| 1. We have audited the accompanying financial statements of Solid
Containers Limited ("the Company") which comprise the Balance Sheet as
at 31 March 2014, the Statement of Profit and Loss and 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 STATEMENTS
2. Management is responsible for 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 Standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
respect of Section 133 of the Companies Act, 2013 and other accounting
principles generally accepted in India. This responsibility includes
the design, implementation and maintenance of internal control 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
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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.
4. 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 and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control. 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our qualified audit opinion.
BASIS FOR QUALIFIED OPINION
6. Attention is drawn to Note 18 regarding substantial operating losses
due to closure of commercial operations of the Company and in the
absence of any rehabilitation measures, the Company is no longer a
going concern. The Company has not made any adjustment to the financial
statements relating to recoverability of recorded asset amounts and in
respect of liabilities as might be necessary for compilation, where the
Company is no longer a going concern. The effect on the Loss for the
year and Net Worth of the Company is unascertained. Our audit opinion
on the financial statements for the year ended 31 March 2013 was also
qualified in respect of the above matter.
QUALIFIED OPINION
7. In our opinion and to the best of our information and according to
the explanations given to us, except for the possible effects of the
matters described in the Basis for Qualified Opinion paragraph, the
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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2014;
(b) In the case of the Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
8. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
9. As required by Section 227(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, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Act read with the General Circular 15/2013 dated 13 September 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and other accounting principles generally accepted
in India; and
(e) On the basis of written representation received from the directors
and taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 2014, from being appointed as a director in
terms of Section 274(1) (g) of the Act.
ANNEXURE REFERRED TO IN PARAGRAPH 8 UNDER THE HEADING "REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE
(i) (a) As explained to us, the company has maintained proper records
showing full particulars including quantitative details and situation
of fixed assets but the same have not been produced for verification as
reported to be untraceable.
(b) The fixed assets are not physically verified during the year.
(c) The Company has not disposed off substantial part of fixed assets
during the year.
(ii) Due to the closure of the commercial operations, the company is
not having inventory during the year and hence, clauses (ii) (a), (ii)
(b), (ii) (c) of the Order regarding inventories are not applicable to
the Company.
(iii) (a) The Company has not granted any loan, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(b) The Company has not taken any loan, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(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 with regard
to purchase of inventory, fixed assets and sale of goods and services.
However there are no purchase of inventory and sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system in respect of the aforesaid areas.
(v) According to the information and explanations given to us, there
are no contracts or arrangements the particulars of which are required
to be entered into the register maintained in pursuance to Section 301
of the Act.
(vi) The Company has not accepted any deposits from the public during
the year.
(vii) As informed to us, the company did not have an internal audit
system during the year.
(viii) In view of closure of manufacturing activities, the report on
the maintenance of cost records as prescribed by the Central Government
under section 209(1)(d) of the Act is not required.
(ix) According to the records of the Company examined by us and
information and explanations given to us:
(a) Undisputed Statutory dues including provident fund, investor
education and protection fund, income tax, sales tax, wealth tax,
service tax, custom duty, excise duty, cess and others as applicable
have generally been regularly deposited with the appropriate
authorities except delay in few cases. There are no undisputed amounts
payable in respect of the aforesaid dues outstanding as at 31 March,
2014 for a period of more than six months from the date they became
payable.
(b) According to the records of the Company, the dues of excise duty
and income tax which are not deposited on account of any dispute are as
under:
Name of Nature of Amount in Period to Forum where dispute
the Statute the Dues Rupees which the is pending
amount relates
Central Excise
Excise Duty 354,616 FY 1983-84 to Commissioner of
Act, 1944 FY 1985-86 Central Excise
(Appeals), Mumbai
7,276,028 FY 1994-95 to Commissioner of
FY 1997-98 Central Excise
(Appeals), Thane
237,741 FY 1994-95 to Assistant
FY 1995-96 Commissioner of
Central Excise,
Kalyan
55,046 FY 1994-95 Superintendent of
Central Excise,
Kalyan
58,549 FY 1994-95 Assistant
Commissioner of
Central Excise,
Dadar
(x) According to the records of the company and in our opinion, the
Company's accumulated losses at the end of the financial year are more
than fifty percent of its net worth. Further, the Company has incurred
cash losses during the financial year ended 31 March 2014 and in the
immediately preceding financial year.
(xi) The Company has not taken any loans from banks/financial
institutions or issued debentures during the year.
(xii) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi/mutual benefit
fund/society.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments.
(xv) According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from
banks or financial institutions.
(xvi) The Company has not raised any term loans during the year.
(xvii) According to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company and
related information as made available to us, we are of the opinion that
funds raised on short-term basis aggregating to Rs. 2,120,000/- have
been used for long term purposes for purchase of fixed assets.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Act.
(xix) The Company has not issued any secured debentures during the
year.
(xx) The Company has not raised any money by public issue during the
year.
(xxi) Based on the audit procedures performed and according to 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.
For MGB & Co
Chartered Accountants
Firm Registration Number 101169W
Sanjay Kothari
Partner
Membership Number 048215
Mumbai, 30 May 2014
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