To The Members of Mold-Tek Packaging Limited
Report on the Standalone Indian Accounting Standards
(Ind AS) Financial Statements
We have audited the accompanying Standalone Ind AS Financial Statements of Mold-TekPackaging Limited ("the Company") which comprise the Balance Sheet as at31st
March 2018 the Statement of Profit and
Other Comprehensive Income) the Cash Flow Statement Statement of Changes in Equityfor the year then ended and a summary of the significant accounting other explanatoryinformation. control
Management's Responsibility for the Standalone Ind AS Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the ("the Act") with respect to the preparation of these StandaloneInd AS Financial Statements that give a true and fair view of the financialpositionperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed under Section 133 of theAct.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventingand detecting frauds and other irregularities; selection and applicationofappropriateaccountingpolicies; 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 Standalone IndAS Financial
Statements that give a true and fair view and are free from material misstatementwhether due to fraud or error.
Our responsibility is to express an opinion on these
Standalone Ind AS Financial Statements based on our audit. In conducting our audit wehave taken into account the provisions of the Act the accounting and auditing and matterswhich are required to be included in the audit report under the provisions of the Act andthe Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection143(10)oftheAct. espect of this matter.
Those Standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the Standalone Ind AS
Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the
Standalone Ind AS Financial Statements. The procedures selected depend on the auditor'sjudgment including the
Loss (including assessment of the risks of material misstatement of the Standalone IndAS Financial Statements whether due policies and to fraud or error. In making those riskassessments the relevant to the auditorconsiders internal financial Company's preparationof the Standalone Ind AS Financial
Statements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting CompaniesAct2013 policies used and the reasonableness of theandpresentation accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Standalone Ind AS Financial 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 Ind AS Financial Statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS Financial Statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2018 and its profit total comprehensive income its cash flowsand the changes in equity for the year ended on that date.
The comparative financial information of the Company the year ended 31st March 2017and the transition date opening balance sheet as at 1st April 2016 included in theseStandalone Ind AS Financial Statements are based on the previously issued statutoryfinancial statements for the years ended 31st March 2017 and 31st March 2016 prepared inaccordance with the Companies (Accounting Standards) Rules 2006 (as amended) which wereauditedstandards by the predecessor auditor who expressed an unmodified opinion videreports dated 29th May 2017 and 11th May 2016 respectively. The adjustments to thosefinancial statements for the differences in accounting principles adopted by the Companyon transition date to Ind AS have been audited by us.Ouropinionisnotmodifiedin
Report on Other Legal and Regulatory Requirements
1. 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 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 books.
(c) The Balance Sheet the Statement of Profit Loss including Other ComprehensiveIncome the
Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are inagreement with the books of account.
(d) In our opinion the aforesaid Standalone Ind AS Financial Statements comply withthe Indian
Accounting Standards prescribed under Section 133 of the Act read with relevant rulesissued thereunder.
(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the board of directors none of the directors isdisqualified as on 31st March 2018 from being appointed as director in terms of section164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financialreporting Company and the operating effectiveness of such controls refer to our separatereport 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 informationand according to the explanations given tous: i) The Company has disclosed the impact of pending litigations on its financial itsStandalone Ind AS Financial Statements - Refer Note 31 of those ii) The Company does nothave any long-term contracts including derivative contracts which there were any materialforeseeableand losses; iii) There has been no delay in transferring amounts which wererequired to be transferred to the Investor Educationand Protection Fund by the Company.
2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section of the Act we give inthe "Annexure B" a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.
Annexure - A to the Independent Auditors' Report
(Referred to in paragraph 1 (f) under "Report on Other Legal and RegulatoryRequirements" section of our report of even date)
Report on the Internal Financial Controls Over Financial
Reporting under Clause (i) of Sub-section 3 of Section 143 the Companies Act 2013("the Act") reporting We have audited the internal financial controls overfinancial reporting of Mold-Tek Packaging Limited ("the Company") as of31st March 2018 in conjunction
Standalone Ind AS Financial Statements 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 andthe transactions anddispositions of maintaining internal financial controls based on the internal control overfinancial reporting criteria established by the Company considering the essential controlstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute Chartered Accountants of India (ICAI'). Theseresponsibilities of management and include the design implementation and maintenance ofadequate internal financial for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of accuracy and completeness of the accounting records and theas required timelypreparation of reliable financial under the Companies Act 2013. ofinternal
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") issued by the ICAI and the Standards on Auditingprescribed under section143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overestablished and financial maintained and if such reporting controls operatedeffectively 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 financialreporting included reporting internal the risk that a materialweakness exists and testing evaluating control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Standalone Ind AS Financial Statements whether due to fraudor 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 ofReporting
A company's internal financialcontrol over financial a process designed to providereasonable assurance regarding the reliability of financial reporting and thepreparationof Standalone Ind AS Financial Statements for external purposeswithourauditofthe in accordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately the andfairly reflect assets of the company; (2) provide reasonable assurance that transactionsare recorded as necessary to permit preparation of Standalone Ind AS Financial Statementsin accordance withcomponents of internal generally accepted accounting principles andthat receipts and expenditures of the company are being made only in directors accordancewith authorisations 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 Standalone Ind AS FinancialStatements. frauds and errors the
Inherent Limitations of Internal Financial Controls over Financial Reporting financialBecause of the inherent limitations controls over financialreporting including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting to futureperiods are subject to the risk that the internal financial control overfinancialreportingmay become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our informationand according to the explanations givento us the Company has in all material respects financialcontrols system overadequateinternal financial reporting and such internal financial controls over financialreporting were operating effectively as at31 st March 2018 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on. Our audit ofinternal financial controls over Audit of Internal Financial an understanding of ControlsOver Financial Reporting issued by the Institute of Chartered Accountants of India.assessing
Annexure - B to the Independent Auditors' Report
(Referred to in paragraph 2 under "Report on Other Legal and RegulatoryRequirements" section of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars includingquantitative . detailsandsituation of (b) As explained to us the fixed assets have beenphysically verified by the management in a periodical manner which in our opinion isreasonable having regard to the size of the
Company and the nature of its business. No material discrepancies were noticed on such
(c) According to the information and explanations 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) The inventories have been physically verified year by the management. Thediscrepancies noticed the physical stocks and book onverification records were notmaterial.
(iii) The Company has granted unsecured loan to wholly owned subsidiary covered in theregister maintained under section 189 of the Act. a) In our opinion and according to theinformation given to us the term and conditions of the loan given by the Company areprima facie not prejudicial interest of the Company b) The schedule of repayment ofprincipal and payment of interest has been stipulated and repayments of principal andreceipt of interest are not due as on balance sheet date.
c) There are no overdue amounts as at the year-end in respect of both principal andinterest.
(iv) In our opinion and according to the information and explanationsgiven to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.(v) According to the information and us the Company has not accepted deposits within themeaning of Sections73 to 76 of the Act and the rules framed thereunder.
. (vi) Maintenance of cost records has not been specified by the Central Governmentunder sub-section Section 148 of the Act.
(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us the Company is regular in depositing undisputed statutory duesincluding duringthe provident fund employees' state insurance income-tax sales-taxvalue added tax goods and service tax wealth tax service tax customs duty exciseduty cess and any other statutory dues as applicable with the appropriate authoritiesthere were no arrears of outstanding statutory dues as at the last day of the financialyear concerned for a period of more than six months from the date they became payable. (b)According to the information and explanations given to us and records of the Companyexamined by us the particulars of income tax sales tax value added tax goods andservice tax wealth tax service tax customs duty excise duty or cess as at 31st March2018 which have not been deposited on account of any dispute pending are as under:
|Name of the statute ||Nature of the dues ||Amount (Rs lakhs) ||Period to which the amount relates ||Forum where the dispute is pending |
|Income-tax Act 1961 ||Income tax ||21.30 ||AY 2009-10 ||Assistant Commissioner of Income Tax Circle 16(2) |
|Income-tax Act 1961 ||Income tax ||2.24 ||AY 2010-11 ||Assistant Commissioner of Income Tax Circle 16(2) |
|Income-tax Act 1961 ||Income tax ||24.11 ||AY 2012-13 ||ITAT Hyderabad |
|Income-tax Act 1961 ||Income tax ||8.47 ||AY 2013-14 ||ITAT Hyderabad |
|Income-tax Act 1961 ||Income tax ||18.58 ||AY 2014-15 ||Commissioner of Income Tax (Appeals) |
|Income-tax Act 1961 ||Income tax ||11.96 ||AY 2016-17 ||Assistant Commissioner of Income Tax Circle 16(2) |
|AP Value Added Tax Act 2005 ||Value Added Tax ||2.60 ||FY 2006-07 ||Sales Tax Appellate Tribunal Hyderabad |
|AP Value Added Tax Act 2005 ||Value Added Tax ||1.34 ||FY 2007-08 ||Appellate Deputy Commissioner (CT) Punjagutta Division Hyderabad |
|AP Value Added Tax Act 2005 ||Value Added Tax ||2.79 ||FY 2005-06 ||Sales Tax Appellate Tribunal Hyderabad |
|AP Value Added Tax Act 2005 ||Value Added Tax ||5.64 ||FY 2006-07 ||Sales Tax Appellate Tribunal Hyderabad |
(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to
Company has not issued any debentures. (ix) The Company has not raised moneys by way ofinitial public offer or further public offer (including debt instruments) during the year.In our opinion and according to the informationand explanations us the term loans havebeen applied for the purpose for which the loans were obtained.
(x) To the best of our knowledge and belief and according to the information andexplanations fraud on or by the Company was noticed or reported during the year.
(xi) In our opinion and according to the information and explanations give 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.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.
(xiii) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with section 177 and
188 of the Act where applicable and details of such transactions have been disclosed inthe Standalone Ind
AS Financial Statements as required by the applicable
Indian accounting standards. (xiv)TheCompany has not made any preferentialallotment orprivate placement of shares or fully or partly convertible debentures during the year andhence reporting under clause (xiv) of the Order is not givento applicable.
(xv) 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 notgiventousnoentered into any non-cash transactions with directors or persons connected with him andhence provisions of section 192 of the Act are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
| ||For M.Anandam & Co. |
| ||Chartered Accountants |
| ||(Firm's Registration No. 000125S) |
| ||M.R. Vikram |
|Place: Hyderabad ||Partner |
|Date: 29th May 2018 ||Membership No.021012 |