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Promact Plastics Ltd.

BSE: 526494 Sector: Industrials
NSE: N.A. ISIN Code: INE818D01011
BSE 00:00 | 19 Jul 3.37 0
(0.00%)
OPEN

3.38

HIGH

3.38

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3.35

NSE 05:30 | 01 Jan Promact Plastics Ltd
OPEN 3.38
PREVIOUS CLOSE 3.37
VOLUME 1400
52-Week high 5.38
52-Week low 3.05
P/E 30.64
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.38
CLOSE 3.37
VOLUME 1400
52-Week high 5.38
52-Week low 3.05
P/E 30.64
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Promact Plastics Ltd. (PROMACTPLASTICS) - Auditors Report

Company auditors report

To

The Members of

PROMACT PLASTICS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Promact Plastics Limited. (‘theCompany') which comprise the Balance Sheet as at March 31 2017 and the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding 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 these financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

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 Board of Directors 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 on the financial statements.

Opinion

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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2017 and its profit and its cash flows for the year ended on that date.

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 in terms of Section 143(11) of the Act we give in theAnnexure - I a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 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 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 March31 2017 taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2017 from being appointed as a Director in terms of Section 164 (2) of theAct.

(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 - II and

(g) With respect to the other matters to be included in the Auditors Rs.Report inaccordance with Rule 11 of the Companies (Audit and Auditors) 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 as referred to in note number 7(C) to the financialstatement.

ii) The Company does not have any long term contract including derivative contract forwhich there were any material foreseeable losses under applicable law or accountingStandard and

iii) There were no amount which were require to be transferred to the investoreducation and protection fund by the company.

iv) The Company has provided requisite disclosures in the standalone financialstatements as to holding as well as dealings in specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 Based on auditprocedures and relying on the management representation we report that the disclosuresare in accordance with books of accounts maintained by the Company and as produced to usby the Management- Refer Note 43 to the standalone financial statements.

For M.M. Salvi & Co.
Chartered Accountants
F.R.No. 109004W.
Place : Mehsana. (M.M.Salvi)
Date : 30/05/2017 Proprietor.
M. No. 030678.

ANNEXURE - I TO THE INDEPENDENT AUDITORS Rs.REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements Rs.section of our report of even date)

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of three years. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. No material discrepancies were noticedon such verification.

(c) In our opinion and according to information and explanation given to us and on thebasis of an examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

2. In respect of its inventories:

a) As explained to us the inventories were physically verified during the year by themanagement during the year.

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) The Company has maintained proper records of inventories. As explained to us therewas no material discrepancies noticed on physical verification of inventories as comparedto the book records.

3. The company has not granted loans to firms covered in the register maintained undersection 189 of the Company Act 2013. There for clause (3) as not applicable.

4. In our opinion and according to the information and explanations given to usthe company has not accepted deposit excepted Director Deposit during the year and doesnot have any unclaimed deposit. Therefore the clause 3 (v) of the Order are notapplicable to the Company.

5. On the basis of records produced to us we are of the opinion that prima faciethe cost records prescribed by the Central Government of India under section 148 (1) ofthe Act are not required to maintained and have not carried out any examination of suchaccounts and records.

6. According to the information and explanations given to us in respect ofstatutory dues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax and ValueAdded Tax Wealth Tax Service Tax duty of Customs duty of Excise Cess and othermaterial statutory dues applicable to it with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund EmployeesRs.State Insurance Income Tax Sales Tax and Value Added Tax Wealth Tax Service Taxduty of Customs duty of Excise Cess and other material statutory dues in arrears as atMarch 312017 for a period of more than six months from the date they became payable.

(c) Details of dues of Income Tax Sales Tax and Value Added Tax and Service Tax whichhave not been deposited as at March 31 2017 on account of dispute are given below:

Nature of Dispute For the Year

Amount

Authority
Due Deposited
Income Tax 2002-03 Rs.382163.00 I.T.A.T. Ahmedabad

There were no dues of Wealth Tax duty of Customs duty of Excise and Cess which havenot been deposited as at March 31 2017 on account of dispute.

7. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to a bank during the year and did not haveany amount outstanding to financial institutions during the year.

8. In our opinion and according to the information and explanations given to us thecompany has not given any corporate guarantee for loan taken by others from bank orfinancial institution.

9. According to the information and explanations given to us the Company did not availany term loan during the year.

10. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the Company has been noticed or reported during theyear.

11. According to the information and explanations given to us managerial remunerationnot paid or provided in accordance with the requisite approvals mandated by the provisionsof Section 197 read with Schedule V to the Act.

12. According to the information and explanations given to us the Company is not aNidhi Company as prescribed under Section 406 of the Act. Accordingly paragraph 3 (xii)of the Order in not applicable to the Company.

13. According to the information and explanations given to us all transactions withthe related parties are in compliance with Section 177 and 188 of Act where applicableand the details have been disclosed in the Financial Statements as required by theapplicable accounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him.

16. According to information and explanations given to us the Company is not requiredto be registered under Section 45 IA of the Reserve Bank of India Act 1934. Accordinglyparagraph 3(xvi) of the Order is not applicable to the Company.

For M.M. Salvi & Co.
Chartered Accountants
F.R.No. 109004W.
Place : Mehsana. (M.M.Salvi)
Date : 30/05/2017 Proprietor.
M. No. 030678.

ANNEXURE - II TO THE AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financial reporting of PromactPlastics Limited (‘the Company') as of 31 March 2017 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). 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 the Company's policies the safeguardingof its 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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the ‘Guidance Note') and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing 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 auditors Rs.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 systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles.

A company's internal financial control over financial reporting includes those policiesand procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of the Management and directors of the Company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For M.M. Salvi & Co.
Chartered Accountants
F.R.No. 109004W.
Place : Mehsana. (M.M.Salvi)
Date : 30/05/2017 Proprietor.
M. No. 030678.