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Panchmahal Steel Ltd.

BSE: 513511 Sector: Metals & Mining
NSE: PANCHMSTEL ISIN Code: INE798F01010
BSE 00:00 | 18 Apr 37.90 0.90
(2.43%)
OPEN

37.90

HIGH

37.90

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37.90

NSE 05:30 | 01 Jan Panchmahal Steel Ltd
OPEN 37.90
PREVIOUS CLOSE 37.00
VOLUME 10
52-Week high 56.65
52-Week low 31.05
P/E 12.11
Mkt Cap.(Rs cr) 72
Buy Price 34.35
Buy Qty 15.00
Sell Price 37.85
Sell Qty 200.00
OPEN 37.90
CLOSE 37.00
VOLUME 10
52-Week high 56.65
52-Week low 31.05
P/E 12.11
Mkt Cap.(Rs cr) 72
Buy Price 34.35
Buy Qty 15.00
Sell Price 37.85
Sell Qty 200.00

Panchmahal Steel Ltd. (PANCHMSTEL) - Auditors Report

Company auditors report

To

The Members of

PANCHMAHAL STEEL LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS financial statements of PANCHMAHALSTEEL LIMITED ("the Company") which comprise the Balance Sheet as at 31st March2018 the Statement of Profit and Loss including the Statement of Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Ind AS Financial Statements

The company's Board of Directors is responsible for the matters specified in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards (Ind AS) specified underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended. 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 the 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 Ind AS 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 Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder. We conductedour audit in accordance with the Standards on Auditing specified under Section 143(10) ofthe Act. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone Ind AS financial statements that give a true and fair viewin order to design audit procedures that are appropriate in the circumstances. An auditalso includes 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 standalone financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone Ind AS financial statements give the information required bythe 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 31st March 2018 its profit including other comprehensive income its cash flowsand the changes in equity for the year ended on that date.

Other Matter

The audited standalone financial statements for the year ended 31st March 2017 wascarried out and reported by J.R.S. Patel & Co. vide their unmodified audit reportdated 17th May 2017 whose report has been furnished to us by the management and whichhas been relied upon by us for the purpose of our audit of the standalone financialstatements. Our audit report is not qualified in respect of this matter.

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 dated 29.03.2016 we give in the Annexure A a statement on the matters specifiedin paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we further report that: a. We have soughtand obtained 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 ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books; c. the Balance Sheet Statement of Profit and Loss includingthe Statement of Other Comprehensive Income the Cash Flow Statement and Statement ofChanges in Equity dealt with by this Report are in agreement with the books of account. d.In our opinion the standalone Ind AS financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standard) Rules 2015 as amended; e. On the basis of written representationsreceived from the directors as on 31st March 2018 and taken on record by the Board ofDirectors none of the directors is disqualified as on 31st March 2018 from beingappointed as a director in terms of Section 164(2) of the Act; f. With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate Report in"Annexure B". Our report expresses an unmodified opinion on the adequacy andoperating effectiveness of the Company's internal financial controls over financialreporting. g. In our opinion and to the best of our information and according to theexplanations given to us we report as under with respect to other matters to be includedin the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended : i. The Company has disclosed the impact of pending litigationson its financial position in its financial statements - Refer Note 1 (B) E to thestandalone Ind AS financial statements; ii. As informed to us the Company did not haveany long-term contracts including derivative contracts; as such the question of commentingon any material foreseeable losses thereon does not arise; iii. There has been no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company.

For Atul Parikh & Co.
Chartered Accountants
Firm Regn. 106496W
Place : Vadodara (Foram Doshi)
Date : 30th May 2018. Partner
Membership No. 152328

ANNEXURE A REFERRED TO PARAGRAPH 1 UNDER "REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS" OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED ON 31STMARCH 2018 OF PANCHMAHAL STEEL LIMITED KALOL.

1. In respect of its Fixed Assets :

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

(b) The Company carries out physical verification of fixed assets under a phasedprogram of verification at reasonable intervals which in our opinion is reasonable.According to the information and explanations given to us no material discrepancies werenoticed on such verification.

(c) According to the information and explanations given to us the title deeds ofimmovable properties are held in the name of the Company.

2. (a) As explained to us the inventories have been physically verified by themanagement during the year at reasonable intervals other than material in transit andlying with branches and consignment agent/ stockiest which have been substantiallyconfirmed by them. In our opinion having regard to the nature and location of stocks thefrequency of verification is reasonable.

(b) According to the information and explanations given to us no materialdiscrepancies were noticed on physical verification of inventory as compared to the bookrecords.

3. As informed the Company has not granted any loans secured or unsecured tocompanies firms limited liability partnerships or other parties listed in registermaintained under Section 189 of the Companies Act 2013. Accordingly sub-clauses (a) (b)and (c) of (iii) of the said Order are not applicable.

4. In our opinion and according to explanations given to us the Company has notentered into any transactions with respect to loans and investments as prescribed underSections 185 and 186 of the Companies Act 2013.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public during the year and hence thequestion of complying with the provisions of Section 73 to 76 of the Companies Act 2013and the rules framed there under and the directives issued by the Reserve Bank of Indiawherever applicable does not arise.

6. On the basis of the records produced we are of the opinion that prima facie thecost records and accounts prescribed by the Central Government of India under Section148(1) of the Companies Act 2013 have been made and maintained by the Company. Howeverwe are not required to carry out and have not carried out any detailed examination of suchrecords and accounts.

7. According to the information and explanations given to us in respect of statutoryand other dues the Company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Service TaxCustom Duty Excise Duty Value Added Tax Cess and other Statutory dues with theappropriate authorities during the year. Based on our audit procedures and according tothe information and explanations given to us there are no arrears of statutory dues whichhas remained outstanding as at 31st March 2018 for a period of more than six months fromthe date they became payable.

8. According to the information and explanations given to us and on the basis ofrecords produced before us by the Company the details of disputed Income Tax/CustomDuty/Excise Duty/Service Tax which have not been deposited as on 31st March 2018 aregiven below:

Amount Forum where
Name of Statute Nature of Dues Rs. in Lacs dispute is pending
The Central Excise Act 1944 Excise Duty 57.41 Gujarat High Court
The Central Excise Act 1944 Excise Duty 5.05 Assistant Commissioner Halol
The Central Excise Act 1944 Excise Duty 21.00 Assistant Commissioner Halol
The Central Excise Act 1944 Excise Duty 8.05 Commissioner (Appeals) Vadodara
The Central Excise Act 1944 Excise Duty 0.04 Assistant Commissioner Halol
The Central Excise Act 1944 Excise Duty 10.03 CESTAT Ahmedabad.
The Central Excise Act 1944 Excise Duty 6.34 CESTAT Ahmedabad.
The Central Excise Act 1944 Excise Duty 6.33 CESTAT Ahmedabad.
The Central Excise Act 1944 Excise Duty 67.45 CESTAT Ahmedabad.
The Central Excise Act 1944 Excise Duty 2.50 CESTAT Ahmedabad.
The Central Excise Act 1944 Excise Duty 841.36 CESTAT Ahmedabad.
The Central Excise Act 1944 Excise Duty 15.02 Commissioner (Appeals) Vadodara
Finance Act 1994 Service Tax 2.15 CESTAT Ahmedabad.
The Custom Act 1962 Custom Duty 1.20 CESTAT Mumbai
The Custom Act 1962 Custom Duty 40.73 CESTAT Mumbai
The Income Tax Act 1961 Income Tax 579.10 Commissioner (Appeals) Vadodara

dues to debenture holders.

10. The Company has not raised money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year.

11. During the course of our examination of the books of account carried out inaccordance with the generally accepted auditing practices in India and according to theinformation and explanations given to us we have neither come across any instances offraud on or by the Company noticed or reported during the year nor have we been informedof such case by the management.

12. According to information and explanations given to us the Company has paid orprovided managerial remuneration in accordance with the requisite approvals mandated bythe provisions of the Section 197 read with schedule V of the Companies Act 2013.

13. The Company is not a Nidhi Company. Accordingly clause (xii) of (iii) of the Orderis not applicable.

14. According to information and explanations given to us all transactions with therelated parties are in compliance with Section 177 and 188 of the Companies Act 2013 anddetails have been disclosed in the standalone Ind AS

Financial Statements as required by applicable Accounting Standard.

15. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

16. According to information and explanations given to us the Company has not enteredinto any non-cash transactions with directors or persons connected therewith.

17. As explained to us looking to the nature of business carried out by the Companyit is not required to get registered under Section 45-IA of the Reserve Bank of India Act1934.

For Atul Parikh & Co.
Chartered Accountants
Firm Registration No. 106496W
Place : Vadodara (F oram Doshi)
Date : 30th May 2018 Partner
Membership No. 152328

ANNEXURE B REFERRED TO PARAGRAPH 1(f) UNDER "REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS" SECTION OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDEDON 31ST MARCH 2018 OF PANCHMAHAL STEEL LIMITED KALOL.

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of PANCHMAHALSTEEL LIMITED ("the Company") as of March 31 2018 in conjunction with our auditof the standalone Ind AS financial statements of the Company for the year ended on thatdate.

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 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 its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India andthe Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls. 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 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 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 includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect 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 regardingprevention or timely detection 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 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Atul Parikh & Co.
Chartered Accountants
Firm Registration No. 106496W
Place : Vadodara (Foram Doshi)
Date : 30th May 2018 Partner
Membership No. 152328