TO THE MEMBERS OF ECOPLAST LIMITED
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ECOPLAST LIMITED
("the Company"), which comprise the Balance Sheet as at March 31, 2023, the
Statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and the Statement of Cash Flows for the year ended on that date, and a
summary of the significant accounting policies and other explanatory information
(hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the
Companies Act, 2013 ("the Act") in the manner so required and give a true and
fair view in conformity with the Indian Accounting Standards prescribed under section 133
of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,
("Ind AS") and other accounting principles generally accepted in India, of
the state of affairs of the Company as at March 31, 2023, the profit and total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing ("SAs") specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India (ICAI) together with the ethical
requirements that are relevant to our audit of the standalone financial statements under
the provisions of the Act and the Rules made thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAIs Code of
Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate
to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
We have determined that there are no key audit matters to be communicated in our report
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the
Management Discussion and Analysis, Boards Report including Annexures to Boards
Report, Business Responsibility Report, Corporate Governance and Shareholders
Information, but does not include the standalone financial statements and our auditors
report thereon.
Our opinion on the standalone financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial statements or our knowledge
obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial performance including
other comprehensive income, changes in equity and cash flows of the Company in accordance
with the Ind AS and other accounting principles generally accepted in India. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the standalone financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Companys financial reporting
process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
o Identify and assess the risks of material misstatement of the standalone financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
o Obtain an understanding of internal financial controls relevant to the 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 on whether the
Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
o Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
o Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the standalone financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
o Evaluate the overall presentation, structure and content of the standalone financial
statements, including the disclosures, and whether the standalone financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (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 financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters. We describe these matters
in our auditors report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the best
of 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 the
Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS
specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure A". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
g) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in
our opinion and to the best of our information and according to the explanations given to
us:
i. The Company does not have any pending litigations which would impact its financial
position.
ii. The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
iv. Based on such examination, representations given by the management as per the
requirements of Rule 11(e)(i) and (ii), nothing has come to our notice that has caused us
to believe that the above-mentioned representations contain any material misstatement.
v. The Company has neither declared nor paid any dividend during the year
2. As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in
"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the
Order.
For Y. B. Desai and Associates Chartered Accountants Firm Registration No. 102368W
|
Mayank Y. Desai |
|
Partner |
| Date :- 25th May, 2023 |
Membership No. :- 108310 |
| Place :- Surat |
UDIN : 23108310BGWRMR2863 |
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT (Referred to in paragraph 1
(f) under ‘Report on Other Legal and Regulatory Requirements section of our report
to the Members of ECOPLAST LIMITED of even date)
Report on the Internal Financial Controls with reference to standalone Financial
Statements under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 ("the Act")
We have audited the internal financial controls with reference to standalone Financial
Statements of ECOPLAST LIMITED (the "Company") as of March 31, 2023 in
conjunction with our audit of the standalone Ind AS financial statements of the Company
for the year ended on that date.
Managements Responsibility for the Internal Financial Controls
The Management of the Company is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the
Institute of Chartered Accountants of India (the "ICAI"). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting of the Company based on our audit. We conducted our
audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over
Financial
Reporting (the "Guidance Note") issued by the ICAI and the Standards on
Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether adequate internal financial controls over
financial reporting was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained, is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls with
reference to standalone Financial Statements.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control with reference to standalone Financial
Statements is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A companys internal
financial control with reference to standalone Financial Statements includes those
policies and procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the assets of
the company; (2) provide reasonable assurance that transactions are recorded as necessary
to permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorisations of management and directors of the company; and (3)
provide reasonable assurance regarding prevention or timely detection of unauthorised
acquisition, use, or disposition of the companys assets that could have a material effect
on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to standalone
Financial Statements
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls with reference to
standalone Financial Statements to future periods are subject to the risk that the
internal financial with reference to standalone Financial Statements may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
system with reference to standalone Financial Statements and such internal financial
controls with reference to standalone Financial Statements were operating effectively as
at March 31, 2023, based on the criteria for internal financial control with reference to
standalone Financial Statements established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the ICAI.
For Y. B. Desai and Associates Chartered Accountants Firm Registration No. 102368W
|
Mayank Y. Desai |
|
Partner |
| Date :- 25th May, 2023 |
Membership No. :- 108310 |
| Place :- Surat |
UDIN : 23108310BGWRMR2863 |
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2 under *Report on Other Legal and Regulatory Requirements
section of our
report to the Members of Ecoplast Limited of even date)
To the best of our information and according to the explanations provided to us by the
Company and the
books of account and records examined by us in the normal course of Audit, we state
that:
i. In respect of the Companys Property, Plant and Equipment and Intangible Assets
(a) (A) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment and relevant details
of right-of-use assets.
(B) The Company has no intangible assets, therefore reporting under 3(i)(a) not
applicable
(b) The Company has a program of physical verification of Property, Plant and Equipment
and right-of-use assets so to cover all the assets once every three years which, in our
opinion, is reasonable having regard to the size of the Company and the nature of its
assets. Pursuant to the program, certain Property, Plant and Equipment were due for
verification during the year and were physically verified by the Management during the
year. According to the information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) Based on our examination of the property tax receipts for land on which building is
constructed, registered sale deed / transfer deed / conveyance deed provided to us, we
report that, the title in respect of self-constructed buildings and title deeds of all
other immovable properties (other than properties where the company is the lessee and the
lease agreements are duly executed in favour of the lessee), disclosed in the financial
statements included under Property, Plant and Equipment are held in the name of the
Company as at the balance sheet date.
(d) The Company has not revalued any of its Property, Plant and Equipment (including
right-of-use assets) and intangible assets during the year.
(e) No proceedings have been initiated during the year or are pending against the
Company as at March 31, 2023 for holding any benami property under the Benami Transactions
(Prohibition) Act,
ii. (a) The management has conducted physical verification of inventory at reasonable
intervals during the year and no material discrepancies were noticed on such physical
verification.
(b) The Company has been sanctioned working capital limits in excess of five crore
rupees, in aggregate, from bank on the basis of security of current assets, and the
quarterly returns or statements filed by the company with such bank is in agreement with
the books of account of the Company.
iii. The Company has made investments in, companies, firms, Limited Liability
Partnerships, and granted unsecured loans to other parties, during the year, in respect of
which:
(a) The Company has not provided any loans or advances in the nature of loans or stood
guarantee, or provided security to any other entity during the year, and hence reporting
under clause 3(iii)(a) of the Order is not applicable.
(b) In our opinion, the investments made and the terms and conditions of the grant of
loans, during the year are, prima facie, not prejudicial to the Companys interest.
(c) The Company has not granted any loans or advances in the nature of loans, hence the
reporting of schedule of repayment of principal and payment of interest under clause
3(iii)(c) of the Order is not applicable.
(d) The Company has not granted any loans or advances in the nature of loans, hence the
reporting of overdue amount remaining outstanding as at the balance sheet date under
clause 3(iii)(d) of the Order is not applicable.
(e) No loan granted by the Company which has fallen due during the year, has been
renewed or extended or fresh loans granted to settle the overdues of existing loans given
to the same parties.
(f) The Company has not granted any loans or advances in the nature of loans either
repayable on demand or without specifying any terms or period of repayment during the
year. Hence, reporting under clause 3(iii)(f) is not applicable.
The Company has not provided any guarantee or security or granted any advances in the
nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships
or any other parties.
iv. The Company has complied with the provisions of Sections 185 and 186 of the
Companies Act, 2013 in respect of loans granted, investments made and guarantees and
securities provided, as applicable.
v. The Company has not accepted any deposit or amounts which are deemed to be deposits.
Hence, reporting under clause 3(v) of the Order is not applicable.
vi. The maintenance of cost records has not been applicable for the company under the
Company under sub-section (I) of section I48 of the Companies Act, 2013, hence, reporting
under clause (vi) of the Order is not applicable to the Company.
vii. In respect of statutory dues:
(a) In our opinion, the Company has generally been regular in depositing undisputed
statutory dues, including Goods and Services taX, Provident Fund, Employees State
Insurance, Income Tax, Sales Tax, Service Tax, duty of Custom, duty of Excise, Value Added
Tax. Cess and other material statutory dues applicable to it with the appropriate
authorities.
There were no undisputed amounts payable in respect of Goods and Service tax, Provident
Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, duty of Custom, duty
of Excise, Value Added Tax, Cess and other material statutory dues in arrears as at March
31, 2023 for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, there are no dues of
income tax, sales tax, value added tax, service tax, Goods and Service Tax, custom duty,
excise duty and Cess which have not been deposited with the appropriate authorities on
account of dispute other than those mentioned in Notes of the Financial Statements.
viii. There were no transactions relating to previously unrecorded income that have
been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (43 of 1961).
ix. a. The company has not defaulted in repayment of loans or other borrowings or in
the payment of interest thereon to any lender
b. The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
c. The Term loans were applied for the purpose for which the loans were obtained
d. On an overall examination of the financial statements of the Company has not raised
funds on short-term basis, hence reporting under clause 3(ix)(d) of the Order is not
applicable.
e. On an overall examination of the financial statements of the Company, the Company
has not taken any funds from any entity or person on account of or to meet the obligations
of its subsidiaries.
f. The Company has not raised any loans during the year on the pledge of securities
held in its subsidiaries, joint ventures or associate companies and hence reporting on
clause 3(ix)(f) of the Order is not applicable.
x. a. The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year and hence reporting under clause
3(x)(a) of the Order is not applicable.
b. During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally) and hence
reporting under clause 3(X)(b) of the Order is not applicable.
xi. a. No fraud by the Company and no material fraud on the Company has been noticed or
reported during the year.
b. No report under sub-section (12) of section 143 of the Companies Act has been filed
in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Govemment, during the year and upto the date of this report.
c. We have taken into consideration the whistle blower complaints received by the
Company during the year (and upto the date of this report), while determining the nature,
timing and extent of our audit procedures.
xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of the
Order is not applicable. xiii. In our opinion, the Company is in compliance with Section
177 and 188 of the Companies Act, 2013 with respect to applicable transactions with the
related parties and the details of related party transactions have been disclosed in the
standalone financial statements as required by the applicable accounting standards.
xiv. (a) In our opinion the Company has an adequate internal audit system commensurate
with the size and the nature of its business.
(b) We have considered, the internal audit reports for the year under audit, issued to
the Company during the year and till date, in determining the nature. timing and extent of
our audit procedures.
xv. In our opinion during the ycar the Company has not entered into any non-cash
transactions with its Directors or persons connected with its directors, and hence
provisions of section 192 of the Companies Act. 2013 are not applicable to the Company.
xvi. (a) In our opinion, the Company is not required to be registered under section
45-lA of the Reserve Bank of India Act. 1934. Hence, reporting under clause 3(xvi)(a), (b)
and (c) of the Order is not applicable.
(b) In our opinion, there is no core investment company within the Group (as defined in
the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting
under clause 3(xvi)(d) of the Order is not applicable.
xvii. The Company has not incurred cash losses during the financial year covered by our
audit and the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of the Company during
the year.
xix. On the basis of the financial ratios, aging and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date. We, however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due.
xx. (a) There are no unspent amounts towards Corporate Social Responsibility (CSR) on
other than ongoing projects requiring a transfer to a Fund specified in Schedule VIl to
the Companies Act in compliance with second proviso to sub-section (5) of Section 135 of
the said Act. Accordingly, reporting under clause 3(xx)(a) of the Order is not applicable
for the year.
(b) In respect of ongoing projects, the Company has no unspent Corporate Social
Responsibility (CSR) amount as at the end of the previous financial year.Accordingly,
reporting under clause 3(xx)(b) of the Order is not applicable for the year.
xxi. There is a qualifications remarks by the respective auditors in the Companies
(Auditors Report) Order (CARO) reports of the companies included in the consolidated
financial statements. The Consolidated Financial Statement inculde Subsidiary Namely
Syngergy Films Private Limited and its CARO
Paragraph no. is xvii.
Y. B. Desai & Associates Chartered Accountants
CA Firm Registration No. 102368W
| Date : 25th May, 2023 |
|
| Place: Surat |
|
|
Partner |
|
Name : CA Mayank Y. Desai |
|
M. No. : 108310 |
|
UDIN -23108310BGWRMR2863 |
+91-9892691696
