Virgo Polymers (India) Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2024

We have audited the financial statements of M/s. VIRGO POLYMERS (INDIA) LIMITED ("the Company"),
which comprise the balance sheet as at March 31, 2024, and the statement of profit and loss (including
other comprehensive income), the statement of changes in equity and the statement of cash flows for
the year then ended, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information.

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 Companies Act 2013 ("Act"'') in the
manner so required and give a true and fair view in conformity with the Indian accounting standards
prescribed under section 133 of the act read with the companies ( Indian accounting standards) Rules,
2015 as amended (Ind AS )and accounting principles generally accepted in India, of the state of affairs of
the Company as at March 31, 2024, and its profit, total comprehensive income, the changes in equity
and cash flows for the year ended as on that date.

Basis for opinion

We conducted our audit in accordance with the standards on auditing specified under section 143 (10)
of the Companies Act, 2013. Our responsibilities under those Standards are further described in the
auditor''s responsibilities for the audit of the financial statements section of our report. We are
independent of the Company in accordance with the code of ethics issued by the Institute of Chartered
Accountants of India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the code of ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of
our audit of the financial statements as a whole, and in forming our opinion thereon, ancf^e do oqt
provide a separate opinion on these matters.

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¹ he Company s board of directors is responsible for the preparation of the other information. The other
m ormation comprises the information included in the Board''s Report including Annexures to Board''s

Report, Business Responsibility Report but does not include the financial statements and our auditor''s
report thereon.

Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
standalone financial statements or our knowledge obtained during the course of our audit or otherwise
appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.

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 Act with
respect to the preparation of these financial statements that give a true and fair view of the financial
position, financial performance including other comprehensive income, cash flows and changes in equity
of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules. 2015 and Companies
(Indian Accounting Standards) Rules, 2016, as amended from time to time, and other accounting
principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of 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 statement that give a true and fair view and are free from material misstatement, whether
due to fraud or error.

In preparing tlie financial statements, management is responsible for assessing the Company''s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

The board of directors are also responsible for overseeing the Company''s financial reporting process.

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Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, thev could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies
Act, 2013, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls system in place and the operating effectiveness of such
controls

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

• Conclude on the appropriateness of management''s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company''s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor''s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor''s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, Including any significant deficiencies in
internal control that we identify during our audit

We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards. From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.

Report on other legal and regulatory requirements

As required by the Companies (Auditor’s Report! Order, 2020 ("the Order"), issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in
Annexure "A” a statement on the matters specified in paragraphs 3 and 4 of the Order.

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, 2024 taken
on record by the board of directors, none of the directors is disqualified as on March 31, 2024 from
being appointed as a director in terms of Section 164 (2) of the Act;

(f( With respect to the adequacy of the internal financial controls over financial reporting of the
Conx>any and the operating effectiveness of such controls, refer to our separate report in "Annexure B”.
Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the
Company''s internal financial controls over financial reporting;

(g) With respect to the other matters to be included in the Auditor''s Report in accordance with the
requirements of section 197 (16) of the Act, as amended, In our opinion and to the best of our
information and according to the explanations given to us, the remuneration paid by the Company to its
directors during the year is in accordance with the provisions of section 197 of the Act: and

(h) With respect to the other matters 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;

a. The Company does not have any pending litigations which would impact its financial position;

b. The Company did not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses; and

c. There has been no requirement in transferring amounts, to the Investor Education and Protection
Fund by the Company

d. Based on our examination, which included test checks, the Company has used accounting software s
for maintaining its books of account for the financial year ended 31 March 2024 which has a feature of
recording audit trail (edit log) facility and the same has not been operated throughout the year for all
relevant transactions recorded in the software''s. Further, during the course of our audit we did not
come across any instance of the audit trail feature being tampered with.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from 1 April 2023,
reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit
trail as per the statutory requirements for record retention is not applicable for the financial year ended
31 March 2024

For Venkat & Rangaa LLP

Chartered Accountants
LLPIN: AAK-5672, FRN No. 4597S

^Mofian Rajan (Partner)

M.No.206393

Place: Chennai
Date: 28-5-2024

UDIN:24206393BKATKB5439

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Mar 31, 2011

L.We have audited the attached Balance Sheet and Profit and Loss Account of VIRGO POLYMERS (INDIA) LIMITED, New No. 10, Old No.34, Arunachalam Road, Saligramam, Chennai 600 093 as at 31st March, 2011. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. 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.

3. As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of Sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

Further to our comments in the Annexure referred to above, 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 purposes of our audit.

b) In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books.

c) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the accounting standards referred to in Sub-section (3C) of Section 211 of the Companies Act, 1956, except in case of Accounting for Gratuity as required under AS 15 issued by ICAI (Refer Point No. (f) of Major Policies.

e) On the basis of written representations received from the Directors, as on 31st March 2011, and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on 31st March 2011, from being appointed as a Director in terms of clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information 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 subject to accounting of gratuity on cash basis (Refer Point No. (d).

i) In the case of Balance sheet, of the state of affairs of the Company as at 31st March 2011.

ii) In the case of the Profit and loss account of the profit for the year ended on that date 31st March 201 land

iii) In the case of the cash flow statement of the state of affairs of the company as at 31st Mar 2011.

ANNEXURE TO THE AUDITORS' REPORT

Annexure referred to in Para 3 above, as required under Section 227(4A) of the Companies Act, 1956.

1.1. According to the information and explanations furnished to us the company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

1.2. According to the information and explanations furnished to us, all the assets have been physically verified by the management during the year, and in our opinion, it is reasonable, having regard to the size of the Company and the nature of the assets. No material discrepancies were noticed on such verification.

1.3. According to the information and explanations furnished to us the company has not disposed substantial part of the assets during the year to affect the going concern.

2.1. According to the information and explanations furnished to us the company has physically verified its inventories during the year. In our opinion the frequency of such verification is reasonable.

2.2 In our opinion, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation the size of the company and nature of its business.

2.3. According to the information and explanations furnished to us the company is maintaining proper records of its inventory and discrepancies if any noticed on verification between the physical stock and the book records were not material and have been properly dealt with in the books of accounts.

3.1 According to the information and explanations furnished to us the Company has not granted any loans, secured or unsecured to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

3.2. In our opinion the rate of interest and other terms and conditions on which loans have been taken by the company from companies, firms or other parties covered by register maintained under section 301 of the Companies Act 1956 are not prima facie prejudicial to the interests of the Company.

4. In our opinion and according to the information and explanations furnished to us there are adequate internal control procedure commensurate with the size of the Company and the nature of its business for the purchase of stores, raw materials, including components, plant and machinery, equipment and other assets and for the sale of goods.

5. Based on information and explanation given to us we are of the opinion that the transactions that are required to be entered in the register maintained under section 301 of the Companies Act 1956 have been so entered.

6. According to the information and explanations furnished to us, the Company has not accepted deposits from the public and the provisions of Section 58A of the Companies Act, 1956 and the rules framed there under are not applicable to the Company for the year.

7. In our opinion, the Company does not have an Internal Audit System commensurate with the size and nature of its business.

8. The maintenance of Cost records is not applicable to this Company.

9.1. The Company has been regular in remitting of Employee Provident Fund Act regularly during the year. There has been no delay in remittance of undisputed tax deduction at source and service tax collections to the credit of Central Government.

9.2. According to the information and explanations furnished to us there is disputed amounts payable in respect of Income Tax and Sales Tax.

sl. No Asst.Year Amt Demanded S.T.Dept Amt. Paid by the Company Forum Where appeal is Pending Due

i 2000-01 76582 46776 Sales Tax Tribunal 29806

ii 2001-02 767149 576390 sales Tax Tribunal 19075 (Bank Guarantee given)

ii 2002-03 4547242 1689640 Sales Tax Tribunal 2857602 (Bank Guarantee Given)

iv 2003-04 495059 247530 Sales Tax Appeal 247529 (Bank Guarantee given)



10. In our opinion, and according to the information and explanation furnished to us by the company there were no defaults in repayment of dues to financial institution, banks or debenture holders at the date of Balance Sheet.

11. According to the information and explanations furnished to us the Company has not granted any loans and advances against pledge of shares, debentures and other securities.

12. As the Company is in the business of manufacture of PP woven sacks and poly bags the Clauses 4(xiii) and 4(xiv) are not applicable.

13. According to the information and explanations furnished to us the Company has not given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions where of are prejudicial to the interests of the company.

14. In our opinion and according to the information and explanation furnished to us, the does not have any Term loans and hence this clause is not applicable to the company.

15. In our opinion, and according to the information and explanation furnished to us and on an overall examination of Balance Sheet of the company we report that funds raised on short term basis have not been used for long term investment, and no long term funds have been used to finance short term assets.

16. The Company has not made any preferential allotment of shares to/ratifies and Companies covered in the Register maintained under Section 301 of the year and the price at which shares have been issued are prima facie not prejudicial to the interests of the Company.

17. According to the information and explanations furnished to us the company has not issued any debentures during the year under report.

18. No further Public issue of shares have been issued by the Company so far.

19. According to the information and explanations furnished to us and based on the audit procedures generally adopted by us we report that during the year no fraud on or by the Company has been noticed or reported that is either significant or could have caused a material misstatement in the financial statement.

Place : Chennai For Venkat & Ranag.

Date : 05.09.2011 Chartered Accountants

S.Mohan Raajan

Partner

M No. 206393

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Mar 31, 2010

1.We have audited the attached Balance Sheet and Profit and Loss Account of VIRGO POLYMERS (INDIA) LIMITED, New No. 10, Old No.34, Arunachalam Road, Saligramam, Chennai 600 093 as at 31st March, 2010. 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.

2. 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.

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

Further to our comments in the Annexure referred to above, 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 purposes of our audit.

b) In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books.

c) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the accounting standards referred to in Sub-section (3C) of Section 211 of the Companies Act, 1956, except in case of Accounting for Gratuity as required under AS 15 issued by ICIA (Refer Point No (1) of Major Accounting Policies.

e) On the basis of written representations received from the Directors, as on 31st March 2010, and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on 31st March 2010, from being appointed as a Director in terms of clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information 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 subject to accounting of gratuity on cash basis (Refer Point No. (d).

i) In the case of Balance sheet, of the state of affairs of the Company as at 31st March 2010.

ii) In the case of the Profit and loss account of the profit for the year ended on that date 31st March 2010 and

iii) In the case of the cash flow statement of the state of affairs of the company as at 31st Mar 2010.

ANNEXURE TO THE AUDITORS REPORT Annexure referred to in Para 3 above, as required under Section 227(4A) of the Companies Act, 1956.

1.1. According to the information and explanations furnished to us the company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

1.2. According to the information and explanations furnished to us, all the assets have been physically verified by the management during the year, and in our opinion, it is reasonable, having regard to the size of the Company and the nature of the assets. No material discrepancies were noticed on such verification.

1.3. According to the information and explanations furnished to us the company has not disposed substantial part of the assets during the year to affect the going concern.

2.1 According to the information and explanations furnished to us the company has physically verified its inventories during the year. In our opinion the frequency of such verification is reasonable.

2.2 In our opinion, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation the size of the company and nature of its business.

2.3. According to the information and explanations furnished to us the company is maintaining proper records of its inventory and discrepancies if any noticed on verification between the physical stock and the book records were not material and have been properly dealt with in the books of accounts.

3.1 According to the information and explanations furnished to us the Company has not granted any loans, secured or unsecured to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

3.2. In our opinion the rate of interest and other terms and conditions on which loans have been taken by the company from companies, firms or other parties covered by register maintained under section 301 of the Companies Act 1956 are not prima facie prejudicial to the interests of the Company.

4. In our opinion and according to the information and explanations furnished to us there are adequate internal control procedure commensurate with the size of the

Company and the nature of its business for the purchase of stores, raw materials, including components, plant and machinery, equipment and other assets and for the sale of goods.

5. Based on information and explanation given to us we are of the opinion that the transactions that are required to be entered in the register maintained under section 301 of the Companies Act 1956 have been so entered.

6. According to the information and explanations furnished to us, the Company has not accepted deposits from the public and the provisions of Section 58A of the Companies Act, 1956 and the rules framed there under are not applicable to the Company for the year.

7. In our opinion, the Company does not have an Internal Audit System commensurate with the size and nature of its business.

8. The maintenance of Cost records are not applicable to this Company.

9.1. The Company has been regular in remitting of Employee Provident Fund Act regularly during the year. There has been no delay in remittance of undisputed tax deduction at source and service tax collections to the credit of Central Government.

9.2. According to the information and explanations furnished to us there is disputed amounts payable in respect of Income Tax and Sales Tax.

INCOME TAX

SI. Asst. Year Amt.Demanded by Amt. Paid by Appeal Due No. Asst. Com. of the Company Pending I.TAX(ACIT) With Rs. Rs. Rs.

01 1996-97 4500059 1900000 CIT(Tribun 2600059

02 2006-07 7766270 800000 al) 6966270 CIT (Appeal)

9.3 Sales Tax

SI. Asst.Year Amt.Demanded Amt.paid Forum where Appeal Due No. S.T. Dept by the is Pending Company

i. 2000-01 76582 46776 Sales Tax Tribunal 29806

ii. 2001-02 767149 576390 Sales Tax Tribunal 19075 (Bank Guarantee given)

iii. 2002-03 4547242 1689640 Sales Tax Tribunal 2857602 (Bank Guarantee given)

iv 2003-04 495059 247530 Sales Tax Appeal 247529 (Bank Guarantee given)

10. In our opinion, and according to the information and explanation furnished to us by the company there were no defaults in repayment of dues to financial institution banks or debenture holders at the date of Balance Sheet.

11. According to the information and explanations furnished to us the Company has not granted any loans and advances against pledge of shares, debentures and other securities.

12. As the Company is in the business of manufacture of PP woven sacks and poly bags the Clauses 4(xiii) and 4(xiv) are not applicable.

13. According to the information and explanations furnished to us the Company has not given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions where of are prejudicial to the interests of the company.

14. In our opinion and according to the information and explanation furnished to us, the does not have any Term loans and hence this clause is not applicable to the company.

15. In our opinion, and according to the information and explanation furnished to us and on an overall examination of Balance Sheet of the company we report that funds raised on short term basis have not been used for long term investment, and no long term funds have been used to finance short term assets.

16. 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 during the year and the price at which shares have been issued are prima facie not prejudicial to the interests of the Company.

17. According to the information and explanations furnished to us the company has not issued any debentures during the year under report.

18. No further Public issue of shares have been issued by the Company so far.

19. According to the information and explanations furnished to us and based on the audit procedures generally adopted by us we report that during the year no fraud on or by the Company has been noticed or reported that is either significant or could have caused a material misstatement in the financial statement.

For Venkat & Rangaa Chartered Accountant

S.Mohan Raajan Partner

Place : Chennai Date : 01.09.2010