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Power & Instrumentation (Gujarat) Ltd.

BSE: 535073 Sector: Engineering
NSE: PIGL ISIN Code: INE557Z01018
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Power & Instrumentation (Gujarat) Ltd. (PIGL) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS' REPORT

TO

THE MEMBERS OF

POWER AND INSTRUMENTATION (GUJARAT) LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Power andInstrumentation (Gujarat) Limited ("the Company") which comprise theBalance Sheet as at 31st March 2022 the Statement of Profit and Loss the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and summary ofthe significant accounting policies and other explanatory information (herein afterreferred to as "standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the 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 2022 its profit (including other comprehensive income)changes in equity and its cash flows for the year ended on that date.

Basis of Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Our responsibility underthose Standards are further described in Auditor's Responsibility for the Audit of thestandalone financial statements section of our report. We are independent of the companyin accordance of with code of ethics issued by ICAI together with the independencerequirement that are relevant to our audit of standalone financial statement under theprovisions of the Act and the rule made there under 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 out audit opinion on the stand alone financial statement.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Other Information

The company's management and board of directors are responsible for the otherinformation. The other information comprises Board's Report on corporate governance andBusiness Responsibility report but does not include the consolidated financial statementsstandalone financial statement and our auditor's report thereon.

Our opinion on the financial statement does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of standalone financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit procedures or otherwise appear to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report on that fact. We havenothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the state ofaffairs Profit (including other comprehensive income) changes in equity and cash flowsof the Company in accordance with the accounting principles generally accepted in Indiaprescribed under section 133 of the Act.

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 of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone 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.

Board of directors is also responsible for overseeing the company's financial reportingprocess.

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether standalone financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually

or in aggregate they could reasonably be expected to influence the economic decisionof users taken on the basis of these standalone financial statements.

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

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

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedure 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 control system in place and the operatingeffectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

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

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.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central

Government in terms of Section 143(11) of the Act we give in "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 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 Statement of Changes in Equityand the Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount.

(d) In our opinion the aforesaid standalone financial statements comply withaccounting principles generally accepted in India specified under Section 133 of the Act.

(e) We have received written representation from the directors as on as on 31st March2022 and therefore none of the directors are disqualified as on 31st March 2022 frombeing appointed as director in terms of Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

(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. Impact of any pending litigation has been disclosed in the financial statements.

ii. The Company did not have any long-term contracts including derivative contractsfor which 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.

Date: 30/05/2022 For M A A K & Associates
Place: Ahmedabad (Chartered Accountants)
UDIN: 22133926AJYXVQ8645 FRN: 135024W
Marmik G. Shah
Partner
M. No.: 133926

Annexure A to the Independent Auditors' Report of Power and Instrumentation(Gujarat)Limited (Referred to in our report of even date)

With reference to the Annexure A referred to in the Independent Auditors' report to themembers of the Company on the standalone financial statements for the year ended 31stMarch 2022 we report the following:

I. In Respect of Fixed Assets

(a) As per the information provided by the management the Company has maintainedproper records showing full particulars including quantitative details and situation ofFixed Assets on the basis of available information.

(b) As per the information and explanations given to us the management at reasonableintervals during the year in accordance with a program of physical verification hasphysically verified the fixed assets and no material discrepancies were noticed on suchverification as compared to the available records.

(c) According to information and explanation given to us and on the basis ofexamination of records of the company there were no immovable properties in the name ofthe company as on Balance Sheet date.

(d) The company has not revalued its property plant and equipment (including the rightof use assets) or intangible assets or both during the year the clause for revaluation ofProperty Plant and Equipment (including Right of Use assets) or intangible assets or bothis not applicable.

(e) No proceedings have been initiated or are pending against the company for holdingany Benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made thereunder.

II. In Respect of Inventories

(a) As explained to us physical verification of the inventories has been conducted atreasonable intervals by the management as explained to us by the management no materialdiscrepancies were noticed on such physical verification.

(b) The company has been sanctioned working capital limits in excess of five crorerupees in aggregate from banks or financial institutions on the basis of security ofcurrent assets. Accordingly the point of reconciliation of books of accounts andquarterly returns or statements filed with the banks is applicable to the company.

III. Compliance under section 189 of The Companies Act 2013

The company has granted loans unsecured to companies firms and other parties coveredin the register maintained under section 189 of the Companies Act 2013.

IV. Compliance under section 185 and 186 of The Companies Act 2013

According to the information and explanations given to us the Company has compliedwith provisions of Section 185 and 186 of the Companies Act 2013 in respect of grant ofloans making investments and providing guarantees and securities as applicable.

V. Compliance under sections 73 to 76 of The Companies Act 2013 and Rules framedthereunder while accepting Deposits

As per information and explanation given to us the Company has not accepted anydeposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptanceof Deposits) Rules 2014 (as amended). Accordingly the provisions of clause 3(v) of theOrder are not applicable.

VI. Maintenance of cost records

The Company is not required to maintain cost records pursuant to the Rules made by theCentral Government for the maintenance of cost records under sub-section (1) of section148 of the Companies Act 2013.

VII. Deposit of Statutory Dues

(a) The company deposited the undisputed statutory dues including provident fundemployees state insurance income tax sales tax wealth tax service tax custom dutyexcise duty GST Cess and other statutory dues applicable to the Company with theappropriate authorities. No undisputed amounts payable in respect of the aforesaidstatutory dues were outstanding as at the last day of the financial year for a period ofmore than six months from the date they became payable.

(b) As informed to us by the management there is no dispute with the revenueauthorities regarding any duty or tax payable.

(c) According to the records of the Company no dues outstanding of employees' stateinsurance income-tax sales-tax duty of custom duty of excise cess and other statutorydues.

VIII. Unrecorded income

There were no transactions relating to previously unrecorded income that have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961).

IX. Repayment of Loans and Borrowings

According to the information and explanation given to us the company has not defaultedin any loan from financial institutions bank or debenture holders. The Company did nothave any outstanding debentures during the year.

X. Utilization of Money Raised by Public Offers and Term Loan for which they raised

According to the information and explanations given to us and based on our examinationof the records of the Company the Company has raised moneys by way of further publicoffer (including debt instruments) and has obtained a term loan during the year.

XI. Reporting of Fraud during the Year

Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or no fraud on the Companyby the officers and employees of the Company has been noticed or reported during the year.

XII. Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio

As per information and records available the Company is not a Nidhi Company.Therefore the provisions of clause 3(xii) of the order are not applicable to the Companyand hence not commented upon.

XIII. Related party compliance with Section 177 and 188 of companies Act - 2013

According to the information and explanations given by the management transactionswith the related parties are in compliance with section 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the notes to the financialstatements as required by the applicable accounting standards

XIV. Internal Audit Systems

(a) In our opinion the Company has an adequate internal audit system commensurate withthe size and the nature of its business.

(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.

XV. Compliance under section 192 of Companies Act - 2013

According to the information and explanations given by the management the Company hasnot entered into any non-cash transactions with directors or persons connected with him asreferred to in section 192 of Companies Act 2013.

XVI. Requirement of Registration under 45-IA of Reserve Bank of India Act 1934

As per the information and explanation given to us the Company is not required to beregistered under section 45-IA of the Reserve Bank of India Act 1934. Hence reportingunder clauses 3(xvi)(a) (b) and (c) of the Order is not applicable.

XVII. Cash losses

The Company has not incurred cash losses during the financial year covered by our auditand the immediately preceding financial year.

XVIII. Resignation of statutory auditors

According to the information and explanations given to us there has not been anyresignation of statutory auditors during the year.

XIX. Material uncertainty

On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

XX. Transfer to fund specified under Schedule VII of Companies Act 2013

The company has no obligation to spend under corporate social responsibility. Soreporting under clause (xx) of the order is not applicable for the year.

Date: 30/05/2022 For M A A K & Associates
Place: Ahmedabad (Chartered Accountants)
FRN: 135024W
Marmik G. Shah
Partner
M. No.: 133926

Annexure B to the Auditor's Report

Report on the Internal Financial Controls under Clause (f) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Power andInstrumentation (Gujarat) Limited ("the Company") as of March 31 2022 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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.

Auditor's 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls and both issued by the Institute of Chartered Accountants of India.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 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 internal financial controls system overfinancial 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 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 31 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Date: 30/05/2022 For M A A K & Associates
Place: Ahmedabad (Chartered Accountants)
FRN: 135024W
Marmik G. Shah
Partner
M. No.: 133926

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