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MPL Plastics Ltd.

BSE: 526143 Sector: Industrials
NSE: MILTONPLAS ISIN Code: INE343A01016
BSE 09:09 | 28 Jan 9.80 -0.19
(-1.90%)
OPEN

9.80

HIGH

9.80

LOW

9.80

NSE 05:30 | 01 Jan MPL Plastics Ltd
OPEN 9.80
PREVIOUS CLOSE 9.99
VOLUME 1
52-Week high 12.82
52-Week low 3.99
P/E
Mkt Cap.(Rs cr) 12
Buy Price 9.52
Buy Qty 100.00
Sell Price 9.80
Sell Qty 11.00
OPEN 9.80
CLOSE 9.99
VOLUME 1
52-Week high 12.82
52-Week low 3.99
P/E
Mkt Cap.(Rs cr) 12
Buy Price 9.52
Buy Qty 100.00
Sell Price 9.80
Sell Qty 11.00

MPL Plastics Ltd. (MILTONPLAS) - Auditors Report

Company auditors report

To the Members of

MPL PLASTICS LIMITED

Report on the Audit of the Financial Statements

I. Opinion

We have audited the Financial Statements of MPL PLASTICS LIMITED("the Company") which comprise the balance sheet as at March 312021 thestatement of Profit and Loss (including Other Comprehensive Income) statement of changesin equity and statement of cash flows for the year then ended and notes to the FinancialStatements including a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as "Financial Statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Financial Statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at March 312021 and its loss othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

II. Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of theFinancial Statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

III. Material Uncertainty Related to Going Concern

We draw attention to Note 36 to the statement which indicates that theCompany has currently closed down its operations and impact on future operations would toa large extent depend on the orders which are received from customers for job work. Theseevents or conditions indicate that a material uncertainty exists that may castsignificant doubt on the Company's ability to continue as a going concern. Our opinion isnot modified in respect of this matter.

IV. Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Financial Statements of the current period.These matters were addressed in the context of our audit of the Financial Statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matter described below to be the key audit mattersto be communicated in our report.

Key Audit Matter (KAM) How Our Audit Addressed The Key Audit Matter
Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 "Revenue from Contracts with Customers" Our procedures included but were not limited to the following:
We assessed the process to identify the impact of the revenue accounting standard. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
standard involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognized over a period.
• Evaluated the design of internal controls relating to implementation of the revenue accounting standard.
• We have selected sample of revenues disaggregated by type of sales and service offerings and tested them with the performance obligations specified in the underlying contracts.
• Performed analytical procedures for reasonableness of revenues disclosed by type of sales and service offerings.
Conclusion
Our procedures did not identify any material exceptions

V. Information other than the Financial Statements and Auditor'sReport thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the AnnualReport but does not include the Financial Statements and our auditor's report thereon.

Our opinion on the Financial Statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Financial Statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.

VI. Management's Responsibility for the Financial Statements

The Company's Management and Board of Directors are responsible for thematters stated in Section 134(5) of the Act with respect to the preparation of theseFinancial Statements that give a true and fair view of the state of affairs profit/lossand other comprehensive income changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Financial Statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the Financial Statements management and Board ofDirectors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.

VII. Auditor's Responsibilities for the Audit of the FinancialStatements.

Our objectives are to obtain reasonable assurance about whether theFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of theFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. underSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls with reference to FinancialStatements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures in the Financial Statementsmade by the Management and Board of Directors.

• Conclude on the appropriateness of the Management's and Board ofDirectors use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the Company's ability to continue as a going concern. We drawyour attention to the reason stated in Para 3 ‘Material Uncertainty Related to GoingConcern' above which may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theFinancial Statements including the disclosures and whether the Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the FinancialStatements of the current period and are therefore the key audit matters. We describethese matters in our auditors' report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

VIII. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of subsection(11) of section 143 of the Companies Act 2013 we give in the Annexure ‘A'statement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

2. As required by Section 143(3) of the Act we report that:

a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss (including othercomprehensive income) the Statement of Changes in Equity 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 theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e. On the basis of the written representations received from thedirectors as on March 312021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 312021 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 overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".

g. 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 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 itsfinancial position in its Financial Statements - Refer Note 23 to the FinancialStatements;

ii. In our opinion and as per the information and explanations providedto us the Company has not entered into any long term contracts including derivativecontracts requiring provision under applicable laws or accounting standards for materialforeseeable losses;

iii. In our opinion and as per the information and explanation providedto us there is no amount required to be transferred to the Investor Education andProtection Fund by the Company.

iv. With respect to the matter to be included in the Auditors' Reportunder Section 197(16) of the Act:

In our opinion and according to the information and explanations givento us the Company has not paid any remuneration to its directors during the current yearand accordingly reporting under section 197(16) of the Act is not applicable.

For BASTAWALA & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No: 121789W
PRANAV BASTAWALA
PARTNER
MEMBERSHIP NO. 100468
UDIN : 21100468AAAABD6161
Place: Thane
Date: June 30 2021

Annexure - A to the Independent Auditors' Report

[Referred to in paragraph VIII (1) of our report of even date]

With reference to the Annexure A referred to in the IndependentAuditors' Report to the members of MPL PLASTICS LIMITED on the Financial Statements forthe year ended March 312021 we report the following:

i. (a) The complete records showing full particulars includingquantitative details and location of fixed assets have not yet been compiled.

(b) We are informed that the physical verification of fixed assets wascarried out by the management during the year and no material discrepancies were noticedby the management on such verification.

(c) The title deeds of immovable properties as disclosed in Note 3 onProperty Plant & Equipment to the Financial Statements are held in the name of theCompany.

ii. As the Company does not hold any inventory for the year ended March312021 accordingly paragraph 3(ii) of the Order is not applicable.

iii. According to the information and explanation given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act.

As the Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Companies Act accordingly paragraph 3(iii)sub-clauses (a) (b) and (c) of the Order is not applicable.

iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theCompanies Act 2013 in respect of the loans and investments made and security provided byit.

v. In our opinion and according to the information and explanationsgiven to us the Company has not accepted deposits. Accordingly paragraph 3(v) of theOrder is not applicable.

vi. According to the information and explanations given to usmaintenance of cost records has not been specified by the Central Government under 148(1)of the Companies Act 2013 therefore the provisions of clause 3(vi) of the Order are notapplicable to the Company.

vii. (a) The Company is generally regular in depositing withappropriate authorities undisputed statutory dues including provident fund employees'state insurance profession tax income tax goods and services tax cess and any otherstatutory dues with the appropriate authorities

According to the information and explanations given to us noundisputed amounts payable in respect of any of the above statutory dues were in arrearsas at March 312021 for a period of more than six months from the date they becamepayable.

(b) According to the information and explanations given to us thedisputed statutory dues aggregating to Rs 486.08 Lakhs that have not been deposited onaccount of matters pending before appropriate authorities are as under:

NAME OF THE STATUTORY DUES FORUM WHERE DISPUTE IS PENDING UNPAID AMOUNT (RS.)
Income Tax ITAT Mumbai 107.93 Lakhs
Excise Duty CESTAT 7.22 Lakhs
Excise Duty High Court Gujarat 370.93 Lakhs
Total 486.08 Lakhs

viii. According to the records of the Company examined by us and theinformation and explanation given to us the Company has not defaulted in repayment ofloans or borrowings to banks.

ix. In our opinion and according to the information and explanationsgiven to us there is no term loan availed by the Company. Accordingly paragraph 3(ix) ofthe Order is not applicable.

x. During the course of our examination of the books and records of theCompany carried out in accordance with the generally accepted auditing practices inIndia no fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the year.

xi. The Company has not paid any managerial remuneration during theyear. Accordingly paragraph 3(xi) of the Order is not applicable.

xii. The Company is not a Nidhi Company and the Nidhi Rules 2014 arenot applicable to it. Accordingly paragraph 3(xii) of the Order is not applicable.

xiii. In our opinion and according to the information and explanationsgiven to us the Company has entered into transactions with related parties in compliancewith the provisions of Sections 177 and 188 of the Companies Act. The details of suchrelated party transactions have been disclosed in the Financial Statements as requiredunder Ind AS 24 Related Party Disclosures.

xiv. According to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year. Accordingly paragraph 3(xiv) of the Orderis not applicable.

xv. According to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith him. Accordingly paragraph 3(xv) of the Order is not applicable.

xvi. According to the information and explanations given to us theCompany is not required to get registered under section 45-IA of the Reserve Bank of IndiaAct1934. Accordingly paragraph 3(xvi) of the Order is not applicable.

For BASTAWALA & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No: 121789W
PRANAV BASTAWALA
PARTNER
MEMBERSHIP NO. 100468
UDIN : 21100468AAAABD6161
Place: Thane
Date: June 30 2021

Annexure - B to the Independent Auditors' Report on the FinancialStatements of MPL Plastics Limited for the year ended March 31 2021

Report on the internal financial controls with reference to theaforesaid Financial Statements under Clause (i) of Sub-Section 3 of Section 143 of theCompanies Act 2013.

(Referred to in paragraph VIN(2)(f) under ‘Report on Other Legaland Regulatory Requirements' section of our report of even date) Opinion

We have audited the internal financial controls with reference toFinancial Statements of MPL Plastics Limited (hereinafter referred to as "theCompany") as of March 312021 in conjunction with our audit of the FinancialStatements of the Company for the year ended on that date.

In our opinion the Company has in all material respects adequateinternal financial controls with reference to Financial Statements and such internalfinancial controls were operating effectively as at March 312021 based on the internalfinancial controls with reference to Financial Statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India (the "Guidance Note").

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors are responsible forestablishing and maintaining internal financial controls based on the internal financialcontrols with reference to Financial Statements criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 (hereinafterreferred to as "the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to Financial Statements based on our audit. We conductedour audit in accordance with the Guidance Note and the Standards on Auditing prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls with reference to Financial Statements. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to Financial Statements were established and maintained and whether suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to Financial Statements andtheir operating effectiveness. Our audit of internal financial controls with reference toFinancial Statements included obtaining an understanding of such internal financialcontrols 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 Financial Statements whether due to 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 with reference to Financial Statements.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial controls with reference to FinancialStatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of Financial Statements for external purposesin accordance with generally accepted accounting principles. A Company's internalfinancial controls with reference to Financial Statements include those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of Financial Statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorizations of management and directors of the Company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the Company's assets that could have a material effecton the Financial Statements.

Inherent Limitations of Internal Financial Controls with Reference toFinancial Statements

Because of the inherent limitations of internal financial controls withreference to Financial Statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to Financial Statements to future periods are subject to the riskthat the internal financial controls with reference to Financial Statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

For BASTAWALA & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No: 121789W
PRANAV BASTAWALA
PARTNER
MEMBERSHIP NO. 100468
Place: Thane UDIN : 21100468AAAABD6161
Date: June 30 2021

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