mtz polyfilms ltd share price Auditors report
MTZ POLYFILMS LIMITED
ANNUAL REPORT 2009-2010
AUDITORS REPORT
TO,
THE MEMBERS OF
MTZ POLYFILMS LIMITED
We have audited the attached Balance Sheet of MTZ POLYFILMS LIMITED as at
31st March, 2010 and the Profit and Loss Account of the Company and the
Cash Flow Statement for the year ended on that date, both annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards required that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material mis-statement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by the management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003, issued by
the Central Government of India in terms of sub-section (4A) of Section 227
of the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order, to the extent
applicable.
2. Further to our comments in the Annexure referred to in paragraph 1
above, we state that:
(a) We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of our audit.
(b) In our opinion, proper books of accounts as required by law have been
kept by the Company so far as appears from our examination of such books.
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this Report are in agreement with the books of accounts of
the Company.
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement read with Note No. B.6 of Schedule 16 dealt with by this
Report, comply with the mandatory Accounting Standards referred to in
Section 211 (3C) of the Companies Act, 1956.
(e) In our opinion and based on the information and explanations given to
us, none of the Directors except Mr. Sanjay B. Shah and Mr. Arvind Oberoi
are disqualified as on 31st March, 2010 from being appointed as Directors
in terms of clause (g) of sub-section (1) of Section 274 of the Companies
Act, 1956.
(f) Subject to Note No. B. 6 regarding non-provision for the loss on
account of continued deferment of the PET Chips manufacturing project
amounting to Rs. 3130 lacs. Note No. B. 8 (a) regarding non-provision for
Sundry Debtors of Rs. 350.53 lacs, Note No. B. 8 (b) regarding non-
provision for Loans and Advances of Rs. 383.55 lacs and Note No. B. 8 (c)
regarding non-provision for diminution in the value of an Investment
aggregating to Rs 18.92 lacs, the combined effect of which is an under-
provision of Rs. 3883 lacs in Expenses, in our opinion and to the best of
our information and according to the explanations given to us, the Accounts
read together with the other Notes thereon give the information required by
the Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i. in the case of the Balance Sheet, of the state of affairs of the Company
as at 31st March, 2010;
ii. in the case of the Profit and Loss Account, of the Loss after Extra-
ordinary/Prior Period Items for the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the Cash Flow for the year
ended on that date.
For R.K. CHAPAWAT & CO.
Chartered Accountants
RAVINDRA CHAPAWAT
Place : Mumbai Proprietor
Date : 12th October, 2010. MEMBERSHIP NO. 37720
ANNEXURE TO THE AUDITORS REPORT:
(Referred to in paragraph 1 of our report of even date)
1. (a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
(b) The Company has formulated a programme of physical verification of all
fixed assets which, in our opinion, is reasonable having regard to the size
of the Company and nature of its assets. Accordingly, the physical
verification of fixed assets has been carried out by the management during
the year and no material discrepancies were noticed on such verification.
(c) The Company has not disposed-off any substantial part of its fixed
assets so as to affect its going concern status.
2. (a) As explained to us, inventories have been physically verified by
management at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
(b) The procedure of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification.
3. (a) The Company has not granted/taken any loan(s) from parties covered
under Section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information and explanations given
to us, the rate of interest, wherever applicable, and other terms and
conditions are not, prima facie, prejudicial to the interest of the
Company.
4. In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with the
size of the Company and nature of its business for the purchase of
inventory and fixed assets and also for the sale of goods. During the
course of our audit, we have not observed any major weaknesses in internal
controls.
5. In respect of transactions covered under Section 301 of the Companies
Act, 1956:
(a) In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of contracts and arrangements
that needed to be entered in the Register maintained under Section 301 of
the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations given
to us, there are no transactions in pursuance of contracts and arrangements
entered in the Register maintained under Section 301 of the Companies Act,
1956 aggregating during the year to Rs. 5,00,000/- or more in respect of
any party.
6. The Company has not accepted any deposits from the Public.
7. In our opinion, there was an inadequate internal audit system in the
Company during the financial year under review.
8. We are informed that the maintenance of cost records has not been
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956.
9. In respect of Statutory Dues:
(a) According to the records of the Company, the Company is regular in
depositing undisputed Statutory Dues with the appropriate authorities.
According to the information and explanations given to us, no undisputed
amounts payable in respect of the aforesaid dues excepting dues towards
Gokul Gram Yojana (GST) Rs. 10.70 lacs, FBT Rs. 52.66 lacs and Employers
Contribution to Provident Fund Rs. 26.34 lacs were outstanding as at 31st
March, 2010 for a period of more than six months from the date of becoming
payable.
(b) In our opinion and according to the information and explanations given
to us, the Company has no disputed Statutory Dues outstanding.
10. The Company is registered with the Board for Industrial and Financial
Reconstruction (BIFR) and its rehabilitation scheme has been sanctioned
vide ordered dated 7th June, 2004.
11. As per the books and records maintained by the Company and according to
the information and explanations given to us, the Company has defaulted in
payment of dues to Standard Chartered Bank, Dena Bank, Bank of India and
Bank of Baroda as per sanctions, negotiations and understandings from time
to time. Excepting the above, the Company is regular in payment of dues to
Banks and Financial Institutions in terms of sanctions.
12. In our opinion and according to the information and explanations given
to us, no loans and advances have been granted by the Company on the basis
of security by way of pledge of Shares, Debentures and other securities.
Therefore, the provisions of Clause 4 (xii) of the Companies (Auditors
Report) Order, 2003 are not applicable to the Company.
13. In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual
Benefit Fund/Society. Therefore, Clause 4 (xiii) of the Companies
(Auditors Report) Order, 2003 is not applicable to the Company.
14. In our opinion and according to the information and explanations given
to us, the Company is not a dealer or trader in securities.
15. According to the information and explanations given to us, the Company
has not given any guarantees for loans taken by others from Banks or
Financial Institutions during the year.
16. The Company has not raised any new terms loans during the year. The
term loans outstanding at the beginning of the year were applied for the
purpose for which they were raised.
17. On the basis of information received from the management and based on
our examination of the Balance Sheet of the Company, we report that no
funds raised on short term basis have been used for long term assets and
vice versa.
18. During the year, the Company has not made Preferential Allotment of
Shares to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
19. According to the information and explanations given to us, the Company
has not issued any Debentures during the year for which security needs to
be created.
20. The Company has not raised funds through Public Issue during the year.
21. In our opinion and according to the information and explanations given
to us, no fraud on or by the Company has been noticed or reported during
the year that could cause the financial statements to be materially mis-
stated.
For R.K. CHAPAWAT & CO.
Chartered Accountants
RAVINDRA CHAPAWAT
Place : Mumbai Proprietor
Date : 12th October, 2010. MEMBERSHIP NO. 37720