AUDITORS REPORT TO SHAREHOLDERS
To The Members
Pet Plastics Limited.
Report on the Financial Statements
We have audited the accompanying financial statements of Pet Plastics Limited whichcomprise the balance sheet as at 31 March 2014 the Statement of Profit And Loss and theCash Flow Statement for the year ended and a summary of Significant Accounting Policiesand other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act 1956 ("the Act"). This responsibility includesthe design implementation and maintenance of internal control relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(i) in the case of the Balance Sheet of the state of affairs of the Company as at 31March 2014;
(ii) in the case of the Statement of Profit And Loss of the Loss for the year ended onthat date; and
(iii) in the case of the Cash Flow Statement of the cash .flows for the year ended onthat date. -
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2003 ("the Order")as amended issued by the Central Government of India in terms of sub-section (4A) ofsection 227 of the Act we give in the Annexure a statement on the matters specified inparagraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act we report that:
a. we have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;
c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d. in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of section211 of the Companies Act 1956; and
e. on the basis of written representations received from the directors as on 31 March2014 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2014 from being appointed as a director in terms of clause(g) of sub-section (1) of section 274 of the Companies Act 1956.
FOR MULRAJ D. GALA Chartered Accountants
| ||MULRAJ DEVCHAND GALA |
| ||(Proprietor) |
| ||Membership No: 041206 |
|Place: Mumbai || |
|Date: 14th August 2014 || |
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITOR'S REPORT OF EVEN DATE ON THEACCOUNTS FOR THE YEAR ENDED 31st MARCH 2014 OF M/s. PET PLASTICS LIMITED.
1. a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The fixed assets of the Company have been physically verified by the management atreasonable intervals during the year and this revealed no material discrepancies.
c) No fixed assets have been disposed off during the year.
2. In respect of shares held as stock in trade:
a) As explained to us the shares were physically verified by the management atreasonable intervals during the year.
b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of shares followed by the management are reasonableand adequate in relation to the size of the Company and nature of its business.
c) In our opinion and according to the information and explanation given to us theCompany has maintained proper records of its shares and the discrepancies noticed on suchphysical verification between the physical stock and book records are not material andhave been adequately dealt within the books of accounts.
3. In our opinion and according to the information and explanations given to us thecompany has not taken any loans secured or unsecured from companies firms or otherparties covered in the register maintained under section 321 of the Companies Act1956.Accordingly paragraphs 4(iii) (c) (f) and (g) of the order are not applicable.
4 In our opinion and according to the information and explanation given to us we areof the opinion that there is adequate internal control commensurate with the size of thecompany and nature of its business.
We have not noted any continuing failure to correct major weaknesses in the internalcontrol.
5. a) In our opinion1 and according to the information and explanationsgiven to us the transactions that need to be entered in the register on pursuance ofsection 321 of the Act have been so entered.
b) The transactions have been made at prices which are reasonable with regard to theprevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits within the meaning of section 58A and 58AA of theCompanies Act 1956 and rules framed there under are not applicable. No order has beenpassed by the Company Law Board. The provisions of RBI Act 1934 regarding registration ofnon- banking financial Company are stated yet to be complied with.
7. In our opinion the company has an internal audit system commensurate with its sizeand nature of its business.
8. According to the information and explanation given to us the Central Government hasnot prescribed the maintenance of cost records under clause (d) of sub-section (1) ofSection 209 of the Companies Act 1956.
9. a) According to the records of the company examined by us and the information andexplanations given to us no undisputed amounts payable in respect of income tax andother statutory dues applicable to it were outstanding as at 31st March. 2014for n period of more than six months from the date they became payable.
b) According to the records of the company examined by us and the information andexplanations given to us there are no dues of income tax and other statutory liabilitieswhich have not been deposited on account of any dispute.
10 The Company has accumulated losses at the end of the financial year. The Company hasincurred cash losses in the current financial year as well as in the immediately precedingfinancial year.
11 In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to a financial institution bank ordebenture holders.
12. The company has not granted loans and advances on the basis of security by way ofpledge of shares debentures and other securities.
13. In our opinion the company is not a chit fund or a nidhi/mutual benefitfund/society. Therefore the provisions of clause 4 (xiii) of the Companies (Auditor'sReport) Order 2003 are not applicable to the company.
14 In our opinion proper records have been maintained in respect of transactions andcontracts in shares and timely entries have been made therein. The shares and otherinvestment have been held by the company in jts own name.
15. In our opinion the company has not given any guarantee for loans taken by othersfrom banks of financial institutions
16. The company has not obtained any term loans.
17. According to the information and explanations given to us and on the basis of anoverall examination of the balance sheet of the Company in our opinion generally thereare no funds raised by the Company on short-term basis which have been used for long-terminvestment.
18. During the year the Company has not made any preferential allotment of shares toparties and companies covered in the register maintained under section 301 of theCompanies Act 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during the year.
21. During the course of examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practices in India we have neithercome across any instance of fraud on or by the Company noticed or reported during theyear nor have we been informed of such case by the management.
FOR MULRAJ D. GALA s. Chartered Accountants
| ||MULRAJ DEVCHAND GALA |
|Place: Mumbai ||(Proprietor) |
|Date: 14th August 2014 ||Membership No: 041206 |