To the Members of PG ELECTROPLAST LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of PG ELECTROPLAST LIMITED("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant 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.
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.
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 2017;
(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 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 inparagraphs 3 and 4 of the order.
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 the Statement of Profit and Loss and the Cash Flow Statementdealt with by 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 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31stMarch 2017 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 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 25A to the financial statements;
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.
iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the Company and as produced to us by the Management - Refer Note26(10).
| ||For and on behalf of |
| ||Chitresh Gupta & Associates |
|D ate: 15th May 2017 ||Chartered Accountants |
|Place of Signature: Greater Noida U.P. ||Firm Registration No.: 017079N |
| ||CA. Chitresh Gupta |
| ||Partner |
| ||Membership no.: 098247 |
Annexure A to Independent Auditor's 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 physicalstocks 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 information and explanations given to us thecompany has not given any loans made investments give guarantees or security during theyear which is covered under provisions of section 185 and 186 of the Act. Accordingly theparagraph 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 public covered under section73 to 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 theCompany.
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 ofcost records has been prescribed and are of the opinion that prima-facie the prescribedcost records have been maintained. However we are not required to carry out and have notcarried out a detailed examination of the records with a view to determine whether theyare 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 provident fund employees state insurance income-tax sales-taxservice tax duty of customs duty of excise value added tax cess were in arrear as at31st March 2017 for a period of more than six months from the date they becamepayable.
(b) According to the information and explanations given to us and on the basis of ourexamination of the books of accounts there are no dues of Central sales-tax and valueadded tax which have not been deposited on account of any dispute. According to theinformation and explanations given to us the following dues of duty of excise duty ofcustom and service tax 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 |
|Central Excise Act 1944 ||Excise Duty ||625926 ||October 2014 to March 2015 ||The company is in the process of filing appeal to Commissioner (Appeals) |
|Customs Act 1962 ||Anti Dumping Duty ||73854123 ||2010-11 ||The company is in the process of filing appeal to CESTAT |
|Finance Act 1994 ||Service Tax ||398857 ||July 2012 to August 2013 ||The company is in the process of filing appeal to Commissioner (Appeals) |
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 Company has not defaulted in repayment of loans or borrowings tofinancial institutionor to banks as on balance sheet date.
9. During the year ended 31st March 2012 the company has raised Rs 120.65crores through initial public offer. The amount raised has been utilized for the objectsas mentioned in the prospectus read with amended objects as approved by the Board ofDirectors as per the powers given in 10th Annual General Meeting of the companyheld on 12th September 2012. Further no amount has been remained unutilized ason 31st March 2017 [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 on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the provisions of section 197 read with Schedule V of theCompanies Act 2013.
12. 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.
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 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.
14. According to the information and explanations given 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. 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 persons 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
Firm Registration No.: 017079N
CA. Chitresh Gupta
Membership no.: 098247
Date:15th May 2017
Place of signature: Greater Noida U.P.