| We have audited the accompanying financial statements of AXEL POLYMERS
LIMITED which comprise the balance sheet as at 31 March 2015 and the
statement of profit and loss and 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 Statements
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 and presentation of these standalone financial
statements that give a true and fair view of the financial position and
financial performance and cash flows of the company in accordance with
the Accounting principles generally accepted in India, including
accounting Standards specified u/s 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014. This responsibility includes
maintenance of adequate accounting records in accordance with the
provision 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 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 u/s 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 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 control relevant to the company's preparation of the
financial statements that give true and fair viewin 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
management, 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 above 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:
1) in the case of the balance sheet, of the state of affairs of the
company as at 31 March 2015;
2) in the case of the statement of profit and loss, of the Profit for
the year ended on that date;
3) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's 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.
2. As required by section 143(3) of the Act, we report 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 account as required by law have been
kept by the company so far as appears from our examination of those
books;
c. the Balance Sheet .Statement of Profit and Loss and cash flow
statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in section 133the Act,
read with rule 7 of the Companies (Accounts) Rules,2014
e. on the basis of written representations received from the directors
as on 31 March 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2015, from being
appointed as a director in terms of section 164(2) of the Act.
f. With respect to the matter to be included in the Auditor's 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 Note 2.25(2) of the standalone financial
statements.
ii. The Company did not have any long term contracts including
derivatives contracts for which there were an material foreseeable
losses;
iii. There is no such amount which is required to be transfer to the
Investor education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 and rules made there under.
ANNEXURE TO THE AUDITOR'S REPORT
1 (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets; however the same remains to be updated.
(b) As explained to us, fixed assets are physically verified by the
management at the year-end, which in our opinion, is reasonable,
looking to the size of the company and its nature of business, and no
material discrepancies were noticed on such verification.
2 (a) As explained to us, Inventories has been physically verified
during the year and at the year-end.
(b) In our opinion the procedures of physical verification of inventory
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 is maintaining proper records of inventory. As informed
to us, the no material discrepancies were noticed on physical
verification of stocks as compared to book records were.
3 (a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Act. Hence, Clause (03) (a) to (b) of the
Order is not applicable.
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 the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and sale of services. During the course of
our audit, we have not observed any continuing failure to correct major
weakness in internal controls.
5. The Company has not accepted any deposits during the year from the
public, within the meaning of the provisions of Section 73 & 74 of the
Companies Act 2013 and rules made there under.
6. We are informed that the Central Government has not prescribed
maintenance of cost records pursuant to Rules prescribed under Section
148(1) of the Act; hence clause (viii) of the order is not applicable.
7. (a) The company is not regular in depositing undisputed statutory
dues including provident fund, income-tax, service tax, duty of
customs, duty of excise, value added tax or cess dues with the
appropriate authorities. There are no undisputed amounts payable as at
31.03.2015 for a period of more than six months from the date they
became payable except Income tax of Rs.3.12 Lacs.
(b) According to the information and explanation given to us, there are
no dues of income-tax, sales-tax, service tax, duty of customs, duty of
excise, value added tax or cess dues under dispute as on 31st March
2015 except Income Tax dues:
Name of Statue Nature of Dues Amount Period to which
(Rs.) it relates
Income Tax Act, Income Tax 38370/- A.Y. 2007-08
1961
161437/- A.Y. 2008-09
161437/- A.Y. 2009-10
Name of Statue Forum where the dispute is pending
Income Tax Act,1961 Assessing Officer
8. The accumulated losses of the company exceed 50% of its net worth
at the end of the Financial year. The Company has not incurred cash
losses in the current year however cash loss was incurred in
immediately preceding financial year.
9. Based on our audit procedures and on the information and
explanation given to us, we are of the opinion that the company has not
defaulted in repayment of its Loan and Interest to the bank.
10. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
11. According to the information and explanations given to us, no new
term loans were availed during the year.
12. To the best of our knowledge and belief and according to
information and explanation given to us no fraud on or by the company
has been noticed or reported during the year under report.
For SHAH & BHANDARI
Chartered Accountants
Firm No.: 118852W
(Yogesh Bhandari)
Place: Vadodara Partner
Date: 30.05.2015 M.No.046255
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