To the Members of Gulshan Polyols Ltd.
Report on the Financial Statements
We have audited the accompanying financial statements of Gulshan Polyols Limited("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss the Cash Flow Statement for the year ended and a summary ofsignificant accounting policies 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 the maintenance of adequate accounting records in accordancewith the provisions of the act for safeguarding the assets of the company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgment and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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 accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements.
An Audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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:
(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2017 (b) In the case of the Statement of Profit and Loss of the profit for theyear ended on that date; and (c) In the case of the Cash Flow Statement of the cash flowsfor the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 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 purpose 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 of the Companies(Accounts) Rules 2014;
e. On the basis of the written representations received from the directors as on March31 2017 and taken on record by the Board of Directors none of the directors is disqualied as on March 31 2017 from being appointed as a director in terms of section 164(2) ofthe Act.
f. In our opinion the company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the company.
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) Rules 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. The cases under litigation are not very material andwill not materially affect the financial position of the Company;
(ii) The Company has made provisions as required under applicable laws or accountingstandards for material foreseeable losses if any and as required on long term contractsincluding derivative contracts;
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company and
(iv) The Company has provided disclosures in its financial statements as to holdings aswell as dealings in specified bank notes during the period from 8 November 2016 to 30December 2016 and the same are in accordance with books of accounts maintained by thecompany.
| ||For SHAHID & ASSOCIATES |
| ||Chartered Accountants |
| ||(Registration No. 002140C) |
| ||(MOHD. SHAHID) |
|Date : May 27 2017 ||Proprietor |
|Place : Delhi ||Membership No. : 070408 |
ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 1 under the heading 'Report on Other Legal & RegulatoryRequirement' of our report of even date to the financial statements of the Company for theyear ended March 31 2017:
(i) In Respect of its Fixed Assets:
(a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) These fixed assets have been physically verified by the management at reasonableintervals in accordance with regular programme of verification. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.
(c) The title deeds of immovable properties are held in the name of the company.
(ii) In Respect of its inventory:
According to the information and explanations given to us Physical verification ofinventory has been conducted at reasonable intervals by the management and no materialdiscrepancies were noticed on physical verification during the year.
(iii) According to information and explanations given to us the company has notgranted loans secured or unsecured to companies firms Limited Liability Partnerships orother parties covered in the register maintained under section 189 of the Companies Act2013.
(iv) According to information and explanations given to us the Company has compliedwith the provisions of section 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and security.
(v) According to information and explanations given to us the company has not acceptedany deposits during the year.
(vi) We have broadly reviewed the cost records maintained by the company pursuant tothe Companies (Cost Records and Audit) Rules 2014 as amended and prescribed by theCentral Government under sub-section (1) of section 148 of the Companies Act 2013 and areof the opinion that prima facie the prescribed cost records have been made and maintained.We have however not made a detailed examination of the Cost Records with a view todetermine whether they are accurate and complete.
(vii) According to the information and explanations given to us in respect ofstatutory dues:
(a) The company is generally regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues with theappropriate authorities.
(b) Details of Disputed Statutory dues which have not deposited as on March 31 2017 onaccount of disputed matters pending before appropriate authorities are given below:
|Name of the Statute ||Nature of the Dues ||Amount ||Period to which the amount relates ||Forum where pending |
| || ||(Rs in Lakhs) || || |
|Central Excise Act 1944 ||Service Tax ||9.71 ||2013-14 & 2014-15 ||Commissioner (Appeal) |
|Central Excise Act 1944 ||Service Tax ||1.60 ||2014-15 ||Commissioner (Appeal) |
|Central Excise Act 1944 ||Service Tax ||24.06 ||2011-12 2012-13 2013-14 2014-15 2015-16 ||Commissioner (Appeal) |
|Central Excise Act 1944 ||Service Tax ||61.74 ||2005-06 2006-07 2007-08 ||CESTAT |
|Central Excise Act 1944 ||Excise Duty ||24.46 ||2013-14 & 2014-15 2015-16 ||Commissioner (Appeal) |
(viii) The company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders.
(ix) The company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year.
(x) According to the information and explanations given to us we have not noticed orreported any fraud by the company or any fraud on the Company by its officers or employeesduring the year.
(xi) The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act.
(xii) This clause of the CARO 2016 is not applicable to the Company as the company isnot a Nidhi Company.
(xiii) According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.
(xiv) According to the information and explanations given to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review.
(xv) According to the information and explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him andthe provisions of section 192 of Companies Act 2013 have been complied with;
(xvi) This clause of the CARO 2016 is not applicable to the Company as the company isnot required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
| ||For SHAHID & ASSOCIATES |
| ||Chartered Accountants |
| ||(Registration No. 002140C) |
|Date : May 27 2017 || |
|Place : Delhi || |
| ||(MOHD. SHAHID) |
| ||Proprietor |
| ||Membership No. : 070408 |