Ambitious Plastomac Company Ltd.
|BSE: 526439||Sector: Others|
|NSE: N.A.||ISIN Code: INE267C01013|
|BSE 00:00 | 21 Nov||7.23||
|NSE 05:30 | 01 Jan||Ambitious Plastomac Company Ltd|
Ambitious Plastomac Company Ltd. (AMBITIOUSPLASTO) - Auditors Report
Company auditors report
The Members of
Ambitious Plastomac Company Limited
Report on the Audit of the Standalone Financial Statements
1. We have audited the standalone financial statements of Ambitious Plastomac CompanyLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2022 and the Statement of Profit and Loss the Statement of Changes in Equity andStatement of Cash Flows for the year then ended and notes to the financial statementsincluding a summary of the significant accounting policies and other explanatoryinformation.
2. 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 Companies Act 2013 (the 'Act') in the manner so required and give a true and fairview in conformity with the Indian Accounting Standards prescribed under Section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31st 2022 and its loss total comprehensiveincome its cash flows and the changes in equity for the year ended on that date.
Basis for Qualified Opinion
3. (a) The Company has not recognised for undisputed income tax liability of Rs.240.21Lakhs in respect of earlier years. The company has also not provided the interest payableon the said amount of unpaid taxes the figure of which is unascertainable in absence ofnecessary information. The accounting treatment followed by the company in this regard isnot in accordance with Ind AS 12 - "Income taxes". As a result of nonrecognition of undisputed tax liability the balance of other equity and Current taxliability in the balance sheet are under stated to the extent of Rs.240.21 Lakhs.Further in the absence of necessary information in respect of interest payable on incometax its impact on the financial statements including loss for the year is notquantifiable.
(b) As a Consequence of the above non compliance the explicit and unreserved statementof the compliance with Ind AS as stated in note no.2 is not in accordance with IndAS-1" Presentation of "Financial Statements".
4. We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of theCompanies Act 2013 and the Rules there under and we have fulfilled our ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.
Material Uncertainty Related to Going Concern
5. The Company incurred a net loss of Rs.12.20 Lakhs during the year ended March 312022 and the Company's current liabilities exceeded its total assets by Rs.32.51 Lakhs.As stated in Note 3(i) these events along with other matters as set forth in paragraph 3(a) of the Report under basis for qualified opinion indicate that a material uncertaintyexists that may cast significant doubt on the Company's ability to continue as a goingconcern. Accordingly all assets of the Company are reflected at the lower of theirhistorical costs and estimated net realizable value as at 31st March 2022 andall liabilities of the Company (Other than undisputed income tax liability and dueinterest thereon referred to in paragraph 3 of the Report under basis for qualifiedopinion) are reflected at the values at which they are expected to be discharged/ settled.Our opinion is not modified in respect of this matter.
Key Audit Matters
6. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the financial statements asa whole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
7. Key audit matter identified in our audit is on Going Concern on business of thecompany:
Information other than the Standalone Financial Statements and Auditors' Report thereon
8. The Company's Board of Directors is responsible for the other information. Theother information comprises the information included in the Annual Report but does notinclude the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.
When we read the Annual Report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance and asmay be legally advised.
Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements
9. The Company's Board of Directors is responsible for the matters stated inSection 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate implementation andmaintenance of 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 standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
10. In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
11. Those Board of Directors are also responsible for overseeing the Company'sfinancial reporting process.
Auditors' Responsibilities for the Audit of the Standalone Financial Statements
12. Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
13. As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis of opinion. The risk of not detecting a material misstatement resulting from fraudis higher than for our resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial control system in place and the operating effectiveness ofsuch controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
14. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
15. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicate withthem all relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
16. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
17. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
18. 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 the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d) Except for the matters stated in paragraph 3(a) & 3(b) of the Report under basisfor qualified opinion in our opinion the aforesaid standalone financial statementscomply with the Ind AS 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 and taken onrecord by the Board of Directors none of the directors is disqualified as on 31st March2022 from being appointed as a director in terms of Section 164(2) of the Act.
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 B".
g) The provision of Section 197 read with Schedule V of the Act are not applicable tothe company for the year ended March 312022.
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 disclosed the impact of pending litigations on its financialposition in the standalone financial statements- Refer Note -32 to the FinancialStatement;
ii. The Company does not have long-term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
iv. (i) The management has represented that to the best of its knowledge and beliefother than as disclosed in the notes to the accounts no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the company to or in any other persons or entities including foreignentities ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediaries shall whether directly or indirectly lend orinvest in the other persons or entities identified in any manner whatsoever by or onbehalf of the Company ("Ultimate Beneficiaries") or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries.
(ii) The management has represented that to the best of its knowledge and beliefother than as disclosed in the notes to the accounts no funds have been received by theCompany from any persons or entities including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that thecompany shall whether directly or indirectly lend or invest in the other persons orentities identified in any manner whatsoever by or on behalf of the Funding Parties("Ultimate
Beneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries.
(iii) Based on such audit procedures applied by us nothing has come to our notice thathas caused us to believe that the representations made under sub clause (iv) (i) and (ii)contain any material misstatement.
v. The company has not declared or paid any dividend during the year hence theprovisions of section 123 of the Companies Act 2013 are not applicable.
ANNEXURE "A" TO INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 17 of "Report on Other Legal and RegulatoryRequirements" of our Report of even date to the Members of Ambitious PlastomacCompany Limited for the year ended 31st March 2022.
In terms of the information and explanations sought by us and given by the Company andthe books of account and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state that:
1. During the year the company does not held any Property plant and Equipment or anyIntangible assets. Accordingly reporting under clauses 3 (i) (a) to (e) of the Companies(Auditor's Report) Order 2020 are not applicable to the company.
2. In respect of its Inventories :
(a) The Company does not have any inventory Accordingly reporting under clause3(ii)(a) of the Companies (Auditor's Report) Order 2020 are not applicable to thecompany.
(b) The company has not been sanctioned any working capital facility from banks orfinancial institutions at any point of time during the year. Accordingly reporting underclause 3(ii)(b) of Companies (Auditor's Report) Order 2020 is not applicable.
3. During the year the company has not made any investment in provided any guaranteeor security or granted any loans or advances in the nature of loans secured or unsecuredto companies firms Limited Liability Partnerships or any other parties. Accordinglyreporting under clauses 3 (iii) (a) to (f) of the Companies (Auditor's Report) Order 2020are not applicable to the company.
4. The Company has not granted any loan made investments or provided guarantees orprovided securities to the party covered under Section 185 and 186 of the Companies Act2013.
5. In respect of Deposits:
The company has not accepted any deposits or amount which are deemed to be deposits andhence the directives issued by the Reserve Bank of India and the provisions of sections 73to 76 or any other relevant provisions of the Companies Act and the rules framed thereunder are not applicable to the company. Accordingly reporting under clause 3(v) ofCompanies (Auditor's Report) Order 2020 is not applicable.
6. Cost Records:
According to the information and explanations given to us the Company is not requiredto maintain cost records as required by the central government under sub section (1) ofsection 148 of the Companies Act 2013. Accordingly clause (vi) of the (Auditor's Report)Order 2020 is not applicable.
7. In respect of Statutory Dues :
(a) The Company is by and large regular in depositing with appropriate authoritiesundisputed statutory dues including Goods and Service Tax Provident Fund Employees StateInsurance Income Tax Duty of Customs Value Added tax cess and any other materialstatutory dues with the appropriate authorities.
(b) There were undisputed income tax liability of Rs.240.21 Lakhs and interest payablethereon (the amount of which is unascertainable in absence of necessary information)which were outstanding as at 31st March 2022 for a period of more than six months fromthe date they became payable. Other than this there were no amounts payable in respect ofprovident fund employees' state insurance Sales tax Goods and Service Tax Custom DutyExcise Duty Value Added tax cess and any other statutory dues were outstanding as at 31stMarch 2022 for a period of more than six months from the date they became payable.
(c) There were no dues of Goods and Service tax Sales tax Provident Fund EmployeesState Insurance Duty of Excise Duty of Customs cess and any other statutory dues whichhave not been deposited on account of any dispute. The particulars of dues of Income Taxwhich have not been deposited on account of disputes and the forum where the dispute ispending is given below:
8. In respect of Undisclosed Income Discovered in Income tax Assessment:
There were no transactions that were not recorded in books of accounts and have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961. Hence reporting under clause 3(viii) of Companies (Auditor's Report)Order 2020 is not applicable to the company.
9. In respect of Repayment of Loans:
a) The Company has not taken any loans or other borrowings from any lender. Hencereporting under sub clause (a) of clause (ix) of the Companies (Auditor's Report) Order2020 is not applicable to the Company.
b) Company has not been declared willful defaulter by any bank or financial institutionor government or government authority.
c) The Company has not taken any term loan during the year and there are no unutilisedterm loans at the beginning of the year and hence reporting under sub clause (c) ofclause (ix) of the Companies (Auditor's Report) Order 2020 is not applicable.
d) On an overall examination of the standalone financial statements of the Company wereport that the company has used funds raised on short-term basis aggregating to Rs.32.51Lakhs for long-term purposes.
e) The company has not taken any funds from any entity or person to meet obligations ofits subsidiaries associates or joint ventures. Hence reporting under clause 3(ix)(e) ofthe Companies (Auditor's Report) Order 2020 is not applicable to the Company.
f) The company has not has raised any loans during the year on the pledge of securitiesheld in its subsidiaries joint ventures or associate companies. Hence reporting underclause 3 (ix)(f) of the Companies (Auditor's Report) Order 2020 is not applicable to theCompany.
10. In respect of Public Offerings:
(a) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments).Accordingly reporting under clause 3 (x)(a) of theCompanies (Auditor's Report) Order 2020 is not applicable to the Company.
(b) The company has not made any preferential allotment or private placement of sharesor convertible debentures during the year. Accordingly reporting under clause 3(x)(b) ofthe Companies (Auditor's Report) Order 2020 is not applicable to the Company.
11. (a) To the Best of our knowledge no fraud by the Company or no material fraud onthe company has been noticed or reported during the year.
(b) To the best of our knowledge no report under sub-Section (12) of Section 143 ofthe Companies Act2013 has been filed by the auditors in Form ADT-4 as prescribed underrule 13 of Companies (Auditor and Auditor) Rules 2014 with the Central Government duringthe year and up to the date of this report.
(c) As represented to us by the management there were no whistle-blower complaintswere received during the year and up to the date of this report by the company.
12. As the company is not a Nidhi Company the Nidhi Rules 2014 are not applicable toit. Accordingly reporting under clause (xii) (a) to (c) of the Company's (Auditor'sReport) Order 2020 are not applicable to the Company.
13. The company has entered into transactions with related parties in compliance withthe provisions of section 177 and 188 of the Companies Act 2013 where applicable and thedetails of related part transactions have been disclosed in the standalone financialstatements as required under Indian Accounting Standard (Ind AS) 24 "Related PartyDisclosure" specified under section 133 of the act.
14. In respect of Internal Audit:
(a) In our opinion the company has an internal audit system commensurate with the sizeand nature of its business of the company.
(b) The internal audit reports of the company issued till the date of audit report forthe period under audit have been considered by us.
15. The Company has not entered in to any non-cash transactions with its directors orpersons connected with him. Accordingly reporting under clause 3(xv) of the Companies(Auditor's Report) Order 2020 is not applicable to the Company.
16. In Respect to the Provisions of Reserve Bank Of India Act 1934:
(a) The company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly reporting under clause (xvi)(a) of the Company's(Auditor's Report) Order 2020 is not applicable to the company.
(b) The company has not conducted any Non-Banking Financial or Housing Financeactivities. Accordingly reporting under clause (xvi)(b) of the Company's (Auditor'sReport) Order 2020 is not applicable to the company.
(c) The company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Hence reporting under clause (xvi)(c) & (d) of theCompany's (Auditor's Report) Order 2020 is not applicable to the company.
17. The Company has not incurred cash losses of Rs.12.20 Lakhs in the financial yearunder review and cash loss of Rs.10.94 Lakhs in immediately preceding financial year.
18. There has been no resignation of the statutory auditors during the year underconsideration. Accordingly reporting under clause (xviii) of the Company's (Auditor'sReport) Order 2020 is not applicable to the company.
19. According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected date of realisation of financial assets and paymentof financial liabilities other information accompanying the financial statement ourknowledge of the Board of Director and management plans and based on our examination ofthe evidence supporting the assumptions circumstances included in Material Uncertaintyparagraph of our main audit report which causes us to believe that material uncertaintyexists as on the date of the audit report that company is not capable of meeting itsliabilities existing at the date of balance sheet as and when they fall due within aperiod of one year from the balance sheet date.
20. According to the information and explanation given to us and the records of thecompany examined by us there were no unspent amount required to be transferred to specialaccount as required by Section 135 of the Companies Act2013. Accordingly reporting underprovisions of sub clause (a) and (b) of clause (xx) of the Company's (Auditor's Report)Order 2020 are not applicable to the company.
ANNEXURE "B" TO INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 18(f) of "Report on Other Legal and RegulatoryRequirements" of our Report of even date to the Members of Ambitious PlastomacCompany Limited for the year ended 31st March 2022.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of AmbitiousPlastomac Company Limited as of 31st March 2022 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
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 Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement 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 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 that in reasonable detail accurately 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 principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or 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 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 the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2022 based on 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.