Sand Plast (India) Ltd.
|BSE: 533079||Sector: Engineering|
|NSE: N.A.||ISIN Code: INE122K01013|
|BSE 00:00 | 03 Mar||Sand Plast (India) Ltd|
|NSE 05:30 | 01 Jan||Sand Plast (India) Ltd|
|BSE: 533079||Sector: Engineering|
|NSE: N.A.||ISIN Code: INE122K01013|
|BSE 00:00 | 03 Mar||Sand Plast (India) Ltd|
|NSE 05:30 | 01 Jan||Sand Plast (India) Ltd|
To The Members of SAND PLAST (INDIA) LTD
Report on the Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements of SANDPLAST (INDIA) LTD ("the Company") which comprise the Balance Sheet as atMarch 31 2018 the Statement of
Profit and Loss including the statement of Other Comprehensive Income the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant 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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act. read with the Companies (Indian Accounting Standards) Rules2015 as amended. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS 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 standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder. We conductedour audit of the standalone Ind AS financial statements in accordance with the Standardson Auditing issued by the Institute of Chartered Accountants of India as 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 standalone Ind As financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone Ind AS financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the standalone Ind AS financial statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our adverse audit opinion.
Basis for Adverse Opinion
1. We have analyzed the following factors:-
a) The Company incurred a net loss of Rs. 2234864 /- for the year ended 31st March2018 (Previous year Rs. 482863/-) and accumulated loss as on 31st March 2018 stands toRs. 200668722/-. As on 31st March 2018 the Company's current liabilities exceeded itscurrent assets by Rs. 54630139/- (Previous year Rs. 52395275/-).
b) The Company had stopped production from March 2015 onwards at its only working plantat DVB Ash Pond Adjacent to Nagla Machi CNG Station Opp. Indraprastha Park Gate No. 4Ring Road New Delhi-110002.
c) Company had taken secured loan from Punjab National Bank & HUDCO whose principleoutstanding balance was Rs. 10950000/- & 39450000/- respectively as on31.3.2018
Company has defaulted in repayment of said loans and become NPA's previously. Bank hastaken the possession of Land/Building situated at NH-8 Village Goonti Tehsil- BehrorAlwar Rajasthan and sold it in the Year 2013-14. Being no information made available tothe company regarding sale of property and remaining outstanding balances and in absenceof outstanding position company has not accounted for said transaction and continued toshowing Land/Building as Fixed Assets and Loan balances as Borrowing. Certain other assetssuch as F&F P&M located at such land/building also not available with thecompany however still shown under Fixed Assets. Company is not charging Depreciation onsuch building P&M F&F and other assets which is now not available with thecompany. Title of the assets is also not clear in favour of the company.
The financial statements (and notes thereto) do not disclose this fact. Appropriatenessof the going concern basis is dependent on the ability of the company to generateadequate finances to meet its obligations and to operate profitably which in our opinionafter considering aforesaid factors indicate material uncertainty on the ability of theCompany to continue as a going concern and therefore it may be unable to realize itsassets and discharge its liabilities in the normal course of business. If the Company istreated not to be a going concern then the valuation of assets has to be not merely onthe basis of historical cost less depreciation or impairment but at a value which theassets would fetch if the same are lower than the value presently shown. The Company hasnot attempted to assess the realizable value of the assets and therefore financial resultsfor the year ended 31st March 2018 have been prepared on a going concern basis and do notinclude any adjustments relating to the recoverability and classification of recordedasset amounts or to amounts or classification of liabilities that may be necessary if theCompany is unable to continue as a going concern.
2. The Company was having bank loan balance of Rs. 10950000/- from PNB and Rs.39450000/- from HUDCO. As informed by the management banks were not providing bankstatements or balance certificates or any authenticate documents in support of balancewith banks. Accordingly we could not verify the bank / FI loan balances. Further Companyhas also not recognized interest expenses on such loans during the year. In the absence ofrecords and details we could not verify the same.
3. In the opinion of the management accounts receivable loans and advances have avalue on realization in the ordinary course of business at least equal to the amount atwhich they are stated in the Balance sheet unless specifically provided for. During thefinancial year ended 31st March 2018 company has not sought confirmations on margin moneyaccount trade receivable trade payable and other receivables/ payables. Accordingly thebalances appearing under trade payables trade receivables and other receivables/payables are subject to reconciliation & confirmation. The financial impact of same isnot ascertainable and to that extent we do not have any information in respect of suchbalances.
4. The Company has not complied with provisions of Income Tax Act 1961 by non-filingIncome Tax Returns from FY 2014-15 onwards. Proper records are not made available to usfor our verification and to compute Income Tax and related statutory liabilities. In thissituation we are unable to comment upon the non-provision of statutory liabilities forcurrent year as well as for the earlier years.
5. The company has not complied with various statutory provisions such as VAT/CST ActTDS excises etc. in respect of filing of returns and deposition of due taxes with theGovernment Authority.
6. The company has not complied with the provisions of Ind AS-37 "ProvisionsContingent Liabilities and Contingent Assets" and Ind AS-17 "Leases".
7. The company has not disclosed the contingencies in off balance sheet item.
8. Company has been discontinued/suspended from trading by the BSE Limited due tonon-compliance of certain clauses of the listing agreement. The Company has not submittedquarterly / annual compliances within the time as per the Regulations of SEBI(LORD).However Companies accounts are reviewed upto 31.12.2014 in accordance with SEBIGuidelines and also filed with the SEBI with in time. Books of Accounts have been preparedon the basis of Indian Accounting Standards (IND AS) specified under section 133 of theact read with the companies (Indian Accounting Standards) Rules 2015.
In our opinion because of the omission of the information mentioned above in the Basisfor Adverse Opinion paragraph the Ind AS financial statements do not give the informationrequired by the Companies Act 2013 in the manner so required and also do not give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31st March 2018 and its loss andits cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order 2016 (the "order")issued by the
Central Government in India in terms of sub-section (11) of section 143 the Act Wegive in
"Annexure A" a statement on the matters specified in paragraphs 3 and 4 ofthe Order.
2. As required by section 143 (3) of the Act we report that:
a) We have sought and except for the possible effects of the matter described in theBasis for Adverse Opinion paragraph above obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;
b) Except for the possible effects of the matter described in the Basis for AdverseOpinion paragraph above in our opinion proper books of account as required by law havebeen kept by the Company so far as appears from our examination of those books;
c) The Balance Sheet Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;;
d) Except for the matter described in the Basis for Adverse Opinion paragraph abovethe Balance Sheet Statement of Profit and Loss and Cash Flow Statement comply with theIndian Accounting Standards specified under section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended:
I) The Company has not complied with Ind AS 36 introduced w.e.f. 1st April 2004 whilepreparing the financial statements. The Management has not assessed technically the Plantand Machineries at New Delhi Unit to decide about its impairment or carrying Value sinceMarch 2015 company has stopped production. The carrying amount of the assets was notreviewed for indication of impairment of assets on basis of internal/external factors.
II) The Company has not complied with Ind AS 12 Income Taxes. The company failed tofile Income Tax Returns for the F.Y. 2014-15 onwards. In absence proper documents andrecords of Income tax we could not quantify the Income Tax liability for which provisionnot made. Deferred Tax Assets/Deferred Tax Liabilities are not provided for in the booksof accounts in absence of proper working and database from the management. We could notquantify the non-provision for DTL or disclosures regarding DTA; a. On the basis ofwritten representations received from the directors as on March 31 2018 and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312018 from being appointed as a director in terms of section 164(2) of the Act. Directorof the company has been opted for CODS scheme and filed the requisite form and paid therequisite fees to Ministry of Corporate affairs however name has not been removed fromdefaulter list.
b. Except as stated above in the Basis of Opinion Paragraph with respect to theadequacy of the
Internal Financial Control over financial reporting with reference to these Ind ASfinancial statements of the company and the operating effectively of such controls referto our Separate
Report in "Annexure-B" to this report;
c. The remarks relating to the maintenance of accounts and other matters connectedtherewith are as stated in the Basis for Adverse Opinion paragraph above; proper books ofaccounts have been maintained;
d. 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) Management informed that there are no litigations pending with any department whichmay have financial effect in future that's why Company has not disclosed the impact ofpending litigations on its financial position in its financial statements. but as per ouropinion the company has not filled Income Tax Return since FY 2014-15 company has notdone Tax Audit for the previous years also No sales tax return filed from the F.Y.2014-15 and onwards Demands from Sales Tax department Excise Department for variousassessment years which shows some matter might be under litigation and its exact statusand its probable effect on financial statement is not disclosed by the management withus.;
ii) Except for the possible effects of the matter described in the Basis for AdverseOpinion paragraph above the Company has made provision as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts.;
iii) As per the information and explanation made available with us there has been nodelay in transferring amounts required to be transferred to the InvestorEducation and Protection Fund by the Company.
For D. Khanna & Associates
ANNEXURE "A" TO INDEPENDENT AUDITORS' REPORT
Annexure referred to in Paragraph 1 under the heading of "report on other legaland regulatory requirements" of our report of even date for F.Y. 2017-18
(i) (a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets. (b) The Company has phasedprogramme of physical verification of its fixed assets at reasonable intervals which inour opinion is reasonable having regard to the size of the Company and nature of itsassets. During the year the management has physically verified fixed assets and nomaterial discrepancies were noticed on such physical verification. However we are unableto comment on fixed assets situated at Behror in the absence of necessary records. (c) Inour opinion and according to the information and explanation made available with us therehas been no significant disposal of fixed assets except as stated above. Title deed ofLand Building Plant and Machinery Furniture and Fixture and other assets situated atBehror has not made available to us and as informed from the management Land and Buildinghas been sold out by the PNB and HUDCO without communicating with them. However the samehas been recorded in the books of accounts. (ii) As per the information and explanationgiven to us the Company's management has carried out physical verification of inventoryat regular intervals. No material discrepancies were noticed on such physicalverification. (iii) (a) The Company has granted loans the principal and interest thereofare re-payable on demand to a company covered in the register maintained under section189 of the Companies Act 2013. In our opinion and according to the information andexplanations given to us the terms and conditions of the grants and loans are notprejudicial to the interest of the company. (b) The company has granted loans that arere-payable on demand to a company covered in the register maintained under section 189 ofthe Companies Act 2013. The loans granted are repayable on demand. We are informed thatthe company has not demanded repayment of any such loan and interest during the year andthus there has been no default on the part of the parties to whom the money has beenlent. (c) As per the information and explanation given by the management there are nooverdue amounts in respect of the loan granted to a company covered in the registermaintained under section 189 of the Companies Act 2013.
(v) In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the Companies Act 2013 in respect of loans todirectors including entries in which they are interested and in respect of loans andadvances given investment made and guarantees and securities given have been compliedwith by the company.
(vi) The company has not accepted any deposits during the year; hence reporting underthis clause is not applicable.
(vi) We have been informed that the Central Government has not specified maintenance ofcost records under section 148(1) of the Companies Act 2013 for the productsmanufactured by the Company.
(vii)(a) According to the information and explanations given to us and on the basis ofrecords produced before us the Company is not regular in depositing with appropriateauthorities undisputed statutory dues including provident fund employees' stateinsurance income tax sales tax wealth tax custom duty excise duty cess and othermaterial statutory dues applicable to it.
(b) According to the information and explanation given to us no undisputed amountspayable in respect of provident fund employees state insurance income tax sales taxwealth tax service tax custom duty excise duty value added tax with differentauthorities cess and other material statutory dues applicable to it. As on the last dayof financial year following undisputed dues become payable for a period of more than sixmonths:
(c) As per Information and explanations furnished to us and on verification of recordsproduced there are disputed statutory dues outstanding as at 31st March 2018 which havenot been deposited with the respect of Sales Tax which are as follows:
(viii) In our opinion and according to the information and explanations given to us asper books of accounts the Principle dues of the HUDCU-Rs. 39450000 /-and PNB- Rs.10950000/- at the end of financial year. However the possession of Land hypothecatedfor this loan has taken by the PNB and HUDCO and sold out without informing to themanagement. Statement of the same loan is also not made available hence the due amountcould not be verified. (ix) Based on examination of books of accounts and information andexplanation given to us no money raised during the year by way of initial public offerand company has not obtained term loans during the financial year.
(x) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no material fraud by the company or any fraudon the Company by its officers or employees has been noticed or reported during the year.(xi) The company is not a Nidhi Company; hence reporting under this clause is notapplicable.
(xii) All the transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 and the details have not been disclosed in the FinancialStatements as required by the applicable Ind AS.
(xiii) The company has made preferential allotment or private placement of sharesapplication of money of the same has been received in earlier years. Applicable form hasalso not been filed with MCA and no any allotment has been made of fully or partlyconvertible debentures
(xiv) The managerial remuneration has been paid in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.
(xv) The company has not entered into any non-cash transactions with directors orpersons connected with him under the provisions of section 192 of Companies Act 2013.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For D Khanna & Associates
"ANNEXURE B" TO THE INDEPENDENT AUDITORS' REPORT
Referred to in our report of even date to the members of Sand Plast (India) Limited onthe accounts for the year ended 31st March 2018
Report on the Internal Financial Controls with reference to financial statements underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls over financial reporting of SandPlast (India) Limited (the Company') as on 31st March 2018 inconjunction with our audit of the financial statements of the Company for the year endedon 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these Ind AS financial statementsbased on our audit. We conducted our audit in accordance with the Guidance Note on Auditof Internal Financial Controls over
Financial Reporting (the "Guidance Note") and the Standards on Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls both applicableto an audit of Internal Financial Controls and both issued by the ICAI. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting with reference to these Ind AS financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial control system over financial reporting with reference to these IndAS financial statements and their operating effectiveness. Our audit of internal financialcontrol over financial reporting included obtaining an understanding of internal financialcontrol over financial reporting with reference to these Ind AS financial statementsassessing 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 systemover financial reporting
Meaning of Internal Financial Controls over Financial Reporting with reference to theseInd AS financial statements
A Company's internal financial control over financial reporting with reference to theseInd AS financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A Company's internal financial control over financial reporting with referenceto these Ind AS financial statements includes 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 over Financial Reporting withreference to these Ind AS financial statements
Because of the inherent limitations of internal financial controls over financialreporting with reference to these Ind AS financial statements including the possibilityof collusion or improper management override of controls material misstatements due toerror or fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to these Ind ASfinancial statements to future periods are subject to the risk that the internal financialcontrols over financial reporting with reference to these Ind AS financial statements maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.
In our opinion except as stated in the Basis of Adverse Opinion of the Main AuditReport and in the Annexure A the Company has in all material respects an adequateinternal financial controls system over financial reporting with reference to these Ind ASfinancial statements and such internal financial controls over financial reporting wereoperating effectively as at 31st March 2018 based on the internal controlsover financial reporting criteria established by the Company considering the components ofinternal controls stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the ICAI.
For D Khanna & Associates