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Palco Metals Ltd.

BSE: 539121 Sector: Engineering
NSE: N.A. ISIN Code: INE239L01013
BSE LIVE 11:51 | 05 Jun Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 29.25
PREVIOUS CLOSE 28.25
VOLUME 344
52-Week high 29.25
52-Week low 25.95
P/E
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 29.25
CLOSE 28.25
VOLUME 344
52-Week high 29.25
52-Week low 25.95
P/E
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Palco Metals Ltd. (PALCOMETAL) - Auditors Report

Company auditors report

To the Members of

PALCO METALS LIMITED

Ahmedabad.

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of PALCO METALSLIMITED ("the Company") which comprise the Balance Sheet as at March 312015 and the Statement of Profit and loss the Cash Flow Statement for the year thenended 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased 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 the Rules made thereunder.

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 ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2015;

b) in the case of the Profit and Loss Account of the profit/ loss for the year endedon that date.

c) In case of Cash Flow Statement of the Cash Flow 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 ofthe Act we give in the Annexure a statement on the matters specified in paragraph 3 and 4of the Order to the extent applicable.

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 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 financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e) On the basis of the written representations received from the directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms of Section164 (2) of the Act.

f) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements – Refer Note to the financial statement

ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For RAHUL KAKANI & ASSOCIATES

(CHARTERED ACCOUNTANTS)

-sd

[RAHUL KAKANI]

PARTNER

M.NO.: - 132796

F.R.No. 130198W

Place: -Ahmedabad

Date: - 25/05/2015.

Annexure to the Auditors’ Report

Referred to in the Paragraph 1 under the heading ‘Report on the Other Legal andRegulatory Requirements’ of our report of even date on the standalone financialstatements of the Company for the year ended March 31 2015.

I. In respect of its fixed assets:

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

b. According to the information and explanations given to us the fixed assets havebeen physically verified by the management during the year in a phased periodical mannerwhich in our opinion is reasonable having regard to the size of the Company and natureof its business. No discrepancies of serious nature have been noticed by the managementand almost all the items as appearing in the register have been physically verified at theend of the year.

c. During the year The Company has not disposed of any substantial/major part of fixedassets.

II. In respect of its Inventories:

a. As explained to us the inventory has been physically verified during the year bythe management. In our opinion the frequency of verification is reasonable.

b. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the management are reasonableand adequate in relation to the size of the Company and the nature of its business.

c. In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of inventory the company is maintainingproper records of inventory. The discrepancies noticed on physical verification ofinventory as compared to the book records were not material and have been properly dealtwith in the books of account.

III. In respect of loans granted and taken to / from parties covered in the registermaintained

u/s 189 of the Companies Act 2013

(a) The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Act. Thereforethe provisions of sub-clause (a) and (b) of paragraph 3(iii) of the Order are notapplicable to the Company for the current year..

IV. In respect of internal control:

In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods. In our opinion and according to the information and explanations given to us thereis no continuing failure to correct major weakness in internal control.

V. In respect of deposits from public :

In our opinion and according to the information and explanations given to us theCompany has not accepted deposits from the public during the year. Therefore theprovisions of clause 4(vi) of CARO are not applicable to the Company.

VI. In respect of maintenance of cost records:

Pursuant to rules made by the Central Government for the maintenance of cost recordsunder sub-section (1) of section 148 of the Companies Act 2013 in respect of certainmanufacturing activities as informed to us the Company is not required to maintain costrecords.

VII. In respect of statutory dues:

(a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Income taxWealth tax Sales tax Service tax Value added tax cess and any other material statutorydues have generally been regularly deposited during the year by the Company with theappropriate authorities. As explained to us the Company did not have any dues on accountof Employees’ State Insurance Custom Duty and Excise duty. According to theinformation and explanations given to us there are no undisputed statutory dues payablein respect of Provident Fund Employees State Insurance Income tax Sales-tax Wealth TaxCustom Duty Excise Duty Cess which are outstanding as at 31.3.2015 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofWealth tax Customs duty and Cess which have not been deposited with the appropriateauthorities on account of any dispute.

(c) According to the records of the Company there has not been an occasion in case ofthe company during the year under report to transfer any sum to the Investor Education andProtection Fund in accordance with the relevant provisions of the Companies Act 1956 (1of 1956).

VIII. In respect of accumulated losses and cash losses:

The Company does not have accumulated losses as at the end of the year and the Companyhas not incurred any cash losses during current and the immediately preceding financialyear.

IX. In respect of dues to financial institution / banks / debentures:

Based on our audit procedures and on the basis of information and explanation given bythe management we are of the opinion that the company has not defaulted in the repaymentof dues to financial institution and banks.

X. In respect of guarantee given for loans taken by others:

According to the information and explanations given to us the Company has givencorporate guarantee for loans taken by Palco Recycle Industries Limited from banks andfinancial institutions for Rs. 25.35 Crores.

XI. In respect of application of term loans:

To the best of our knowledge and belief and according to the information explanationgiven to us term loans were not availed by the Company during the year.

XII. In respect of fraud :

To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company has been noticed or reportedduring the course of our audit.

For RAHUL KAKANI & ASSOCIATES

(CHARTERED ACCOUNTANTS)

-sd

[RAHUL KAKANI]

Partner

M.NO.: - 132796

Place: -Ahmedabad

Date: - 25/05/2015