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Sen Pet (India) Ltd.

BSE: 532060 Sector: Industrials
NSE: N.A. ISIN Code: INE085E01015
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Sen Pet (India) Ltd. (SENPETINDIA) - Auditors Report

Company auditors report

TO THE MEMBERS OF

SENPET (INDIA) LIMITED

(Formerly known as Elque Polyesters Limited)

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Sen Pet (India) Limited ("theCompany") which comprise the Balance Sheet as at March 31 2015 the Statement ofProfit and Loss and the Cash Flow Statement for the year then 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 maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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.

AUDITORS' RESPONSIBILITY

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 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 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 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 circumstances but not for the purposes of expressing anopinion on whether the Company has in place an adequate internal financial control systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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.

OPINION

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 affairs of the Company as at 31stMarch 2015 and its loss and its cash flows for the year ended on that date.

EMPHASIS MATTERS

We draw attention to the following matters in the Notes to the financial statements:

a) Point no. 3 in Notes on accounts 22 regarding declaration of Sick on 13thJanuary 2000 under Section 3(1)(o) of the Sick Industrial Company's (Special Provision)Act 1985.

b) Point no. 4 at Notes on accounts 22 preparation of accounts as a "GoingConcern" concept though the Company has accumulated losses and its net worth has beenfully eroded.

c) Point no 5 at Notes on 22 regarding interest further interest on interest andliquidation damages on Term Loans/ Working

Capital Loans advanced by various Banks and Financial Institutions for the currentyear the quantum of which is unascertainable.

d) Point no. 6 at Notes on accounts 22 regarding matter pending before Hon'ble HighCourt at Calcutta for exemption on payment of E.S.I.

Our opinion is not modified in respect of these matters.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

As required by Section 143(3) of the Act we report that:

a. We have obtained all the information and explanations which to the best of ourknowledge 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 Companies(Accounts) Rules 2014.

e. The going concern matter described in sub-paragraph (b) under the emphasis ofMatters paragraph above in our opinion may have an adverse effect on the functioning ofthe Company.

f. On the basis of the written representations received from the directors as on March31 2015 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164(2) of theAct.

g. 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 the "Annexure A".

h. 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 not disclosed the impact of pending litigations on its financialposition in its financial statements -Refer Point no. 5 on notes on accounts 22 to thefinancial statements and continuous defaulter of interest on loan taken from financialinstitution in respect of Term Loan refer Note no. 3 in schedule to Balance Sheet.

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

iii. There has no requirement of payment to Investor Education and Protection Fund bythe Company.

For Basu Das & Basu
(Firm Registration No. 311038E)
Chartered Accountants
Amal Kumar Das
Place : Kolkata Partner
Date : May 29 2015 Membership No.: 050109

Annexure: 1

Annexure to Independent Auditors' Report referred to in Paragraph 1 under the headingof "Report on Other Legal and

Regulatory Requirements" of our report of even date

On the basis of the information and explanations furnished to us and the books andrecords examined by us in the normal course of audit and to the best of our knowledge andbelief in our opinion we further report that:

1. In respect of its Fixed Assets :

a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The fixed assets of the Company have been physically verified at reasonableintervals during the year which in our opinion is reasonable having regard to the size ofthe Company and nature of its assets. No material discrepancies were noticed on suchphysical verification.

2. In respect of its Inventories :

a) The inventories have been physically verified during the year by the management. Inour opinion the frequency of such verification is reasonable.

b) In our opinion the procedure of physical verification of inventories as followed bythe management is reasonable and adequate in relation to the size of the Company and thenature of its business.

c) The Company has maintained proper records of inventories. No material discrepancieswere noticed on such physical verification.

3. In respect of the loans secured or unsecured granted by the Company to/fromcompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act 2013.

a) The Company has not granted any loan during the year to companies firms or otherparties covered in the Register maintained under Section 189 of the Companies Act 2013.

4. In our opinion and according to the information and explanations given to usadequate internal control procedures 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 and services are in vogue. Further on the basis of our examination and according tothe information and explanations made available to us we have neither come across norhave been informed of the continuing failure to correct major weaknesses in the aforesaidinternal control system.

5. The Company has not accepted any deposits from the public pursuant to the provisionsenvisaged under the Companies (Acceptance of Deposits) Rules 1975 consequentlycompliance under the directives issued by the Reserve Bank of India and the provisions ofSection 73 to 76 of the Companies Act does not arise. Therefore the provision are notapplicable to the Company.

6. The Central Government has not prescribed maintenance of cost records by the Companyunder section 148(1) of the Companies Act for any of its services.

7. (a) The company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees' State

Insurance Income Tax Service Tax Central Sales Tax West Bengal Value Added TaxCustoms Duty and other material statutory dues with the appropriate authorities during theperiod under review except Rs 9.64 lacs is outstanding against Excise Duty Custom Dutyincluding its Education Cess and Rs 10.36 lacs against Sales Tax. Apart from that noundisputed amount payable in respect of the aforesaid statutory liability were outstandingas at 31st March 2015 for a period of more than six months from the date theybecame payable. The matter relating to exemption on payment of E.S.I. is pending with theHon'ble High Court at Kolkata. (Vide point no. 6 of Note no. 22). Estimated liability asdecided by the management is amounting to Rs 38.02 lacs (approximately).

(b) According to the information and explanations given to us details of disputedstatutory dues have not been deposited as on 31st March 2015 on account ofdisputed matters pending before appropriate authorities are as under:

Name of the Statute Nature of Due Amount (' in Lacs) Period for Which the matter relates Forum where the dispute is pending
The Central Excise Act 1944 Excise Duty 2734.79 1996 to 2005 With Commissioner of Customs and

CESTAT

The West Bengal Sales Tax Act 1994 and Central Sales Tax Act 1956 Sales Tax 839.01 2001-2003 With Supreme Court of India.
The West Bengal Sales Tax Act 1994 and Central Sales Tax Act 1956 Sales Tax 620 2002-2003 Joint Commissioner Commercial Taxes South Circle Kolkata.
The West Bengal Sales Tax Act 1994 and Central Sales Tax Act 1956 Sales Tax 939.61 2003-2004 Joint Commissioner Commercial Taxes South Circle Kolkata.
The West Bengal Sales Tax Act 1994 and Central Sales Tax Act 1956 Sales Tax 18.63 2004-2005 West Bengal Commercial Taxes Appellate & Revisional Board.
VAT Act 2003 & CST Act 1956 Sales Tax 58.8 2005-2006 West Bengal Commercial Taxes Appellate & Revisional Board.
VAT Act 2003 & CST Act 1956 Sales Tax 65.76 2009-2010 West Bengal Commercial Taxes Appellate & Revisional Board.
VAT Act 2003 & CST Act 1956 Sales Tax 7.47 2010-2011 Joint Commissioner Commercial Taxes South Circle Kolkata.

(c) Transfer of amounts to Investors Education and Protection fund in accordance withthe relevant provisions of the Companies Act 2013 and rules made there under does notapplicable to the company.

1. The company has incurred cash losses in the current financial year amounting to142.01 Lacs (cash loss of Rs 146.08 lacs in the FY 2013-14). The company had been referredto BIFR in the year 2000 as its net worth had been eroded.

2. The company has made defaults in the repayment of dues to the financial institutionsand banks during the year under review the amount and period of default is notascertainable at this stage.

3. According to the information and explanations given to us the company has not givenany guarantee for loans taken by others from banks or financial institutions.

4. The company has not availed of any term loans during the year under reference;consequently utilization thereof for the purposes for which the loans were primarilyobtained is not applicable to the company.

5. The company has not made any preferential allotment of shares to parties andcompanies covered in the Register maintained under section 301 of the Companies Act1956.According to the information and explanations made available to us based on theaudit procedures performed and as certified by the management it appears that no materialfrauds on or by the company have been noticed or reported during the year under review.

For Basu Das & Basu
(Firm Registration No.311038E)
Chartered Accountants
Amal Kumar Das
Place : Kolkata Partner
Date : May 29 2015 Membership No.050109