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Patspin India Ltd.

BSE: 514326 Sector: Industrials
NSE: PATSPINLTD ISIN Code: INE790C01014
BSE LIVE 15:41 | 23 Aug 27.05 4.45
(19.69%)
OPEN

23.10

HIGH

27.10

LOW

22.10

NSE 15:59 | 23 Aug 26.95 4.40
(19.51%)
OPEN

23.00

HIGH

27.05

LOW

20.05

OPEN 23.10
PREVIOUS CLOSE 22.60
VOLUME 207671
52-Week high 30.75
52-Week low 8.76
P/E 12.82
Mkt Cap.(Rs cr) 84
Buy Price 0.00
Buy Qty 0.00
Sell Price 26.70
Sell Qty 950.00
OPEN 23.10
CLOSE 22.60
VOLUME 207671
52-Week high 30.75
52-Week low 8.76
P/E 12.82
Mkt Cap.(Rs cr) 84
Buy Price 0.00
Buy Qty 0.00
Sell Price 26.70
Sell Qty 950.00

Patspin India Ltd. (PATSPINLTD) - Auditors Report

Company auditors report

TO THE MEMBERS OF PATSPIN INDIA LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Patspin IndiaLimited (‘the Company’) which comprise the Balance sheet as at 31st March 2016the Statement of profit and loss and the Cash fl ow statement for the year then ended anda summary of significant accounting policies and other explanatory information.

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 fl ows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (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.

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 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 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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall 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 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 of the state of affairs of the Companyas at 31 March 2016 and its profit and its cash fl ows 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 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure A a statement on the matters specified inthe paragraph 3 and 4 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 purposes of our audit. (b) In ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books;

(c) The Balance sheet the Statement of profit and loss and the cash fl ow statementdealt with by this Report are in agreement with the books of account; (d) In our opinionthe aforesaid Standalone financial statements comply with the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014; (e) On the basis of the written representations received from the directorsas on 31 March 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in terms of Section164 (2) of the Act; (f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B"; and (g) With respect to the othermatters to be included in the Auditor’s Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: (i) The Company has disclosedthe impact of pending litigations on its financial position in its financial statements– Refer Note 30 (B) to the financial statements; (ii) In our opinion and as per theinformation and explanations provides to us the Company has not entered into anylong-term contracts including derivative contracts requiring provision under applicablelaws or accounting standards for material foreseeable losses and (iii) There are no duesrequired to be transferred to the Investor Education and Protection Fund by the Company.

For M.S.Jagannathan & Visvanathan
Chartered Accountants
ICAI FRN 001209S
R.Mugunthan
Place: Coimbatore Partner
Date : 31/05/2016 M.No.21397

Annexure - A to the Auditors’ Report

The Annexure referred to in Independent Auditors’ Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2016 we reportthat:

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets and no materialdiscrepancies were noted on such verification. (c) According to the information andexplanations given to us and on the basis of our examination of the records of theCompany the title deeds of immovable properties are held in the name of the Company.

(ii) During the year Inventories has been physically verified by the Management andthere were no material discrepancies were noticed during such verification. (iii) Asinformed to us during the year the company has not granted any loans secured orunsecured to companies firms or other parties covered in the register maintained undersection 189 of the Companies Act. (iv) In our opinion and according to the information andexplanations given to us the Company has complied with the provisions of section 185 and186 of the Act with respect to the loans and investments made.

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

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto sub-section (1) of Section 148 of the Companies Act and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. (vii) (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 employees stateinsurance income-tax sales tax value added tax duty of customs service tax cess andother material statutory dues have been regularly deposited during the year by the Companywith the appropriate authorities.

As explained to us the Company did not have any dues on account of duty of excise.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance income tax sales taxvalue added tax duty of customs service tax cess and other material statutory dues werein arrears as at 31 March 2016 for a period of more than six months from the date theybecame payable.

(b) According to the information and explanations given to us there are following dueswhich have not been deposited on account of dispute and the same is being contested by theCompany.

Srl Name of the No. Statute Nature of the Dues Amount in Lacs Period to which the amount relates Forum where dispute is pending
01. Income Tax Act 1961 Income Tax 34.00 A.Y.2001-02 to A.Y.2005-06 Hon’ble Supreme Court of India

(viii) During the year Company has defaulted in repayment of dues to Banks/financialinstitutions and installment of dues are paid after days of delay from due date. And inthe case of year end dues as on Balance sheet which remains outstanding on account ofdefault and remained payable are as under:

Particulars Amount of default as at the balance sheet date – Period of default Remarks if any
Rs. In lakhs
Bank of Maharashtra Rs.43.71 57 days Paid on 27th May 2016
EXIM Bank Rs.70.17 57 days Paid on 27th May 2016
Central Bank of India Rs.146.70 57 days Paid on 27th May 2016
Canara Bank Rs.68.81 57 days Paid on 27th May 2016
Karur Vysya Bank Rs.92.42 57 days Paid on 27th May 2016
Oriental Bank of Commerce Rs.83.36 57 days Paid on 27th May 2016
State Bank of India Rs.80.02 57 days Paid on 27th May 2016
State Bank of Travancore Rs.63.33 57 days Paid on 27th May 2016

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable. (x) According to the information andexplanations given to us no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the course of our audit. (xi)According to the information and explanations give to us and based on our examination ofthe records of the Company the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act. (xii) In our opinion and according to the information andexplanations given to us the Company is not a nidhi company. Accordingly paragraph3(xii) of the Order is not applicable. (xiii) According to the information andexplanations given to us and based on our examination of the records of the Companytransactions with the related parties are in compliance with sections 177 and 188 of theAct where applicable and details of such transactions have been disclosed in the financialstatements as required by the applicable accounting standards. (xiv) According to theinformation and explanations give to us and based on our examination of the records of theCompany the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year. (xv) According to theinformation and explanations given to us and based on our examination of the records ofthe Company the Company has not entered into non-cash transactions with directors orpersons connected with them. Accordingly paragraph 3(xv) of the 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 M.S.Jagannathan & Visvanathan
Chartered Accountants
ICAI FRN 001209S
R.Mugunthan
Place: Coimbatore Partner
Date : 31/05/2016 M.No.21397

Annexure - B to the Independent 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 PatspinIndia Limited ("the Company") as on 31 March 2016 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

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’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies 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 controlssystem over financial reporting. Meaning of Internal Financial Controls over FinancialReporting A company’s internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company’s internal financial controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly refl ect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 on 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 M.S.Jagannathan & Visvanathan
Chartered Accountants
ICAI FRN 001209S
R.Mugunthan
Place: Coimbatore Partner
Date : 31/05/2016 M.No.21397