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POCL Enterprises Ltd.

BSE: 539195 Sector: Industrials
NSE: N.A. ISIN Code: INE035S01010
BSE 15:08 | 21 Sep 48.40 0.25
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NSE 05:30 | 01 Jan POCL Enterprises Ltd
OPEN 50.00
PREVIOUS CLOSE 48.15
VOLUME 1675
52-Week high 61.90
52-Week low 16.25
P/E 6.34
Mkt Cap.(Rs cr) 27
Buy Price 47.15
Buy Qty 20.00
Sell Price 48.30
Sell Qty 7.00
OPEN 50.00
CLOSE 48.15
VOLUME 1675
52-Week high 61.90
52-Week low 16.25
P/E 6.34
Mkt Cap.(Rs cr) 27
Buy Price 47.15
Buy Qty 20.00
Sell Price 48.30
Sell Qty 7.00

POCL Enterprises Ltd. (POCLENTERPRISES) - Auditors Report

Company auditors report

To the Members of

POCL ENTERPRISES LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of POCLEnterprises Limited ("the Company") which comprise the Balance Sheet as at31st March 2020 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsfor the year then ended and notes to the financial statements including a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 (‘the Act') in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2020 its profit/loss andother comprehensive income changes in equity and its cash flows for the year ended onthat date.

Basis for Opinion

We conducted our audit of the financial statements in accordance withthe Standards on Auditing (SAs) specified under Section 143 (10) of the Act. Ourresponsibilities under those SAs are further described in the Auditors' Responsibility forthe Audit of the 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 Act and Rules thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to Note No. 47 to the financial statements whichexplains COVID-19 that has caused significant disruptions in the business operations ofcompanies across India and has caused significant accounting and auditing challenges. Onesuch challenge being inability for the Company to conduct a physical verification ofinventories for the year-end 31st March 2020 due to Government having imposedrestrictions during the lockdown on account of health travel and safety concerns.

The Company's management however conducted physical verification ofinventories on dates other than the date of financial statements but prior to the date ofthe board meeting held for the purpose of adopting the financial results at the factoriesand has made available the documents in confirmation thereof. Inventories being materialto the financial statements/results of the Company the Standard on Auditing (SA) 501Audit Evidence - Specific Considerations for Selected items cast a duty on us to obtainsufficient appropriate audit evidence regarding the existence and condition ofinventories.

We have performed alternate audit procedures based on documents andother information made available to us to audit the existence of inventories as per theGuidance provided by the Standard on Auditing (SA) 501 Audit Evidence - SpecificConsiderations for Selected items and have obtained sufficient appropriate audit evidenceto issue our unmodified opinion on these standalone financial results.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

The Key Audit Matter How the matter was addressed in our audit
Revenue recognition Our audit procedures included the following:
We have identified revenue recognition cut-off as a key audit matter since the variety of terms that define when control is transferred to the customer as well as the high value of the transactions near the period end give rise to the risk that revenue is not recognized in the correct period. • Considered the appropriateness of the Company's revenue recognition accounting policies and assessing compliance with the policies in terms of IND AS 115.
• Performed walkthroughs and test of controls of the revenue recognition processes and assessed the design and operating effectiveness of key controls.
• Selected a sample of sales made pre and post year end and agreed the date of revenue recognition to the contract terms as per the agreement and third party delivery documents such as bills of lading to confirm sales are recognized according to contract conditions.

We have determined that there are no other key audit matters tocommunicate in our report.

Other Information

The Company's Management and Board of Directors are responsible for theother information. The other information comprises the information included in theCompany's annual report but does not include the financial statements and our auditors'report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance or conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibility for the financial statements

The Company's Management and Board of Directors is responsible for thematters stated in Section 134 (5) of the Act with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed under Section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements Management and Board ofDirectors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.

Board of Directors are also responsible for overseeing the Company'sfinancial reporting process.

Auditors' Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors' 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 reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditors' report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016("the Order") as amended issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Act we give in the "Annexure A" astatement on the matters specified in paragraphs 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 explanationswhich to the best of 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 beenkept by the Company so far as it appears from our examination of those books;

c) The Balance Sheet the Statement of Profit and Loss including theStatement of Other Comprehensive Income the Cash Flow Statement and the Statement ofChanges in Equity dealt with by this report are in agreement with the books of accounts;

d) In our opinion the aforesaid 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 written representations received from the directorsas on March 312020 and taken on record by the Board of Directors none of the directorsare disqualified as on March 31 2020 from being appointed as a director in terms ofSection 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".

g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

(i) The Company does not have any pending litigations which wouldimpact its financial position.

(ii) The Company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses.

(iii) There were no amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

h) In our opinion the managerial remuneration for the year ended March312020 has been paid/ provided by the Company to its directors is in accordance with theprovisions of section 197 read with Schedule V to the Act;

For Raju & Daftary
ICAI Firm Registration No.015535S
Chartered Accountants
Darpan Kumar
Partner
Place : Chennai Membership No. 235817
Date : 29th July 2020 UDIN: 20235817AAAADD8592

ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in Independent Auditors Report to the membersof the Company on the financial

statements for the year ended March 312020 we report that:

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details

and situation of fixed assets.

(b) The fixed assets have been physically verified by the managementduring the year and no material discrepancies have been noticed on such verification. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

(ii) The inventory except goods-in-transit has been physicallyverified by the management at reasonable intervals during the year and no materialdiscrepancies have been noticed on such verification. In our opinion the frequency ofsuch verification is reasonable. In respect of inventory lying with third parties thesehave substantially been confirmed by them. The Company's management conducted physicalverification of inventories for the year ended on March 312020 on dates other than thedate of financial statements but prior to the date of the board meeting held for thepurpose of adopting the financial results at factories and has made available thedocuments in confirmation thereof.

(iii) According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnership or other parties covered in the Register Maintained under Section189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (c) of the Order arenot applicable to the Company.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has not granted loans made investments or provided anyguarantees or security which are covered by the provisions of Section 185 and 186 of theAct.

(v) The Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3 (v) of the Order are not applicable tothe Company.

(vi) We have broadly reviewed the books of accounts maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Companies Act 2013 related to the manufacture ofcertain products of the Company and are of the opinion that prima facie the specifiedaccounts and records have been made and maintained. We have not however made a detailedexamination of the same.

(vii) (a) According to the information and explanations given to us andon the basis of our examination of

the records of the Company amounts deducted / accrued in the books ofaccounts in respect of undisputed statutory dues including provident fund employees stateinsurance income-tax goods and services tax duty of customssurcharge and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities.

According to the information and explanations given to us noundisputed amounts payable in respect of the above were in arrears as at March 312020 fora period of more than six months from the date on when they become payable.

(b) According to the information and explanations given to us thereare no dues of provident fund income tax goods and services tax duty of customssurcharge and other material statutory dues on account of any disputes as on March312020.

(viii) In our opinion and according to the information and explanationsgiven to us the Company has not

defaulted in the repayment of loans or borrowings to a financialinstitution and banks. The Company did not have any outstanding loan or borrowings fromgovernment or debenture holders during the year.

(ix) In our opinion and according to the information and explanationsgiven by the management the Company has utilized the monies raised by way of term loansfor the purposes for which they were raised. The Company has not raised money by way ofinitial public offer further public offer or debt instruments.

(x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management we report that no fraud by theCompany or no fraud on the Company by the officers and employees of the Company has beennoticed or reported during the year.

(xi) According to the information and explanations given by themanagement the managerial remuneration has been paid/provided in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

(xii) In our opinion the Company is not a Nidhi company. Thereforethe provisions of clause 3(xii) of the Order are not applicable to the Company and hencenot commented upon.

(xiii) According to the information and explanations given by themanagement transactions with the related parties are in compliance with Sections 177 and188 of the Act wherever applicable and details of such transactions have been disclosedin the financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given by themanagement and based on our examination of the records of the Company the Company hasnot made any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. Accordingly the provisions of clause 3(xiv) ofthe Order are not applicable to the Company.

(xv) According to the information and explanations given by themanagement and based on our examination of the records of the Company the Company has notentered into non-cash transactions with directors or persons connected with them asreferred to in section 192 of the Act. Accordingly the provisions of clause 3(xv) of theorder is not applicable.

(xvi) According to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934.

For Raju & Daftary
ICAI Firm Registration No.015535S
Chartered Accountants
Darpan Kumar
Partner
Place : Chennai Membership No. 235817
Date : 29th July 2020 UDIN: 20235817AAAADD8592

ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ONTHE FINANCIAL STATEMENTS OF POCL ENTERPRISES LIMITED

Report on the Internal financial controls over financial reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the Internal financial controls over financialreporting of POCL Enterprises Limited ("the Company") as of March 312020 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal financial controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting 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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting with reference to these financial statementsbased on our audit. We conducted our audit in accordance with the Guidance Note on auditof internal financial controls over financial reporting (the "Guidance Note")and the standards on auditing issued by ICAI as specified under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of Internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting with reference to these financial statements.

Meaning of Internal financial controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 the company's assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal financial controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 312020 based onthe 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 Raju & Daftary
ICAI Firm Registration No.015535S
Chartered Accountants
Darpan Kumar
Partner
Place : Chennai Membership No. 235817
Date : 29th July 2020 UDIN: 20235817AAAADD8592

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