| We have audited the financial statements of AVI Polymers Limited ("the
Company"), which comprise the Balance Sheet as at March 31, 2015, the
Statement of Profit and Loss, the Cash Flow Statement for the year then
ended and a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for the Financial Statement
The Company's 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 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's 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 Company's
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 accounting policies used and the reasonableness of
the accounting estimates made by the Company's 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 financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required 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 March 31, 2015, and its profit and its cash flows for the year ended
on that date.
Report on other Legal and Regulatory Requirement
1. As required by the Companies ( Auditor's Report) order, 2015 (' the
Order') issued by 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 the paragraph 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 March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of Section 164(2).
The Annexure referred to in our report to the members of AVI Polymers
Limited, on the financial statements for the year ended on 31st March
2015. We report that:
(i) (a) The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the company has a regular programme of physical
verification of its assets by which fixed assets are verified, and no
material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
(ii) (a) As explained to us, inventories have been physically verified
during the year 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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
(iii) (a) The company has not granted any loans, secured or unsecured,
to companies, firms or other (a) Parties listed in the register
maintained under Section 189 of the Companies Act, 2013. Consequently,
the provisions of clauses iii (b), iii(c) of the order are not
applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct anyweaknesses in the
internal controls has been noticed.
(v) The company has not accepted any deposits from the public.
(vi) As per information & explanation given by the management,
maintenance of cost records has not been prescribed by the Central
Government under section 148(1) of the Act.
(vii) (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of aforesaid dues were in arrears
as on 31st of March, 2015 for a period of more than six months from the
date they became payable.
(c) The disputed statutory dues aggregating Rs. 103.84 lacs that have
not been deposited on account of disputed matter pending before
appropriate authority are as under.
Name of Nature of Amount Rs. Financial
status Dues In Lacs Year to
which
amount
relates
Income tax Tax on 5.56 1999-2000
Act,1961 assessment
u/s 143(3)
Income tax Tax on 98.28 2000-2001
Act,1961 Assessment
u/s 143(3)
Income tax Tax on 11.34 2006-2007
Act,1961 Assessment
u/s 143(3)
Income tax Tax on 0.19 2011-2012
Act,1961 Assessment
u/s 143(3)
115.37
Name of Forum where
status dispute is
pending
Income tax Gujarat High
Act,1961 Court
Ahmedabad
Income tax ITAT
Act,1961 Ahmedabad
Income tax ITAT
Act,1961 Ahmedabad
Income tax CIT (Appeals)
Act,1961
(d) According to the information and explanations given to us there
were no amount 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 there under has been
transferred to such fund within time, and hence this clause is not
applicable.
(viii) The Company has accumulated loss at the end of the financial
year which is not more than 50 % of its net worth. Considering the
above we are of the opinion that the Fundamental Assumption of "Going
Concern" is not affected. The company has not incurred cash losses
during the financial year covered by the audit and in the immediate
preceding financial year.
(ix) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(x) In our opinion and according to the information given to us, the
company has not given any guarantee for loan taken by other from banks
and financial institutions.
(xi) Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
(xii) Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
Date: - 2&h May, 2015 For, S.S. Dasani & Co.
Place: - Ahmedabad Chartered Accountants
(Arpit Shah)
Partner
M.No.125043
FRN: 116521W
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