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Poddar Pigments Ltd.

BSE: 524570 Sector: Industrials
NSE: PODDARMENT ISIN Code: INE371C01013
BSE 00:00 | 07 Apr 122.65 10.15
(9.02%)
OPEN

117.00

HIGH

122.65

LOW

117.00

NSE 00:00 | 07 Apr 120.55 8.25
(7.35%)
OPEN

115.00

HIGH

123.10

LOW

115.00

OPEN 117.00
PREVIOUS CLOSE 112.50
VOLUME 620
52-Week high 210.00
52-Week low 100.10
P/E 6.32
Mkt Cap.(Rs cr) 130
Buy Price 117.10
Buy Qty 50.00
Sell Price 122.65
Sell Qty 500.00
OPEN 117.00
CLOSE 112.50
VOLUME 620
52-Week high 210.00
52-Week low 100.10
P/E 6.32
Mkt Cap.(Rs cr) 130
Buy Price 117.10
Buy Qty 50.00
Sell Price 122.65
Sell Qty 500.00

Poddar Pigments Ltd. (PODDARMENT) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

PODDAR PIGMENTS LIMITED.

I. Report on the Audit of the Standalone Ind AS Financial Statements

FOR THE YEAR ENDED 31st MARCH 2019

1. Opinion

A. We have audited the accompanying Standalone Ind AS Financial Statements of PoddarPigments Limited ("the Company") which comprise the Balance Sheet as at March312019 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the Standalone Ind AS FinancialStatements").

B. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS Financial Statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2019 the profit andtotal comprehensive income changes in equity and its cash flows for the year ended onthat date.

2. Basis for Opinion

We conducted our audit of the Standalone Ind AS Financial Statements in accordance withthe Standards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements section ofour report. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India(ICAI) together with the independentrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone Ind AS Financial Statements.

3. Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Ind AS Financial Statements of the currentperiod. 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. We have determined that there are no matter which isrequired to be described as key audit matter to be communicated in our report.

4. Information Other than the Standalone Ind AS Financial Statements and Auditor'sReport Thereon

A. The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the Standalone Ind AS Financial Statements and our auditor's report thereon. Ouropinion on the standalone Ind AS Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon .

B. In connection with our audit of the financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone Ind AS Financial Statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is no materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

5. Management's Responsibility for the Standalone Ind AS Financial Statements

A. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Ind AS FinancialStatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing 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 standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

B. In preparing the Standalone Ind AS Financial Statements management is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

6. Auditor's Responsibilities for the Audit of the Standalone Ind AS FinancialStatements

A. Our objectives are to obtain reasonable assurance about whether the Standalone IndAS Financial Statements as a whole are free from material misstatement whether due tofraud or error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Standalone Ind AS Financial Statements.

B. As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

i) Identify and assess the risks of material misstatement of the standalone Ind ASfinancial 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.

ii) Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

iii) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

iv) Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Ind AS 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.

v) Evaluate the overall presentation structure and content of the Standalone Ind ASFinancial Statements including the disclosures and whether the Standalone Ind ASFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation .

C. Materiality is the magnitude of misstatements in the Standalone Ind AS FinancialStatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the Standalone Ind AS Financial Statementsmay be influenced. We consider quantitative materiality and qualitative factors in (i)planning the scope of our audit work and in evaluating the results of our work; and (ii)to evaluate the effect of any identified misstatements in the Standalone Ind AS FinancialStatements.

D. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

E. We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

F. From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Ind AS FinancialStatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's 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.

II. Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit 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 including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

D. In our opinion the aforesaid standalone Ind AS financial statements comply with theInd AS 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 March312019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312019 from being appointed as a director in terms of Section 164 (2) of theAct.

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 A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

G. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

H. 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i) The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Ind AS Financial Statements.

ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in "AnnexureB" a statement on the matters specified in paragraphs 3 and 4 of the Order.

PLACE OF SIGNATURE: NEW DELHI FOR M.L. GARG & COMPANY
DATE: 24th May 2019 CHARTERED ACCOUNTANTS
FRN.: 001604N
(MANISH K. GARG)
PARTNER
M.NO. 96238

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE Ind AS FINANCIAL STATEMENTS OF PODDAR PIGMENTS LIMITED

(Referred to in paragraph (II 1F) under ‘Report on other Legal and RegulatoryRequirements' of our report of even date)

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013 ("THE ACT")

We have audited the internal financial controls over financial reporting of PoddarPigments Limited ("the Company") as of March 312019 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143 (10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to Obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 the Company has in all material respects an adequate internalfinancial Controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312019 based on"the 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"

PLACE OF SIGNATURE: NEW DELHI FOR M.L. GARG & COMPANY
DATE: 24th May 2019 CHARTERED ACCOUNTANTS
FRN.: 001604N
(MANISH K. GARG)
PARTNER
M.NO. 96238

ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT

The Annexure "B" referred to in paragraph (II) 2 of our report of even dateto the members of Poddar Pigments Limited on the Standalone Ind AS FinancialStatements for the year ended 31st March 2019.

i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As explained to us physical verification of fixed assets has been carried out bythe Company and no material discrepancies were noticed on such verification. There isstructured programme for verification to cover the entire assets over a period of 3 years.In our opinion the frequency of verification is reasonable having regard to the size ofthe Company and nature of its business.

(c) Title deeds of immovable properties of the company are held in the name of theCompany.

ii) (a) The inventories have been physically verified during the year by the managementat reasonable intervals.

(b) In our opinion no material discrepancies were noticed on physical verification ofinventories.

iii) According to the information and explanations given to us the Company has duringthe year not granted any loans secured or unsecured to companies firm Limited liabilitypartnerships firms or other parties covered in the register maintained under section 189of the companies Act 2013. Accordingly paragraph 3(iii) of the Order is not applicable tothe Company.

iv) According to the information and explanation given to us the company has noInvestment Loans and guarantees which required compliance of provisions of section 185and 186 of the Companies Act 2013 and hence paragraph of 3 (iv) of the Order is notapplicable to the Company.

v) The Company has not accepted any deposits during the year and hence paragraph 3(v)of the Order is not applicable to the Company.

vi) We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government of India for the maintenance of cost records ofthe Company under clause (d) of Sub Section (1) of Section 148 of the Companies Act 2013and are of the opinion that prima facie the prescribed accounts and records have beenmaintained. We are however not required to and have not carried out any detailedexamination of such accounts and records with a view to determining whether they areaccurate or complete.

vii) (a) According to the records examined by us the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees state insurance income tax sales tax service tax duty of custom dutyof excise value added tax cess and other statutory dues wherever applicable.

According to the information and explanations given to us no undisputed arrears ofstatutory dues were outstanding as on the last date of the financial year for a period ofmore than six months from the date they became payable.

(b) According to the records of the Company the details of dues in respect of Incometax and Service tax which have not been deposited on account of disputes and the forumwhere the dispute is pending are as under:

Sl. No. Name of the Statute Nature of the Dues Amount (Rs. in lakhs) Period to which the amount relates Forum where dispute is pending
1. Income Tax Act Disallowance of Expenses 21.24 AY 2007-08 and AY 2014-15 Commissioner of Income tax (Appeals)/ ITAT
2. Service tax Act Disallowance of Cenvat credit on services in connection with transport/ insurance/ sales commission 20.36 FY 2015-16 & FY 2016-17 Asstt. Commissioner/ Commissioner (Appeal)/ Addl. Commissioner cEsTAT

viii) Based on our audit procedures and according to the information given by themanagement the company has not defaulted repayment in respect of any loans or borrowingsfrom any financial institution bank government or dues to debentures holders during theyear.

ix) In our opinion and according to the information and explanations given to us theCompany has not taken any term loan during the financial year and has not done any initialpublic offer or further public offer (including debt instrument) nor term loans and henceparagraph 3(ix) of the Order is not applicable to the Company.

x) Based upon the audit procedures performed and to the best of our knowledge andaccording to the information and explanations given to us by the management we reportthat no fraud by the Company or any fraud on the company by its officer or employees hasbeen noticed or reported during the course of our audit.

xi) The managerial remuneration has been paid/provided (by the Company)are inCompliance with Section 197 read with schedule V to the Companies Act 2013.

xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and hence paragraph 3 (xii) of the Order is not applicableto the Company.

xiii) As explained to us and as per the records of the company in our opinion thetransactions with the related parties are in Compliance with Section 177 and Section 188of the Companies Act 2013 and the details have been disclosed in the financial statementsas required by the applicable accounting standard.

xiv) According to the records of the company it has not made any preferentialallotment of shares or private placement of shares or fully/partly convertible debenturesduring the year under report. Accordingly paragraph 3 (xiv) of the Order is not applicableto the Company.

xv) During the year the Company has not entered into any non-cash transaction withDirector or person connected with him. Hence paragraph 3 (xv) of the Order is notapplicable to the Company.

xvi) The Company is not required to be registered under section 45-1A of the ReserveBank of India Act 1934 and hence paragraph 3 (xvi) of the Order is not applicable to theCompany.

PLACE OF SIGNATURE: NEW DELHI FOR M.L. GARG & COMPANY
DATE: 24th May 2019 CHARTERED ACCOUNTANTS
FRN.: 001604N
(MANISH K. GARG)
PARTNER
M.NO. 96238