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Pearl Global Industries Ltd.

BSE: 532808 Sector: Industrials
NSE: PGIL ISIN Code: INE940H01014
BSE LIVE 15:40 | 19 Sep 155.15 -2.85
(-1.80%)
OPEN

158.00

HIGH

160.00

LOW

154.05

NSE 15:59 | 19 Sep 154.45 -1.95
(-1.25%)
OPEN

158.00

HIGH

159.45

LOW

154.05

OPEN 158.00
PREVIOUS CLOSE 158.00
VOLUME 1047
52-Week high 192.00
52-Week low 110.00
P/E 78.76
Mkt Cap.(Rs cr) 336
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 158.00
CLOSE 158.00
VOLUME 1047
52-Week high 192.00
52-Week low 110.00
P/E 78.76
Mkt Cap.(Rs cr) 336
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Pearl Global Industries Ltd. (PGIL) - Auditors Report

Company auditors report

To the Members of Pearl Global Industries Limited

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of Pearl GlobalIndustries Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2016 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

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 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) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial 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.

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 anddisclosures 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 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 March 31 2016 its Profit and cash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. 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 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 Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by 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 March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A".

(g) 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. On the basis of written representations received from the management of the Companythe Company has disclosed the impact of pending litigations on its financial position inits financial statements- Refer Note No. 28 to the financial statements.

ii. The Company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contacts includingderivative contracts – Refer Note No. 31 to the financial statements.

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

2. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Section 143 (11) of theAct we give in "Annexure B" a statement on the matters specified in paragraphs3 and 4 of the Order.

For S.R. Dinodia & Co. LLP

Chartered Accountants

Firm Registration Number 001478N/N500005

(Pradeep Dinodia)

Partner

Membership No. 080617

Place of Signature: Gurgaon

Date: 25th May 2016

Annexure ‘A’ to the Independent Auditors’ Report of even date on thestandalone financial statement of Pearl Global Industries Limited

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 PearlGlobal Industries Limited ("the Company") as of March 31 2016 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 judgement 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 Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect 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 at March 31 2016 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For S.R. Dinodia & Co. LLP

Chartered Accountants

Firm Registration Number 001478N/N500005

(Pradeep Dinodia)

Partner

Membership No. 080617

Place of Signature: Gurgaon

Date: 25th May 2016

Annexure ‘B’ to the Independent Auditors’ Report

The Annexure referred to in independent Auditors’ Report to the members of theCompany on the standalone financial statements for the year ended March 31 2016; wereport that:

i) In respect of fixed assets:

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 at periodic intervals. In accordance with this programmefor the year no material discrepancies were noticed on such verification. In our opinionsuch periodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

c) On the basis of written representation received from the management of the Companythe title deeds of immovable properties held in the name of the Company are mortgaged withthe Banks for securing the long term and short term borrowings raised by the Company.

ii) In respect of its inventory:

a) On the basis of information and explanation provided by the management inventorieshave been physically verified by the management during the year. In our opinion thefrequency of physical verification followed by the management is reasonable.

b) No material discrepancies were noticed on verification between the physical stocksand the book records.

iii) a) According to the information and explanation given to us the Company hadgranted unsecured loan to two companies covered under register maintained under section189 of the Companies Act 2013. The terms and conditions of grant of such loans are notprejudicial to the interest of the Company.

b) In case of above loans the schedule of repayment of principal and interest isstipulated and there is no overdue amount as at year end; with respect to loans grantedduring the year.

iv) In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees & securities asapplicable.

v) The Company has not accepted any deposits from the public. Accordingly theprovisions of paragraph 3(v) of the Companies (Auditor’s Report) Order 2016 are notapplicable to the Company.

vi) On the basis of available information and explanation provided to us the CentralGovernment has not prescribed maintenance of cost records under sub-section (1) of section148 of the Companies Act 2013 read with Companies (Cost Records and Audit) AmendmentRules 2014 dated December 31 2014 to the current operations carried out by the Company.Accordingly the provisions of paragraph 3(vi) of the Companies (Auditor’s Report)Order 2016 are not applicable to the Company.

vii) a) The Company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees’ State Insurance Income Tax Sales Tax ServiceTax duty of Customs duty of Excise Value Added Tax Cess and any other materialstatutory dues applicable to it with the appropriate authorities. There were no undisputedamounts payable in respect of Provident Fund Employees’ State Insurance Income TaxSales Tax Service Tax duty of Customs duty of Excise Value Added Tax Cess and anyother material statutory dues in arrears as at March 31 2016 for a period of more thansix months from the date they became payable.

b) According to the records of the Company examined by us and the information andexplanations given to us there were no dues of income tax or sales tax or service tax orduty of customs or duty of excise or value added tax which have not been deposited onaccount of any dispute except the following which have not been deposited on account ofdispute:

S.No Name of the Statute Nature of Dues Amount (Rs.) Period to which amount relates Forum where dispute is pending
1. Income Tax Act 1961 Income Tax Demand 7347870 A.Y 2009-10 ITAT
2. Income Tax Act 1961 Income Tax Demand 2786040 A.Y 2014-15 Demand Received as per Sec 143 (1) of the Income Tax Act 1961

viii) On the basis of information and explanation provided to us the Company has notdefaulted in repayment of loans and borrowings to financial institution and bank. TheCompany has not taken any loan from Government or has not issued any debentures.

ix) The Company did not raise any money by the way of initial public or further publicoffer (including debt instruments) during the year. However the term loans taken duringthe year were applied for the purpose for which the same has been raised.

x) According to the information and explanations given to us no fraud by the Companyor on the Company by its Officers or employees has been noticed or reported during theyear.

xi) The Company has paid/provided managerial remuneration in accordance with provisionsof section 197 read with Schedule V to the Companies Act 2013 as applicable to theCompany.

xii) The Company is not a Nidhi Company and hence the provisions of paragraph 3(xii)of the Order are not applicable to the Company.

xiii) During the course of our examination of the books and records of the Company alltransactions entered with the related parties are in compliance with sections 177 and 188of Companies Act 2013 and the details have been disclosed in the financial statementsetc as required by the applicable accounting standards.

xiv) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of paragraph 3(xiv) of the Order are not applicable to the Company.

xv) The Company has not entered into any non-cash transactions with directors orpersons connected with him and hence provisions of section 192 of the Companies Act 2013are not applicable.

xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of paragraph 3(xvi) of the Order arenot applicable to the Company.

For S.R. Dinodia & Co. LLP.

Chartered Accountants

Firm Registration Number 001478N/N500005

(Pradeep Dinodia)

Partner

Membership No. 080617

Place of Signature: Gurgaon

Date: 25th May 2016