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Jolly Plastic Industries Ltd.

BSE: 507968 Sector: Industrials
NSE: N.A. ISIN Code: INE289M01016
BSE 05:30 | 01 Jan Jolly Plastic Industries Ltd
NSE 05:30 | 01 Jan Jolly Plastic Industries Ltd

Jolly Plastic Industries Ltd. (JOLLYPLASTIC) - Auditors Report

Company auditors report

TO THE MEMBERS OF JOLLY PLASTIC INDUSTRIES LIMITED

We have audited the accompanying standalone financial statements of Jolly PlasticIndustries Limited ("the Company") which comprise the Balance Sheet as at March31 2017 and the Statement of Profit and Loss and the Statement of cash flows for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

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 Standalone financial statements that give a true and fair view of the financialposition and financial performance and the cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified 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 inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone financial statementsbased on our audit.

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 misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe Standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Standalone 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2017 and its profits and cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 statement of cash flowsdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid Standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) of theAct.

(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 A".

(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 does not have any pending litigations which would affect its financialposition in the standalone financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings Specified Bank Notes (SBNs) as defined in Notification S.O.3407(E) dated November 8 2016 of ministry of finance during the period from November 082016 to December 31 2016 and these are in accordance with the books of accountsmaintained by the company and as produced to us by the management.

2. As required by the companies (Auditor's Report) Order 2016('The Order') issued bythe Central Government in terms of section 143(11) of the Act we give in 'Annexure B' astatement on the matters specified in paragraph 3 and 4 of the Act.

For Moon And Company

Chartered Accountants

(Firm's Registration No. 024693N)

Moon Goyal

(Partner)

Membership Number: 523034

Place: New Delhi

Date: May 29 2017

ANNEXURE A TO THE INDEPENDENT AUDITORS7 REPORT

(Referred to paragraph 1(f) under "Report on Other Legal & RegulatoryRequirements" section of our report of even date)

Report on the Internal Financial Controls under Clause (I) of sub section (3) ofSection 143 of The Companies Act 2013 ('the Act')

We have audited the internal financial controls over financial reporting of JollyPlastic Industries Limited ("the Company") as of March 31 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for the Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note of Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India ('ICAI'). These responsibilities includedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

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 accordance with Guidance Note of Audit of Internal FinancialControls over Financial Reporting (the 'Guidance Note') and the Standards on Auditingprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material aspects.

Our audit involves performing procedures to obtain audit evidence about adequacy of theinternal financial controls over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors' judgment including the assessment of the risks of materialmisstatement 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 designedreasonable assurance regarding the reliability of financial reporting and preparation offinancial statements for external purpose in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting included thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and disposition of the assets ofthe company; (2) provide reasonable assurance that transaction are recorded as necessaryto permit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of the Management and directors of the company; and(3) provide reasonable assurance regarding prevention or timely detections of unauthorizedaccusation use or disposition of the company's assets that could have a material effecton the financial statement.

Inherent Limitations of Internal Financial Control over Financial Reporting

Because of the inherent limitations of internal financial control 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 internal financial control over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and explanation given to us the companyhas in all material respects an adequate the internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2017 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note of Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India.

For Moon And Company

Chartered Accountants

(Firm's Registration No. 024693N)

Moon Goyal

(Partner)

Membership Number: 523034

Place: New Delhi

Date: May 29 2017

ANNEXURE B TO THE AUDITORS7 REPORT

[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'of our Report of even date]

Report on Companies (Auditor's Report) Order 2016 ('The Order') issued by the CentralGovernment in terms of section 143(11) of the companies act 2013 ('The Act') of JollyPlastic Industries limited ('The Company')

(i) According to the information and explanations given to us the company has alreadyclaimed full depreciation for the fixed assets and hence the company is not having anyfixed assets as on 31st march 2017.

(ii) As explained to us the inventories were physically verified during the year bythe management at reasonable intervals and no material discrepancies were noticed onphysical verification.

(iii) According to the information and explanations given to us the Company hasgranted interest free unsecured loans to two wholly owned subsidiary companies covered inthe Register maintained under Section 189 of the Companies Act 2013; and the provisionsof Clause 3(iii)[(a)(b)(c)] of the said Order are not applicable to the Company as theyare wholly owned companies.

(iv) The company has given loans to its wholly owned companies and not given anyguarantees and security according to provisions of section 185 and 186 of the CompaniesAct 2013: and therefore the provision of Clause 3(iv) of the said Order is notapplicable to the Company.

(v) Based on our scrutiny of the company's records and according to the information andexplanation provided by the management in our opinion the Company has not accepted anydeposits from the public within the meaning of Rule 2 of the Companies (Acceptance ofDeposits) Rules 2014 or any directives issued by the RBI.

(vi) As informed to us the Central Government has prescribed for maintenance of costrecords under subsection (1) of Section 148 of the Act and company has been maintainedsuch accounts and records.

(vii) In respect of statutory dues:

(a) According to the records of the Company and information and explanations given tous the Company has generally been regular in depositing undisputed statutory duesincluding Income Tax Tax Deducted at Sources Service Tax and other material statutorydues applicable to it with the appropriate authorities.

(b) According to the information and explanations given to us there were no undisputedamounts payable in respect of Income Tax Tax Deducted at Source Service Tax and othermaterial statutory dues in arrears/were outstanding as at March 31 2017 for a period ofmore than six months from the date they became payable.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to financial institutions andbanks.

(ix) The Company has applied raised term loans for the purpose for which they areraised. The company has not raised any money from initial public offer or further publicoffer (including debt instruments).

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company by its officersor its employees has been noticed or reported during the year.

(xi) In our opinion and to best of our information & explanation given to us thecompany has paid/provided the managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of sec.197 r.w. Sch-V of the Act.

(xii) In our opinion and to the best of our information and according to theexplanations given by the management we are of the opinion that the company is not aNidhi. Hence in our opinion the requirements of Clause 3(xii) of the Order do not applyto the company.

(xiii) In our opinion and to the best of our information and according to theexplanations given by the management Transactions with the related parties are incompliance with sections 188 of Companies Act 2013 and section 177 of Companies Act 2013is not applicable to the said company.

(xiv) The Company has not made any preferential allotment of shares to parties duringthe year. Accordingly the provisions of Clause 4(xiv) of the Order are not applicable tothe Company.

(xv) In our opinion and to the best of our information and according to theexplanations given by the management the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly the provisions ofClause 4(xv) of the Order are not applicable to the Company.

(xvi) In our opinion and to the best of our information and according to theexplanations given by the management the company is not required to be registered undersection 45-IA of the RBI Act 1934.

For Moon And Company

Chartered Accountants

Firm Registration No.: 024693N

Moon Goyal

(Partner)

Membership No.: 523034

Place: New Delhi

Date: May 29 2017