TO THE MEMBERS OF NATIONAL PLYWOOD INDUSTRIES LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of National PlywoodIndustries Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit' and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies* making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial 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 those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall 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 standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 and its profit/loss and its cash flows for the yearended on that date.
Report on Other Legal and Regulatory Requirements As required by Section 143(3) of theAct we report that:
(a) We have sought and obtained all the information and explanations which to the bestof ourknowledge 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 theCompanyso far as it appears from our examination of those books
(c) The accounts of the branch offices of the Company have been audited by usunderSection 143 (8) of the Act and have been properly dealt with by us in preparing thisreport.
(d) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealtwith by this Report are in agreement with the books of account and with the accountsof the branches
(e) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(f) 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 isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164 (2) of the Act.
(h) 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 opinion and to thebest 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
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
For JHUNJHUNWALA and Co.
Membership No.: 006604
23 Netaji Subhas Road Kolkata-700001
Date: 30th May'2017
ANNEXURE TO THE AUDITOR'S REPORT
The Annexure referred to in paragraph 1 of the Our Report of even date to the membersof National Plywood Industries Limited on the accounts of the company for the year ended31st March 2017.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations given to us nofixed asset has been disposed during the year and therefore does not affect the goingconcern assumption.
2. (a) As explained to us inventories have been physically verified during the year bythe management at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
(c) In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its inventories. No material discrepancy wasnoticed on physical verification of stocks by the management as compared to book records.
3. According to the information and explanations given to us and on the basis of ourexamination of the books of account-the Company has not granted any loans secured orunsecured to companies firms or other parties listed in the register maintained underSection 189 of the Act. Consequently clauses 3(a) and 3(b) are not applicable.
4. In our opinion and according to the information and explanations given to us thereis generally an adequate internal control procedure commensurate with the size of thecompany and the nature of its business for the purchase of inventories & fixed assetsand payment for expenses & for sale of goods. During the course of our audit no majorinstance of continuing failure to correct any weaknesses in the internal controls has beennoticed.
5. Based on the audit procedures applied by us and according to the information andexplanations provided by the management the particulars of contracts or arrangementsreferred to in section 189 of the Act have been entered in the register
required to be maintained under that section.
6. The Company has not accepted any deposits from the public .
7. As per information & explanations given by the management xhe Company has aninternal audit system commensurate with its size and the nature of its business.
8. As per information & explanation given by the management maintenance of costrecords has not been prescribed by the Central Government under sub-section (1) of section148 of the Companies Act2013 and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained.
9. (a) According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty cess to theextent applicable and any other statutory dues have generally been regularly depositedwith the appropriate authorities. According to the information and explanations given tous there were no outstanding statutory dues as on 31st of March 2017 for aperiod of more than six months from the date they became payable.
(b) According to the information and explanations given to us there is an amountpayable in respect of income tax wealth tax service tax sales tax customs duty andexcise duty which have not been deposited on account of any disputes.
10. The Company does have accumulated loss and has incurred cash loss during thefinancial year covered by our audit and in the immediately preceding financial year.
11. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution bank or debenture holders.
12. According to the information and explanations given to us the Company has notgranted loans and advances on the basis of security by way of pledge of shares debenturesand other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit fund/society. Thereforethe provision of this clause is not applicable to the Company.
14. According to information and explanations given to us the Company is trading inShares Mutual funds & other Investments. Proper records & timely entries havebeen maintained in this regard & further investments specified are held in their ownname.
15. According to the information and explanations given to us the Company has notgiven any guarantees for loan taken by others from a bank or financial institution.
16. Based on our audit procedures and on the information given by the management wereport that the company has not raised any term loans^}riHgitbe year.
17. Based on the information and explanations given to us and on an overall examinationof the Balance Sheet of the Company as at 31st March 2017 we report that nofunds raised on short-term basis have been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and explanations givento us by the management we report that the Company has not made any preferentialallotment of shares during the year.
19. The Company has no outstanding debentures during the period under audit.
20. The Company has not raised any money by public issue during the year.
21. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year nor have we been informed of such case by the management.
For JHUNJHUNWALA and Co.
Membership No. : 006604
6 Commercial Building
23 Netaji Subhas Road Kolkata-700001
Date: 30th May'2017