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Pact Industries Ltd.

BSE: 538963 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE494K01024
BSE LIVE 15:50 | 26 Sep 4.19 0.38
(9.97%)
OPEN

3.89

HIGH

4.19

LOW

3.51

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 3.89
PREVIOUS CLOSE 3.81
VOLUME 16482
52-Week high 8.20
52-Week low 2.80
P/E 83.80
Mkt Cap.(Rs cr) 21
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.89
CLOSE 3.81
VOLUME 16482
52-Week high 8.20
52-Week low 2.80
P/E 83.80
Mkt Cap.(Rs cr) 21
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Pact Industries Ltd. (PACTINDUSTRIES) - Auditors Report

Company auditors report

To the Members of Pact Industries Limited

Report on the Financial Statements

We have audited the accompanying standalone Ind AS financial statements of PactIndustries Limited (‘ the Company') which comprise the Balance Sheet as at March 312017 and the Statement of Profit and Loss and Cash Flow Statement and the statement ofchanges in equity for the year then ended and a summary of the significant accountingpolicies and other explanatory information( herein after referred to as "standaloneInd AS financial statements"..

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Company's Act 2013("the Act") with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance including other comprehensive income cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards(Ind AS) prescribedunder Section 133 of the Act read with relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent: and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and Rules made there under

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirement and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free form material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal control relevant to theCompany's preparation of the standalone Ind AS financial statements that gives true andfair view in order to design audit procedure that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by Company's Director as well asevaluating the overall presentation of the standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinions

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the Company as at 31st March 2017 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub section ( 11) of section 143 ofthe Act we give in the Annexure A statement on the matters specified in paragraphs 3 and4 of the Order.

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 bestof 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 theCompany so far as it appears from our examination of those books;

c. The balance sheet statement of profit and loss and cash flow statement dealt withby this report are in agreement with the books of account;

d. In our opinion the aforesaid standalone IND AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant Ruleissued thereunder;

e. On the basis of written representations received from the directors as on March 312017taken on record by the Board of Directors none of the directors is disqualified ason march 31 2017 from being appointed as a directorin terms of Section 164(2) of the Act;

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"

For Rajesh Mehru & Co.
Chartered Accountants
Firm's Registration Number : 011715N
sd/-
Rajesh Mehru
Partner
Membership Number: 090725
Place : Ludhiana
Date : 30.05.2017

ANNEXURE A TO THE AUDITORS' REPORT

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone Ind AS financial statements for the year ended 31st March2017 we report that:

i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The company has a regular program of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this program certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion the frequency ofphysical verification of fixed assets is reasonable having regard to the size of theCompany and nature of its assets.

(c) According to information and explanation given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

ii) As explained to us the inventory has been physically verified during the year bythe management at reasonable intervals.

(a) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management as evidencedby the written procedures and instruction are reasonable and adequate in relation to thesize of the company and nature of its business.

(b) The company is maintaining proper records of inventories.

iii) The Company has not granted loans to Companies or other parties covered in theregister maintained under section 189 of the Companies Act 2013(‘the Act'). Henceclause ab and c are not applicable.

iv) In our opinion and according to the information and explanations given to us theCompany has compiled with the provisions of section 185 and 186 of the Act with respectto the loans and investment made.

v) The Company has not accepted any deposits from the public.

vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the company.

vii) (a) According t the information and explanations given to us and on the basis ofour examination of the records of the company amount deducted/accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax value added tax duty of customs service tax cess and other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities except Provident Fund E.S.I Labour Welfare Fund and Tax deductedat source.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax value added tax duty ofcustoms service tax cess and other material statutory dues were in arrears as at 31stMarch2017 for a period of more than six months from the date they became payable exceptProvident Fund and E.S.I. and Tax deducted at source.

(b) According to the information and explanations given to us there are no materialdues of duty of customs which have not been deposited with the appropriate authorities onaccount of any dispute.

viii) The Company does not have any loans or borrowings from any financial institutionbanks government or debenture holders during the year. Accordingly paragraph 3(viii) ofthe Order in not applicable.

ix) The Company did not raise money by way of initial public offer or further publicoffer(including debt instruments) and term loans during the year. Accordingly paragraph3(ix) of the Order in not applicable.

x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi) According to the information and explanations given to us and based on ourexamination of the records of the company the company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provision ofsection 197 read with Schedule V of the Act.

xii) In our opinion and according to the information and explanations given to us theCompnay is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone Ind AS financial statements as requiredby the applicable accounting standards.

xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company ahs not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non –cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Rajesh Mehru & Co.
Chartered Accountants
Firm's Registration Number : 011715N
sd/-
Rajesh Mehru
Partner
Membership Number: 090725
Place : Ludhiana
Date : 30.05.2017

Annexure –B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub section 3 of Sections143 of the Companies Act 2013 (" the Act")

We have audited the internal financial controls over financial reporting of PactIndustries Limited ( ‘‘the Company'') in conjunction with our audit ofstandalone financial statements of the Company for the year ended on that date.

Management's Responsibility for the Financial Statements

The Company's Management is responsible for the preparation establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on audit of Internal Financial control overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibility include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting base on our audit. We conducted our audit in accordancewith the Guidance Not on Audit of Internal Financial Controls over Financial Reporting("the Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143( 10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

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

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial reporting is a process designed to provide reasonableassurance regarding the reliability of financial reporting and preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting includes thosepolicies and procedures that (1) pertain to maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; ( 2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of financial statements in accordance with generally acceptedaccounting principles and the receipts and expenditure of the company are being made onlyin accordance with the authorization of the management and the directors of the company; (3) provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of company's assets that could have a material effect onthe financial statements.

Inherent Limitations Of Internal Financial Control Over Financial Reporting

Because of the inherent limitations of the internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not to be detected.Also projections of any evaluations of the internal financial controls over financialreporting to future period are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliances with the policies or procedures may deteriorate.

Opinion

In our opinion the company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at

31 March 2017 based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India.

For Rajesh Mehru & Co.
Chartered Accountants
Firm's Registration Number : 011715N
sd/-
Rajesh Mehru
Partner
Membership Number: 090725
Place : Ludhiana
Date : 30.05.2017