Polylink Polymers (India) Ltd.
|BSE: 531454||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE323D01020|
|BSE 00:00 | 14 Oct||18.35||
|NSE 05:30 | 01 Jan||Polylink Polymers (India) Ltd|
Polylink Polymers (India) Ltd. (POLYLINKPOLY) - Auditors Report
Company auditors report
TO THE MEMBERS OF POLYLINK POLYMERS (INDIA) LIMITED
REPORT ON THE AUDIT OF THE STANDALONE Ind AS FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2019
A. We have audited the accompanying Standalone Ind AS FinancialStatements of Polylink Polymers (India) Limited ("the Company") which comprisethe Balance Sheet as at March 31 2019 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsfor the year ended on that date and a summary of the significant accounting policies andother explanatory information (hereinafter referred to as "the Standalone Ind ASFinancial Statements").
B. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid Standalone Ind AS Financial Statements givethe information required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2019the profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.
2. Basis for Opinion
We conducted our audit of the Standalone Ind AS Financial Statements inaccordance with the Standards on Auditing specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements section ofour report. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India(ICAI) together with the independentrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone Ind AS Financial Statements.
3. Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Ind AS Financial Statements ofthe current period. These matters were addressed in the context of our audit of theStandalone Ind AS Financial Statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. We have determined that there areno matter which is required to be described as key audit matter to be communicated in ourreport
4. Information Other than the Standalone Ind AS FinancialStatements and Auditor's Report Thereon
A. The Company's Board of Directors is responsible for the preparationof the other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Information butdoes not include the Standalone Ind AS Financial Statements and our auditor's reportthereon. Our opinion on the standalone Ind AS Financial Statements does not cover theother information and we do not express any form of assurance conclusion thereon .
B. 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 standalone Ind AS
Financial Statements or our knowledge obtained during the course of ouraudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is no material misstatement of this other informationwe are required to report that fact. We have nothing to report in this regard.
5. Management's Responsibility for the Standalone Ind ASFinancial Statements
A. The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these StandaloneInd AS Financial Statements that give a true and fair view of the financial positionfinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; 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 materialmisstatement whether due to fraud or error.
B. In preparing the Standalone Ind AS Financial Statements managementis responsible 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 are responsible for overseeing the Company'sfinancial reporting process.
6. Auditor's Responsibilities for the Audit of the StandaloneInd AS Financial Statements
A. Our objectives are to obtain reasonable assurance about whether theStandalone Ind AS Financial Statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Ind AS FinancialStatements.
B. As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
i) Identify and assess the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
ii) Obtain an understanding of internal financial controls relevant tothe audit in order to design audit procedures that are appropriate in the circumstances.Under section 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
iii) Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
iv) Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Standalone Ind AS Financial Statements or if such disclosuresare inadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.
v) Evaluate the overall presentation structure and content of theStandalone Ind AS Financial Statements including the disclosures and whether theStandalone Ind AS Financial Statements represent the underlying transactions and events ina manner that achieves fair presentation .
C. Materiality is the magnitude of misstatements in the Standalone IndAS Financial Statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the Standalone Ind AS FinancialStatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the Standalone Ind ASFinancial Statements.
D. 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.
E. We also provide those charged with governance with a statement thatwe have 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.
F. From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the Standalone IndAS Financial Statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
II. Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act based on our auditwe 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 Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account.
D. In our opinion the aforesaid standalone Ind AS financial statementscomply with the Ind AS specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules2014.
E. On the basis of the written representations received from thedirectors as on March 31 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2019 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 A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.
G. With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended: Inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act.
H. 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 asamended in our opinion and to the best of our information and according to theexplanations given to us:
i) The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Ind AS Financial Statements.
iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATEON THE STANDALONE Ind AS FINANCIAL STATEMENTS OF POLYLINK POLYMERS INDIA LIMITED
(Referred to in paragraph (II 1F) under 'Report on other Legal andRegulatory Requirements' of our report of even date)
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OFSUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 ("THE ACT")
We have audited the internal financial controls over financialreporting of Polylink Polymers India Limited ("the Company") as of March 312019 in conjunction with our audit of the financial statements of the Company for the yearended on that date.
MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Company's management is responsible for establishing andmaintaining internal financial controls based on "the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India". 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.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143 (10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to Obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness.
Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting 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 judgement 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 system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A company's internal financial control over financial reporting 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 control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors 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 financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIALREPORTING
Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial Controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2019 basedon "the internal control over financial reporting 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"
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure "B" referred to in paragraph (II) 2 of ourreport of even date to the members of Polylink Polymers India Limited on the StandaloneInd AS Financial Statements for the year ended 31st March 2019.
i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
(b) (b)As explained to us physical verification of fixed assets hasbeen carried out by the Company and no material discrepancies were noticed on suchverification. In our opinion the frequency of verification is reasonable having regardto- the size of the Company and nature of its business.
(c) Title deeds of immovable properties of the company are held in thename of the Company.
ii) (a) The inventories have been physically verified during the yearby the management at reasonable intervals.
(b) In our opinion no material discrepancies were noticed on physicalverification of stocks.
iii) According to the information and explanations given to us theCompany has during the year not granted any loans secured or unsecured to companiesfirm Limited liability partnerships firms or other parties covered in the registermaintained under section 189 of the companies Act 2013. Accordingly paragraph 3(iii) ofthe Order is not applicable to the Company
iv) The Company has not accepted any deposits during the year and henceparagraph 3(v) of the Order is not applicable to the Company.
v) The Company has not accepted any deposits during the year and henceparagraph 3(v) of the Order is not applicable to the Company.
vi) The Central Government has not prescribed maintenance of costaccounts for these type of activities of the Company pursuant to the rules made by theCentral Government of India for the maintenance of cost records under clause (d) of SubSection (1) of Section 148 of the Companies Act 2013
vii) (a) According to the records examined by us the Company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund income tax sales tax service tax Goods and Service Taxduty of custom duty of excise value added tax cess and other statutory dues whereverapplicable.
According to the information and explanations given to us noundisputed arrears of statutory dues were outstanding as on the last date of the financialyear for a period of more than six months from the date they became payable.
(b) According to the records of the Company there was no dues inrespect of income tax Sales Tax Service Tax Goods and Service Tax duty of customsduty of excise value added tax cess and other statutory duties which have not beendeposited on account of disputes.
viii) Based on our audit procedures and according to the informationgiven by the management the company has not defaulted repayment in respect of any loansor borrowings from any financial institution bank government or dues to debenturesholders during the year.
ix) In our opinion and according to the information and explanationsgiven to us the Company has not taken any term loan during the financial year and has notdone any initial public offer or further public offer (including debt instrument) nor termloans and hence paragraph 3(ix) of the Order is not applicable to the Company.
x) Based upon the audit procedures performed and to the best of ourknowledge and according to the information and explanations given to us by the managementwe report that no fraud by the Company or any fraud on the company by its officer oremployees has been noticed or reported during the course of our audit.
xi) The managerial remuneration has been paid / provided (by theCompany)are in Compliance with Section 197 read with schedule V to the Companies Act2013.
xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company and hence paragraph 3 (xii) of the Orderis not applicable to the Company.
xiii) As explained to us and as per the records of the company in ouropinion the transactions with the related parties are in Compliance with Section 177 andSection 188 of the Companies Act 2013 and the details have been disclosed in thefinancial statements as required by the applicable accounting standard.
xiv) According to the records of the company it has not made anypreferential allotment of shares or private placement of shares or fully/partlyconvertible debentures during the year under report. Accordingly paragraph 3 (xiv) of theOrder is not applicable to the Company.
xv) During the year the Company has not entered into any non-cashtransaction with Director or person connected with him. Hence paragraph 3 (xv) of theOrder is not applicable to the Company.
xvi) The Company is not required to be registered under section 45-1Aof the Reserve Bank of India Act 1934 and hence paragraph 3 (xvi) of the Order is notapplicable to the Company.