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Padmanabh Industries Ltd.

BSE: 526905 Sector: Industrials
NSE: N.A. ISIN Code: INE743D01011
BSE 14:41 | 22 Jan 79.00 0.15
(0.19%)
OPEN

78.50

HIGH

79.00

LOW

75.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 78.50
PREVIOUS CLOSE 78.85
VOLUME 12024
52-Week high 82.20
52-Week low 45.40
P/E 1128.57
Mkt Cap.(Rs cr) 48
Buy Price 79.00
Buy Qty 75.00
Sell Price 82.00
Sell Qty 30.00
OPEN 78.50
CLOSE 78.85
VOLUME 12024
52-Week high 82.20
52-Week low 45.40
P/E 1128.57
Mkt Cap.(Rs cr) 48
Buy Price 79.00
Buy Qty 75.00
Sell Price 82.00
Sell Qty 30.00

Padmanabh Industries Ltd. (PADMANABHINDS) - Auditors Report

Company auditors report

TO THE MEMBERS OF

PADMANABHINDUSTRIES LIMITED

(Formerly knownas Nilchem Industries Limited) Report on theFinancial Statements

1. We have audited theaccompanying financial statementsof PADMANABH INDUSTRIES LIMITED (“the company”) (Formerly known asNilchem Industries Limited) which comprises the Balance Sheet as at 31 March 2017 theStatement of Profit and Loss theCash Flow Statement for the year ended and a summary of significant accountingpolicies and other explanatory information.

Management'sResponsibility for the Financial Statements

2. The Company's Boardof Directors is responsible for the matters in section 134(5) of the Companies Act 2013(“the Act”) with respect to the preparation of these financial statementsthat give a true and fair view of the financial position financial performanceand cash flows of the Companyin accordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial controlthat were operating effectively for ensuringthe accuracy and completeness of the accounting records__ relevant to the preparation andpresentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditor'sResponsibility

3. Our responsibilityis to express an opinion on these financial statementsbased on our audit.

4. We have taken intoaccount the provisions of the Act the accounting and auditing standards and matters whichare required to be included in the audit report under the provisions of the Act and theRules made there under.

5. We conducted ouraudit in accordance with the Standards on Auditing specified under section143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement.

6. An audit involvesperforming 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 therisks of material misstatement of the financial statementswhether due to fraud or error. In making those risk assessments the auditor considersinternal financial controlrelevant to the Company's preparation of the financial statementsthat give true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by Company'sDirectors as well as evaluating the overall presentation of the financial statements.

7. We believe that theaudit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the financial statements.

Opinion

8. In our opinion andto the best of our information and according to the explanations given to us theaforesaid financial statementsgive the information required by the Act in the manner so required and give a true andfair 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 asat March 31 2017; b) In the case of the Statementof Profit and Loss of theloss for the year ended on that date; and c) In thecase of the Cash Flow Statement of the cash flows for the yearended on that date.

Report on otherLegal and Regulatory Requirements

9. As required by the‘Companies (Auditor's Report) Order 2016' issued by the Central Government of Indiain terms of sub-section (11) of Section 143 of the Act (hereinafter referred to as the“Order”) and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in the Annexure B a statement on the matters specified in paragraph 3and 4 of the Order.

10. As requiredby 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 ourknowledge and belief were necessary for the purposes of our audit. b) In our opinion proper books of account as required bylaw have been kept by the Company so far as appears from our examination of those books. c) the Balance Sheet the Statement of Profit and Loss andCash Flow Statement dealt with by this Report are in agreement with the books of account. d) In our opinion the aforesaid financial statementscomply with the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. e) On the basis of written representations receivedfrom the directors as on 31 March 2017 taken on record by the Board of Directors noneof the directors is disqualified as on 31March 2017 from being appointed as a director in terms of Section 164(2) of the Act. f) In our opinion the Company has in all materialrespects an adequate internal financial controlssystem over financial reportingand such internal financial control overfinancial reporting wereoperating effectively as at March31 2017 based on the internal control over financial reportingcriteria established by the Company and our separate Report in Annexure A. g) With respect to the other matters to be included inthe Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014in our opinion and to our best of our information and according to theexplanations given to us: i. The Company hasdisclosed the impact of pending litigations on its financial position inits financial statements– Refer Note 1 to the financial statements; ii. The Company did not have any long-term contractsincluding derivative contracts for which there were any material foreseeable losses. iii. There were no amounts which required to betransferred to the Investor Education and Protection Fund by the Company. iv. The Company did not have any holdings or dealings inSpecified Bank Notesduring the period from 8th November 2016 to 30th December 2016 – Refer Note [16]

For Nitin K. Shah& Co.

CharteredAccountants Firm Reg. No.:107140W

Vaibhav N. Shah

Date : 26/05/2017 Proprietor Place : Ahmedabad M. No. 116817

ANNEXURE A TOINDEPENDENT AUDITORS' REPORT

Referred to inparagraph 10(f) of the Independent Auditors' Report of even date to the members ofPADMANABH INDUSTRIES LIMITED (Formerly known as Nilchem Industries Limited) on the financial statements forthe year ended March 31 2017

Report on theInternal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act

1. We have audited theinternal financial controlsover financial reporting ofPADMANABH INDUSTRIES LIMITED (“the Company”) (Formerly known as NilchemIndustries Limited) as of March 31 2017 in conjunction with our audit of the financial statementsof the Company for the year ended on that date.

Management'sResponsibility for Internal Financial Controls

2. The Company'smanagement is responsible for establishing and maintaining internal financial controls basedon the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuringthe orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial informationas required under the Act.

Auditor'sResponsibility

3. Our responsibilityis to express an opinion on the Company's internal financial controls over t;font-family:"Myriad Pro";color:blue>financial reportingbased on our audit. We conducted our audit in accordance with the Guidance Note on Auditof Internal Financial Controls Over Financial Reporting (the “Guidance Note”)and the Standards on Auditing deemed to be prescribed under Section 143(10) of the Act tothe extent applicable to an audit of internal financial controls bothapplicable to an audit of internal financial controls andboth issued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controlsover financial reportingwas established and maintained and if such controls operated effectively in allmaterial respects.

4. Our audit involvesperforming procedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reportingand their operating effectiveness. Our auditof internal financial controlsover financial reportingincluded obtaining an understanding of internal financial controlsover financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financial statementswhether due to fraud or error.

5. We believe that theaudit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Company's internal financial controlssystem over financial reporting.

Meaning ofInternal Financial Controls Over Financial Reporting

6. A Company'sinternal financial control overfinancial reporting isa process designed to provide reasonable assurance regarding the reliability of financial reporting andthe preparation of financial statementsfor external purposes in accordance with generally accepted accounting principles. Acompany's internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat in reasonable detail accurately and fairly reflect the transactionsand dispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

InherentLimitations of Internal Financial Controls Over Financial Reporting

7. Because of theinherent limitations of internal financial controlsover financial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reporting tofuture periods are subject to the risk that the internal financial control over financial reporting maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.

Opinion

8. In our opinion theCompany has in all material respects an adequate internal financial controlssystem over financial reportingand such internal financial controlsover financial reportingwere operating effectively as at March31 2017 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.

For Nitin K. Shah& Co.

CharteredAccountants Firm Reg. No.:107140W

Vaibhav N. Shah

Date : 26/05/2017 Proprietor Place : Ahmedabad M. No. 116817

ANNEXURE B TOINDEPENDENT AUDITORS' REPORT

Referred to inparagraph 9 of the Independent Auditors' Report of even date to the members of PADMANABHINDUSTRIES LIMITED (Formerly known as Nilchem Industries Limited) on the financial statements forthe year ended March 31 2017 (i) In respect of its Fixed Assets: (a) The Company is maintaining proper records showingfull particulars including quantitative details and situation of fixed assets; (b) These fixed assets havebeen physically verified by themanagement at reasonable intervals in accordance with regular programme of verification. Accordingto the information and explanation given to us no material discrepancies were noticed onsuch verification.

(c) The immovableproperty held by the Company is on lease rental basis hence para 3(ii) of the Order isnot applicable to the Company. (ii) In respect of its Inventory: According to the information and explanations given tous physical verification of inventoryhas been conducted at reasonable intervals by the management and no material discrepancieswere noticed on physical verification during theyear.

(iii) (a) Thecompany has granted unsecured loan to a wholly owned subsidiary company covered in theregister maintained under section 189 of the Act. In our opinion and according to theinformation and explanation given to us the terms and conditions of the loans are notprejudicial to the Company's interest having regard to managements representation thatthe loans are given to such parties considering the company's economic interest and longterm trade relationship with such parties.

(b) In respect ofloans granted to parties covered in the register maintained under section 189 of theCompanies Act2013 the loans are repayable on demand and are interest free. Managementhas not demanded repayment of loan. Accordingly there has been no default on the part ofthe parties to whom the money has been lent.

(iv) According to information and explanations given to usthe Company has not granted any loans or made any investments or provided any guaranteesor security to the parties covered under Sec.185 and 186 of the Companies Act 2013.Therefore the provisions of Clause 3(iv) of the said Order are not applicable to theCompany. (v) According to information and explanations given to us the Company has notaccepted any deposits during the year.

(vi) According tothe information and explanations given to us the Central Govt. has not prescribedmaintenance of cost records under sub-section (1) of Sec.148 of the Companies Act 2013for any of the products of the Company. (vii) According to the information andexplanations given to us in respect of statutory dues: (a)The Company is generally regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax wealth tax servicetax duty of customs duty of excise value added tax cess and any other statutory dueswith the appropriate authorities.

(b) There are noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax cessand any other statutory dues in arrears as at March 31 2017 for period of more than sixmonths from the day they became payable . (viii) As the Company does not have any loans orborrowings from any financial institutionor bank or Government nor has it issued any debentures as at the balance sheet date theprovisions of Clause 3(viii) of the Order are not applicable to the Company.

(ix) The Companyhas not raised moneys by way of initial public offer or furtherpublic offer (including debtinstruments) and term loans during the year. Accordingly the provisions of Clause 3(ix)of the Order are not applicable to the Company.

(x) During thecourse of our examination of the books and records of the Company carried out inaccordance with the generally accepted auditing practices in India and according to theinformation and explanations given to us we have neither come across any instance ofmaterial fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

(xi) Themanagerial remuneration has neither been paid nor provided for hence para 3(xi) of theOrder is not applicable to the Company. (xii) This clause of the CARO 2016 is notapplicable to the Company as the Company is not a Nidhi Company. (xiii) According to theinformation and explanations given to us all transactions with the related parties are incompliance with sections 177 and 188 of the Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements etc. as required by theapplicable accounting standards.

(xiv) Accordingto the information and explanations given to us the Company has not made any preferentialallotment or private placement of shares or fully convertible debentures during the yearunder audit. Accordingly the provisions of Clause 3(xiv) of the Order are not applicableto the Company.

(xv) According tothe information and explanations given to us the Company has not entered into anynon-cash transactions with directors or persons connected with him and the provisions ofsection 192 of the Companies Act 2013 have been complied with; (xvi) This clause of theCARO 2016 is not applicable to the Company as the Company is not required to registeredunder section 45-IA of the Reserve Bank of India Act 1934.

For Nitin K. Shah& Co.

CharteredAccountants Firm Reg. No.:107140W

Vaibhav N. Shah

Date : 26/05/2017 Proprietor Place : Ahmedabad M. No. 116817