprietor)
Membership No: 041206
Place: Mumbai
Date: 14th August, 2014
