TO THE MEMBERS OF P G FOILS LIMITED
Report of the Financial Statements
We have audited the accompanying standalone financial statements of P G FOILS LIMITED("the company") which comprise the Balance Sheet as at 31 March 2015 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenanc of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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 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 performingprocedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements thatgjve true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by CompanysDirectors as well as evaluating the overall 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 gve 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 asatMarch312015;
b) In the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and
c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial statements:
Note 37 to the financial statements which describes that the FDR investments of Rs. 69cr. made by the company with Ohanlaxmi-Bank LTD had been misappropriated by variousparties including the officials of die said bank. The case is under investigation withEconomic Offence Wing Mumbai. Seeking to the merit of the case the management of thecompany is under believe that the case will be in favour of company and it will be able toreceive all the sum misappropriated. Based on this the company has not made anyprovision. The final determination of the said investment amount would depend upon thefinal decision of the appropriate authorities in future. Our opinion is not qualified inrespect of this matter.
Report on other Legal and Regulatory Requirements
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 appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith 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 written representations received from the directors as on 31 March2015 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2015 from being appointed as a director in terms of Section 164(2) of theAct.
f) With respect to the other matters induded in toe Auditor's Report and to our best ofour 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 - Refer Note 27 to the financial statements;
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses
iii. There were no amounts which required to be transferred to the Investor Educationand Protection Fund by the Company.
Referred to in paragraph 10 of the independent Auditors report ofeven date to themembers of PG. Foils Limited on the financialStatement as of and for the year ended March312015.
1. (a) The company is maintaining proper records showing fullparticulars includingquantitative details and situation of fixed assets.
(b) As explained to us aH the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard size of the company and nature of its assets. No material discrepancies werenoticed on such verification.
2. (a) The inventory excluding stocks with third parties has been physically verifiedby the management during the year In respect of inventory lying with third parties thesehave substantially been confirmed by them. In our opinion the frequency of verificationis reasonable.
(b) ln our opinion the procedures of physical verification of inventory followed bythe management are reasonable and adequate in relation to size of the company and thenature of its business.
(c) On the basis of our examination of the inventory records in our opinion thecompany is maintaining proper records of inventory. The discrepancies noticed on physicalverification of inventory as compared to book records were not material.
3. In respect of the loans secured or unsecured granted by the company to companiesfirms or other parties covered in the register maintained under section 189 of thecompanys act 2013:
(a) The principal & interest amounts are repayable on demand.
(b) In respect of the said loans and interest thereon there are no overdue amounts.
4. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods. Further on the basis of our examination of the books and records of the companyand according to the information and explanation given to us we have neither come acrossnor have been informed of any continuing failure to correct major weakness as in theaforesaid internal control system.
5. The company has not accepted any deposits from the public within the meaning in theof section 73 to 76 of the act and the rules framed there under to the extent notified.
6. We have broadly reviewed the books of account maintained by the company in respectof product where pursuant to the rules made by the central government of India themaintenance of cost records has been specified under sub - section (1) of section 148 ofthe act and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have not however made a detailed examination ofrecords with a view to determine whether they are accurate or complete.
7. (a) According to the information and explanation given to us and
The records of the company examined by us in our opinion the company is regular indepositing the undisputed statutory dues including provident fund employees stateinsurance income tax sales tax wealth tax service tax duty of customs duty ofexcise value added tax and other material statutory dues as applicable with theappropriate authorities.
(b) According to the information and explanations given to us and the records of thecompany examined by us there are no dues of wealth- tax and cess which have not beendeposited on accounts of any dispute. The particulars of dues of income tax sales taxservice tax duty of customs and duty of excise as at march 312015 which have not beendeposited on account of a dispute are as follows table
|Name ||Nature of dtm ||Period 6 which it relates ||Amount |
|Amount ||forum which it is pending |
|Customs Act 1962 ||dJrty*1*"1 Redemption fine & Penalty ||2009-10 || |
|3800000/- ||Balance Demand Stayed by the Commissioner of Central Excise (Appeal) vide order dated 30.01.2014 |
|Customs Act 1962 ||Safeguard duty & valuation ||2009-10 || |
|Nil ||Stay slanted in Hon We HimCourt and Case stilt Pending |
|Central Sales Tax Act ||CST Demand ||1982-83 ||413231/- ||1559802/- ||413231/- ||Hon'ble Supreme court |
| ||1983-84 ||1472173/- ||6093420/ ||1472173/- ||Hon'ble Supreme court |
| || ||1984-85 ||862071/- ||4462262/- ||862071/- ||Hon'ble Supreme court |
| || ||1990-91 ||3378241/- ||9415971/- ||3378241/- ||Hon'ble Supreme court |
| || ||1991-92 ||5364057/- ||22129275/ ||5364057/- ||Hon'ble Supreme court |
| || ||1992-93 ||8396797/- ||29641954/ ||8396797/- ||Hon'ble Supreme court |
| || ||1993-94 ||8327394/- ||27323270/- ||8327394/- ||Hon'ble Supreme court |
| || ||1994-95 ||8952669/- ||27771200/- ||8952669/- ||Hon'ble Supreme court |
| || ||1995-96 ||9217606/- ||26301247/- ||9217606/- ||Hon'ble Supreme court |
| || ||1996-97 ||8256211/- ||21892569/- ||8256211/- ||Hon'ble Supreme court |
(c) There are no amounts required to be transferred by the company to the investoreducation and protection fund in accordance with the provision of the companies act 1956and the rules made there under.
8. The company has no accumulated losses as at the end of the financial year and it hasnot incurred any cash losses in the financial year ended on the date or in the immediatelypreceding financial year.
9. According to the records of the company examined by us and the information andexplanation given to us. The company has not defaulted in repayment of dues to anyfinancial institution or bank or debenture holders as at the balance sheet date.
10. In our opinion and according to the information and explanations given to us thecompany has not given any guarantee for loans taken by other from banks or financialinstitution during the year. According the provisions of clause 3(x) of the order are notapplicable to the company.
11. In our opinion and according to the information and explanations given to us theterm loanshave been appliedfor the purposes for which they were obtained.
12. During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given to us we have come across an instancemisappropriation of FDR investment of Rs. 69 Cr on the company by the officials ofDhanlaxmi Bank LTD Mumbai and various other parties which has been shown in notes pointno. 37. Apart from this matter we have neither come across any instance of material fraudon or by the company noticed or reported during the year nor have we been informed ofany such case by the management.
| ||For SHARMA ASHOK KUMAR & ASSOCIATES |
| ||Chartered Accountants |
| ||(FRN NO. - 005848Q |
| ||Sd - CA HARISH AGARWAL |
|Place: PSpalia Kalan ||Partner |
|Date :30th May 201! ||j M. No. 403262 |