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Pacific Industries Ltd.

BSE: 523483 Sector: Others
NSE: PACIFICIND ISIN Code: INE883C01025
BSE 11:45 | 23 Apr 116.20 -2.90
(-2.43%)
OPEN

116.90

HIGH

116.90

LOW

116.20

NSE 05:30 | 01 Jan Pacific Industries Ltd
OPEN 116.90
PREVIOUS CLOSE 119.10
VOLUME 235
52-Week high 154.30
52-Week low 107.20
P/E 4.15
Mkt Cap.(Rs cr) 16
Buy Price 119.05
Buy Qty 20.00
Sell Price 122.40
Sell Qty 5.00
OPEN 116.90
CLOSE 119.10
VOLUME 235
52-Week high 154.30
52-Week low 107.20
P/E 4.15
Mkt Cap.(Rs cr) 16
Buy Price 119.05
Buy Qty 20.00
Sell Price 122.40
Sell Qty 5.00

Pacific Industries Ltd. (PACIFICIND) - Auditors Report

Company auditors report

To The Members of

PACIFIC INDUSTRIES LIMITED

Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements

We have audited the accompanying Standalone Ind AS Financial Statements of PacificIndustries Limited ("the Company") which comprise the Balance Sheet as at March312018 and the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of changes in equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "Standalone FinancialStatements").

Management's Responsibility for the standalone Ind AS 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 Ind AS Financial Statements that give a true and fairview of the financial position financial performance including Other ComprehensiveIncome cash flows and the statement of changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Standalone financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS FinancialStatements based 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 thereunder.

We conducted our audit in accordance with the Standards on Auditing issued by theInstitute

of Chartered Accountants of India as specified under Section 143(10) of the Act. ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the standalone financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS Financial Statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial control relevantto the Company'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 well asevaluating the overall presentation of the Ind AS 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 Ind AS Financial Statements.

Basis for Qualified Opinion

Refer Note No. 38 of Notes on standalone Ind AS Financial Statements regardingconfirmation & reconciliation of various Debit and Credit balances appearing undervarious heads & nonprovision of exchange fluctuation w.r.t certain old balances. Finalreconciliations / confirmations of the same may affect our disclosure.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph above the aforesaid standalone Ind AS 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 st March2018 and its profit (including othercomprehensive income) change in equity and its cash flows for the year ended on thatdate.

Other Matters

The comparative financial information of the company for the year ended 31st March 2017included in the financial statements are based on the previously published Standalonefinancial results/statements for the said periods prepared in accordance with theCompanies (Accounting Standards) Rules 2006 and other accounting principles generallyaccepted in India audited by predecessor auditor and whose audit report for the year ended31st March 2017 dated 30th May 2017 expressed an modified opinion as adjusted for thedifferences in

the accounting principles adopted by the company on transition to the Ind AS which hasnot been audited by us.

Our Opinion is not modified in respect of above matters.

Report on Other Legal 8t Regulatory Requirement

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 of the Act we give in the Annexure I a statement on the matters specified in

the paragraph 3 and 4 of the Order to the extent applicable.

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 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 balance sheet the statement of profit and loss including Other ComprehensiveIncome the cash flow statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

d. In our opinion the aforesaid standalone Ind AS Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

e. On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act;

f. As required under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 on the Internal Financial Control over Financial Reporting to the extent applicablerefer our separate report in Annexure Hand

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 effect of pending litigations (if any) are disclosed by way of Note in the IndAS Financial Statements. Refer Note 39 to the Ind AS financial statements;

ii. The Company did not have any long-term contract including derivatives contracts forwhich 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

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

For Ravi Sharma fit Company Chartered Accountants FRN: 015143C

SD/-

(CA Paras Bhatia)

Partner M.No. 418196

Date: 30th May 2018 Place: Udaipur

Annexure I to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone Ind AS Financial Statements for the year ended 31 March 2018 wereport that:

(i) (a) The company has maintained proper records showing full particulars including

quantitative details and situation of fixed assets.

(b) All the assets have been physically verified by the management during the year andthere is a regular program of verification which in our opinion is reasonable havingregard to the size of the company and the nature of its assets No material discrepancieswere noticed on such verification.

(c) The title deeds of immovable properties are held in the name of the company exceptthe land having cost of Rs. 64.76 Lacs in Bangalore held in the name of past director ofthe company.

(ii) (a) The inventory has been physically verified during the year by the management.

In our opinion the frequency of verification is reasonable.

(b) The discrepancies noticed on physical verification of inventory as compared to bookrecords were not material and have been properly dealt with in the books of accounts.

(c) In our opinion and according to the information and explanation given to us and onthe basis of our examination of the records of inventory the company is maintainingproper records of inventory. The discrepancies noticed on physical verification ofinventory as compared to book records were not material and have been properly dealt within the books of accounts.

(iii) (a) in our opinion the terms and conditions of grant of such loans are not prima

facie 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;

(c) there is no overdue amount in respect of loans granted to such companies.

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of loans investments guarantees and security

(v) The Company has not accepted any deposits from the Public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable

(vi) According to the information 8t explanation given to us the Central Governmenthas not prescribed the maintenance of cost records under Section 148(1) of the CompaniesAct 2013 in respect of manufacture of its products by the company.

(vii) In respect of statutory dues:

(a) According to the records of the company undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales Tax Service Tax Duty ofCustoms Value Added Tax Cess and other material statutory dues have been regularlydeposited during the year by the Company with the appropriate authorities except for a fewdelays. According to the information and explanations given to us no disputed amountpayable in respect of the aforesaid due were outstanding as at March 31 2018for a periodof more than six months from the date of becoming payable.

(b) According to the information and explanation given to us there are no pending duesof Income Tax Sales Tax Service Tax Duty of Custom Duty of Excise Value Added TaxGoods and service tax or Cess which are not deposited on account of dispute exceptFollowing:

Particulars Year Amount

of

demand

Amount

deposited

against

demand

Amount of demand to the extent not deposited (Rs.) Forum where appeal is pending
Entry Tax demand paid under Protest Bangalore 2010-11 840669 420335 420334 C.T.D

Banglaore

Entry Tax demand paid under Protest Bangalore 2011-12 679839 339920 339919 C.T.D

Bangalore

Sales Tax demand paid under Protest Bangalore 2010-11 2615214 1307606 1307608 C.T.D

Bangalore

Sales Tax demand paid under Protest Bangalore 2011-12 1773845 886923 886922 C.T.D

Bangalore

Excise Demand Udaipur Norms

2007-

08

2010-11

2011-12

11196664 5595984 5600680 CESTAT

Delhi

Excise Demand Udaipur 2013-14 3610658 270799 3339859 CESTAT

Delhi

Excise Demand Udaipur 2013-14 2255032 169128 2085904 CESTAT

Delhi

Custom Demand Udaipur 2014-15 3346743 251005 3095738 Joint Commissions Udaipur
Custom Demand Udaipur 2014- 15 &

2015- 16

2772476 207936 2564540 Joint Commissions Udaipur
Custom Demand Udaipur 2015- 16 &

2016- 17

1719873 128990 1590883 Ass.

Commissions Udaipur

Income Tax Demand Udaipur AY 2011-12 2014-15 & 2015-16 109552041 2850000

(Under

Protest)

106702041 Income Tax Department Filed Appeal Before ITAT against the order of CITfADDeah

(viii) According to information and explanation given to us by the management as onbalance sheet date the company is not in default w.r.t. repayment of loans and borrowingsto a financial institutions banks or government further the company has not issued anydebentures.

(ix) Based upon the audit procedures performed and the information and explanationsgiven by the management during the year under review the company has not raised moneys byway of initial public offer or further public offer including debt instruments. To thebest of our knowledge and belief and according to the Information and Explanation given tous term loans availed by the company were prima facie applied by the company during theyear for the purpose for which the loan were Obtained.

(x) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

(xi) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

(xiii) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards..

(xiv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.

(xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

(xvi) In our opinion the company is not required to be registered under section 45lAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon

For Ravi Sharma & Company Chartered Accountants FRN:015143C

Sd/-

(CA Paras Bhatia)

Partner M.No. 418196

Date: 30th May 2018

Place: Udaipur

Annexure II 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")

In conjunction with our audit of the Standalone Ind AS Financial Statements of theCompany as of and for the year ended March 312018 We have audited the internal financialcontrols over financial reporting of Pacific Industries Limited (hereinafter referred toas "the Company") which is a company incorporated in India as of that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the company are responsible for establishing and maintaininginternal financial controls based on the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia (ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to the respectivecompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's IFCoFR based on our audit.We conducted our audit in accordance with the Standards on Auditing issued by the ICAIand deemed to be prescribed under section 143(10) of the Act to the extent applicable toan audit of IFCoFR and the Guidance Note issued by the ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate IFCoFR were 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 controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

Acompany's internal financial control over financial reporting is a process designed toprovide 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.

Basis for Qualified Opinion

Refer Note No. 38 of Notes on standalone Ind AS Financial Statements regardingconfirmation 8t reconciliation of various Debit and Credit balances appearing undervarious heads 8t nonprovision of exchange fluctuation w.r.t certain old balances. Finalreconciliations / confirmations of the same may affect our disclosure.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph above the company has maintained in all material respects adequateinternal financial control over financial reporting and such internal financial controlsover financial reporting were operating effectively as of March 312018 based on"the internal control over financial

reporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India".

For Ravi Sharma 8t Company Chartered Accountants FRN:015143C

Sd/-

(Paras Bhatia)

Partner M.No.: 418196

Date: 30th May 2018

Place: Udaipur