TO THE MEMBERS OF DUROPACK LTD.
Report on the Financial Statements
We have audited the accompanying financial statements of DURO PACK LIMITED whichcomprise the Balance Sheet as at 31st March 2015 the Statement of Profit and Loss theCash Flow Statement for the year then ended and a summary of the significant accountingpolicies and other explanatory information
Management's Responsibility for the Financial Statements
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 thereunder. 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 theamounts and the disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the standalone 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 31stMarch 2015 and its profit/loss and its cash 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 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 of the Order
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 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms of Section164 (2) of the Act.
(f) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition.
ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company .
| ||FOR PVSP & CO. |
| ||Chartered Accountants |
| ||(FRN No. 00894N) |
| ||sd /- |
| ||(VINOD RALHAN) |
|Place: New Delhi ||Partner |
|Date: 30th May 2015 ||(Membership No.: 91503) |
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in our report to the members of Duropack Limited for the yearEnded on 31st March 2015. We report that:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.
(ii) a) As per the information and explanations given to us the inventories have beenphysically verified by the management at reasonable intervals during the year.
b) In our opinion and as per the information and explanations given to us proceduresof physical verification of inventory followed by the management are reasonable andadequate in relation to the size of the Company and nature of its business.
c) The Company is maintaining proper records of inventories. In our opiniondiscrepancies noticed on physical verification of inventory were not material in relationto the operations of the Company and the same have been properly dealt with in the booksof account.
(iii) The Company has not granted any loans to any bodies corporate firm or otherparties covered in the register maintained under section 189 of the Companies Act 2013.
(iv) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business with regard to purchase of fixed assets and sale of Products.The activities of the Company do not involve purchase of inventory and the sale of goods.We have not observed any major weakness in the internal control system during the courseof the audit.
(v) The Company has not accepted any deposits from the public.
(vi) As Per the information and explanation given by the management the company isrequired to maintain cost records under section 148(1) of the Act and shall submit adully certified by cost accountant along with the annexure to the central Govt. In theprescribed form and we are of the opinion that prima facia prescribed accounts and recordshave made and maintained by the Company.
(vii) (a) According to information and explanations given to us and the recordsexamined by us the Company has generally been regular in depositing with appropriateauthorities undisputed statutory dues including provident fund investor education andprotection fund employees' state insurance income tax value added tax wealth taxcustom duty excise duty cess and other statutory dues wherever applicable.
(b) According to information and explanations given to us no undisputed arrears ofstatutory dues were outstanding as at March 31 2015 for a period of more than six monthsfrom the date they became payable.
(c) According to the records of the Company there are no dues outstanding in respectof income tax HVAT customs duty wealth-tax service tax excise-duty cess etc onaccount of any dispute.
(viii) The Company have accumulated losses less than 50% of its net worth at the endof the financial year and has not incurred cash losses in the financial year and in theimmediately preceding financial year.
(ix) The Company did not have any outstanding dues to financial institutions banks ordebenture holders during the year.
(x) In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.
(xi) The Company has not taken any term loans during the year.
(xii) According to the information and explanations given to us no material fraud onor by the Company has been noticed or reported during the course of our audit.
| ||FOR PVSP& CO. |
| ||(Chartered Accountants) |
| ||(FRN NO. 008940N) |
| ||Sd /- |
| ||(VINOD RALHAN) |
|Place : New Delhi ||Partner |
|Dated : 30th May 2015 ||Membership No. 091503 |