1. We have audited the accompanying financial statements of PITHAMPUR
POLY PRODUCTS LIMITED (the Company), which comprise the Balance Sheet
as at March 31s1, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The Company''s Board of Directors is responsible for the matters
stated in section 134(5) of the Companies Act, 2013 (the Act) with
respect to the preparation and presentation 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 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; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal 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 and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. 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.
4. 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.
5. 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. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
6. 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
7. 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 March 31st, 2015 and its Loss and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
8. 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 the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
9. 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 beliefwere 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, the Statement of Profit and Loss and the 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 the written representations received from the
directors as on March 31s1,2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of Section 164 (2) of the
Act;
(f) 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)
Rules, 2014, in our opinion and to the best of our information and
according to the 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
derivative contracts for which there were any material foreseeable
losses.
(iii) There is no amount required to be transferred to the Investor
Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
The Annexure referred to in our IndependentAuditors'' Report to the
members of the company on the financial Statements for the year ended
31st March 2015, we report that:
(i) In respect of its FixedAssets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and the
nature of its assets. As explained to us, no material discrepancies
were noticed on such physical verification.
(ii) In respect of its Inventories:
(a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) ln our opinion and according to the information and explanations
given to us, the procedures 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 per the
information and explanation given to us, no material discrepancies were
noticed on physical verification.
(iii) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013, Therefore, the provisions
of clause (iii)(a) and (iii)(b) of paragraph 3 of the Order are not
applicable to the Company.
(iv) ln our opinion and according to the information and explanations
given to us, the Company has an adequate internal control system
commensurate with its size and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
(v) According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore, the
provision of clause (v) of paragraph 3 of the Order is not applicable
to the Company.
(i) As per information and explanations given to us, the Central
Government of India has not prescribed the maintenance of cost records
under sub-section (1) of section 148 of the Act, for the business of
the Company.
(vii) In respect of Statutory Dues:
(a) According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, the Company is
regular in depositing the undisputed statutory dues including provident
fund, employees'' state insurance, income tax, wealth tax, service tax,
duty of customs, duty of excise, value added tax, cess and other
material statutory dues, as applicable, with the appropriate
authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid dues were in arrears
as at 31s1 March, 2015 for a period exceeding six months from the date
they became payable.
(b) According to the information and explanations given to us, there
are no material dues of wealth tax, service tax, duty of customs, duty
of excise, value added tax and cess which have not been deposited with
the appropriate authorities on account of any dispute. However,
according to information and explanations given to us the following
dues of income tax and entry tax have not been deposited as on 31st
March, 2015 by the Company on account of disputes:
Sr. Name of Nature of Dues Amount
No. the Statute (Rs. in Lakhs)
1 Income Tax Act, Penalty u/s. 271(1) (c) 55.56
1961.
2 MP Comm.Tax Demand 0.35
3 MP Comm.Tax Demand 0.18
4 MP Comm.Tax Demand 8.25
Act 1994 Penalty 6.36
5 MP Comm.Tax Demand 6.79
Act 1994 Penalty 5.10
6 MP Comm.Tax Demand 5.78
Act 1994 Penalty 4.16
7 MP Comm.Tax Demand 10.68
Act 1994
Sr. Name of Period for which Forum where dispute is
No. the Statute the Amount pending
Relates
1 Income Tax Act, AY 2007-08 CIT(A)-I, Indore
1961.
2 MP Comm.Tax 1996-1997 Dy.Comm. Appellate
MP Commercial Tax
Dept. Indore
3 MP Comm.Tax 1999-2000 Dy.Comm.Appellate
MP Commercial Tax
Dept. Indore
4 MP Comm.Tax 2000-2001 Dy.Comm.Appellate
Act 1994 MP Commercial Tax
Dept. Indore
5 MP Comm.Tax 2001-2002 Dy.Comm.Appellate
Act 1994 MP Commercial Tax
Dept. Indore
6 MP Comm.Tax 2002-2003 Dy.Comm.Appellate
Act 1994 MP Commercial Tax
Dept. Indore
7 MP Comm.Tax 2003-2004 Dy.Comm.Appellate
Act 1994 MP Commercial Tax
Dept. Indore
(c) According to the information and explanations given to us, no
amount was 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.
(viii) The Company has accumulated losses of Rs.665.49 Lakhs as at 31st
March, 2015. The Company has also incurred cash loss of Rs.8.76 Lakhs
in the financial year ended on that date.
(ix) According to the records of the Company examined by us'' and the
information and explanation given to us, the Company has not made
repayment of dues to bank due to dispute and litigation pending before
Debt Recovery Tribunal.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xi) In our opinion, the Term Loans have been applied for the purpose
for which they were raised.
(xii) According to information and explanations given to us, no fraud
on or by the company has been noticed or reported during the year.
FOR : ARIF JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS
PLACE: INDORE
DATED: MAY 15th, 2015
(AMMAR ARIF)
PARTNER
M. NO. : 421064