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Panyam Cements & Mineral Industries Ltd.

BSE: 500322 Sector: Industrials
NSE: PANYAMCEM ISIN Code: INE167E01029
BSE LIVE 15:40 | 13 Dec 63.75 -0.40
(-0.62%)
OPEN

65.80

HIGH

67.00

LOW

63.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 65.80
PREVIOUS CLOSE 64.15
VOLUME 17242
52-Week high 90.05
52-Week low 47.50
P/E 12.83
Mkt Cap.(Rs cr) 107
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 65.80
CLOSE 64.15
VOLUME 17242
52-Week high 90.05
52-Week low 47.50
P/E 12.83
Mkt Cap.(Rs cr) 107
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Panyam Cements & Mineral Industries Ltd. (PANYAMCEM) - Auditors Report

Company auditors report

To

The Members of

M/s. Panyam Cements & Mineral Industries Limited

(1) Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of M/s. Panyam Cements& Minerals Industries Limited Nandyal ("the Company") which comprise theBalance Sheet as at 31st March 2016 the Statement of Profit and Loss the Cash FlowStatement for the year then ended and a summary of significant accounting policies andother explanatory information.

(2) 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 Companies Act 2013 (" the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of Companies Act 2013 read with Rule 7of the Companies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

(3) Auditors' 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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances.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.

(4) Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India; a) in the case of the Balance Sheet ofthe state of affairs of the Company as at 31st March 2016; b) in the case of theStatement of Profit and Loss of the Profit of the Company for the year ended on thatdate; and c) in the case of the Cash Flow Statement of the cash flows of the Company forthe year ended on that date.

(5) Report on Other Legal and Regulatory Requirements

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 a statement on the matters specified in paragraphs 3and 4 of the Order.

As required by Section 143(3) of the Act we further report that: a) we have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; b) in our opinion proper books ofaccount as required by law have been kept by the company so far as it appears from ourexamination of those books; c) the Balance Sheet Statement of Profit and Loss and CashFlow Statement dealt with by this Report are in agreement with the books of account; d) inour opinion the aforesaid standalone financial statements comply with the applicableAccounting Standards specified under section 133 of the Act read with Rule7of theCompanies (Accounts) Rules 2014; e) on the basis of written representations received fromthe Directors as on 31st March 2016 and taken on record by the Board of Directors noneof the Directors is disqualified as on 31st March 2016 from being appointed as adirector in terms of Section 164 (2) of the Act; f) with respect to the adequacy of theinternal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate report in "Annexure B";and.

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 the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014;

(i) The company does not have any pending litigations which would impact its financialposition.

(ii) The company did not have any long term contracts including derivative contracts;as such there were no material foreseeable losses thereon.

(iii) There were no amounts that require to transfer during the year by the company tothe Investor Education and Protection Fund.

For Brahmayya & Co.

Chartered Accountants

Firm's Registration No.000514S

B. DAIVADHEENAM REDDY

Partner

M.No.026450

Place: Nandyal (Camp)

Dt. 27th May 2016

ANNEXURE - 'A' TO THE AUDITOR'S REPORT

Re: M/s. Panyam Cements & Mineral Industries Limited.

Referred to in paragraph 5 of our report of even date;

(i) In respect of fixed assets;

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

b. As explained to us the company has a regular programme of physical verification ofits fixed assets and have been physically verified by the management in a phased mannerduring the year and no material discrepancies were noticed on such physical verification.

c. According to the information and explanations 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) In respect of inventory;

The physical verification of inventory has been conducted at reasonable intervals bythe management during the year and no material discrepancies were noticed on physicalverification and the small discrepancies if any have been properly dealt with in thebooks of account.

(iii) The Company has granted unsecured loans to companies covered in the registermaintained under Section 189 of the Companies Act 2013 ('the Act').

a) In our opinion and according to the information and explanations given to us and asrepresented by the company in respect of loans granted by the company there are no suchaggrements / arrangements having the terms & conditions for grant of such loans andtherefore we are unable to report whether ther terms & conditions of loans are notprejudicial to the company's interest.

b) In our opinion and according to the information and explanations given to us and asrepresented by the company there are no such aggrements / arrangements stipulating thesehedule of repayment of principal & interest payment and therefore we are unable toreport whether the repayment or receipts of principal & interest are regular.

c) In our opinion and according to the information and explanations given to us and asrepresented by the company there are no such aggrements /arrangements for re-payment ofprincipal & interest recover and therefore we are unable to report the total amountof overdue for morethan ninety days and no steps have been taken for recovery of theprincipal or interest.

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.

(v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from the public specified under the provisions ofsections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed there under. No order has been passed by the Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

(vi) In our opinion and according to the information and explanations given to us theCentral Government has prescribed for the maintenance of Cost records under sub section(1) of Section 148 of the Companies Act 2013 in respect of the products manufactured bythe company and such accounts and records have been made and maintained by the company.

(vii) In respect of statutory dues;

a. According to the information and explanations given to us and based on the recordsof the company examined by us the Company is not regular in depositing with appropriateauthorities undisputed statutory dues including Provident Fund Income Tax Service TaxSales Tax Value Added Tax Duty of Customs Duty of Excise Cess and any other statutorydues applicable to it. As explained to us the company did not have any dues on account ofEmployees' State Insurance.

According to the information and explanations given to us the following arrears ofundisputed statutory dues were outstanding as at 31st March 2016 for a period of morethan six months from the date they became payable and the due dates for payment of salestax dues for July and August 2012 considered as per the installments granted by theDepartment.

Statement of arrears of statutory dues outstanding as at 31.03.2016 for more than sixmonths:

Sl. No. Name of the Statute Nature of the Dues Amount Rs. Lakhs Period to which the amount relates
1 CST Act1956 Central Sales Tax 7.22 2009-10
26.81 2010-11
2 A.P.VAT Act 2005 Value Added Tax 581.04 July 2012 to August 2013
4.00 2013-14
3 Telangana VAT Act 2014 VAT Tax 5.92 March-2015
4 T.N.G.S.T Act Tamilnadu Sales Tax 51.88 March 1999 to Feb 2000
5 Goa G.S.T Act 1956 Goa Sales Tax 13.87 Feb.1999 to Feb 2000
6 A.P.G.S.T.Act 1956 (Consignment Agents in Different States) Consignment Sales Tax 16.82 1998-99 to 2003-04
7 CST Act 1956 Central Sales Tax 11.51 2008-09
5.45 2011-12
8 A.P. Profession Tax Act1987 Profession Tax Collections 1.13 October 2000 to August 2005
9 Income Tax Act 1961 I.T.D.S from Interest 14.90 2001-02 2004-05 2005-06 & 2015-16
10 Income Tax Act 1961 I.T.D.S from Professionals 1.96 2002-03 2005-2006 & April 2015 to August 2015
11 Income Tax Act 1961 I.T.D.S from Contractors 1.97 2000-01 & 2001-02
12 Income Tax Act 1961 I.T.D.S from Contractors 6.20 2004-05 & Apr 2013 to August 2013
" " 7.65 Apr 15 to Aug 15
13 Income Tax Act 1961 T.C.S. on Royalty 29.35 July 2010 to August 2015
14 Income Tax Act 1961 Income Tax 11.22 2008-09
" " 130.47 2011-12
" " 227.18 2012-13
15 E.P.F Act 1952 P.F. Recoveries and 145.42 April 2005 to August 2015
Contributions 22.80 March 2014 to August 2015
P.F. Penal Damages 163.70 Up to 2005
16 The Central Excise Act1944 Excise Duty & Cess 1692.06 March 2015 to August 2015
17 The Finance Act1994 Service Tax & Cess 50.78 June 2015 to August 2015
18 A.P. Panchayat Raj Tax Act1994 Property Tax 4.62 2004-05
19 Mines and Minerals Act1957 Royality on Limestone 1113.12 2005-06 to August 2015
20 Mines and Minerals Act1957 Cess on Royalty 52.80 2006-07 to August 2015
21 Mines and Minerals Act1957 Welfare Cess on Limestone 4.85 upto August 2015
22 Revenue Act Non Agriculture Land Tax 0.59 1999-2000

(b) According to the information and explanations given to us the following are thestatutory dues which have not been deposited on account of dispute:

Sl. No. Name of the Statute Nature of the Dues Amount Rs. Lakhs (Net of Payments) Period to Which the amount relates Forum where dispute is pending
1 TNGST Act Tamilnadu Sales Tax 5.56 1994-95 Remanded to Assessing Officer by the Appellate Tribunal
2 The Central CENVAT credits availed on 232.35 Feb.97 to Commissioner (Appeals)
Excise Act 1944 D.G.Sets disallowed by the Dept. June 1999
3 .do. CENVAT credit availed 4.37 1994-95 A.P. High Court
on refractory bricks
4 .do. CENVAT credit availed on HR Coils Plates disallowed by the Dept. 56.80 2011-12 CESTAT Hyderabad
5 .do. CENVAT credit availed on service tax paid on outward freight 24.52 Dec. 06 to Aug. 07 Commissioner Tirupati
6 .do. CENVAT credit availed on service tax paid on outward freight 28.54 Sep. 2007 to Feb. 2008 Commissioner Tirupati.
7 .do. CENVAT credit availed on service tax paid on outward freight 12.88 Apr. 2007 to Feb. 2008 Commissioner Tirupati.
8 .do. Differential Duty for Supplies made to Direct parties 40.63 Mar. 2007 to Feb. 2008 Appeal in CESTAT Bengaluru
9 The Central Excise Act1944 Duty on captive consumption 1.46 2007-08 Appeal in CESTAT Bengaluru
10 .do. Duty on captive Consumption 0.87 2008-09 Appeal in CESTAT Bengaluru
11 .do. Differential Duty on D.G.Set 42.37 2007-08 Appeal in CESTAT Bengaluru
12 .do. Differential Duty on D.G.Set 10.24 2004-05 A.P.High Court
13 .do. Cenvat on Capital Goods 42.10 2008-09 & Appeal in CESTAT
(TMT Bars) 2009-10 Bengaluru
14 .do. Differential Duty on high seas imported coal 34.32 August 2012 Addl. Commissioner Guntur
15 do. CENVAT on Service Tax on outward GTA 35.18 Nov. 2009 to Dec. 2010 Addl. Commissioner Tirupati
16 .do. Differential Duty for Supplies made to Direct Parties 383.80 Apr. 2008 to Oct. 2011 Appeal in CESTAT Bengaluru
17 .do. Differential Duty for Supplies made to Direct Parties 246.81 Nov. 2011 to Dec. 2013 Commissioner Tirupati
18 .do. Differential Duty for Supplies made to Direct Parties 46.85 Aug. 2014 to Mar. 2015 Commissioner Tirupati
19 .do. Default in payment of Central Excise Duty 413.38 2006-07 CESTAT Appeals Hyderabad
20 Income Tax Act 1961 Capital Gains Tax on Land Development Agreements 3281.81 2005-06 CIT Appeals Hyderabad
21 Income Tax Act 1961 MAT on Book Profit of Sick Company 979.77 2007-08 CIT Appeals Hyderabad
22 Income Tax Act 1961 Capital Gain Tax on Land Development Aggrement 1768.68 2012-13 CIT Appeals Kurnool
23 AP VAT Act Penal for delay in 58.27 2011-12 Request for Waiver before
2005 payment of Tax before 55.78 2012-13 the Govt. of A.P.
Due Dates 10.80 June 2013 "
19.69 2014-15 "
53.71 2015-16 "
24 Mines & Minerals Act. Penal Interest on Royalty dues 1521.08 May 2006 to March 2016 Revision application for waivr before the Dept./ Ministry of Mines
25 The Electricty Act 2003 Fuel Surcharge Aujustment (FSA) 30.08 2008-09 Supreme Court of India
Charges 23.48 June 2009 High Court of A.P. Hyderabad

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to Financial Institutions BanksGovernment or dues to debentureholders as at 31-03-2016

(ix) In our opinion and according to the information and explanations given to us thecompany did not raise any money by way of initial public offer or further public offer(including debt insturment) and term loans during the year. Accordingly paragraph 3 (ix)of the CARO 2016 is 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 year.

(xi) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the managerial remuneration hasbeen paid or provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act2013.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3 (xii) of the CARO 2016 is notapplicable.

(xiii) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company all transactions with the relatedparties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Financial Statements as required bythe applicable Accounting Standards.

(xiv) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.

The Company has made preferential issue / allotment of share warrants and issue /allotment of Secured Rated Listed Non - convertible Redeemable Debentures during theyear under review. The requirements of section 42 of the Companies Act 2013 have beencompalied with and the amounts raised have been used for the purpose for which the fundswere raised.

(xv) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the company has not entered intoany non-cash transactions with directors or persons connected with them. Accordinglyparagraph 3(xv) of the CARO2016 is not applicable.

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

For Brahmayya & Co.
Place: Nandyal (Camp) Chartered Accountants
Date 27th May 2016 Firm's Registration No.000514S
B.DAIVADHEENAM REDDY
Partner
M.No.026450

ANNEXURE - B TO THE AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) of Sub section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/s. PanyamCements & Minerals Industries Limited Nandyal ("the Company") as of 31March 2016 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls The Company's management isresponsible for establishing and maintaining internal financial controls based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India (‘ICAI'). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note 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 on the Company's internal financial controls systemover financial reporting.

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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Brahmayya & Co.
Chartered Accountants
Firm's Registration No.000514S
Place: Nandyal (Camp) B.DAIVADHEENAM REDDY
Date 27th May 2016 Partner
M.No.026450