You are here » Home » Companies » Company Overview » Pratiksha Chemicals Ltd

Pratiksha Chemicals Ltd.

BSE: 531257 Sector: Industrials
NSE: N.A. ISIN Code: INE530D01012
BSE 00:00 | 09 Oct 2.10 0
(0.00%)
OPEN

2.10

HIGH

2.10

LOW

2.10

NSE 05:30 | 01 Jan Pratiksha Chemicals Ltd
OPEN 2.10
PREVIOUS CLOSE 2.10
VOLUME 72
52-Week high 9.00
52-Week low 1.96
P/E 4.47
Mkt Cap.(Rs cr) 1
Buy Price 2.10
Buy Qty 28.00
Sell Price 2.02
Sell Qty 101.00
OPEN 2.10
CLOSE 2.10
VOLUME 72
52-Week high 9.00
52-Week low 1.96
P/E 4.47
Mkt Cap.(Rs cr) 1
Buy Price 2.10
Buy Qty 28.00
Sell Price 2.02
Sell Qty 101.00

Pratiksha Chemicals Ltd. (PRATIKSHACHEM) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

PRATIKSHA CHEMICALS LIMITED

AHMEDBAD

Report on the Financial Statements

We have audited the accompanying financial statements of PRATIKSHA CHEMICALS LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2018the Statement of Profit and Loss (including other comprehensive income) for the period01st April 2017 to 31st March 2018 the Cash Flow Statement for the year then ended andthe statement of changes in equity for the period and a summary of the significantaccounting policies and other explanatory information (herein after referred to as"Ind AS financial statements")

Management's Responsibility for Ind AS Financial Statements

The Company's Board of Directors is responsible for the preparation of these Ind ASfinancial 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 theCompanies Act 2013 ("the Act") read with relevant rules issued there under.

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 Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

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 Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of the accounting estimates made by the Company's Directorsas well as evaluating the overall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Basis for Qualified Opinion i. Adhering to significant accounting policy thecompany is accounting for Gratuity & Leave encashment on cash basis. This is not inaccording with Ind AS – 1 on "Presentation of Financial Statement" and IndAS – 19 on "Employee Benefits" prescribed by the Institute of CharteredAccounting of India and contrary to provision contained in Section 133 of The CompaniesAct 2013. The extent of non-compliance in terms of value is not ascertainable.

ii. Ind AS - 2 for "Inventories" has not been followed. The technicalvaluation claimed by company is not quantifiable hence; we are not in a position toquantify the effect on the profit and loss account and balance sheet. iii. Ind AS –101 requires the company to make an explicit and unreserved statement in the financialstatements of compliance with Ind ASs. However the same is not made and hence the extentof non-compliance in terms of value is not ascertainable.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2018 and its profit (including other comprehensive income) its cash flowsand the statement of changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

I. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of section 143(11) of the Act we givein the Annexure A a statement on the matters specified in the paragraph 3 and 4 of theOrder.

II. As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c) The balance sheet the statement of profit and loss(including other comprehensive income) the statement of cash flows and the statement ofchanges in equity dealt with by this Report are in agreement with the books of account; d)In our opinion the aforesaid Ind AS financial statements subject to the mattersmentioned in the ‘Basis for Qualified Opinion' para above comply with the Ind ASspecified under Section 133 of the Act read with relevant rules issued there under; e) Onthe basis of the written representations received from the directors as on 31 March 2018taken on record by the Board of Directors none of the directors is disqualified as on 31March 2018 from being appointed as a director in terms of Section 164 (2) of the Act; f)With respect to the adequacy of the internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer to our separateReport in "Annexure B"; and g) With respect to the other matters to be includedin the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us: i. The Company does not have any pending litigations which wouldimpact its financial position. ii. The Company did not have any long-term contractsincluding derivative contracts having any material foreseeable losses; and iii. There wereno amounts which were required to be transferred to the Investor Education and ProtectionFund by the Company during the year ended 31 March 2018

For H. K. Shah & Co. Chartered Accountants FRN: 109583W

Sd/-H K Shah Partner M. No. 042758 Place : Ahmedabad Date : 30/05/2018

"ANNEXURE – A" TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON

THE FINANACIAL STATEMENTS OF PRATIKSHA CHEMICALS LIMITED

(Referred to in paragraph 1(h) under 'Report on other Legal and Regulatory Requirement' of our report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub - section 3 ofSection 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of PRATIKSHACHEMICALS LIMITED (''the company") as of 31st March 2018 in conjunction withour audit 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 (‘ICAI'). 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 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 includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

According to the information and explanation given to us and based on our audit thefollowing material weaknesses have been identified as at March 31 2018 a) The Company didnot have appropriate internal financial control system for Valuation of Inventories (Asdisclosed in basis for qualified opinion in our independent audit report).

A ‘material weakness' is deficiency or a combination of deficiencies in internalfinancial control over financial reporting such that there is a reasonable possibilitythat a material misstatement of the company's annual financial statement will not beprevented or detected on timely basis.

In our opinion except for the effects/possible effects of the material weaknessesdescribed above on the achievement of the objective of the control criteria the Companyhas maintained in all material respects an adequate internal financial controls overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at 31st March 2018 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.

We have considered the material weaknesses identified and reported in determining thenature timing and extend of the audit tests applied in our audit of the March 31 2018financial statements of the company and these material weaknesses does not affect ouropinion on the financial statements of the company.

For H. K. Shah & Co. Chartered Accountants FRN: 109583W

Sd/-H. K Shah Partner M. No.: 042758

Place : Ahmedabad Date : 30/05/2018

"ANNEXURE B" TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON

THE FINANACIAL STATEMENTS OF PRATIKSHA CHEMICALS LIMITED

(Referred to in paragraph 2 under 'Report on other Legal and Regulatory Requirement'section of our report of even date)

i. In respect of fixed assets: a. The Fixed Asset Register showing particularsincluding quantitative details and situation of fixed assets is under compilation andupdation. b. According to the information and explanation furnished to us the company hasnot physically verified all of its fixed assets. Since the fixed assets records are stillunder compilation no comparison with the book records have been made. In the absence ofsuch comparison opinion as to discrepancies if any cannot be given. c. As per theexplanation and information given to us and on the basis of our examination of therecords we report that immovable properties (land and Building) in the name of thecompany. ii. In respect of inventories:

According to the information and explanation furnished to us the inventory have notbeen physically verified during the year by the management. iii. In respect of loansgranted:

As per the explanation and information given to us and on the basis of our examinationof the records the Company has not granted any loans secured or unsecured to companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013. iv. In respect of loans investmentsguarantees and security:

As per the explanation and information given to us and on the basis of our examinationof the records during the year Company has not given any loans guarantees and securityor not made any investment as stipulated in section 185 and 186 of the Companies Act2013. v. In respect of acceptance of deposits:

The Company has not accepted any deposits with non-compliance of directives issued bythe Reserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under. vi. In respectof cost records:

In our opinion and as per the explanation and information given to us the Company doesnot fall within the criteria prescribed by the Central Government for maintenance of costrecords under section 148(1) of the Companies Act 2013. vii. In respect of statutorydues:

As per the explanation and information given to us and on the basis of our examinationof the records a. The Company is generally regular in depositing with appropriateauthorities undisputed statutory dues including provident fund employees' stateinsurance income-tax sale-tax service-tax duty of customs duty of excise value addedtax cess and any other statutory dues applicable to it. b. According to the informationand explanations given to us no undisputed amounts payable in respect of the above werein arrears as at March 31 2017 for a period of more than six months from the date on whenthey become payable. c. According to the information and explanation given to us thereare no dues of income tax sales tax service tax duty of customs duty of excise valueadded tax outstanding on account of any dispute.

viii. In respect of default of repayment of loans or borrowing:

As per the explanation and information given to us and on the basis of our examinationof the records the Company has not defaulted in repayment of loans or borrowing to afinancial institution or bank or Government or debenture holders. ix. In respect ofapplication of money raised:

As per the explanation and information given to us and on the basis of our examinationof the records the Company has not raised money by way of initial public offer or furtherpublic offer (including debt instruments) and not taken any term loan. Hence reportingunder this clause is not applicable to the company. x. In respect of fraud:

To the best of our knowledge and belief and as per the explanation and informationgiven to us no material fraud by or on the Company has been noticed or reported duringthe year. xi. In respect of managerial remuneration:

To the best of our knowledge and belief and as per the explanation and informationgiven to us the company has provided/ paid managerial remuneration in accordance with theprovisions of section 197 read with schedule V to companies Act 2013. xii. In respectof Nidhi Company:

The company is not a Nidhi Company. Hence reporting under this clause is notapplicable to the company. xiii. In respect of transactions with related parties:

According to the information and explanations given to us and on the basis of ourexamination of the records all the transactions with related parties are in compliancewith section 177 and 188 of the Companies Act 2013 where applicable and the details havebeen disclosed in the Financial Statements etc. as required by the applicable accountingstandards. xiv. In respect of allotment or placement of shares:

According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not made preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. xv. In respect of non-cash transaction:

According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not entered into any non-cash transactionswith directors or persons connected with them in non-compliance of provision of section192 of the Companies Act 2013. xvi. In respect of registration with RBI:

According to the information and explanations given to us and on the basis of ourexamination of the records the Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934 and so registration has not been obtained.

For H. K. Shah & Co.

Chartered Accountants

FRN: 109583W

Sd/-

H K Shah

Partner

M.No.:042758

Place : Ahmedabad

Date : 30/05/2018