To The Members of Techtran Polylenses Limited Report on the Financial Statements
We have audited the accompanying financial statements of Techtran Polylenses Limited
("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the
Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a
summary of the significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ("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 and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. 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 financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these standalone financial statements
based on our audit. We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in the audit report
under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the Companys preparation of the
financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on whether the Company has in place an adequate internal financial controls system
over financial reporting and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Companys Directors, as well as
evaluating the overall presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the standalone financial statements.
Opinion
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 Act in the manner sorequired and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of affairs of the Company
as at 31st March, 2015, and its loss and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to the following matter in the Notes to the financial statements:
a) Note 11.2 and Note 16.1 to the standalone financial statements indicates that
the Company has converted the loan given to related party into 10% Non-Convertible,
Non-Participating, Redeemable Cumulative Preference Shares of Rs.10/- each at premium of
Rs.162/- which is redeemable within 7 years from the date of allotment at Rs.172/-. This
is based on a valuation report which is relied upon by the management. This valuation
indicates the existence of uncertainty relating to the future financial projections of the
invest company. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2015 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and
4 of the Order, to the extent applicable
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 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, and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards 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 31st
March, 2015taken on record by the Board of Directors, none of the directors is
disqualified as on31st March, 2015 from being appointed as a director in terms of Section
164 (2) of the Act.
(f) 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, in our opinion
and 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 financial position in its
financial statements – Refer Note29 to the financial statements; ii) The Company did
not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses; iii) There is a delay in transferring the amounts required to
be transferred to the Investor Education and Protection Fund by the company as on balance
sheet date. However, the Company has transferred the amount on 27.05.2015 with a delay of
206 days.
|
For M.Anandam& Co., |
|
Chartered Accountants |
|
(Firm Regn.No.000125S) |
|
S.Venkateswarlu |
|
Partner |
| Place: Hyderabad |
Membership No.022790 |
| th |
|
| Date: 28 May, 2015 |
|
Annexure to the Auditors Report
The Annexure referred to in our report to the members of the Company for the year ended
st
on 31 March, 2015. We report that:
(I) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) As explained to us, the fixed assets have been physically verified by the
management in a periodical manner, which in our opinion is reasonable, having regard to
the size of the Company and the nature of its business. No material discrepancies were
noticed on such physical verification.
(ii) (a) The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by the management
are reasonable and adequate in relation to the size of the company and the nature of its
business.
(c) The company has maintained proper records of its inventories. The discrepancies
noticed on verification between the physical stocks and book records were not material.
(iii) The company has granted an unsecured loan to one party covered in the register
maintained under section 189 of the Act. During the year the company has not received any
payments towards principal and interest. The balance outstanding of Rs. 660.38 lakhs
(inclusive of interest and principal dues) is converted into investment in preference
shares of the said party read with Note 11.2 and Note 16.1 to the financial statements.
(iv) In our opinion and according to the information and explanations given to us,
there is an adequate internal control system commensurate with the size of the company and
the nature of its business, for the purchase of inventory, fixed assets and for the sale
of goods. During the course of our audit, no major weakness has been noticed in the
internal control system in respect of these areas.
(v) The company has not accepted deposits within the meaning of Sections 73 to 76 of
the Act and the rules framed thereunder.
(vi) In our opinion and according to the information and explanations given to us, the
Company has made and maintained accounts and records prescribed by the Central Government
under sub-section (1) of section 148 of the Act.
(vii)
a) According to the information and explanations given to us and the records of the
Company examined by us, the Company is generally regular in depositing undisputed
statutory dues including provident fund, employees state insurance, income-tax,
sales-tax, value added tax, wealth tax, service tax, customs duty, excise duty, value
added tax, cess and any other statutory dues as applicable with the appropriate
authorities and there were arrears of outstanding statutory dues as at the last day of the
financial year concerned for a period of more than six months from the date they became
payable as follows :
| Nature of Dues |
Amount (Rs.) |
| Income-tax |
1,93,01,130 |
| Employee State Insurance |
3,07,812 |
| Provident Fund |
5,49,418 |
b) According to the information and explanations given to us and records of the Company
examined by us, there are no disputed statutory dues like sales tax, income tax,
customs duty, excise duty, service tax, wealth tax, VAT or any cess as at 31 st
March,
2015.
c) The amounts required to be transferred to investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules
made thereunder has not been transferred to such fund as on balance sheet date. However,
the same amount was transferred on 27.05.2015 with a delay of 206 days.
viii) The Company has no losses at the end of the financial year and has incurred cash
loss of Rs. 50.81 lakhs in the financial year and no cash loss in the immediately
preceding financial year.
ix) The Company has not defaulted in repayment of dues to a financial institutions or
banks.
x) In our opinion and according to the information and explanations given to us, the
Company has given corporate guarantee for loan taken by the subsidiary from banks or
financial Institutions, the terms and conditions are not prejudicial to the interest of
the Company.
xi) In our opinion and according to the information and explanations given to us, the
term loans have been applied for the purpose for which the loans were obtained other than
amounts temporarily invested pending utilization of the funds for the intended use.
xii) To the best of our knowledge and belief and according to the information and
explanations given to us, no fraud on or by the Company was noticed or reported during the
year.
|
For M.Anandam& Co., |
|
Chartered Accountants |
|
(Firm Regn.No.000125S) |
|
S.Venkateswarlu |
|
Partner |
| Place: Hyderabad |
Membership No.022790 |
| Date: 28 th May, 2015 |
|
+91-9892691696
