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PC Jeweller Ltd.

BSE: 534809 Sector: Consumer
NSE: PCJEWELLER ISIN Code: INE785M01013
BSE LIVE 15:40 | 26 Sep 334.90 0.35
(0.10%)
OPEN

333.10

HIGH

341.25

LOW

333.10

NSE 15:56 | 26 Sep 335.20 -0.25
(-0.07%)
OPEN

333.00

HIGH

341.15

LOW

332.55

OPEN 333.10
PREVIOUS CLOSE 334.55
VOLUME 61803
52-Week high 395.80
52-Week low 144.38
P/E 28.72
Mkt Cap.(Rs cr) 13,207
Buy Price 0.00
Buy Qty 0.00
Sell Price 334.90
Sell Qty 319.00
OPEN 333.10
CLOSE 334.55
VOLUME 61803
52-Week high 395.80
52-Week low 144.38
P/E 28.72
Mkt Cap.(Rs cr) 13,207
Buy Price 0.00
Buy Qty 0.00
Sell Price 334.90
Sell Qty 319.00

PC Jeweller Ltd. (PCJEWELLER) - Auditors Report

Company auditors report

To the Members of PC Jeweller Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of PCJeweller Limited (the ‘Company’) which comprise the Balance Sheet as at 31March 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Standalone Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 (the ‘Act’) with respect to thepreparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 (as amended). This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act; safeguarding theassets of the Company; preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on these standalone financialstatements based on our audit.

4. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

5. We conducted our audit in accordance with the Standards on Auditing specifiedunder Section 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 standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the financial statements. The procedures selected depend onthe auditors’ 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 controls 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 wellas evaluating the overall presentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Opinion

8. In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31 March 2016 its profit and its cash flows for the yearended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditors’ Report) Order 2016 (the‘Order’) issued by the Central Government of India in terms of Section 143(11)of the Act we give in the Annexure I a statement on the matters specified in paragraphs 3and 4 of the Order.

10. Further to our comments in Annexure I as required by Section143(3) of the Actwe report that:

a. we have sought and obtained all the information and explanations which to thebest of 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 it appears from our examination of those books;

c. the standalone financial statements dealt with by this report are in agreementwith 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 (as amended);

e. on the basis of the written representations received from the directors as on 31March 2016 and 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 ofSection164(2) of the Act;

f. we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as of 31 March 2016 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date and ourreport dated 30 May 2016 as per Annexure II expressed unmodified opinion; and

g. with respect to the other matters to be included in the Auditors’ 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. as detailed in Note 18 to the standalone financial statements the Company hasdisclosed the impact of pending litigations on its standalone financial position;

ii. the Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses; and

iii. there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Walker Chandiok & Co LLP For Sharad Jain Associates
(formerly Walker Chandiok & Co) Chartered Accountants
Chartered Accountants F. R. No. 015201N
F. R. No.001076N/N500013
Sd/- Sd/-
per Anupam Kumar per Sharad Jain
Partner Partner
Membership No. 501531 Membership No. 83837
Address: L 41 Connaught Circus Address: 213 Hans Bhawan
New Delhi - 110001 1 Bahadur shah Zafar Marg
Delhi – 110 002
Place: New Delhi
Date: 30 May 2016

Annexure I to the Independent Auditors’ Report of even date to the members of PCJeweller Limited on the standalone financial statements for the year ended 31 March 2016

Annexure I

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:

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

(b) The fixed assets have been physically verified by the management during the yearand no material discrepancies were noticed on such verification. In our opinion thefrequency of verification of the fixed assets is reasonable having regard to the size ofthe Company and the nature of its assets.

(c) The title deeds of all the immovable properties (which are included under the head‘fixed assets’) are held in the name of the Company.

(ii) In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year except for stocks lying with third parties. Forstocks lying with third parties at the year-end written confirmations have been obtainedby the management. No material discrepancies were noticed on the aforesaid verification.

(iii) The Company has granted unsecured loan to one company covered in the registermaintained under Section 189 of the Act; and with respect to the same:

(a) in our opinion the terms and conditions of grant of such loans are not primafacie prejudicial to the Company’s interest;

(b) the schedule of repayment of principal and payment of interest has been stipulatedand the repayment/receipts of the principal amount and the interest are regular; and

(c) there is no overdue amount in respect of loan granted to such company.

(iv) In our opinion the Company has complied with the provisions of sections 185 and186 of the Act in respect of loans investments guarantees and security.

(v) In our opinion the Company has complied with the directives issued by the ReserveBank of India the provisions of Sections 73 to 76 and other relevant provisions of theAct and the Companies (Acceptance of Deposits) Rules 2014 (as amended) as applicablewith regard to the deposits accepted. According to the information and explanations givento us no order has been passed by the Company Law Board or National Company Law Tribunalor Reserve Bank of India or any Court or any other Tribunal in this regard.

(vi) The Central Government has not specified maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company’s products.Accordingly the provisions of clause 3(vi) of the Order are not applicable.

(vii) (a) Undisputed statutory dues including provident fund employees’ stateinsurance income-tax sales tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues as applicable have generally beenregularly deposited to the appropriate authorities though there has been a slight delayin a few cases except for significant delay in payment of advance tax under the Income-taxAct 1961. Undisputed amounts payable in respect thereof which were outstanding at theyear-end for a period of more than six months from the date they became payable are asfollows:

Statement of arrears of statutory dues outstanding for more than six months

Name of the statute Nature of the dues Amount (excluding interest) (Rs. in crores) Period to which the amount relates Due date Date of payment
Income-tax Act 1961 Advance tax 26.93 Financial Year 2015-16 15 September 2015 Not yet paid

(b) The dues outstanding in respect of income-tax sales tax service tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows:

Statement of Disputed Dues

Name of the statute Nature of dues Amount (Rs. in crores) Amount paid under Protest (Rs. in crores) Period to which the amount relates Forum where dispute is pending
Income-tax Act 1961 Income-tax 0.16 Nil Assessment Year 2008-09 Commissioner of Income-tax (Appeals)
Income-tax Act 1961 Income-tax 0.85 Nil Assessment Year 2013-14 Commissioner of Income-tax (Appeals)

(viii)The Company has not defaulted in repayment of loans or borrowings to any bank orfinancial institution during the year.

The Company did not have any loans or borrowings payable to the Government. Furtherthe Company did not have any outstanding debentures during the year.

(ix) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments). In our opinion the term loans were applied for thepurposes for which the loans were obtained.

(x) No significant fraud by the Company or on the Company by its officers or employeeshas been noticed or reported during the period covered by our audit.

(xi) Managerial remuneration has been paid and provided by the Company in accordancewith the requisite approvals mandated by the provisions of section 197 of the Act readwith Schedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly clause 3(xii) ofthe Order is not applicable.

(xiii)In our opinion all transactions with the related parties are in compliance withsections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable accountingstandards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) In our opinion the company has not entered into any non- cash transactions withthe directors or persons connected with them covered under Section 192 of the Act.

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

For Walker Chandiok & Co LLP For Sharad Jain Associates
(formerly Walker Chandiok & Co) Chartered Accountants
Chartered Accountants F. R. No. 015201N
F. R. No.001076N/N500013
Sd/- Sd/-
per Anupam Kumar per Sharad Jain
Partner Partner
Membership No. 501531 Membership No. 83837
Address: L 41 Connaught Circus Address: 213 Hans Bhawan
New Delhi - 110001 1 Bahadur shah Zafar Marg
Delhi – 110 002
Place: New Delhi
Date: 30 May 2016

Annexure II to the Independent Auditors’ Report of even date to the members of PCJeweller Limited on the standalone financial statements for the year ended 31 March 2016

Annexure II

Independent Auditors’ Report on the Internal Financial Controls under Clause (i)of Sub-section 3 of Section 143 of the Companies Act 2013 (the ‘Act’)

1. In conjunction with our audit of the standalone financial statements of PCJeweller Limited (the ‘Company’) as of and for the year ended 31 March 2016 wehave audited the internal financial controls over financial reporting ("IFCoFR")of the Company as of that date.

Management’s Responsibility for Internal Financial Controls

2. The Company’s Board of Directors is responsible for establishing andmaintaining internal financial controls 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 (the ‘Guidance Note’) issued by the Institute of CharteredAccountants of India (the ‘ICAI’). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of the Company’s businessincluding 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 information asrequired under the Act.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on the Company’s IFCoFR basedon our audit. We conducted our audit in accordance with the Standards on Auditing (the‘Standards’) issued by the ICAI and deemed to be prescribed under section143(10) of the Act to the extent applicable to an audit of IFCoFR and the Guidance Noteissued 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 IFCoFR were established and maintained and if such controls operatedeffectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about theadequacy of the IFCoFR and their operating effectiveness. Our audit of IFCoFR includedobtaining an understanding of IFCoFR assessing the risk that a material weakness existsand testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditors’judgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company’s IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company’s IFCoFR is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company’s IFCoFR includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company’s assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2016 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by the ICAI.

For Walker Chandiok & Co LLP For Sharad Jain Associates
(formerly Walker Chandiok & Co) Chartered Accountants
Chartered Accountants F. R. No. 015201N
F. R. No. 001076N/N500013
Sd/- Sd/-
per Anupam Kumar per Sharad Jain
Partner Partner
Membership No. 501531 Membership No. 83837
Address: L 41 Connaught Circus Address: 213 Hans Bhawan
New Delhi - 110001 1 Bahadur shah Zafar Marg
Delhi – 110 002
Place: New Delhi
Date: 30 May 2016