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Pritika Auto Industries Ltd.

BSE: 539359 Sector: Auto
NSE: PRITIKAUTO ISIN Code: INE583R01029
BSE 00:00 | 28 Sep 17.50 0.05
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17.65

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18.05

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17.30

NSE 00:00 | 28 Sep 17.30 -0.25
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17.95

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17.95

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OPEN 17.65
PREVIOUS CLOSE 17.45
VOLUME 29492
52-Week high 23.80
52-Week low 12.10
P/E 12.96
Mkt Cap.(Rs cr) 155
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 17.65
CLOSE 17.45
VOLUME 29492
52-Week high 23.80
52-Week low 12.10
P/E 12.96
Mkt Cap.(Rs cr) 155
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Pritika Auto Industries Ltd. (PRITIKAUTO) - Auditors Report

Company auditors report

To The Members of

PRITIKA AUTO INDUSTRIESLIMITED

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying Standalone Ind AS financial statements of PRITIKAAUTO INDUSTRIES LIMITED("the Company") which comprise the Balance Sheet asat 31stMarch 2020 the Statement of Profit and Loss including the Statement ofOther Comprehensive Income statement of Changes in Equity and statement of cash flows forthe year then ended and notes to the standalone Ind AS financial statements including asummary of significant accounting policies and other explanatory information (hereinafterreferred to as ‘standalone Ind AS financial statements').

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 as amended (‘the Act') in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India including the Ind AS of the state of affairs of the Company as at 31stMarch 2020 and its profit including other comprehensive Income cash flows andchange in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind As financial statements in accordance withthe Standards on Auditing as specified under Section 143(10) of the Companies Act 2013.Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India together with the ethical requirements thatare relevant to our audit of the financial statements under the provisions of theCompanies Act 2013 and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the Standalone Ind AS financial statements.

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 for the financialyear ended 31 March 2020. These matters were addressed in the context of our audit of thestandalone Ind AS financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. For each matter below ourdescription of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in the‘Auditors' responsibilities for the audit of the standalone Ind AS financialstatements' section of our report including in relation to these matters. Accordinglyour audit included the performance of procedures designed to respond to our assessment ofthe risks of material misstatement of the standalone financial statements. The results ofour audit procedures including the procedures performed to address the matters belowprovide the basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

Key Audit matters How our audit addressed the key audit matter
Impact of Covid-19 on the Company's Financial Statements As described in note 42 of Standalone Ind AS financial Statements
Coronavirus disease 2019 (‘COVID-19') was declared a global pandemic by World Health Organization. In line with the directions on lockdown issued by the State Governments of Punjab and Himachal We have performed the following procedures to assess and evaluate the impact on financial statements because of business decisions government actions or economic environment developments:
Pradesh the Company temporarily suspended the operations of its manufacturing units at two locations from 23 March 2020 till 31 March 2020; and subsequently upto further dates as instructed by the respective State Governments. COVID-19 has resulted in restriction in movement of goods during the period from 23 March 2020 till 31 March 2020impacting normal business operations for the Company including revenues receivables purchases including services and inventories at the year-end and hence considered key audit matter. Performed cut-off procedures for a larger sample of invoices during the lockdown period for domestic sales. Enquired with the Company on the manner of financial support (if any) provided to the dealers vendors and service providers and their recognition in the financial statements. Enquired with the Company on any information on the liquidity position of any dealers; and ascertained the need for any additional provisioning for impairment/credit loss in the financial statements. We assessed the disclosures on COVID-19 made in the financial statements. Our ability to perform regular audit procedures has been impacted which has required us in certain cases to perform alternative audit procedures and exercise significant judgment in respect of the following: a) Year-end inventory observation of inventory counts could not be performed. However inventory counts were observed subsequent to year-end; and rolled back to year-end.

We have determined that there are no other key audit matters to communicate in ourreport.

Other Information

The company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in company's annual report but does notinclude the standalone Ind AS financial statements and our auditor's report thereon.

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

In connection with our audit of the standalone Ind As financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone Ind AS financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is materialmisstatement of this other information; we are required to report the fact. We havenothing to report in this regard.

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matter stated in Section 134(5)of the Companies Act 2013 ("the Act") with respect to preparation of thesestandalone Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive loss changes in equity andcash flows of the Company in accordance with the Accounting principles generally acceptedin India including the Indian Accounting Standards (Ind AS) specified under Section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended.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 implementation and maintenance of accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone Ind AS financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the standalone Ind AS 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.

The Board of Directors is also responsible for overseeing the company's financialreporting process.

Auditor's Responsibility for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind Asfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith Standard on auditing 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.

As Part of an audit in accordance with Standard on auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• 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.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe Company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosuresmade by 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the Standalone IndAS financial statements including the disclosures and whether the Standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

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 Ind AS financialstatements for the financial year ended March 31 2020 and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order) issuedby the Central

Government of India in terms of sub-section (11) of section 143 of the Companies Act2013 we give in the Annexure 1 a statement on the matters specified in theparagraph 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 purpose 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 Statement of Profit and Loss including the Statement of OtherComprehensive Income Cash Flow Statement and Statement of Changes in Equity dealt with bythis Reportare in agreement with the books of account;

d. In our opinion the aforesaid Standalone Ind AS financial statements comply with theAccounting Standards specified under section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

e. On the basis of written representations received from the directors as on 31st March2020 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2020 from being appointed as a director in terms of section164(2) of the Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these standalone Ind AS financial statementsand the operating effectiveness of such controls refer to our separate report in "Annexure2" to this report;

g. In our opinion the managerial remuneration for the year ended 31stMarch 2020 has been paid/provided by the Company to its directors in accordance with theprovisions of section 197 read with Schedule V to 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 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its standaloneInd 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 are no items which required to be transferred to the Investor Education andProtection Fund by the Company.

For Sunil Kumar Gupta & Co.

Chartered Accountants Firm's Registration No.: 003645N

Sd/-

S.K Gupta

Partner

Membership No: 082486

Place: Mohali Date: 29th June 2020

UDIN: 20082486AAAAAM4935

Annexure -1 TO

INDEPENDENT AUDITORS' REPORT

(Annexure referred to in our report of even date to the members of Pritika AutoIndustries Limited on the

Standalone Ind AS Financial Statements for the year ended 31st March 2020).

Based on the audit procedures performed for the purpose of reporting a true and fairview on the Standalone Ind AS financial statements of the Company and taking intoconsideration the information and explanations given to us and the books of account andother records examined by us in the normal course of audit we report that:

i) (a)The Company has maintained proper records showing full particulars includingquantitative details and situation of Property plant and equipment.

(b) All Property plant and equipment have not been physically verified by themanagement during the year but there is regular programme of verification which in ouropinion is reasonable having regard to the size of the company and nature of its assets.To the best of our knowledge no material discrepancies have been noticed on suchverification

(c) According to the information and explanations given to us the records examined byus and based on the examination of the conveyance deeds / registered sale deed provided tous we report that the title deeds comprising one immovable property is not held in thename of the Company as at the balance sheet date. The above immovable property is held bythe company as ultimate beneficial owner and change of name in title deeds is underprocess as on balance sheet date.

ii) As explained to us the management has physically verified the inventories atreasonable intervals. In our opinion the frequency of verification is reasonable.Thediscrepancies noticed during physical verification of inventories as compared to bookrecords were not material and the same have been properly dealt with in the books ofaccount.

iii) (a) The Company has granted loan to a wholly owned subsidiary company covered inthe register maintained under section 189 of theCompanies Act 2013. In our opinion andaccording to the information and explanations given to us the terms and conditionsof thegrant of such loans are not prejudicial to the company's interest.

(b) The schedule of repayment of principal and interest have been stipulated for theloans granted and the repayments if any are regular.

(c) There are no amount of loans granted to companies firms or other parties listed inthe register maintained under section189 of the Companies Act 2013 overdue for more thanninety days.

iv) In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the Companies Act 2013 in respect of loans andadvances given investments made and guarantees and securities given have been compliedwith by the company.

v) According to the information given to usthe Company has not accepted any depositswithin the meaning of Sections 73 to 76 of the Companies Act 2013 or any relevantprovisions of the Companies Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended) from time to time.Accordingly the provisions of clause 3(v) of the Order are notapplicable.

vi) We have broadly reviewed the books of accounts maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records under subsection (1) of Section 148 of the Companies Act 2013 in respect of Company's products andare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. However we have not made a detailed examination of the cost records witha view to determine whether they are accurate or complete.

vii) (a)Undisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added taxGoods & Service Tax cess and otherstatutory dues have generally been regularlydepositedthough minor delayswith the appropriate authorities as on 31st March2020except Income Tax Demand which is outstanding for a period of more than six monthsfrom the date they became payable.

Name of Dues and Name of Statute Year to which amount relates Forum where matter is pending Amount in Rs.
Income Tax Income Tax Act1961 FY 2017-18 CPC Rs. 184550

(b)According to the information and explanations given to us there are no materialdues in respects of wealth tax duty of custom and goods & Service tax whereverapplicable to the company which have not been deposited with the appropriate authoritieson account of any dispute. The due in respect of Income Tax that have not been depositedwith the appropriate authorities on account of any dispute and the forum where the disputeis pending given below:

Name of Dues and Name of Statute Year to which amount relates Forum where matter is pending Amount in Rs.
Income Tax Income Tax Act1961 FY 2016-17 CIT (Appeals) Rs. 1437160
Income Tax Income Tax Act1961 FY 2015-16 Assessing officer Rs.23640
Income Tax Income Tax Act1961 FY 2017-18 CPC Rs. 974360
Income Tax Income Tax Act1961 FY 2017-18 Assessing officer Rs. 1866020

viii) In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing to afinancial institution bank or Government. The Company did not have any outstandingdebentures during the year.

ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments). In our opinion and according to theinformation and explanations given to us the term loans have been applied for thepurposes for which they were raised other than temporary deployment pending litigation.

x) According to the information and explanation given to us and as represented by themanagement and based of our examination of the books and records of the company and inaccordance with the generally accepted auditing practices in India we have been informedthat no case of frauds has been committed on or by the company or by its officers oremployees during the year.

xi) In our opinion and according to the information and explanations given to us thecompany has paid managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V of the Companies Act 2013.

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

xiii) According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of the Act and whereapplicable the details have been disclosed in the Ind AS financial statements as requiredby the applicable accounting standards.

xiv) According to the information and explanations given to us and on an overallexamination of the Balance Sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly the provisions of clause 3(xiv) of the Order are not applicableto the Company and hence not commented upon.

xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him as covered under section 192 ofthe Companies Act 2013. Accordingly paragraph 3(xv) of the Order is not applicable.

xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act1934.Accordingly paragraph 3(xvi) of the Order is not applicable.

Annexure -2 TO

INDEPENDENT AUDITORS' REPORT

(Annexure referred to in our report of even date to the members of Pritika AutoIndustries Limited on the Standalone Ind AS Financial Statements for the year ended 31stMarch 2020).

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 PRITIKAAUTO INDUSTRIES LIMITED ("the Company") as of 31st March 2020 inconjunction with our audit of the Standalone Ind AS financial statements of the Companyfor 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 with reference to these standalone Ind AS financialstatements based on our audit. We conducted our audit in accordance with the Guidance Noteon Audit of Internal Financial Controls over Financial Reporting (the "GuidanceNote") and the Standards on Auditing as specified under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting with reference to these standalone Ind AS financial statements was establishedand maintained 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 over financial reporting with reference to thesestandalone Ind AS financial statements and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting with reference to these standaloneInd AS financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto 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 overfinancial reporting with reference to these standalone Ind AS financial statements.

Meaning of Internal Financial Controls over Financial Reporting with reference to thesestandalone Ind AS financial statements

A company's internal financial control over financial reporting with reference to thesestandalone Ind AS financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingwith reference to these standalone Ind AS financial statements includes those policies andprocedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting withreference to these standalone Ind AS financial statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these standalone Ind AS financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone Ind As financial statements to future periods are subject to the riskthat the internal financial control over financial reporting with reference to thesestandalone Ind AS financial statements may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls over financial reporting with reference to these standalone Ind ASfinancial statements and such internal financial controls over financial reporting withreference to these standalone Ind AS financial statements were operating effectively as at31 March 2020 based on the internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India(ICAI).

For Sunil Kumar Gupta & Co.

Chartered Accountants Firm's Registration No.: 003645N

Sd/-

S.K Gupta

Partner

Membership No: 082486

Place: Mohali Date: 29th June 2020

UDIN: 20082486AAAAAM4935

.