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Panchmahal Steel Ltd.

BSE: 513511 Sector: Metals & Mining
NSE: PANCHMSTEL ISIN Code: INE798F01010
BSE 00:00 | 24 May 36.00 0.20
(0.56%)
OPEN

38.60

HIGH

38.60

LOW

36.00

NSE 05:30 | 01 Jan Panchmahal Steel Ltd
OPEN 38.60
PREVIOUS CLOSE 35.80
VOLUME 113
52-Week high 85.05
52-Week low 35.25
P/E
Mkt Cap.(Rs cr) 69
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 38.60
CLOSE 35.80
VOLUME 113
52-Week high 85.05
52-Week low 35.25
P/E
Mkt Cap.(Rs cr) 69
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Panchmahal Steel Ltd. (PANCHMSTEL) - Auditors Report

Company auditors report

To

The Members of

PANCHMAHAL STEEL LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of PANCHMAHAL STEEL LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary 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 specified in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

The Company's management is responsible for establishing and maintaining internalfinancial controls 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 ('ICAI').

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding 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 Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 and the Guidance Note on Audit of Internal Financial Controlsover Financial Reporting. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement and whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements and the adequacy of internal financialcontrols over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgement 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on Company's internal financial controls system overfinancial reporting and the standalone financial statements.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions 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.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of 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 be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its profit and its cash flows for the year 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 dated 29.03.2016 we give in the Annexure A a statement on the matters specifiedin paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we further 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 financial statements comply with the applicable AccountingStandards specified under Section 133 of the Act read with the Rule 7 of the Companies(Accounts) Rules 2014;

e. on the basis of written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164(2) of the Act;

f. in our opinion considering nature of business and size of operation the Companyhas in all material respects an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at 31st March 2017 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 Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

g. In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 :

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 1 (9) to the financial statements;

ii. As informed to us the Company did not have any long-term contracts includingderivative contracts; as such the question of commenting on any material foreseeablelosses thereon does not arise;

iii. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management.

For J.R.S. Patel & Co.
Chartered Accountants
Firm Regn. No.107709W
Place : Vadodara (Nitin Patni)
Date : 17th May 2017. Partner
Membership No. 15612

ANNEXURE A REFERRED TO PARAGRAPH 1 UNDER "REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS" OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED ON 31STMARCH 2017 OF PANCHMAHAL STEEL LIMITED KALOL.

1. In respect of its Fixed Assets :

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

(b) The Company carries out physical verification of fixed assets under a phasedprogram of verification at reasonable intervals which in our opinion is reasonable.According to the information and explanations given to us no material discrepancies werenoticed on such verification.

(c) According to the information and explanations given to us the title deeds ofimmovable properties are held in the name of the Company.

2. (a) As explained to us the inventories have been physically verified by themanagement during the year at reasonable intervals other than material in transit andlying with branches and consignment agent/stockiest which have been substantiallyconfirmed by them. In our opinion having regard to the nature and location of stocks thefrequency of verification is reasonable.

(b) According to the information and explanations given to us no materialdiscrepancies were noticed on physical verification of inventory as compared to the bookrecords.

3. As informed the Company has not granted any loans secured or unsecured tocompanies firms limited liability partnerships or other parties listed in registermaintained under Section 189 of the Companies Act 2013. Accordingly sub-clauses (a) (b)and (c) of (iii) of the said Order are not applicable.

4. In our opinion and according to explanations given to us the Company has notentered into any transactions with respect to loans and investments as prescribed underSections 185 and 186 of the Companies Act 2013.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public during the year and hence thequestion of complying with the provisions of Section 73 to 76 of the Companies Act 2013and the rules framed thereunder and the directives issued by the Reserve Bank of Indiawherever applicable does not arise.

6. On the basis of the records produced we are of the opinion that prima facie thecost records and accounts prescribed by the Central Government of India under Section148(1) of the Companies Act 2013 have been made and maintained by the Company. Howeverwe are not required to carry out and have not carried out any detailed examination of suchrecords and accounts.

7. According to the information and explanations given to us in respect of statutoryand other dues the Company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Service TaxCustom Duty Excise Duty Value Added Tax Cess and other Statutory dues with theappropriate authorities during the year. Based on our audit procedures and according tothe information and explanations given to us there are no arrears of statutory dues whichhas remained outstanding as at 31st March 2017 for a period of more than six months fromthe date they became payable.

8. According to the information and explanations given to us and on the basis ofrecords produced before us by the Company the details of disputed Income Tax/CustomDuty/Excise Duty/Service Tax which have not been deposited as on 31st March 2017 aregiven below:

Name of Statute Nature of Dues Amount in Rs. Forum where dispute is pending
The Central Excise Act 1944 Excise Duty 5741982 Gujarat High Court
The Central Excise Act 1944 Excise Duty 505018 Assistant Commissioner Halol
The Central Excise Act 1944 Excise Duty 2100056 Assistant Commissioner Halol
The Central Excise Act 1944 Excise Duty 805432 Commissioner (Appeals) Vadodara
The Central Excise Act 1944 Excise Duty 318335 CESTAT Ahmedabad.
The Central Excise Act 1944 Excise Duty 1003244 CESTAT Ahmedabad.
The Central Excise Act 1944 Excise Duty 634433 CESTAT Ahmedabad.
The Central Excise Act 1944 Excise Duty 633973 CESTAT Ahmedabad.
The Central Excise Act 1944 Excise Duty 6745205 CESTAT Ahmedabad.
The Central Excise Act 1944 Excise Duty 250357 CESTAT Ahmedabad.
The Central Excise Act 1944 Excise Duty 84136784 CESTAT Ahmedabad.
The Central Excise Act 1944 Excise Duty 28645 Commissioner (Appeals) Vadodara
Finance Act 1994 (Service Tax Provision) Service Tax 215610 CESTAT Ahmedabad.
The Custom Act 1962 Custom Duty 120000 CESTAT Mumbai

9. The Company has not defaulted in repayment of loans or borrowing to banks financialinstitution government or dues to debenture holders.

10. The Company has not raised money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year.

11. During the course of our examination of the books of account 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 instances offraud on or by the Company noticed or reported during the year nor have we been informedof such case by the management.

12. According to information and explanations given to us the Company has paid orprovided managerial remuneration in accordance with the requisite approvals mandated bythe provisions of the Section 197 read with Schedule V of the Companies Act 2013.

13. The Company is not a Nidhi Company. Accordingly clause (xii) of (iii) of the Orderis not applicable.

14. According to information and explanations given to us all transactions with therelated parties are in compliance with Section 177 and 188 of the Companies Act 2013 anddetails have been disclosed in the Financial Statements as required by applicableAccounting Standard.

15. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

16. According to information and explanations given to us the Company has not enteredinto any non-cash transactions with directors or persons connected therewith.

17. As explained to us looking to the nature of business carried out by the Companyit is not required to get registered under Section 45-IA of the Reserve Bank of India Act1934.

For J.R.S. Patel & Co.
Chartered Accountants
Firm Regn. No.107709W
Place : Vadodara (Nitin Patni)
Date : 17th May 2017. Partner
Membership No. 15612