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MPL Plastics Ltd.

BSE: 526143 Sector: Industrials
NSE: MILTONPLAS ISIN Code: INE343A01016
BSE 00:00 | 27 Sep 5.22 -0.18
(-3.33%)
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5.55

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5.55

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NSE 05:30 | 01 Jan MPL Plastics Ltd
OPEN 5.55
PREVIOUS CLOSE 5.40
VOLUME 9491
52-Week high 8.60
52-Week low 2.89
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.55
CLOSE 5.40
VOLUME 9491
52-Week high 8.60
52-Week low 2.89
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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 ("theCompany") which comprise the balance sheet as at 31st March 2020 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 the explanationsgiven to us the aforesaid Financial Statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 312020 and its loss other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

II. Basis for opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the Financial Statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

III. Material uncertainty Related to Going concern

We draw attention to Note 36 to the statement which indicates that the Company hascurrently closed down its operations and impact on future operations would to a largeextent depend on how the pandemic develops and the resultant impact on businesses. 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 judgment were of mostsignificance in our audit of the Financial Statements of the current period. These matterswere addressed in the context of our audit of the Financial Statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matter described below to be the key audit matters to be communicatedin 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" 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. 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:.
• 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's Report thereon

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

Our opinion on the Financial Statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the Financial Statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information; weare required to report that fact. We have nothing to report in this regard.

Vi. Management's Responsibility for the Financial Statements

The Company's Management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these Financial Statementsthat give a true and fair view of the state of affairs profit/loss and othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Financial Statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

In preparing the Financial Statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Vii. Auditor's Responsibilities for the Audit of the Financial statements.

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 we exercise professional judgment andmaintain 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to Financial Statements in place andthe operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures in the Financial Statements made by theManagement and Board of Directors.

• Conclude on the appropriateness of the Management's and Board of Directors useof the going concern basis of accounting and based on the audit evidence obtainedwhether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company's ability to continue as a going concern. We draw yourattention 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 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.

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 sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure ‘A' statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. 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 of those books.

c. The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

d. In our opinion the aforesaid Financial Statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e. On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 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 the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Financial Statements - Refer Note 23 to the Financial Statements;

ii. In our opinion and as per the information and explanations provided to us theCompany has not entered into any long term contracts including derivative contractsrequiring provision under applicable laws or accounting standards for materialforeseeable losses;

iii. In our opinion and as per the information and explanation provided to us there isno amount required to be transferred to the Investor Education and Protection Fund by theCompany.

For BAsTAWALA & Associates
chartered accountants
Firm Registration No: 121789W
PRANAV BAsTAWALA
PARTNER
Place: Thane MEMBERsHiP No. 100468
date: 30th June 2020 uDiN : 20100468AAAAAu8854

Annexure - A to the independent Auditor's Report

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

With reference to the Annexure A referred to in the Independent Auditor's Report to themembers of MPL PLAsucs LiMiTED on the Financial Statements for the year ended 31stMarch 2020 we report the following:

(i) (a) The complete records showing full particulars including quantitative detailsand location of fixed assets have not yet been compiled.

(b) We are informed that the physical verification of fixed assets was carried out bythe management during the year and no material discrepancies were noticed by themanagement on such verification.

(c) The title deeds of immovable properties as disclosed in note 3 on Property Plant& Equipment to the Financial Statements are held in the name of the Company.

(ii) The inventory has been physically verified at reasonable intervals during the yearby the Management. The discrepancies noticed on physical verification of inventory ascompared to book records were not material and have been appropriately dealt with in thebooks of accounts.

(iii) According to the information and explanation given to us the Company has notgranted any loans secured or unsecured to Companies Firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act.

As the Company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained undersection 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 explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of the loans and investments made and security provided by it.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits. Accordingly paragraph 3(v) of the Order is notapplicable.

(vi) We have broadly reviewed the Cost records maintained by the Company which havebeen specified by the Central Government under sub-section (1) of section 148 of theCompanies Act in respect of the Company's products to which the said rules are madeapplicable and are of the opinion that prima-facie the prescribed accounts and recordshave been made and maintained. We have however not made a detailed examination of therecords with a view to determine whether they are accurate.

(vii) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employee's state insurance professiontax income tax goods and services tax cess and any other statutory dues with theappropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of any of the above statutory dues were in arrears as at 31stMarch 2020 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us the disputed statutorydues aggregating to Rs 576.09 Lakhs that have not been deposited on account of matterspending 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 8.23 Lakhs
Excise Duty High Court Gujarat 459.93 Lakhs
Total 576.09 Lakhs

(viii) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto banks.

(ix) In our opinion and according to the information and explanations given to usthere is no term loan availed by the Company. Accordingly paragraph 3(ix) of the Order isnot applicable.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India nofraud by the Company or on the Company by its officers or employees has been noticed orreported during the year.

(xi) The Company has paid/provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act.

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

(xiii) In our opinion and according to the information and explanations given to usthe Company has entered into transactions with related parties in compliance with theprovisions of Sections 177 and 188 of the Companies Act. The details of such related partytransactions have been disclosed in the Financial Statements as required under Ind AS 24Related Party Disclosures.

(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. Accordingly paragraph 3(xiv) of the Order is notapplicable.

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

(xvi) According to the information and explanations given to us the Company is notrequired to get registered under section 45-IA of the Reserve Bank of India Act1934.Accordingly paragraph 3(xvi) of the Order is not applicable.

For BASTAWALA & ASSOCiATES
CHARTERED ACCOUNTANTS
Firm Registration No: 121789W
PRANAV BASTAWALA
PARTNER
Place: Thane MEMBERSHiP NO. 100468
Date: 30th June 2020 UDiN : 20100468AAAAAU8854

Annexure - B to the independent Auditor's Report

on the Financial Statements of MPL Plastics Limited for the year ended 31stMarch 2020

Report on the internal financial controls with reference to the aforesaid FinancialStatements under Clause (i) of Sub-Section 3 of section 143 of the companies act 2013.

(Referred to in paragraph Viii(2)(f) under ‘Report on other Legal and RegulatoryRequirements' section of our report of even date) opinion

We have audited the internal financial controls with reference to Financial Statementsof MPL Plastics Limited (hereinafter referred to as "the Company") as of 31stMarch 2020 in conjunction with our audit of the Financial Statements of the Company forthe year ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to Financial Statements and such internal financial controls wereoperating effectively as at 31st March 2020 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 onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India (the "Guidance Note")

Management's Responsibility for internal Financial Controls

The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to Financial Statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note 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 (hereinafter referred to as"the Act")

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to Financial Statements based on our audit We conducted our auditin accordance with the Guidance Note and the Standards on Auditing prescribed underSection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols with reference to Financial Statements Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference toFinancial Statements were established and maintained and whether such controls operatedeffectively in all material respects

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to Financial Statements and their operatingeffectiveness Our audit of internal financial controls with reference to FinancialStatements included obtaining an understanding of such internal financial controlsassessing 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 withreference to Financial Statements

Meaning of internal Financial Controls over Financial Reporting

A Company's internal financial controls with reference to Financial Statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Financial Statements for external purposes in accordancewith generally accepted accounting principles A Company's internal financial controlswith reference to Financial Statements include those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the Company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation ofFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorizations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the Company's assets that could have a material effect on the FinancialStatements.

inherent Limitations of internal Financial Controls with Reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference toFinancial Statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected Also projections of any evaluation of the internal financial controls withreference to Financial Statements to future periods are subject to the risk that theinternal financial controls with reference to Financial Statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

For BASTAWALA & ASSOCiATES
CHARTERED ACCOUNTANTS
Firm Registration No: 121789W
PRANAV BASTAWALA
PARTNER
Place: Thane MEMBERSHiP NO. 100468
Date: 30th June 2020 UDiN : 20100468AAAAAU8854

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