The Members of
Solid Containers Limited
1. Report on the Financial Statements
We have audited the accompanying Financial Statements of SolidContainers Limited ("the Company") which comprise the Balance Sheet as at31 March 2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.
2. Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation and presentation of these financial statements that give a true and fairview of the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 and the Companies (Accounting Standards) Amendment Rules2016. 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.
3. Auditor's Responsibility
Our responsibility is to express an opinion on these financialstatements based on our audit.
We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as wellas evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.
4. Basis for Qualified Opinion
Attention is drawn to Note 18 regarding substantial operating lossesdue to closure of commercial operations of the Company and in the absence of anyrehabilitation measures the Company is no longer a going concern. The networth of theCompany is fully eroded due to the accumulated losses. The Company has not made anyadjustment to the financial statements relating to recoverability of recorded assetamounts and in respect of liabilities as might be necessary for compilation where theCompany is no longer a going concern. The effect on the loss for the year and Networth ofthe Company is unascertained. Our audit opinion on the financial statements for the yearended 31 March 2016 was also qualified in respect of the above matter.
5. Qualified Opinion
In our opinion and to the best of our information and according tothe explanations given to us except for possible effects of the matter described in theBasis for Qualified Opinion paragraph the financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2017 and its loss and its cash flows for the year ended on thatdate.
6. Report on Other Legal and Regulatory Requirements
I. As required by the Companies (Auditor's Report) Order2016 issued by the Central Government of India in terms of Section 143(11) of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the "Annexure A" aStatement on the matters specified in paragraphs 3 and 4 of the Order.
II. As required by Section 143 (3) of the Act we report that:
a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;
b) Except for the effects of the matter described in the Basis forQualified Opinion paragraph above in our opinion proper books of account as required bylaw have been kept by the Company so far as it appears from our examination of thosebooks;
c) The Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this Report are in agreement with the books of account;
d) Except for the possible effects of the matter described in the Basisfor Qualified Opinion paragraph above in our opinion the aforesaid financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014 and the Companies (Accounting Standards)Amendment Rules 2016;
e) The matter described in the Basis for Qualified Opinion paragraphabove in our opinion may have an adverse effect on the functioning of the Company.
f) On the basis of the written representations received from thedirectors and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164(2) of the Act;
g) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B"; and
h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements Refer Note 16 to the financialstatements;
ii. The Company did not have any long-term contracts includingderivative contracts having any material foreseeable losses;
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended 31 March 2017;and
iv. The Company has provided requisite disclosures in the financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016 on the basis of information available with theCompany. Based on audit procedures and relying on management's representation wereport that disclosures are in accordance with the books of account maintained by theCompany and as produced to us by the Management - Refer Note 26 of the financialstatements.
For MGB & Co LLP
Firm Registration Number 101169W/W-100035
Membership Number 048215
Mumbai 30 May 2017