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Panchmahal Steel Ltd.

BSE: 513511 Sector: Metals & Mining
NSE: PANCHMSTEL ISIN Code: INE798F01010
BSE 00:00 | 07 Aug 20.75 0.95
(4.80%)
OPEN

19.80

HIGH

20.75

LOW

19.80

NSE 05:30 | 01 Jan Panchmahal Steel Ltd
OPEN 19.80
PREVIOUS CLOSE 19.80
VOLUME 5700
52-Week high 32.90
52-Week low 15.00
P/E
Mkt Cap.(Rs cr) 40
Buy Price 20.75
Buy Qty 150.00
Sell Price 20.75
Sell Qty 100.00
OPEN 19.80
CLOSE 19.80
VOLUME 5700
52-Week high 32.90
52-Week low 15.00
P/E
Mkt Cap.(Rs cr) 40
Buy Price 20.75
Buy Qty 150.00
Sell Price 20.75
Sell Qty 100.00

Panchmahal Steel Ltd. (PANCHMSTEL) - Auditors Report

Company auditors report

To

The Members of

PANCHMAHAL STEEL LIMITED

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of PANCHMAHALSTEEL LIMITED ("the Company") which comprise the Balance Sheet as at 31st March2019 the Statement of Profit and Loss Statement of Changes in Equity and Statement ofCash Flows for the year then ended and notes to the financial statements including asummary of significant accounting policies and other explanatory information.

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 2019 its profit changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Ind AS Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Companies Act 2013 and the rulesmade thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone Ind AS financial statements of the currentyear. These matters were addressed in the context of our audit of the standalone Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

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 201(3"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 changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theAccounting Standards (Ind AS) specified under Section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation 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 Standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone Ind AS Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonable be expected to influence the economic decisions of userstaken on the basis of these standalone Ind AS financial statements.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 201(6"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 inparagraphs 3 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 ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books; c. the Balance Sheet the Statement of Profit and Loss and theCash Flow Statement 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 Rule 7 of theCompanies (Accounts) Rules 2014; e. On the basis of written representations received fromthe directors as on 31st March 2019 taken on record by the Board of Directors none ofthe directors is disqualified as on 31st March 2019 from being appointed as a director interms of Section 164(2) of the Act; f. With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate Report in "Annexure B". g. In ouropinion and to the best of our information and according to the explanations given to uswe report as under with respect to other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended : i.The Company has disclosed the impact of pending litigations on its financial position inits financial statements - Refer Note (1B) E to the standalone Ind AS financialstatements; ii. As informed to us the Company did not have any long-term contractsincluding derivative contracts; as such the question of commenting on any materialforeseeable losses thereon does not arise; iii. There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany.

For Atul Parikh & Co.
Chartered Accountants
Firm Regn. 106496W
Place : Vadodara (Foram Doshi)
Date : 25th May 2019 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 2019 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 2019 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 2019 aregiven below:

Amount Forum where
Name of Statute Nature of Dues

(Rs. in lacs)

dispute is pending
The Central Excise Act 1944 Excise Duty 57.42 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 6.34 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.
Finance Act 1994 Service Tax 38.27 CESTAT Ahmedabad.
Finance Act 1994 Service Tax 2.16 CESTAT Ahmedabad.
The Custom Act 1962 Custom Duty 1.20 CESTAT Mumbai
The Custom Act 1962 Custom Duty 40.74 CESTAT Mumbai
The Income Tax Act 1961 Income Tax 579.10 Commissioner (Appeals) Vadodara

9. The Company has not defaulted in repayment of loans or borrowing to banks financialinstitution government or 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 (Foram Doshi)
Date : 25th May 2019 Partner
Membership No. 152328

ANNEXURE B REFERRED TO IN PARAGRAPH 1(f) UNDER "REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS" SECTION OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THEYEAR ENDED ON 31ST MARCH 2019 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 201(3"the Act")

We have audited the internal financial controls over financial reporting of PANCHMAHALSTEEL LIMITED ("the Company") as of March 31 2019 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 2019 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 : 25th May 2019 Partner
Membership No. 152328