To the Members of
AXEL POLYMERS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of AXEL POLYMERS LIMITED("the Company") which comprise the Balance sheet as at 31 March 2017 and theStatement of Profit and Loss the Cash flow Statement for the year the ended and a summaryof 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 stated in section134(5) of the companies Act 2013("the Act") with respect to the preparation andpresentation of these standalone financial statements of Company that give a true and fairview of the financial position and financial performance and cash flows of the company inaccordance with the Accounting principles generally accepted in India includingaccounting Standards specified u/s 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility includes maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding the assets of thecompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due 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 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 u/s143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the company's preparation of the financialstatements that give true and fair view in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion onwhether 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 of accounting policies used and the reasonablenessof the accounting estimates made by management as well as evaluating the overallpresentation 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 standalone financial statements.
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 of affairs of the company as at 31March 2017 and its statement of profit and its cash flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.
2. 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 appears from our examination of those books;
c. The Balance Sheet Statement of Profit and Loss and cash flow statement dealt withby this Report are in agreement with the books of account;
d. In our opinion the aforesaid financial Statements comply with the AccountingStandards referred to in section 133 the Act read with Rule 7 of the Companies (Accounts)Rules 2014 (as amended);
e. On the basis of written representations received from the directors as on 31 March2017 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2017 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 of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and
g. With respect to the matter to be included in the Auditor's report in accordance withRule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the bestof our information and according to the explanations given to us:
i. The Company does not have any pending litigation.
ii. The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;
iii. There is no such amount which is required to be transfer to the Investor educationand protection fund by the Company.
iv. The Company has provided requisite disclosures in the standalone financialstatements as to holding as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to December 2016 on the basis of information available with theCompany. Based on audit procedures and relying on management's representation we reportthat disclosures are in accordance with the books of accounts maintained by the Companyand as produced to us by the Management. Refer Note 2.26(7)
For SHAH & BHANDARI
Chartered Accountants Firm No.: 118852W
(Yogesh Bhandari) Partner M.No.046255
Place : Vadodara Date : 30.05.2017
"ANNEXURE-A" TO THE AUDITOR'S REPORT
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
(b) As explained to us fixed assets are physically verified by the management at theyear-end which in our opinion is reasonable looking to the size of the company and itsnature of business and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company title deeds are held in the name of thecompany.
(a) As explained to us Inventories has been physically verified during the year and atthe year-end.
(b) In our opinion the procedures of physical verification of inventory followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business.
(c ) The Company is maintaining proper records of inventory. As informed to us thediscrepancies noticed on physical verification of stocks as compared to book records werenot Material however the same have been properly dealt with in the books of account.
iii. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Act. Henceclause 3(iii) of the Order is not applicable to the company.
iv. In our opinion and according to the information and explanations given to us theCompany has not given any Loans nor made any investments under the provisions of section185 and 186 of the Act.
v The Company has not accepted any deposits during the year from the public within themeaning of sections 73 & 74 of the Act and the rules framed there under to the extentnotified.
vi. As informed to us the provision Pursuant to the rules made by the CentralGovernment of India the Company is not required to maintain cost records as specifiedunder Section 148(1) of the Act in respect of its products. Hence clause 3(vi) of theOrder is not applicable to the company.
vii. (a) The company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax servicetax duty of customs duty of excise value added tax or cess dues with the appropriateauthorities. There are no undisputed amounts payable as at 31.03.2017 for a period of morethan six months from the date they became payable.
(b) According to the information and explanation given to us there are no dues ofincome-tax sales-tax service tax duty of customs duty of excise value added tax orcess dues under dispute as on 31st March 2017 .
viii. Based on our audit procedures and on the information and explanation given to usby management the Company has not defaulted in repayment of its loan and interest to thebanks.
ix. According to the information and explanations given to us no new term loan wasavailed during the year Hence clause 3(ix) of the Order is not applicable to the company.
x During the course of our examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practices in India and accordingto the information and explanations given to us we have neither come across any instanceof material fraud by the Company or on the Company by its officers or employees noticedor reported during the year nor have we been informed of any such case by the Management.
xi. The Company has paid/provided for management remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with schedule V to theAct.
xii. In our opinion and according to the information and explanations given to us theCompany is not of a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
xiii. In our opinion and according to the information and explanations given to us alltransactions with the related parties are in compliance with Section 188 and 177 ofCompanies Act 2013 and are disclosed in the financial statement as required by relevantAccounting Standards.
xiv. According to the information and explanations given to us The Company does nothave made any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. Accordingly paragraph 3(xiv) of the Order is notapplicable.
xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
xvi The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.
For SHAH & BHANDARI
Firm No.: 118852W
Place : Vadodara Date : 30.05.2017
Annexure - B to the Auditors' Report
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 AxelPolymers Limited as of 31 March 2017 in conjunction with our audit of the financialstatements 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 (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the internal financial controls overfinancial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both 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 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 internal financial controls system overfinancial 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 31 March 2017 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.
|For SHAH & BHANDARI |
|Chartered Accountants |
|FRN.: 118852W |
|(Yogesh Bhandari) |
|M.No. 046255 |
|Place: Vadodara |
|Date: 30th May 2017 |