GLORY POLYFILMS LIMITED
ANNUAL REPORT 2011-2012
AUDITORS' REPORT
TO
THE MEMBERS OF
GLORY POLYFILMS LIMITED
1. We audited the attached Balance Sheet of GLORY POLYFILMS LIMITED as at
31st March, 2012 and also the Profit and Loss Account and the Cash Flow
Statement for the year ended on that date annexed thereto, which we have
signed under reference to this report. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statements presentation. We
believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of sub section (4A) of the Section
227 of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by the law have
been kept by the Company so far as appears from our examinations of those
books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the applicable
accounting standards except for AS-15 in respect of employees benefits,
referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.
(e) On the basis of written representations received from the Directors of
Company, as on March 31, 2012 and taken on record by the Board of Directors
of the Company, none of Directors is disqualified as on March 31, 2012 from
being appointed as the director in term of clause (g) of sub-section (1) of
section 274(1) of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to the
explanations given to us except given in note no. (v)(b), (vi) and (xi) in
annexure on matters specified in paragraphs 4 and 5 of companies (Auditor's
Report) Order, 2003, the said accounts give the information required by the
Companies Act, 1956, in the manner so required subject to non provision of
doubtful advances of Rs. 38 Lacs as in opinion of the management the
efforts of recovery is in progress and give a true and fair view in
conformity with the accounting principals generally accepted in India:
(i) In the case of the balance sheet, of the state of affairs of the
company as at 31st March, 2012;
(ii) In the case of the Profit and Loss Account, of the 'Loss' for the year
ended on that date; and
(iii) In the case of Cash Flow statement, of the cash flows for the year
ended on that date.
For Mittal & Associates
Firm Reg. No-106456W
Chartered Accountants
M. Mehta
Partner
M. No. 42990
Place: Mumbai
Date : May 30, 2012.
ANNEXURE TO AUDITORS' REPORT:
Referred to in paragraph 3 of the Auditor's Report of even date to the
members of GLORY POLYFILMS LIMITED on the financial statements for the year
ended March 31, 2012
We report the following:
(i) In respect of its fixed assets:
(a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the management, which in
our opinion is reasonable having regard to the size of the company and the
nature of its assets. Pursuant to above verification no material
discrepancies between the book records and the physical inventory have been
noticed.
(c) During the year, in our opinion, no substantial part of fixed assets
has been disposed off by the Company.
(ii) In respect of its inventory:
(a) As explained to us, inventories were physically verified by the
management at the end of the year.
(b) In our opinion and according to the information and explanations given
to us, the procedures of physical verification of inventories followed by
the management were reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) In our opinion and according to the information and explanations given
to us, Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has granted loans to 2 parties covered in the
register maintained u/s 301 under Companies Act, 1956 and maximum amount
involved during the year was Rs. 306.51 Lacs and year end balance of loan
granted to such parties was Rs. Nil.
(b) In our opinion and according to the information and explanations given
to us, the rate of interest wherever applicable and other terms and
conditions are not prima facie prejudicial to the interest of the Company.
(c) The Company is regular in receipt of principal amount and interest
wherever stipulated.
(d) There is no overdue more than Rs. 1.00 Lac from such parties.
(e) The Company has taken unsecured loans from 3 party covered in the
register maintained u/s 301 under Companies Act, 1956 and maximum amount
involved during the year was Rs. 176.36 Lacs and year end balance of loan
taken from such parties was Rs. Nil.
(f) In our opinion and according to the information and explanations given
to us, the rate of interest wherever applicable and other terms and
conditions are not prima facie prejudicial to the interest of the Company.
(g) The Company is regular in payment of principal amount and interest
wherever stipulated.
(iv) In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with the
size of the company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods. During the course of
our audit no major weaknesses has been noticed in the internal controls.
(v) (a) According to information and explanation given to us, the
transactions made in pursuance of contracts or arrangements, that need to
be entered into register in pursuance of section 301, of the Act, have been
so entered.
(b) In our opinion and according to the information and explanations given
to us the transactions of purchases of goods and materials and sale of
goods, material and services, made in pursuance of contracts and
arrangements entered in register maintained under Section 301 of the
Companies Act 1956, and exceeding the value of rupees five lakhs in respect
of one party during the year have been made on credit basis, at prices
which are reasonable having regard to prevailing market prices at the
relevant time.
(vi) In our opinion and according to the information and explanations given
to us the Company has accepted deposit falling within the purview of
sections 58 A and 58 AA and the compliances for the same is pending.
(vii) In our opinion, the company has an internal audit system commensurate
with its size and nature of its business.
(viii) As informed to us, maintenance of cost records has not been
prescribed by the Central Government under clause (d) of sub*section (1) of
section 209 of the Companies Act, 1956.
(ix) (a) According to the information and explanations given to us, in our
opinion, the undisputed statutory dues including Provident Fund, Investors
Education and Protection Fund, Employees' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other material
statutory dues as applicable have generally been regularly deposited by the
company during the year with the appropriate authorities. According to the
information and explanations given to us, there are no arrears of
outstanding statutory dues, except TDS deducted but not paid Rs. 46.19 Lacs
as mentioned above as at 31st March, 2012 for the period of more the six
months from the date they became payable.
(b) According to the records of the Company and the information and
explanations given to us, there are no dues of Sales tax, Income tax,
Custom duty, Wealth Tax, Excise Duty and Cess, which have not been
deposited on account of any dispute.
(x) The company does not have accumulated losses as at 31st March 2012 but
has incurred cash losses of Rs. 2,53.08 Lacs during the financial year
ended on that date and has not incurred cash loss in the immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations given
to us, the company has made delayed payment of Installments of Term Loan
taken from State Bank of India and Indian Overseas Bank during the year and
the Installment for the month of January, February and March and February
and March respectively are still outstanding.
(xii) In our opinion and according to the information and explanations
given to us, the company has not granted any loans and advances on the
basis of security by way of pledge of share, debentures and other
securities.
(xiii) The provisions of any special statute as specified under clause
(xiii) of the order are not applicable to the company.
(xiv) In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) The Company has given a corporate guarantee of Rs. 760 lacs to a bank
for loans taken by a company in which directors relatives are interested.
According to the information and explanations given to us, the term and
conditions, whereof, are not prejudicial to the interest of the company.
(xvi) In our opinion, and according to the information and explanations
given to us, no new term loan have been disbursed during the year.
(xvii) On the basis of an overall examination of the balance sheet of the
company, in our opinion and according to the information and explanations
given to us, there are no funds raised on a short-term basis which have
been used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section 301
of the Act during the year.
(xix) As the company has no debentures outstanding at any time during the
year, Clause 4(19) of the order is not applicable to the company.
(xx) During the Year company has not raised any fund through public issue.
(xxi) According to the information and explanations given to us, during the
year, no fraud on or by the company has been noticed or reported.
For Mittal & Associates
Firm Reg. No-106456W
Chartered Accountants
M. Mehta
Partner
M. No. 42990
Place: Mumbai
Date : May 30, 2012.
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