Pithampur Poly Products Ltd.

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