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PG Electroplast Ltd.

BSE: 533581 Sector: Engineering
NSE: PGEL ISIN Code: INE457L01011
BSE LIVE 15:21 | 21 Aug 322.80 -4.75
(-1.45%)
OPEN

340.00

HIGH

340.00

LOW

322.30

NSE 15:06 | 21 Aug 325.00 -5.25
(-1.59%)
OPEN

336.50

HIGH

339.55

LOW

323.15

OPEN 340.00
PREVIOUS CLOSE 327.55
VOLUME 7836
52-Week high 356.70
52-Week low 123.00
P/E 136.20
Mkt Cap.(Rs cr) 530
Buy Price 322.80
Buy Qty 197.00
Sell Price 323.00
Sell Qty 52.00
OPEN 340.00
CLOSE 327.55
VOLUME 7836
52-Week high 356.70
52-Week low 123.00
P/E 136.20
Mkt Cap.(Rs cr) 530
Buy Price 322.80
Buy Qty 197.00
Sell Price 323.00
Sell Qty 52.00

PG Electroplast Ltd. (PGEL) - Auditors Report

Company auditors report

To the Members of PG ELECTROPLAST LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of PG ELECTROPLAST LIMITED ("theCompany") which comprise the Balance Sheet as at March 31 2016 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary ofsignificant accounting 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 preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these 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 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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the company as atMarch 31 2016;

(b) in the case of the Statement of Profit and Loss Account of the profit for the yearended on that date; and

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements-

1. As required by the Companies (Auditor's Report) Order 2015 ("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" statement on the matters specified in paragraphs 3 and 4 of theorder.

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 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 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 aforesaid financial statements comply with the AccountingStandards specified 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 directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in termsof Section 164 (2) of the Act;

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and 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 25 A i) ii) & iii) to the financialstatements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

For and on behalf of

Chitresh Gupta & Associates

Chartered Accountants

Firm Registration No.: 017079N

CA. Chitresh Gupta

Partner

Membership no.: 098247

Date: 30th May 2015

Place: Greater Noida U.P.

Annexure A to the Independent Auditors' Report

Referred to in Paragraph 1 under the heading of "Report on Other Legal andRegulatory

Requirements" of our report of even date

1) (a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) According to the information and explanations given to us all fixed assets havebeen physically verified by the management in a phased periodical manner which in ouropinion is reasonable having regard to the size of the Company and nature of its assets.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.

2) As explained to us the inventories except goods in transit have been physicallyverified by the management at reasonable intervals during the year or at year end at alllocations of the company. The discrepancies noticed on verification between the physicalstock and book records which in our opinion were not material have been properly dealtwith in the books of account.

3) According to information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties covered inthe register maintained under section 189 of the Companies Act 2013. Accordingly theparagraph 3(iii)(a) 3(iii)(b) and 3(iii)(c) of the Order is not applicable to theCompany.

4) In our opinion and according to the information and explanations given to us thecompany has not granted any loans made investment give guarantees or securities duringthe year which is covered under provisions of section 185 and 186 of the Act. Accordinglythe paragraph 3(iv) of the Order is not applicable to the Company.

5) According to information and explanations provided by the management we are of theopinion that the Company has not accepted any deposits from the public covered section 73to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthere-under. Accordingly the paragraph 3(v) of the Order is not applicable to the company.

6) We have broadly reviewed the cost records maintained by the Company in respect ofproducts where pursuant to section 148(1) of the Companies Act 2013. The maintenance ofthe cost records has been prescribed and are of the opinion that prima-facie theprescribed cost records have been maintained. However we are not required to carry out andhave not carried out a detailed examination of the records with a view to determinewhether they are accurate and complete.

7) (a) According to the information and explanations given to us the Company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax service taxduty of customs duty of excise value added tax cess and other material statutory duesapplicable to it.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance income-tax sales-taxservice tax duty of customs duty of excise value added tax & cess were in arrearsas at 31st 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 and on the basis of ourexamination of the books of accounts there are no due of sales tax service tax duty ofcustom and value added tax which have not been deposited on account of any dispute.According to the information and explanations given to us the following dues of duty ofexcise has not been deposited by the company on account of dispute:

Name of the Statute Nature of Dues Amount (Rs) Year to which amount relates Forum where dispute is pending
Central Excise Act 1944 Excise Duty 76573219 2008-09 to 2011-12 Supreme Court
Custom Act 1962 Anti-Dumping Duty 73854123 2010-11 High Court

8) Based on our audit procedures and on the information and explanations given to usthe Company did not have any outstanding debentures or loans or borrowings from governmentduring the year. Further the Company has not defaulted in repayment of loans orborrowings to financial institutions or to banks as on balance sheet date exceptoutstanding installment of Rs. 2000000 due on 31st march 2016 with regards toWCTL from State of India which has been paid on 15th April 2016.

9) During the year ended 31st March 2012 the Company has raised Rs. 120.65crore through initial public offer. The amount raised has been utilized for the objects asmentioned in the prospectus read with amended objects approved by the Board of Directorsas per the power given in 10th Annual General Meeting of the Company held on 12thSeptember 2012. Further an amount of Rs. 48577401/- (excluding interest) unutilized ason 31st march 2016 [refer note no. 26(5) to balance sheet].

Based on our audit procedures and according to information and explanations given bythe management the term loans were applied for the purpose for which they were obtained.

10) During the course of our examination of the books and records of the Companycarried out in accordance with generally accepted auditing practice in India and accordingto the information and explanations given to us we have neither come across any instanceof fraud on or by the Company noticed or reported during the year nor have been informedof such case by the management.

11) According to the information and explanations give to us and based our examinationof the records of the Company the Company has paid/provided for managerial remunerationin accordance with the provisions of section 197 read with schedule V of the CompaniesAct 2013.

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

13) 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 section 177 and section 188 of the Act where applicable and details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards.

14) According to the information and explanations given to us and based on ourexamination of records of the Company the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the year.Accordingly paragraph 3(xiv) of the Order is not applicable.

15) 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 person connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

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

For and on behalf of

Chitresh Gupta & Associates

Chartered Accountants

Firm Registration No.: 017079N

CA. Chitresh Gupta

Partner

Membership no.: 098247

Date: 30th May 2015

Place: Greater Noida U.P.

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 PGELECTROPLAST LIMITED ("the Company") as on 31st March 2016 inconjunction with our audit report of the financial statements of the Company for the yearended on that date.

Management's Responsibility for internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theguidance note on Audit of Internal Financial Controls over financial reporting issued bythe Institute of Chartered Accountants of India (TCAI').

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of assets the prevention and detection of frauds and errors the accuracyand completeness of the accounting records and the timely preparation of reliablefinancial information as required under Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on these 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 specified under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 finance 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 assessed risk. The procedureselected depends on auditor's judgment including the assessment of risks of materialmisstatement of 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 included those policies and procedures that (1) pertain to maintenance ofrecords that in reasonable details accurately and fairly reflects 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 authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingpresentation or timely dictation of unauthorized 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 inherent limitation of internal financial controls over financial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of evaluation of internal financial control 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 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 31st March 2016based 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 and on behalf of

Chitresh Gupta & Associates

Chartered Accountants

Firm Registration No.: 017079N

CA. Chitresh Gupta

Partner

Membership no.: 098247

Date: 30th May 2015

Place: Greater Noida U.P.