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Integrated Thermoplastics Ltd.

BSE: 530921 Sector: Industrials
NSE: N.A. ISIN Code: INE038N01015
BSE 00:00 | 14 Feb Integrated Thermoplastics Ltd
NSE 05:30 | 01 Jan Integrated Thermoplastics Ltd
OPEN 5.30
PREVIOUS CLOSE 5.30
VOLUME 200
52-Week high 5.30
52-Week low 5.06
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.30
CLOSE 5.30
VOLUME 200
52-Week high 5.30
52-Week low 5.06
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Integrated Thermoplastics Ltd. (INTEGTHERMOPL) - Auditors Report

Company auditors report

To

The Members

M/s. INTEGRATED THERMOPLASTICS LTD.

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying Financial statements of M/s. INTEGRATED THERMOPLASTICSLIMITED ("the Company") which comprises the Balance Sheet as at 31st March2021 the Statement of Profit and Loss and Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.

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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India

a) in the case of the Balance Sheet of the state of affairs of the Company as at March312021;

b) in the case of the Profit and Loss statement of the Loss for the year ended on thatdate;

c ) in the case of the cash flow statement of the cash flows for the year ended onthat date

Basis for Qualified Opinion

a) Amounts receivables and payables to various parties are subject to confirmation andreconciliation. Pending such confirmations and reconciliations we were unable to obtainsufficient and appropriate audit evidence in respect of the carrying amounts of debtorsand creditors at 31.3.2021. Due to which we were unable to determine whether anyadjustments might have been found necessary in respect of said balances.

b) The Company has not appointed the Internal Auditor as required by Section 138 of theCompanies Act 2013. The audit is not carried out and audit reports were not available.However it is clarified by the management that internal auditor has been appointed for FY2021-22 onwards.

We conducted our audit in accordance with the standards on auditing specified undersection 143 (10) of the Companies Act 2013. Our responsibilities under those Standardsare further described in the auditor's responsibilities for the audit of the financialstatements section of our report. We are independent of the Company in accordance with thecode of ethics issued by the Institute of Chartered Accountants of India together with theindependence requirements that are relevant to our audit of the Financial statements underthe provisions of the Act and the rules there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the code of ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.

Key Audit Matters

Key audit matters (‘KAM') are those matters that in our professional judgmentwere of most significance in our audit of the consolidated financial statements of thecurrent period. These matters were addressed in the context of our audit of theconsolidated financial statements as a whole and in forming our opinion thereon and wedo not provide a separate opinion on these matters.

We have determined the following matters as key audit matters to be communicated in our report:
a) The financial statements indicate that the company has accumulated losses and its net-worth has been fully eroded.
b) Company has taken Loan from Andhra Pradesh State Financial Corporation towards additional Working Capital Loan in the year 2012 and the Company has been default in repayment of Interest & Principal of the same. The Interest Accrued on the term loan has been reclassified at same place (as long term liability) in order to have clear view of debt under OTS as the company has submitted OTS proposal to the bankers for the settlement of the dues. As per the discussion with the management the tentative amount of settlement is at principal or thereabouts.
Hence the Interest on the above said loan has not been provided in the books during the year.
c) The company has an outstanding balance of Rs. 128624500/- as on 31.03.2020 as Unsecured Loan standing in the name of its associate M/s Panyam Cements & Mineral Industries Limited. However balance confirmation for the same could not be obtained from its associate as it is under NCLT. The Company has given an advance to M/s. SPY Agro Industries Limited Rs.128600000/-

During the year company has entered in to tri-party agreement between M/s PanyamCements & Mineral Industries Limited and M/s. SPY Agro Industries Limited to set-offloan amount.

Other Matters:

Notes to accounts to the financial statements which describe accounting for retirementbenefits and the provisions required as on 31/03/2021 is not ascertained.

Company has a CC loans from Union Bank of India Nandyal Main Branch Kurnool.

Company has not paid Listing Fees to Bombay Stock Exchange Limited.

Difference in GST Balance as per GST Portal & Books of Accounts:

There is opening balance difference in GST balance as per GST Portal & Books ofAccounts of Rs. (1444241) company shown it as a payable in outstanding liabilities.During the year the company has an excess ITC of Rs. 10256488 as per GST Records whereas it is showing Rs.10344580/- as per Books of Accounts. That the difference ofRs.88092/- As per the discussion with the management the company taken excess ITC duringthe year and it will be utilized in next year.

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 ofthese financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

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.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The respective Board of Directors are also responsible for overseeing the Company'sfinancial reporting process. Auditor's Responsibility

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. As part of an audit in accordance with SAs weexercise professional judgment and maintain 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 for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by 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.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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

1. As required by Section 143(3) of the Act based on our audit 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 including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors of theCompany as on March 31 2021 taken on record by the Board of Directors none of thedirectors are disqualified as on March 31 2021 from being appointed as a director interms 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 A".

g) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii. The Company did not have any long-term Contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no amount to transfer or delay in transferring amounts required tobe transferred to the Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

ANNEXURE "A"

TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Integrated Thermoplastics Limited ofeven date)

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

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

We have audited the internal financial controls over financial reporting of M/sINTEGRATED THERMOPLASTICS LIMITED ("the Company") as of March 31 2021 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting 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 the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. 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 operative effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement 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 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 authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

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. Opinion

(A) As there are deficiencies in internal controls such that the management oremployees of the company in the normal course of performing their assigned functionsdoes not prevent or detect and correct misstatements on a timely basis

(B) A lack of adequate procedures and controls to appropriately account for certainnon-income tax-related expenses and comply with the related filing requirements.

(C) The company does not have an appropriate written internal control system forcustomer/supplier acceptance credit evaluation and establishing credit limits forsales/purchases which could potentially results in the company recognizing revenuewithout establishing reasonable certainty of ultimate collection.

(D) The company does not have adequate written controls for the personnel recruitmenttraining and other related activities.

(E) Most of the transactions are being personally supervised by the management itselfwithout proper job rotations and its related procedures.

(F) The company is not issuing the receipts for the amount received through bank.

(G) There is no proper maker and checker relationship as the transactions are beingprocessed and authorized by the same person

In our opinion except for the effects/possible effects of the material weaknessesdescribed above on the achievement of the objectives of the control criteria the companyhas maintained in all material respects adequate internal financial controls overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as of March 31st 2021 based on "the Internal Control overfinancial reporting criteria established by the company considering the essentialcomponents of the internal control stated in the Guidance Note on audit on InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India".

ANNEXURE"B"

TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Integrated Thermoplastics Limited ofeven date)

Report as required by the company's (Auditor's Report ) Order2016 issued by theCentral Government of India in term of Sub Section (11) of section 143 of the companiesact2013.

i. In respect of the Company's Fixed Assets :

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain fixed assets werephysically verified by the management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us the records examined byus and based on the examination of the conveyance deeds provided to us we report thatthe title deeds comprising all the immovable properties of land and buildings which arefreehold are held in the name of the Company as at the balance sheet date.

ii. In respect of the Company's Inventories :

The Physical verification of Inventory has been conducted at reasonable intervals bythe management during the year and no material discrepancies were noticed on physicalverification and the small discrepancies if any have been properly dealt within thebooks of accounts.

iii. According to the information and explanations given to us the Company has grantedunsecured loans to the companies covered in the register maintained under section 189 ofthe Companies Act 2013 ("the Act").

iv. The Company has not accepted deposits during the year and does not have anyunclaimed deposits as at March 31 2021 and therefore the provisions of the clause 3 (v)of the Order are not applicable to the Company.

v. The maintenance of cost records has not been specified by the Central Governmentunder section 148(1) of the Companies Act 2013 for the manufacturing activities carriedout by the Company. Thus reporting under clause 3(vi) of the order is not applicable tothe Company.

vi. According to the information and explanations given to us in respect of statutorydues:

(a) The Company has not regular in depositing undisputed statutory dues.

(b) There are undisputed amounts payable in respect of Income Taxes in arrears as atMarch 31 2021 for a period of more than six months from the date they became payable andthe details are given under:

Statement of arrears of Statutory Dues Outstanding for more than Six Months

Nature of Dues Amount (Rs) Period to which the Amount relates to
1 Income Tax 1913200 2011-12
2 Income Tax 2751381 2012-13
3 ncome Tax 318790 2014-15
4 Income Tax 12.20.150 2016-17
4 TSVAT Act 222241 2014-16
6425762

(c) Details of dues of Income Tax Sales Tax Service Tax Excise Duty and Value AddedTax which have not been deposited as at March 31 2020 on account of dispute are givenbelow:

Nature of Statute Nature of Dues Amount # (Rs in Lakhs) Period which the amount relates Forum where dispute is pending
1 CST Act CST 2.14 2011-12 AAppeal in ADC(CT)
2 CST Act CST 3.40 2012-13 Appeal in ADC(CT)
3 CST Act CST 9.33 2013-14 Appeal in ADC(CT)
4 CST Act CST 4.07 2014-15 Appeal in ADC(CT)
5 CST Act CST 3.65 2016-17 Appeal in ADC(CT)
6 Income Tax Income Tax 7.69 2017-18 Appeal in Comm. (Appeals)
Total 30.28

# Total disputed Tax of Rs.30.28 Lakhs for which provision has not been made in thebooks.

vii. In our report and according to the conformation and explanations given to us thecompany has taken Secured Loan from APSFC in the year 2012. Company has taken Loan fromAndhra Pradesh State Financial Corporation towards additional Working Capital Loan in theyear 2012 and the Company has been default in repayment of Interest and Principle. TheInterest Accrued on the term loan has been reclassified at same place (as long termliability) in order to have clear view of debt under OTS the company has submitted OTSproposal to the bankers for the settlement of the dues.. As per the discussion with themanagement the tentative amount of settlement is at principal or thereabouts. Hence theInterest on the above said loan has not been provided in the books during the year. TheCompany has also taken Loan from Toyota Financial Services India Ltd and is regular inrepayment. During the year the Company has not issued any debentures

viii. The Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) or term loans during the year and hencereporting under clause 3 (ix) of the Order is not applicable to the Company.

ix. . To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or no material fraud on the Company by its officersor employees has been noticed or reported during the year.

x. In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act. Noremuneration taken by the management during the year.

xi. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.

xii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiii. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.

xiv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors and hence provisions of section 192 of theCompanies Act 2013 are not applicable to the Company.

xv. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For M/s. Rishi Sekhri and Associates
Chartered Accountants
(Firms Registration No.128216W)
Place: Hyderabad Rishi Sekhri
Date: 05/10/2021 Partner (Membership No.126656) UDIN:

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