To The Members of Tirth Plastic Limited
Report on the Financial Statements
Opinion
We have audited the accompanying financial statements of Tirth Plastic Limited("the company") which comprise the Balance Sheet as at 31 March 2021 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
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 theCompanies Act 2013 (the "Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 the profit and total comprehensiveincome changes in equity and its cash flows for the year ended on that date
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ('ICAI') together withthe ethical requirements that are relevant to our audit of financial statements under theprovisions of the Act and the rules made there under 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 financial statements.
Key Audit Matters
Key audit matters ('KAM') are those matters that in our professional judgment were ofmost significance in our audit of the financial statements of the current period. Thesematters were addressed in the context of our audit of the financial statements as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters. There are no key matters identified during the audit.
Emphasis of Matter
We draw attention to Note No-1 of the financial statements which shows of recovery ofLoans and Advances of Rs.500000/- from M B Parikh & Co. and Rs.2501500/- from M BParikh Fin Stocks Ltd for which legal proceedings are pending before Honorable Court. Asinformed to us by management that they are sure about its recovery. Our opinion is notmodified in respect of this matter. However we have already created provision in thebooks of Account for the said outstanding amount.
We draw attention to Note No-5 of the financial statements which shows amountrecoverable from Shrimm Construction Private Limited for cancellation of agreement forpurchase of property. As informed to us the said agreement is cancelled and the seller isin process of refunding the amount. The total amount recoverable as on 31-03-2021 isRs.13241145.6. Our opinion is not modified in respect of this matter.
Information Other than the Financial Statements an Auditor's Report Thereon
The Company's Board of Directors are responsible for the preparation of otherinformation. The other information comprises the information included in the Company'sAnnual Report but does not include the financial statements and our auditors' reportthereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.
Responsibilities of Management for the Financial Statements
The Company's Board of Directors are responsible for the matters stated in section134(5) of the Act with respect to the preparation and presentation of these financialstatements that give a true and fair view of the state of affairs profit/loss statementof changes in equity and cash flows of the company in accordance with the accountingprinciples generally accepted in India specified under Section 133 of the Act. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as going concern disclosing as applicable matters relatedto going concern and using the going concern basis of accounting unless management eitherintends to liquidate the company or to cease operations or has no realistic alternativebut to do so.
The Board of Directors are responsible for overseeing the Company's financial reportingprocess.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion.
• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofthe same.
• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basisof accounting in preparation of financial statements and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the appropriateness of this assumption. Our conclusions arebased on the audit evidence obtained up to the date of our auditors' report. Howeverfuture events or conditions may cause the company to cease to continue as going concern.
• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the consolidated financial statements.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein "Annexure-A" a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.
A. As required by Section 143(3) of the Act based on our audit we report to theextent applicable 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 of the aforesaidfinancial statements.
b) In our opinion proper books of account as required by law relating to preparationof the aforesaid financial statements have been kept so far as it appears from ourexamination of those books.
c) The balance sheet the statement of profit and loss the statement of changes inequity and the statement of cash flows dealt with by this Report are in agreement with therelevant books of account maintained for the purpose of preparation of the financialstatements.
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 of theCompany as on 31 March 2020 none of the directors is disqualified as on 31 March 2021from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to adequacy of the internal financial controls over the financialreporting of the company with reference to these Financial Statements and the operatingeffectiveness of such controls refer to or separate Report in "Annexure-B" tothis report.
B. With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
a. The Company does not have any pending litigations which would impact its financialposition.
b. The Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeable losses.
c. There has been no amount required to be transferred to the Investor Education andProtection Fund by the Company.
Annexure-A
To the Independent Auditor's Report of even date on the Financial Statements of TirthPlastic Limited
The annexure referred to in our report to the members of Tirth Plastic Limited ('thecompany') for the year ended 31st March 2021. We report that
(i) In respect of its fixed assets:
a. The Company does not hold any fixed asset hence this clause is not applicable.
b. According to the information and explanations given to us the company does not holdany immovable property.
(ii) In respect of its inventories:
a. As explained to us the inventories (excluding inventories with third parties) werephysically verified during the year by the Management at reasonable intervals.
b. In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.
(iii) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the Register maintained under Section 189 of the CompaniesAct 2013.
(iv) In respect of loan guarantee security or investment:
a. The Company has not advanced any loan or given any guarantee or provided anysecurity covered under section 185 of the Act.
b. The Company has not advanced any loan or given any guarantee or provided anysecurity or made any investment which exceeds the limit specified under section186 of theAct.
(v) According to information and explanations given to us the Company has not acceptedany deposits from public during the year. In respect of unclaimed deposits the Companyhas complied with the provisions of sections 73 to 76 or any other relevant provisions ofthe Companies Act 2013 and the rules made thereunder.
(vi) The Company is into the business of trading; consequently requirement of clause(vi) of paragraph 3 of the order is not applicable.
(vii) According to the information and explanations given to us in respect of statutorydues:
a. The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Income-tax Goods and Service Tax (GST) Cess and any othermaterial statutory dues with the appropriate authorities as applicable to the Company.There were no undisputed statutory dues in arrears as at 31st March 2021 for a period ofmore than six months from the date they became payable.
b. According to the information and explanations given to us there is no amount ispayable on account of any dispute in respect of Income Tax Goods and Service Tax (GST).
(viii) The Company has not taken any Loan from financial institutions and bank andaccordingly clause (viii) of this order is not applicable to the Company.
(ix) The Company has not raised money by way of initial public offer or further publicoffer (including debt instruments) and term loan and accordingly clause (ix) of this orderis not applicable to the Company.
(x) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.
(xi) The company has not paid/provided managerial remuneration during the year thusclause (xi) of this order is not applicable to the Company.
(xii) The Company is not a Nidhi Company. Consequently requirements of clause (xii) ofparagraph 3 of the order are not applicable.
(xiii) To the best of our knowledge and belief and according to the information andexplanations given to us all transactions with the related parties are in compliance withsection 177 and 188 of the Act where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable Indian accounting standards.
(xiv) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Consequently requirements of clause (xiv) of paragraph 3 of the order are notapplicable.
(xv) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not entered into any non-cash transactions withdirectors or persons connected with him.
(xvi) To the best of our knowledge and belief and according to the information andexplanations given to us the Company is not required to be registered under section 45IAof the Reserve Bank of India Act 1934.
Annexure-B
To the Independent Auditor's Report Of Even Date On The Financial Statements Of TirthPlastic Limited
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 TirthPlastic Limited ("the Company") as of March 31 2021 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 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 Act.
Auditor's 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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 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 auditor's judgement 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 financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 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 March 31 2020 based on"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".
