You are here » Home » Companies » Company Overview » Precision Camshafts Ltd

Precision Camshafts Ltd.

BSE: 539636 Sector: Auto
NSE: PRECAM ISIN Code: INE484I01029
BSE 15:41 | 19 Nov 38.00 0.15
(0.40%)
OPEN

39.50

HIGH

39.55

LOW

37.60

NSE 15:32 | 19 Nov 38.25 0.45
(1.19%)
OPEN

37.75

HIGH

39.80

LOW

37.50

OPEN 39.50
PREVIOUS CLOSE 37.85
VOLUME 15677
52-Week high 70.70
52-Week low 23.70
P/E 6.63
Mkt Cap.(Rs cr) 361
Buy Price 38.00
Buy Qty 1500.00
Sell Price 38.45
Sell Qty 25.00
OPEN 39.50
CLOSE 37.85
VOLUME 15677
52-Week high 70.70
52-Week low 23.70
P/E 6.63
Mkt Cap.(Rs cr) 361
Buy Price 38.00
Buy Qty 1500.00
Sell Price 38.45
Sell Qty 25.00

Precision Camshafts Ltd. (PRECAM) - Auditors Report

Company auditors report

(All amounts are in lakhs of Indian Rupees unless otherwise stated)

TO THE MEMBERS OF PRECISION CAMSHAFTS LIMITED

Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements

We have audited the accompanying Standalone Ind AS Financial Statements of PrecisionCamshafts Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss the Cash Flow Statement and the Statement ofChanges in Equity for the year then ended and a summary of the significant accountingpolicies and other explanatory information hereinafter referred to as ("theStandalone Ind AS Financial Statements").

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors are responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone Ind AS Financial Statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone Ind AS Financial Statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone Ind AS FinancialStatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under. We conductedour audit in accordance with the Standards on Auditing specified under Section 143(10) ofthe Act. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the Standalone Ind ASFinancial Statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS Financial Statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS Financial Statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS Financial Statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Standalone Ind ASFinancial Statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Standalone Ind ASFinancial Statements.

Opinion

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 Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs(financial position) of the Company as at 31st March 2018 its profit(financial performance including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date.

Other Matter

The comparative financial information of the Company for the year ended 31stMarch 2017 and the transition date opening balance sheet as at 1st April 2015prepared in accordance with Ind AS included in these standalone Ind AS financialstatements have been audited by the predecessor auditor who had audited the Standalone IndAS Financial Statements for the respective years. The predecessor auditor has expressed anunmodified opinion on the comparative financial information and the transition dateopening balance sheet vide report dated 22nd May 2017.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

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 the Cash FlowStatement and the Statement of Changes in Equity dealt with by this report are inagreement with the books of account.

(d) In our opinion the aforesaid Standalone Ind AS Financial Statements comply withIndian Accounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended.

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in termsof Section 164 (2) of the Act.

(f) For our opinion on the internal financial controls with reference to Standalone IndAS Financial 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. The Company has disclosed pending litigations and the impact on its financialposition - refer note 33 (b) to the Standalone Ind AS Financial Statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

For M/s P.G. BHAGWAT

Chartered Accountants

Firm's Registration Number: 101118W

Abhijeet Bhagwat

Partner

Membership Number: 136835 Place of Signature: Pune Date: 28th May 2018

Annexure A to the Independent Auditors' Report

Referred to in paragraph 1 under the heading "Report on Other legal andRegulatory Requirements" of our report on even date:

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

(b) The fixed assets are being physically verified by the management at regularintervals based on the programme of verification which in our opinion is reasonable. Partof the major fixed assets has been verified by the management in the current year.Discrepancies noticed on such physical verification were not material and the same havebeen properly dealt with in the books of account.

(c) According to the information and explanation provided to us title deeds ofimmovable properties are held in the name of the company.

(ii) Physical verification of inventory has been conducted by the management during thecurrent year. In our opinion the interval of such verification is reasonable.Discrepancies noticed on physical verification were not material and the same have beenproperly dealt with in the books of account.

(iii) The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 in the current year. Accordingly clauses (iii)(a) (b) and (c) of the Order are not applicable to the Company.

(iv) According to the information and explanation provided to us there are no loansguarantees and security given by the Company to Directors covered under the provisionsof section 185 of the Companies Act 2013. According to the information and explanationsprovided to us provisions of section 186 of the Companies Act 2013 have been compliedwith respect to loans guarantees investment and security.

(v) The Company has not accepted deposits in the current year but according toinformation and explanation provided to us it has unpaid matured deposits of prior yearsfor which the directives issued by the Reserve Bank of India and the provisions ofsections 73 to 76 or any other relevant provisions of the Companies Act and the rulesframed there under to the extent applicable have been complied with. We have beeninformed by the management that no order has been passed by Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any court or any other tribunal.

(vi) We have broadly reviewed the books of account relating to materials labour andother items of cost maintained by the Company pursuant to the rules made by the CentralGovernment for the maintenance of cost records under sub-section (l) of section 148 of theCompanies Act 2013 and we are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. We have not however made a detailed examination ofrecords with a view to determine whether they are accurate and complete.

(vii) (a) The Company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax service taxduty of customs duty of excise goods and service tax value added tax cess and anyother statutory dues with the appropriate authorities. According to the information andexplanation provided to us no undisputed amounts payable in respect of statutory dueswere in arrears as at 31st March 2018 for a period more than six months fromthe date they became.

As certified by the management and according to the information and explanationprovided to us previously reported undisputed amount of excise of ' 55.77 lakhspertaining to the period beginning 1st April 2015 to 30th September2016 has been settled for ' 12.43 lakhs during excise audit in December 2017 and the samehas been discharged.

(b) According to the information and explanation provided to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise goods and servicetax value added tax or cess which have not been deposited on account of any disputeexcept those mentioned below:

Name of the statute Nature of the dues Amount (?) In Lakhs Period to which the amount relates Forum where the dispute is pending
Central Excise Act 1944 Excise Duty 20.76 2006-07 Commissioner
Finance Act 1994 Service Tax on outward transport 11.83 2011-15 CESTAT
Finance Act 1994 Service Tax 53.36 2012-14 CESTAT
Income Tax Act 1961 Income tax on ESOP expenses and other disallowances 1597.12* 2013-14 CIT (A)*

*Company has paid 200.00 lakhs under protest and has adjusted refund due of ' 39.60lakhs with respect to FY 20062007 against the above demand.

(viii) Based on our audit procedures and according to the information and explanationprovided to us the Company has not defaulted in repayment of loans or borrowings to afinancial institution bank or government. The Company did not have debenture holders.

(ix) In our opinion and according to the information and explanations given by themanagement we report that monies raised by way of initial public offer in the nature ofequity shares were applied for the purposes for which those were raised thoughidle/surplus funds which were not required for immediate utilization have been gainfullyinvested in demand deposits with banks. The maximum amount of idle/surplus funds investedduring the year was ' 17480.68 Lakhs out of which ' 12428.19 Lakhs was outstanding atthe end of the year. According to the information and explanation provided to us termloans availed by the Company were prima facie applied for the purpose for which the loanswere obtained.

(x) Based upon the audit procedures performed by us and according to the informationand explanations provided to us by the management no fraud by the Company or any fraud onthe Company by its officers or employees has been noticed or reported to us during theyear.

(xi) According to the information and explanation provided to us the managerialremuneration has been paid and provided in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Companies Act.

(xii) The Company is not a Nidhi Company and accordingly Clause (xii) of the Order isnot applicable to the Company.

(xiii) According to the information and explanation provided to us all transactionswith the related parties are in compliance with sections 177 and 188 of Companies Act2013 wherever applicable and the details have been disclosed in the Standalone Ind ASFinancial Statements as required by the applicable accounting standards.

(xiv) According to the information and explanation provided to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review.

(xv) According to the information and explanation provided to us the Company has notentered into any non-cash transactions with directors or persons connected with him.

(xvi) According to the information and explanation provided to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For M/s P.G. BHAGWAT

Chartered Accountants

Firm's Registration Number: 101118W

Abhijeet Bhagwat

Partner

Membership Number: 136835

Place of Signature: Pune

Date: 28th May 2018

Annexure B to the Independent Auditors' Report

Referred to in paragraph 2 (f) under the heading "Report on Other legal andRegulatory Requirements" of our report on even date:

Report on the Internal Financial Controls with reference to Standalone Ind AS FinancialStatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls with reference to Standalone Ind ASFinancial Statements of Precision Camshafts Limited ("the Company") as at 31stMarch 2018 in conjunction with our audit of the Standalone Ind AS Financial Statements ofthe 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 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 company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to Standalone Ind AS Financial Statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal financialcontrols over financial reporting (the "Guidance Note") and the Standards onAuditing to the extent applicable to an audit of internal financial controls both issuedby the Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference toStandalone Ind AS Financial Statements was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the internalfinancial controls with reference to Standalone Ind AS Financial Statements and theiroperating effectiveness. Our audit of internal financial controls with reference toStandalone Ind AS Financial Statements included obtaining an understanding of internalfinancial controls with reference to Standalone Ind AS Financial Statements assessing therisk that 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 Standalone Ind AS 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 withreference to Standalone Ind AS Financials Statements.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control with reference to financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Standalone Ind AS Financial Statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation ofStandalone Ind AS Financial Statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisitionuse or disposition of the company's assets that could have a material effect on theStandalone Ind AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financials Reporting

Because of the inherent limitations of internal financial controls over financialsreporting 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 internal financial controlswith reference to Standalone Ind AS Financials Statements and such internal financialcontrols with reference to Standalone Ind AS Financial Statements were operatingeffectively 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.

For M/s P.G. BHAGWAT

Chartered Accountants

Firm's Registration Number: 101118W

Abhijeet Bhagwat

Partner

Membership Number: 136835

Place of Signature: Pune Date: 28th May 2018