AVI Polymers Ltd.
|BSE: 539288||Sector: Others|
|NSE: N.A.||ISIN Code: INE897N01014|
|BSE LIVE 11:04 | 17 Mar||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 539288||Sector: Others|
|NSE: N.A.||ISIN Code: INE897N01014|
|BSE LIVE 11:04 | 17 Mar||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
To the Members of
AVI POLYMERS LIMITED
Report on the Financial Statements
We have audited the financial statements of AVI Polymers Limited ("theCompany") which comprise the Balance Sheet as at March 31 2016 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statement
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's directors as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2016 and its profit and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirement
1. As required by the Companies (Auditor's Report) order 2016 ( the Order')issued by central Government of India in terms of sub-section (11) of section 143 of theAct we give in the Annexure A a statement on the matters specified in the paragraph 3and 4 of the order to the extent applicable.
2. 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 bestof our knowledge and belief were necessary for the purposes of our audit;
b) in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
c) the Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d) in our opinion the aforesaid financial statements comply with the AccountingStandards 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 March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2).
f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure B'; and
g) with respect to the other matters to be included in the auditor's report inaccordance with rule 11 of the companies (Audit and Auditors) Rule 2014 in our opinionand to the best of our information and according to the explanations given to us:
(i) The company has disclosed the impact of pending litigations on its financialposition in its financial statements
(ii) The company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses.
(iii) There are no such amounts which is required to be transferred to the investoreducation and protection fund by the company and hence the question of delay intransferring the above said amounts does not arise.
Annexure A to the Auditors' Report
The Annexure to in the independent auditor's Report to the members of the Company onthe financial statements for the year ended 31 March 2016 we report that:
(i) In respect of Fixed Assets:
(a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets covering significant values were physically verified by themanagement as such intervals which in our opinion provides for physical verification ofall the fixed assets at reasonable interval having regard to the size of the company andnature of its business. According to the information and explanations given to us by themanagement no material discrepancies have been noticed on such verification.
(c) Since the company does not hold any immovable property hence the question ofwhether the title deeds of Immovable properties are held in the name of the company doesnot arise.
(ii) In respect of its Inventory:
(a) As per the information and explanation given to us the inventory of finished goodswere during the year physically verified by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us nodiscrepancies were noticed on physical verification and hence the question of it beenproperly dealt with in the books of accounts does not arise.
(iii) In our opinion and according to the information and explanations given to us thecompany has not granted any loans secured or unsecured to companies firms or other (a)Parties listed in the register maintained under Section 189 of the Companies Act 2013.Consequently the provisions of clauses iii (b) iii(c) of the order are not applicable tothe Company.
(iv) In our opinion and according to the information and explanations given to us thecompany has not given any loan made any investment given any guarantee or provided anysecurities covered under section 185 and 186 of the companies Act 2013 during the yearexcept loan to employees as a part of the condition of service.
(v) To the best of our knowledge the company has not accepted any deposits coveredunder section 73 or any other provisions of the companies Act 2013.
(vi) To the best of our knowledge central government has not prescribed themaintenance of cost records under section 148(1) of the companies Act 2013.
(vii) According to Information and explanation given to us in respect of statutorydues:
(a) The company has generally been regular in depositing undisputed dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty and any otherstatutory dues applicable to it with the appropriate authorities and there were noundisputed dues in arrears as at 31st March 2016 for a period of more than sixmonths from the date they become applicable.
(b) The disputed statutory dues aggregating Rs. 104.41 lacs that have not beendeposited on account of disputed matter pending before appropriate authority are as under.
(viii) Since the company has not taken any loans or borrowings from financialinstitution bank Government or debenture holders and hence the question whether thecompany has defaulted in repayment of loans or borrowings dues to a financial institutionbank Government or debenture holders does not arise.
(ix) To the best of our knowledge according to the information and explanations givento us the company has not raised moneys by way of initial public offer or further publicoffer (including debt instrument) and term loans during the year. Accordingly para 3(ix)of the Order is not applicable.
(x) Based on the audit procedures performed and the information and explanations givento us we report that no material fraud by the Company or on the Company by its officersor employees has been noticed or reported during the year nor we have been informed ofsuch case by the management.
(xi) Since the Company has not paid or provided for any managerial remuneration andhence the question whether the managerial remuneration has been made in accordance withthe requisite approvals mandated by the provision of section 197 read with schedule V ofcompanies Act 2013 does not arise.
(xii) To the best of our knowledge according to the information and explanations givento us Company is not a Nidhi Company.
(xiii) Since the Company has not entered into any related party transactions and hencethe question whether all transactions with related parties are in compliance with section177 and 188 of the companies Act 2013 does not arise.
(xiv) To the best of our knowledge according to the information and explanations givento us Company has not made any preferential allotment of private placement of shares orfully or partly convertible debentures during the year.
(xv) To the best of our knowledge according to the information and explanations givento us company has not entered in to any non-cash transactions with directors or personsconnected with him.
(xvi) To the best of our knowledge according to the information and explanations givento us Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
Annexure B to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of AVIPolymers Limited ("the Company") as of March 31 2016 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance 168 Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.