wopolin plastics ltd Auditors report
WOPOLIN PLASTICS LIMITED
(Formerly known as BAJAJ PLASTICS LIMITED
ANNUAL REPORT 2005-2006
AUDITORS REPORT
TO
THE MEMBERS OF
WOPOLIN PLASTICS LIMITED
(FORMERLY KNOWN AS BAJAJ PLASTICS LIMITED)
We have audited the attached Balance Sheet of Wopolin Plastics Limited
(Formerly known as Bajaj Plastics Limited), as at 31st March, 2006 and also
the Profit and Loss Account and the Cash Flow Statement for the year ended
on that date, 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 require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. 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 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 Section 227(4A)of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters specified.
2. Further and subject to our comments in the Annexure referred above, we
report that:
i) 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;
ii) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those books;
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this Report are in agreement with the books of account;
iv) In our opinion the Balance Sheet, Profit & Loss Account and Cash flow
Statement dealt with in this report comply with the Accounting Standards
referred in Sub-Section(3C) Section 211 of the Companies Act, 1956.
v) On the basis of the written representations received from the Directors,
as on 31st March, 2006 and taken on record by the Board of Directors, we
report that none of the Directors are disqualified as on 31st March, 2006
from being appointed as a Directors in terms of clause (g) of sub-section
(1) of Section 274 of the Companies Act, 1956.
vi) In our opinion and to the best of our information and according to the
explanations given to us. the said accounts read together with the notes
thereon and in particulars (1) The Company has incurred the net loss of
Rs.75,854,493/- during the year ended 31st March, 2006 and as of that date
its total liabilities exceeded its total assets by Rs.1,168,157,701/-.
These factors along with other matters as set forth in Note no. 11, raise
substantial doubt that the Company will be able to continue as a going
concern. Consequently, adjustment may be required to be made to the
recorded value of assets and its consequential effect on profit/loss which
are not made as the same is unascertainable and accordingly not made in the
financial statements. (2) Note no. 10 regarding non-provision of impairment
loss as per Accounting Standard 28(AS-28). (3) Note no.7 regarding non-
provision of interest on unsecured loans of Foundry Division. (4) Note no.
8b regarding non-provision of depreciation on the fixed assets of the
Foundry Division and (5) Note no.6 regarding non-provision of excise duty
on finished goods give the information as 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:
a. In the case of the Balance Sheet, of the state of affairs of the Company
as at 31st March, 2006:
b. In the case of the Profit and Loss Account, of the Loss for the year
ended on that date;
c. In the case of Cash Flow Statements of the Cash Flows for the year ended
on that date.
For K.C. Agrawal & Co.
Chartered Accountants
K.C. Agrawal
Proprietor
Nagpur
Dated: 16th October, 2006
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 fixed assets, other than
Electrical Installation, Furniture & Fittings. Office Equipments and
Factory Fixtures.
(b) As explained to us, all the fixed assets except Electrical
Installation, Furniture & Fittings, Office Equipments and Factory Fixtures
have been physically verified by the management at reasonable intervals
during the year. No material discrepancies were noticed on such
verification.
(c) During the year no fixed assets have been disposed off.
2. (a) The inventories have been physically verified by the management at
reasonable intervals.
(b) In our opinion and according to the information and explanations given
to us, 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) On the basis of our examination of the records of inventory, We are of
the opinion that the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks and
the book records were not material in relation to the size of the Company
and the nature of its business and the same have been properly dealt with
in the books of account.
3. The Company has not granted/taken any loan secured or unsecured to/from
companies, firms or other parties covered in the register maintained under
Section 301 of the Companies Act, 1956. Consequently, requirements of
Clauses (iii)(b), (iii)(c), (iii)(d), (iii)(f) and (iii)(g) of paragraph 4
of the Order are not applicable.
4. In our opinion, and according to the information and explanations given
to us, there are adequate internal control system commensurate with the
size of the Company and the nature of its business with regard to purchase
of inventory, fixed assets and the sale of goods and services. During the
course of our audit, we have not observed any continuing failure to correct
major weakness in internal control system.
5. (a) Based upon the audit procedures performed by us and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of the contracts or arrangements referred to
in the section 301 of the Act have been entered in the register required to
be maintained under the Section.
(b) In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of such contracts or arrangements
entered in the register maintained under Section 301 and exceeding the
value of Rupees Five Lacs in respect of any party during the year have been
made at prices which are reasonable having regard to prevailing market
prices at the relevant time.
6. During the year Company not accepted any deposits from the public.
7. In our opinion the Company has an Internal Audit system commensurate
with the size and nature of the Companys business.
8. As informed to us, the Central Government has not prescribed maintenance
of cost records under Section 209(1)(d) of the Companies Act, 1956 for any
of the products of the Company.
9. (a) According to the information and explanations given to us and on the
basis of records of the Company, the Company is regular in depositing with
appropriate authorities undisputed statutory dues, including Provident
Fund, Investor Education Protection Fund, Employees State Insurance,
Income-Tax, Sales-Tax, Wealth-Tax, Service Tax, Custom Duty, Excise Duty,
Cess and other statutory dues applicable to it.
(b) The details of Custom Duty which have not been deposited on account of
dispute with the appropriate authorities are as under:
Status Amount (Rs.) Forum where dispute is pending
Custom Duty 82,333,155 The Commissioner of Customs
(Appeals), Mumbai
10. The accumulated losses of the Company as at the end of the year are
more than fifty percent of its net worth. The Company has also incurred
cash losses during the year and also in the immediately preceding financial
year.
11. The Company has defaulted in repayment of its total dues amounting to
Rs.1,542,521,051/- to financial institutions, banks and debenture holder
from time to time during the period 01.01.1997 to 31.03.2006.
12. The Company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not carrying on business of chit fund of
Nidhi/Mutual Benefit Fund/Society. Therefore, the provision of Clause
(4xiii) of the Order are not applicable to the Company.
14. The Company is not dealing in or trading in shares, securities,
debentures or other investments.
15. The Company has not given any guarantee for loans taken by others from
Bank or Financial Institutions.
16. No term loan was raised during the year.
17. According to the information and explanation given to us and on the
basis of records of the Company and on an overall examination of the
Balance Sheet of the Company, we report that short term funds raised during
the year except Rs. 1,155,600 were not applied for long term investment.
18. The Company has not made any preferential allotment of shares during
the year.
19. Security or charge has been created in earlier year on debentures
issued by the Company.
20. During the year, the Company has not raised any money by Public
Issue(s).
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by the
Company has been noticed or reported during the course of our audit.
For K.C. Agrawal & Co.
Chartered Accountants
K.C. Agrawal
Proprietor
Nagpur
Dated: 16th October, 2006