To the Members of M/s National Plastic Technologies Ltd
Report on the Financial Statements We have audited the accompanying standalonefinancial statements of M/s National Plastic Technologies Limited ("theCompany") which comprise the Balance Sheet as at March 312016the Statement ofProfit and LossCash Flow Statement for the year then endedand a summary of significantaccounting policies and other explanatory information.
Management's Responsibility forthe Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act2013 ("the Act") with respect to the preparation ofthese Standalone financial statements that give a true and fair view of the financialpositionfinancial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in Indiaincluding the Accounting Standardsspecified under Section 133 of the Actread with Rule 7 of the Companies (Accounts)Rules2014.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 designimplementation and maintenance of adequate internal financialcontrolsthat were operating effectively for ensuring the accuracy and completeness oftheaccounting recordsrelevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatementwhetherdue to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
We have taken into account the provisions of the Actthe 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 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 financial statements.The procedures selected depend on theauditor's judgmentincluding the assessment of the risks of material misstatement of thefinancial statementswhether due to fraud or error.In making those risk assessmentstheauditor considers 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 circumstancesbut not for the purpose of expressing an opinionon whether the Company has in place an adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls.An audit alsoincludes evaluating the appropriateness ofthe accounting policies used and thereasonableness of the accounting estimates made by the Company's Directorsas well asevaluating the overall presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements
In our opinion and to the best of our information and according to the explanationsgiven to usthe aforesaid standalone financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in Indiaofthe state of affairs ofthe Company asat March 312016and its Profits and its Cash Flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order2016 ("theOrder")as amendedissued by the Central Government of India in terms of sub-section(11) of section 143 of the Actwe give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 ofthe Order.
2. As required by section 143 (3) of the Actwe 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 Sheetthe Statement of Profit and Loss and Cash Flow Statement dealtwith by thiSReport are in agreement with the books of account.
d. in our opinionthe aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 ofthe Actread with Rule 7 oftheCompanies (Accounts) Rules2014.
e. On the basis of written representations received from the directors as on March312016 taken on record by the Board of Directorsnone of the directors is disqualified ason March 312016 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 ofthe Company and the operating effectiveness of such controlsrefer to ourseparate Report in "Annexure B".
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) Rules2014in 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 were no amounts which were required to be transferred to the Investor andProtection Fund by the Company.
Annexure - Ato 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 312016:
1) (a) The Company has maintained proper records showing full particularsincludingquantitative details and situation of fixed assets;
(b)The Fixed Assets have been physically verified by the management in a phasedmannerdesigned to cover all the items over a period of three yearswhich in ouropinionis reasonable having regard to the size of the company and nature of itsbusiness.Pursuant to the programa portion of the fixed asset has been physically verifiedby the management during the year and no material discrepancies between the books recordsand the physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name ofthe company.
2) (a) The management has conducted the physical verification of inventory atreasonable intervals.
b) The discrepancies noticed on physical verification ofthe inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.
3) The Company has not granted any loanssecured qr unsecured tocompaniesfirmsLimited Liability partnerships or other parties covered in the Registermaintained under section 189 of the Act.Accordinglythe provisions of clause 3 (iii) (a)to (C) ofthe Order are not applicable to the Company and hence not commented upon.
4) In our opinion and according to the information and explanations given to usthecompany has complied with the provisions of section 185 and 186 of the Companies Act2013in respect of loansinvestmentsguarantees and security.
5) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules2015 withregard to the deposits accepted from the public are not applicable.
6) As informed to usthe maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Actin respect of theactivities carried on by the company
7) (a) According to information and explanations given to us and on the basis of ourexamination of the books of accountand recordsthe Company has been generally regular indepositing undisputed statutory dues including Provident FundEmployees StateInsuranceIncome-TaxSales taxService TaxDuty of CustomsDuty of ExciseValue addedTaxCess and any other statutory dues with the appropriate authorities.According to theinformation and explanations given to usno undisputed amounts payable in respect of theabove were in arrears as at March 312016 for a period of more than six months from thedate on when they become payable.
b) According to the information and explanation given to usthere are no dues of incometaxsales taxservice taxduty of customsduty of excisevalue added tax outstanding onaccount of any dispute.
8) In our opinion and according to the information and explanations given to ustheCompany has not defaulted in the repayment of dues to banks.The Company has not taken anyloan either from financial institutions or from the government and has not issued anydebentures.
9) Based upon the audit procedures performed and the information and explanations givenby the managementthe company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans.Accordinglythe provisionsof clause 3 (ix) of the Order are not applicable to the Company and hence not commentedupon.
10) Based upon the audit procedures performed and the information and explanationsgiven by the managementwe report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.
11) Based upon the audit procedures performed and the information and explanationsgiven by the managementthe managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;
12) In our opinionthe Company is not a Nidhi Company.Thereforethe provisions ofclause 4 (xii) ofthe order are not applicable to the company.
13) In our opinionall transactions with the related parties are in compliance withsection177 and 188 of Companies Act2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.
14) Based upon the audit procedures performed and the information and explanationsgiven by the managementthe company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview.Accordinglythe provisions of clause 3 (xiv) of the Order are not applicable to theCompany and hence not commented upon.
15) Based upon the audit procedures performed and the information and explanationsgiven by the managementthe company has not entered into any non-cash transactions withdirectors or persons connected with him.Accordinglythe provisions of clause 3 (xv) of theOrder are not applicable to the Company and hence not commented upon.
16) In our opinionthe company is not required to be registered under section 45 lAofthe Reserve Bank of India Act1934 and accordinglythe provisions of clause 3 (xvi) of theOrder are not applicable to the Company and hence not commented upon.
Annexure- B to the Independent Auditor's Report of even date on the StandaloneFinancial Statements of M/s National PI astic Technologies Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of section143 of the companies Act2013 ("the Act")
We have audited the internal financial controls over financial reporting of M/sNational Plastic Technologies Limited ("the Company") as of March 312016 inconjunction with our audit ofthe standalone financial statements ofthe Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
The Companys 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 on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.These responsibilities include thedesignimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of itsbusinessincluding adherence to company's policiesthe safeguarding of its assetstheprevention and detection of frauds and errorsthe accuracy and completeness of theaccounting recordsand the timely preparation of reliable financial informationasrequired under the CompaniesAct2013.
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 Auditingissued by ICAI and deemed tobe prescribed under section 143(10) of the Companies Act2013to the extent applicable toan audit of internal financial controlsboth applicable to an audit of Internal FinancialControls andboth 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 was established and maintained and if suchcontrols 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 financialreportingassessing the risk that a material weakness existsand testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk.Theprocedures selected depend on the auditor's judgementincluding the assessment of therisks of material misstatement of the financial statementswhether 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 thatin reasonable detailaccurately 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 principlesand 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 acquisitionuseor 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 financialreportingincluding the possibility of collusion or improper management override ofcontrolsmaterial misstatements due to error or fraud may occur and not bedetected.Alsoprojections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsorthat the degree of compliance with the policies or procedures may deteriorate.
In our opinionthe Company hasin all material respectsan adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 312016based on the 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.
| ||For and on behalf of |
| ||for M/s.C.A.PATEL & PATEL CHARTERED ACCOUNTANTS |
| ||Firm Reg No.005026S |
|Place: Chennai ||Bhavesh N Patel PARTNER |
|Date: 30th May2016 ||Membership No26669 |