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Pearl Polymers Ltd.

BSE: 523260 Sector: Industrials
NSE: PEARLPOLY ISIN Code: INE844A01013
BSE 15:40 | 23 Feb 30.85 0.40
(1.31%)
OPEN

29.90

HIGH

31.75

LOW

29.90

NSE 15:28 | 23 Feb 31.00 0.65
(2.14%)
OPEN

31.75

HIGH

31.75

LOW

29.70

OPEN 29.90
PREVIOUS CLOSE 30.45
VOLUME 2075
52-Week high 55.00
52-Week low 27.00
P/E
Mkt Cap.(Rs cr) 52
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 29.90
CLOSE 30.45
VOLUME 2075
52-Week high 55.00
52-Week low 27.00
P/E
Mkt Cap.(Rs cr) 52
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Pearl Polymers Ltd. (PEARLPOLY) - Auditors Report

Company auditors report

To THE MEMBERS OF

M/s PEARL POLYMERS LTD. A-97/2 Industrial Area Phase-II Okhla New Delhi-110020

Dear Sir

We have audited The accompanyIng fInancial statements of M/S PEARL POLYMERS LTD.("The Company") which comprise The Balance Sheet as at March 31 2017The Statement of Profit and Loss Cash Flow Statement and a summary of significantaccountIng policies and other explanatory Information.

Management's Responsibility for The 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 The se FInancial Statements that give a true and fair view of ThefInancial position fInancial performance and cash flows of The Company In accordance withThe accountIng prInciples generally accepted In India IncludIng The AccountIng Standardsspecified under Section 133 of The Act read with Rule 7 of The Companies (Accounts)Rules 2014. This responsibility also Includes maIntenance of adequate accountIng recordsIn accordance with The provisions of The Act for safeguardIng 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 wheThe r due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opInion on The se 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 The re 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 wheThe rThe 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 The auditor'sjudgment IncludIng The assessment of The risks of material misstatement of The fInancialstatements wheThe r due to fraud or error. In makIng those risk assessments The auditorconsiders Internal control relevant to The Company's preparation and fair presentation ofThe fInancial statements In order to design audit procedures that are appropriate In Thecircumstances. An audit also Includes evaluatIng The appropriateness of accountIngpolicies used and The reasonableness of The accountIng estimates made by management aswell as evaluatIng 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 fInancial statement.

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:

i) In The case of Balance Sheet of The state of affairs of The Company as at 31stMarch 2017. ii) In The case of Profit & Loss Account of The profit of The Companyfor The year ended on that date. iii) In The case of Cash Flow Statement of The cashflows 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 we give In The Annexure A a statement on The matters specified In The paragraph3 and 4 of The order.

2. As required by section 143(3) of The Act we report that: a) We have sought andobtaIned all The Information and explanations which to The best of our knowledge andbelief were necessary for The purpose of our audit;

b) In our opInion proper books of accounts 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 Balance Sheet The Statement of Profit and Loss and The CashFlow Statement comply with The AccountIng Standards notified under The Act which contInueto be applicable In respect of Section 133 of The Companies Act 2013 read with Rule 7 ofThe Companies (Accounts) Rules 2014.

e) On The basis of written representations received from The directors as on March 312017 and taken on record by The Board of Directors none of The directors is disqualifiedas on March 31 2017 from beIng appoInted as a director In terms of Section 164 (2) ofThe Act.

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 B"; and

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. The Company has disclosed The impact of pendIng litigations on its fInancialposition In its FInancial Statements Refer Note 33 to The fInancial statements;

ii. The Company did not have any long term contracts IncludIng derivative contracts forwhich The re were any material foreseeable losses.

iii. The re has been no delay In transferrIng amount required to be transferred to TheInvestor Education and Protection Fund by The company.

iv. The Company has provided requisite disclosures In its standalone fInancialstatement as to holdIngs as well as

th th

dealIngs In Specified Bank Notes durIng The period from 8 November 2016 to 30December 2016 and The se are In accordance with The books of accounts maIntaIned by TheCompany. Refer Note 48 to The fInancial statements.

For Sehgal Mehta & Co. Chartered Accountants FRN-003330N

(CA Naresh Khanna) Partner M.No. 081482

Place: New Delhi

Date: 30.05.2017

Annexure - A to The Auditors' Report

The Annexure referred to In Independent Auditors' Report to The members of The Companyon The fInancial statements for The year ended 31 March 2017 we report that:

i) (a) The Company has maIntaIned proper records showIng full particulars IncludIngquantitative details and situation of fixed assets.

(b) As explaIned to us all The assets have not been physically verified by Themanagement durIng The year but The re is a regular programme of verification which In ouropInion is reasonable havIng regard to The size of The company and The nature of itsassets. No material discrepancies were noticed on such 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) (a) As explaIned to us The Inventories have been physically verified by Themanagement at reasonable Intervals durIng The year. In our opInion The frequency of suchverification is reasonable havIng regard to The size of The Company and The nature of itsbusIness.

(b) In our opInion and accordIng to The Information and explanations given to us Theprocedures of physical verification of Inventories followed by The management arereasonable and adequate In relation to The size of The Company and nature of The busIness.

(c) In our opInion and accordIng to The Information and explanations given to us Thecompany has maIntaIned proper records of Inventories. As explaIned to us The re were nomaterial discrepancies noticed on physical verification of The Inventories havIng regardto The size of The operations of The company.

iii) As explaIned to us The company had not granted any loans secured or unsecuredto any companies firms Limited Liability Partnerships or other parties covered In Theregister maIntaIned under section 189 of The Act.

iv) The company has not granted any loan made any Investments provided any guaranteeand security withIn The meanIng of section 185 and 186 of The Companies Act 2013.

v) In our opInion and accordIng to The Information and explanations given to us TheCompany has not accepted any deposits In contravention of Directives issued by ReserveBank of India and The provisions of section 73 to 76 or any other relevant provisions ofThe Act and The rules framed The re under where applicable. No order has been passed byThe Company Law Board or National Company Law Tribunal or Reserve Bank of India or anycourt or any other tribunal.

vi) As explaIned to us The Central Government has not prescribed The maIntenance ofcost records under section 148(1) of The Act for any of The activities such as engaged InThe production of goods or providIng services by The Company.

vii) (a) AccordIng to The records of The company The company is generally regular IndepositIng with appropriate authorities undisputed statutory dues IncludIng providentfund Investor education protection fund employees' state Insurance Income tax salestax wealth tax service tax custom duty excise duty Cess and other material statutorydues applicable to it.

AccordIng to The Information and explanations given to us no undisputed amountspayable In respect of Income

st

tax wealth tax Service Tax sales tax custom duty excise duty and Cess were Inarrears as at 31 March 2017 for a period of more than six months from The date The ybecame payable.

(b) AccordIng to The Information and explanations given to us The dues of sales taxIncome tax excise duty and Cess that have not been deposited with appropriate authoritieson account of any dispute and The forum where The disputes are pendIng are given below:-

Name of The Nature of The Dues

Amount Period to which

Forum where The
Statute

(`In'Lakhs)

The amount

dispute is pendIng

relates

The Central ProducIng and clearIng dutiable and

360.59

March 1997 to

Supreme Court of India
Excise Act 1944 non-dutiable product under Notification

June 1997

No.4/97
The Central Interest on differential duty paid In

0.40

January 2001 to

CESTAT
Excise Act 1944 respect of supplementary Invoices

April 2003

The Central Disallowance of Cenvat Credit on The

5.14

July 2004 to

Commissioner of
Excise Act 1944 supply of pet chips

August 2004

Customs & Central
Excise (Appeals)
Mumbai III
The Central Service Tax demand on transportation-

0.04

January 2005 to

Assistant Commissioner
Excise Act 1944 Abatement not allowed

March 2005

of Central Excise CBD
Belapur.

-

The Central

Remission of Duty for damage of

7.22

2014-2015

Assistant Commissioner

Excise Act 1944

FInished Goods In Fire.

of Central Excise

Mumbai

The Central

Interest on late payment of duty poInted

0.61

2014-2015

Assistant Commissioner

Excise Act 1944

out In EA 2000 Audit.

of Central Excise

Mumbai

The Sales Tax

Sales tax assessment VAT demand

102.67

2005-2006

Appeal Commissioner

Act

of Sales Tax

The Sales Tax

Sales tax assessment CST demand

123.84

2005-2006

Appeal Commissioner

Act

of Sales Tax

The Sales Tax

Sales tax assessment CST demand

11.85

2008-2009

Appeal Commissioner

Act

of Sales Tax

The Central

Show cause notice for reversal of

2.83

April 15 to May 16

SuperIntendent Central

Excise Act 1944

CENVAT CREDIT taken on Capital

Excise. Baddi

Goods

The Income Tax

Demand u/s 143(3)

17.49

AY 2010-11

Appeal pendIng before

Act 1961

ITAT

The Income Tax

Demand u/s 143(3)

9.52

AY 2014-15

Appeal pendIng before

Act 1961

CIT(A) Delhi

viii) AccordIng to The Information and explanations given to us and The records of Thecompanies examIned by us The Company has not defaulted In repayment of loans orborrowIngs to a fInancial Institution and banks.

ix) The Company has not raised any money by way of Initial public offer or furThe rpublic offer Order is not applicable.

x) Based upon our audit procedures performed and 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 ourexamInation of The records of The Company The Company has paid/provided for managerialremuneration In accordance with The requisite approvals mandated by The provisions ofsection 197 read with Schedule V to The Act.

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 Order is notapplicable.

xiii) AccordIng to The Information and explanations given to us and based on ourexamInation of The records of The Company transactions with The related parties are Incompliance with sections 177 and 188 of The Act where applicable and details of suchtransactions have been disclosed In The fInancial statements as required by The applicableaccountIng standards.

xiv) AccordIng to The Information and explanations give to us and based on ourexamInation of The records of The Company The Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures durIngThe year.

xv) AccordIng to The Information and explanations given to us and based on ourexamInation of The records of The Company The Company has not entered Into non-cashtransactions with directors or persons connected with him.

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

For Sehgal Mehta & Co.
Chartered Accountants
FRN-003330N
(CA Naresh Khanna)
Partner
M.No. 081482
Place: New Delhi
Date: 30.05.2017

PEARL Polymers Limited

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

We have audited The Internal fInancial controls over fInancial reportIng of M/sPearl Polymers Limited ("The Company") as of 31 March 2017 In conjunctionwith our audit of The 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'). The seresponsibilities 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 safeguardIng ofits 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 wheThe radequate 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 The ir 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 wheThe r 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 of records that In reasonable detail accurately andfairly reflect The transactions and dispositions of The assets of The company;

2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of fInancial statements In accordance with generally accepted accountIngprInciples and that receipts and expenditures of The company are beIng made only Inaccordance with authorizations of management and directors of The company; and

3) provide reasonable assurance regardIng prevention or timely detection ofunauthorized acquisition use or disposition of The company's assets that could have amaterial 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 2017 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 Sehgal Mehta & Co.
Chartered Accountants
FRN-003330N
(CA Naresh Khanna)
Partner
M.No. 081482
Place: New Delhi
Date: 30.05.2017