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Integrated Thermoplastics Ltd.

BSE: 530921 Sector: Industrials
NSE: N.A. ISIN Code: INE038N01015
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NSE 05:30 | 01 Jan Integrated Thermoplastics Ltd
OPEN 5.38
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VOLUME 700
52-Week high 6.22
52-Week low 4.47
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
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Sell Price 0.00
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OPEN 5.38
CLOSE 5.38
VOLUME 700
52-Week high 6.22
52-Week low 4.47
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.

Survey No. 375

Manoharabad (V) Toopran (M)

MEDAK (DISTRICT) - 502 334

Telangana India

1) Report on Financial Statements:

We have audited the accompanying financial statements of M/s. INTEGRATEDTHERMOPLASTICS LIMITED ("The Company") which comprise of the Balance Sheetas at 31st March 2017 the statement of Profit and Loss and also the cash flowstatement for the year then ended and a summary of significant accounting policies andother explanatory information.

2) Management's Responsibility for the Financial Statements:

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ('the Act') with respect to the preparation and presentation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsbility also includes the maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and otherirregularities selection and application of appropriate accounting policies makingjudgements and estimates that are reasonable and prudent design implementation andmaintenance of internal financial controls that operating effectively for ensuring theaccuracy and completeness of the accounting records relevent to the preparation andpresentation of the financial statments that give a true and fair view and are free frommaterial misstatement whether due to fruad or error.

3) Auditors Responsibility:

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisons of the act the accounting and auditingstandards and matters which required to be included on the audit report under theprovisions of the Act and Rules made there Under.

We conducted our audit in accordence with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements plan and perform the audit to obtain reasonble assurance about whether thefinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error in making the risk assessment theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company management and Board of Directors as well as evaluating theoverall presentation 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 financial statements.

4) Opinion:

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;

a) in the case of the Balance Sheet of the state of affairs of the company as at 31stMarch 2017;

b) In the case of the Statement of Profit and Loss of the loss of the company for theyear ended on that date; and

c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

5) Emphasis of Matters:

We draw attention to the following matters in the Notes to the financial statements;

a) Note 21(B) (g) to the financial statements which describes accounting for retirementbenfits and the provisons required as on 31/03/2017 is not ascertained.

b) Note 21(A)(9) in the financial statement which indicates that the Company hasaccumulated losses of Rs. 59335637/- and its Net worth has been substantially erodedthe Company has incurred a net loss of Rs 12382217/- during the currrent year and inthe previous year Rs.3127015/-

Our opinion is not modified in respect of these matters

6) Report on Other Legal and Regulatory Requirements:

As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of india in term of Sub-Section (11) of Section 143 of the Act 2013 we givein the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Orderto the extent applicable.

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 purpose of our audit.

b) In our opinion proper books of accounts 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) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 and Companies (Accounting Standards) amendment rules 2016 exceptthe Accounting Standard 15- Retirement Benefits to Employees.

e) On the basis of the written representations received from the Directors as on 31stMarch 2017 taken on record by the Board of Directors none of the Directors aredisqualified as on 31st March 2017 from being appointed as a director in termsof section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and operating effectiveness of such controls refer to ourseperate report in "Annexure B" and

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 in our opinionand to the best of our information and according to the explanations given to us:

i) The company does not have any pending litigations which would impact its financialposition.

ii) The company did not have any long term contracts including derivative contracts forwhich there were any material foreseeble lossess.

i ii ) There has been no amount to transfer or delay in transferring amounts requiredto be transferred to the Investor Education and Protection Fund by the Company.

iv) The company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes (SBN) during theperiod from 9th November 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintain by the company. Refer Note No. 25 19 attached to thestandalone financial statements.

For L.B.REDDY & CO.
Chartered Accountants
Firm's Registration No.8611S
Sd/-
Place : Hyderabad
Date : 02-09-2017 M. THIRUPALU REDDY
Partner M.No. 203098

ANNEXURE -"A"

ANNEXURE TO THE INDEPENDENT AUDITORS REPORT AS REQUIRED BY THE COMPANIES (AUDITOR'SREPORT) ORDER 2016 ISSUED BY THE CENTRAL GOVERNMENT OF INDIA IN TERM OF SUB-SECTION (11)OF SECTION 143 OF THE COMPANIES ACT 2013 ON THE MATTERS SPECIFIED IN THE PARAGRAPHS 3& 4 OF THE TO THE EXTENT APPLICABLE.

i In respect of its fixed assets:

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

b) As explained to us all the fixed assets have been physically verified by themanagement periodically which in our opinion is reasonable having regard to the size ofthe company and nature of its assets. No material discrepancies were noticed on suchphysical verification.

c) According to the information and explantions given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the company. ii. Inrespect of its 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 with in thebooks of account.

iii) The company has not granted unsecured loans to companies covered in the registermaintained under Section 189 of the Companies Act 2013 ('the Act ) accordingly clauseIII(a) III(b) and III(c) are not applicable.

iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013inrespect of loans investments guarantees and security.

v) In our opinion and according to the information and explanations given to us thecompnay has not accepted any deposits from the public specified under the provisions ofthe Section 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed there under. No order has been passed by the Company Law Board or NationalCompany Law Tribunal or Reserve bank Of India or any court or any other Tribunal.

vi) In our opinion and according to the information and explanaions given to us theCentral Government has not prescribed for the maintenance of Cost records under subsection (1) of Section 148 of the Companies Act 2013 in respect of the productsmanufactured by the company.

vii) Inrespect of statutory dues:

a) According to the information & explanations given to us and based on the recordsof the company examined by us the company is not regular in depositing with appropriateauthorities undisputed statutory dues including Provident Fund Income Tax Service TaxSales Tax Value Added Tax Duty of Customes Duty of Excise Cess and any other statutorydues applicable to it. As explained to us the company did not have any dues on account ofEmployees State Insurance.

According to the information and explanations given to us the following arrears ofundisputed statutory dues were outstanding as at 31st March 2017 for a period of more thansix months from the date they became payable.

STATEMENT OF ARREARS OF STATUTORY DUES OUTSTANDING FOR MORE THAN SIX MONTHS:

S.No. Nauture of Dues Amount Period to which the amount relates to
1 Income Tax 2240512 2010-2011
2. Income Tax 2092670 2011-2012
3. Income Tax 1137581 2015-2016

b) According to the information and explanation given to us the following disputed taxdues relating to VAT Central Excise duty Service Tax and Income Tax were outstanding asat March 31 2017 for a period of more than six months from the date of becoming payable.

S.No. Nature of Statute Nature of Dues Amount # (Rs.in Lacs) Period to which the amount Relates Forum Where Dispute is Pending
1 APGST/VAT Act Sales Tax 66.42 2001 -02 Appeal in STAT
2 Central Excise Act Excise Duty 1.04 1998-99 Department Appealin CESTAT
3 Central Excise Act Excise Duty 89.00 Jan'05 to June'05 Department Appealin CESTAT
4 The Finance Act Service Tax 2.09 2003-04 to 2007-08 Appeal in CESTAT
5 CST Act CST 24.25 2011-12 Appeal in ADC (CT)
6 CST Act CST 7.45 2012-13 Appeal in ADC (CT)

# Total disputed tax of Rs.190.25 Lacs for which provision has not been made in thebooks

viii) In our Report and according to the information and explanations given to us theCompany has became default in repayment of dues to APSFC Term Loan Principle Amount ofRs.63001737/- and Interest on Term Loan Rs.68844658/ - total amounting toRs.131846395/- as at 31.03.2017.

ix) In our opinion and according to the information and explanations given to us thecompany did not raise any money by way of initial public offer or further public offer(including debt instrument) and term loans during the year. Accordingly paragraph 3(ix) ofthe CARO 2016 is not applicable.

x) According to the information and explanations given to us no material fraud by thecompany or on the Comapny by its officers or employees has been noticed or reported duringthe year.

xi) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the managerial remuneration hasbeen paid or provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Comapnies Act 2013.

xii) In our Opinion and according to the information and explanations given to us thecompany is not a nidhi company. Accordingly paragraph 3(xii) of the CARO 2016 is notapplicable.

xiii) In our opinion and according to the information and explanations give to us andbasd on our exmanination of the records of the Company all transactions with the relatedparties are in compliance with sections 177 and 188 of the Companies Act 2013 whereapplicable and the details have been disclosed in the Financial Statements as required bythe applicable According Standards.

xiv) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the company has not made anypreferential allotment or private placement of shares or fully of patly convertabledebentures during the year under review.

xv) In our opinion and according to the information and explanaions given to us andbased on our examination of the records of the Company the company has not entered intoany Non-cash transactions with directors or persons connected with tthem. AccordinglyParagraph 3(xv) of the CARO2016 is not applicable.

xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For L.B.REDDY & CO.
Chartered Accountants
Firm's Registration No. 8611S
Sd/-
Place : Hyderabad M. THIRUPALU REDDY
Date : 02-09-2017 Partner M.No. 203098

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 M/s.Integrated Thermoplastics Limited Hyderabad ("the Company") as of 31 March 2017in conjunction with our audit of the financial statements of the Company for the yearended 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.

Auditors' Responsibility

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 7m 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 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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.

Opinion

According to the information and explanations given to us and based on our audit thefollowing material weaknesses have been identified as at March 31 2017

a) The company does not have an appropriate writen internal control system forcustomer/supplier acceptance credit evaluation and establishing credit limits forsales/purchases which could potentially result in the company recognizing revenue withoutestablishing reasonable certainty of ultimate collection.

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

c) Most of the transactions are being personally supervised by the management itselfwithout proper job rotations and its related proceedures.

d) The Company is not having proper internal audit system.

e) The Company is not issuing receipts for the amount received through bank.

A"material weakness" is a deficiency or a combination of deficiencies ininternal financial conrol over financial reporting such that there is are reasonablepossibility that a meterial misstatement of the company's annual or interim financialstatments will not be prevented or detected on a timely basis.

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 31 2017 based on "the internal control overfinancial reporting criteria establised by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia"

We have considerred the material weaknesses identified and reported above indetermining the nature timeing and extent of audit tests applied in our audit of theMarch 31 2017 financial statements of the Company and these material weaknesses do noteffect our opinion on the financial statements of the Company.

For L.B.REDDY & CO.
Chartered Accountants
Firm's Registration No. 8611S
Sd/-
Place : Hyderabad M. THIRUPALU REDDY
Date : 02-09-2017 Partner M.No. 203098