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Eco Recycling Ltd.

BSE: 530643 Sector: Others
NSE: N.A. ISIN Code: INE316A01038
BSE 00:00 | 18 Jan 46.90 -1.60
(-3.30%)
OPEN

50.85

HIGH

50.90

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46.15

NSE 05:30 | 01 Jan Eco Recycling Ltd
OPEN 50.85
PREVIOUS CLOSE 48.50
VOLUME 440
52-Week high 78.00
52-Week low 29.25
P/E
Mkt Cap.(Rs cr) 82
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 50.85
CLOSE 48.50
VOLUME 440
52-Week high 78.00
52-Week low 29.25
P/E
Mkt Cap.(Rs cr) 82
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Eco Recycling Ltd. (ECORECYC) - Auditors Report

Company auditors report

To the members of

Eco Recycling Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statementsof M/s Eco Recycling Limited ("the Company") which comprises of theBalance Sheet as at March 31st 2018

Statement of Profit and Loss (including other comprehensive income)Statement of Changes in Equity the Statement of Cash Flows for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Ind AS Financial

Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of the standalone Ind AS financial statements that give a true and fair viewof the financial position financial performance including other comprehensive incomecash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including Accounting Standards prescribed undersection 133 of the Act read with relevant rules issued there under.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions 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 standalone Ind

AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on the standalone Ind ASfinancial statements 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 there under. We conducted our audit ofthe standalone Ind AS financial statements in accordance with the Standards on

Auditing specifiedunder Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement. An audit involves performing procedures to obtain auditevidence about the amounts and the disclosures in the standalone Ind AS financialstatements.

The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the standalone Ind

AS 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 standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the financialposition of the

Company as at March 31st2018 its financial performance including othercomprehensive income its cash flows and changes in equity for the year ended on thatdate.

Emphasis of Matter

We draw attention to the following notes in the standalone Ind ASfinancial statements annexed to the auditor's report a) Note 4.4 4.5 and 4.7: Thecompany has not done any fair valuation of its financial assets and financial liabilitiesas it believes that the carrying amounts of these financial assets and financialliabilities approximate their fair values and that the impact of change if any onaccount of fair valuation these financial assets and financial liabilities will beinsignificant. b) Note no 37: The company has a pending legal dispute with M/s KUDRealtors Pvt. Ltd relating to the transfer of assets purchased in favour of the company.The company has paid amount of Rs 2 10 95615 as advance for purchase of the assets. Thecompany is however of the opinion that the dispute will be resolved in its favor soon.

Our opinion is not modified in any of the above matters Other Matters

The comparative financial information of the company for the year ended31st March 2017 and the transition date opening balance sheet as at 1st April 2016included in these standalone Ind AS financial statements are based on previously issuedstatutory financial statements prepared in accordance with the Companies (AccountingStandards) Rules 2006 and which have not been audited by us. This comparative financialinformation has been furnished to us by the Management and the Auditor's report for theyears ended 31st March 2017 and 31st March 2016 contain a qualified opinion on thosestandalone financial statements. The financial information for the periods 31st March 2017and 1st April 2016 have been adjusted for differences in accounting policies adopted bythe Company on transition to Ind AS.

Report on other Legal and Regulatory

Requirements

1. As required by Section 143 (3) of the Act we report that a) We havesought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit; b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books; c) The Balance Sheet the

Statement of Profit and Loss including other Comprehensive income thestatement of cash flow dealt with by this Report are in agreement with the books ofaccount; d) In our opinion the aforesaid standalone Ind AS financial statements complywith the Accounting Standards prescribed under section 133 of the Act read with relevantrules there under; e) On the basis of the written representations received from thedirectors as on March 31st 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2018 from being appointed as a director in termsof Section 164 (2) of the Act; f) With respect to the adequacy of the internal financialcontrols over financial reporting of the

Company and the operating effectiveness of such controls refer to ourseparate Report in

"Annexure B".

2. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the

Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us: a) The Company hasdisclosed the impact of pending litigations on its financial position in its standaloneInd AS financial statements. Refer Note Nos.

36 and 37 to the financial statements. b) The Company did not have anylong-term contracts including derivative contract having material foreseeable losses forwhich provision was required to be made under the applicable law or the accountingstandards. c) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

3. As required by the Companies (Auditor's Report) Order 2016 issuedby the Central Government in terms of Section 143 (11) of the Companies Act 2013 we givein "Annexure A" a statement on the matters specified in paragraphs3 and 4 of the Order.

For Talati and Talati

Chartered Accountants Firm Registration No.: 110758W

Rovin Kothari

Mumbai

Partner

30th May 2018

M. No.: 133326

"ANNEXURE A" TO THE INDEPENDENT AUDITOR'S REPORT

Referred to paragraph 3 of our "Reporting on Other legal andRegulatory Environment" on even date we report that:

(i) In respect of fixed assets:

(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets; (b) As explained to us thefixed assets are being physically verified by the management at regular intervals and nomaterial discrepancies were noticed on such verification.

(c) As explained to us the title deeds of immovable properties wereheld in the name of the company except assets mentioned in note no 37 to the standaloneInd AS financial statements (ii) According to information and explanations given to usthe physical verification of inventories has been conducted by the management atreasonable intervals and no material discrepancies were noticed during the physicalverification of the inventories during the year. (iii) The Company has not granted anyloans secured or unsecured to companies firms Limited Liability partnerships or otherparties covered in the Register maintained under section 189 of the Act. Accordingly theparagraphs 3(iii) (a) to (c) of the Order are not applicable to the Company.

(iv) The company has provided financial guarantee on behalf of itssubsidiary and in respect of loans investments guarantees and security it has compliedwith sections 185 and 186 of the Companies Act 2013.

(v) The Company has not accepted any deposits from the public and hencethe directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder with regard to acceptance of deposits are not applicable to the company.Accordingly paragraph 3(v) of the Order is not applicable to the company.

(vi) The cost records are not required to be maintained under section148(1) of the Companies Act 2013 as prescribed by the Central Government. Accordinglyparagraph 3(vi) of the Order is not applicable to the company.

(vii) In respect to payment of statutory dues: (a) According toinformation and explanations given to us and on the basis of our examination of the booksof account and records the Company has been generally regular in depositing undisputedstatutory dues including Provident Fund Income-Tax Service Tax Cess Professional Taxand any other statutory dues with the appropriate authorities.

(b) There are no statutory dues that have not been deposited by thecompany with appropriate statutory authorities on account of any dispute as at 31st March2018.

(viii) Based on our audit procedures and according to the informationand explanations given to us the Company has not defaulted in the repayment of dues tobanks and financial institutions

(ix) The company has not raised any moneys by way of initial publicoffer or further public offer (including debt instruments). The term loans have beenapplied by the company for the purposes for which they were raised.

(x) Based on our audit procedures and according to the information andexplanations given to us neither there has been any fraud on the company by its officersor employees noticed during the year nor have we been informed of such cases by theManagement.

(xi) The company has paid / provide for managerial remuneration duringthe year in accordance with requisite approvals mandated by provisions of section 197 readwith Schedule V of the Companies Act 2013 (xii) The Company is not a Nidhi Company andhence paragraph 3(xii) of the Order is not applicable to the company.

(xiii)According to the information and explanation given to us andbased on our examination of the records of the company the transaction with the relatedparty are in compliance with section 177 and 188 of the Act where applicable and detailsof such transactions have been disclosed in the standalone Ind AS financial statements asrequired by the applicable accounting standards. (xiv)Based upon the audit proceduresperformed and the information and explanations given by the management the company hasnot made any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. Accordingly the paragraph 3(xiv) ofthe Order is not applicable to the Company.

(xv) Based upon the audit procedures performed and the information andexplanations given by the management the company has not entered into any non-cashtransactions with directors or other persons connected with the directors. Accordinglythe paragraph 3(xv) of the Order is not applicable to the Company.

(xvi) The company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934.

For Talati and Talati

Chartered Accountants Firm Registration No.: 110758W

Mumbai 30th May 2018

Rovin Kothari

Partner M. No.: 133326

"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of M/s

Eco Recycling Limited ("the Company") as of March 312018 in conjunction with our audit of the standalone Ind AS financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. 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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over Financial reporting based on our audit conducted 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 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those standards and Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financialcontrols 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 aboutthe adequacy of the internal financial controls system financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone Ind AS financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of the standalone Ind AS Financial Statements for externalpurposes in accordance with generally accepted accounting principles.

A company's internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat in reasonable detail accurately and fairly reflect the transactions and dispositionsof the assets of the company; (2)provide reasonable assurance that transactions arerecorded as necessary to permit preparation of the standalone Ind AS financial statementsin accordance 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 stand alone Ind AS financialstatements.

Inherent Limitations of Internal Financial Controls over financialreporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bededucted. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31

2018 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

For Talati and Talati

Chartered Accountants Firm Registration No.: 110758W

Rovin Kothari

Partner M. No.: 133326

Mumbai 30th May 2018