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PTC Industries Ltd.

BSE: 539006 Sector: Engineering
NSE: N.A. ISIN Code: INE596F01018
BSE 00:00 | 19 Mar 354.00 -15.00
(-4.07%)
OPEN

359.00

HIGH

364.80

LOW

350.55

NSE 05:30 | 01 Jan PTC Industries Ltd
OPEN 359.00
PREVIOUS CLOSE 369.00
VOLUME 442
52-Week high 620.00
52-Week low 341.20
P/E 16.83
Mkt Cap.(Rs cr) 186
Buy Price 354.00
Buy Qty 400.00
Sell Price 362.95
Sell Qty 5.00
OPEN 359.00
CLOSE 369.00
VOLUME 442
52-Week high 620.00
52-Week low 341.20
P/E 16.83
Mkt Cap.(Rs cr) 186
Buy Price 354.00
Buy Qty 400.00
Sell Price 362.95
Sell Qty 5.00

PTC Industries Ltd. (PTCINDS) - Auditors Report

Company auditors report

To the Members of PTC Industries Limited Report on the Financial Statements

1. We have audited the accompanying financial statements of PTC Industries Limited (the‘Company') which comprise the Balance Sheet as at 31 March 2018 the Statement ofProfit and Loss (including Other Comprehensive Income) the Cash Flow Statement and theStatement of Changes in Equity for the year then ended and a summary of the significantaccounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (‘the Act') with respect to the preparation ofthese financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards(‘Ind AS') specified under Section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error

Auditor's Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

5. 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 whetherthese financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

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

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including Ind AS specified under Section 133 of theAct of the state of affairs (financial position) of the Company as at 31 March 2018 itsprofit (financial performance including other comprehensive income) its cash flows andthe changes in equity for the year ended on that date.

Other Matter(s)

9. The Company had prepared separate sets of statutory financial statements for theyear ended 31 March 2017 and 31 March 2016 in accordance with Accounting Standardsprescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 (as amended) on which we issued auditor's reports to the shareholders of theCompany dated 24

May 2017 and 28 May 2016 respectively. These financial statements have been adjustedfor the differences in the accounting principles adopted by the Company on transition toInd AS which have also been audited by us. Our opinion is not modified in respect of thismatter.

Report on Other Legal and Regulatory Requirements

10. 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 I a statement on the matters specified in paragraphs 3 and 4 of theOrder.

11. Further to our comments in Annexure I as required by Section 143(3) of the Act wereport that: a) we have sought and obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purpose of our audit; b) inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books; c) the financial statements dealtwith by this report are in agreement with the books of account; d) in our opinion theaforesaid financial statements comply with Ind AS specified under Section 133 of the Act;e) on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31 March2018 from being appointed as a director in terms of Section 164(2) of the Act; f ) we havealso audited the internal financial controls over financial reporting (IFCoFR) of theCompany as on 31 March 2018 in conjunction with our audit of the financial statements ofthe Company for the year ended on that date and our report dated 29 May 2018 as perAnnexure II expressing out unmodified opinion on adequacy and operating effectiveness ofthe internal financial controls over financial reporting; g) with respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 (as amended) in our opinion and to the best of ourinformation and according to the explanations given to us: i. the Company as detailed inNote 41 to the financial statements has disclosed the impact of pending litigations onits financial position; ii. the Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; iii. there wereno amounts which were required to be transferred to the Investor Education and ProtectionFund by the Company; and iv. The disclosure requirements relating to holdings as well asdealings in specified bank notes were applicable for the period from 8 November 2016 to 30December 2016 which are not relevant to these financial statements. Hence reporting underthis clause is not applicable.

For Walker Chandiok & Associates
Chartered Accountants
Firm Registration No: 001329N
per Arun Tandon
Partner
Membership No. 517273
Place: New Delhi
Date: 29 May 2018

Annexure I

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that: (i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The Company has a regular program of physical verification of its fixed assetsunder which fixed assets are verified in a phased manner over a period of three yearswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. In accordance with this program certain fixed assets were verifiedduring the year and no material discrepancies were noticed on such verification. (c) Thetitle deeds of all the immovable properties (which are included under the head‘Property plant and equipment') are held in the name of the Company. (ii) In ouropinion the management has conducted physical verification of inventory at reasonableintervals during the year except for goods-in-transit and stocks lying with thirdparties. For stocks lying with third parties at the year-end written confirmations havebeen obtained by the management. No material discrepancies were noticed on the aforesaidverification.

(iii) The Company has granted interest free unsecured loans to a party covered in theregister maintained under Section 189 of the Act; and with respect to the same: (a) in ouropinion the terms and conditions of grant of such loans are not prima facie prejudicialto the company's interest.

(b) the schedule of repayment of principal has been stipulated and the repayment of theprincipal amount are regular; and (c) there is no overdue amount in respect of loansgranted to such companies firms LLPs or other parties.

(iv) In our opinion the Company has complied with the provisions of Sections 185 and186 of the Act in respect of loans investments guarantees and security.

(v) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company's products and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) (a) Undisputed statutory dues including provident fund employees' stateinsurance income-tax sales tax service tax duty of customs duty of excisevalue added tax cess and other material statutory dues as applicable have generallybeen regularly deposited to the appropriate authorities though there has been a slightdelay in a few cases. Further no undisputed amounts payable in respect thereofwere outstanding at the year-end for a period of more than six months from the datethey became payable.

(b) The dues outstanding in respect of income-tax sales tax service-tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows:

Statement of Disputed Dues

Name of the statute Nature of dues Amount ( Rs in lakh) Amount paid under protest ( Rs in lakh) Period to which the amount relates Forum where dispute is pending
Central Excise Act 1944 Excise duty 1.12 - Financial year 2013-14 Superintendent Central Excise
Central Excise Act 1944 Excise duty 1.71 - October 2015 to December 2016 Commissioner (Appeal) Central Excise
Finance Act 1994 Service tax 12.87 - Financial year 2014-15 and financial year 2015-16 Assistant Commissioner Central Excise Audit Circle

(viii) The Company has not defaulted in repayment of loans or borrowings to any bank orfinancial institution. The Company has no loans or borrowings payable to government or anyoutstanding debentures during the year.

(ix) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments) and did not have any term loans outstanding during theyear. Accordingly the provisions of clause 3(ix) of the Order are not applicable.

(x) No fraud by the Company or on the company by its officers or employees has beennoticed or reported during the period covered by our audit. (xi) Managerial remunerationhas been paid and provided by the Company in accordance with the requisite approvalsmandated by the provisions of Section 197 of the Act read with Schedule V to the Act.(xii) In our opinion the Company is not a Nidhi Company. Accordingly provisions ofclause 3(xii) of the Order are not applicable. (xiii) In our opinion all transactions withthe related parties are in compliance with Sections 177 and 188 of Act where applicableand the requisite details have been disclosed in the financial statements etc. asrequired by the applicable Ind AS.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures. (xv) In our opinion theCompany has not entered into any non-cash transactions with the directors or personsconnected with them covered under Section 192 of the Act. (xvi) The Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For Walker Chandiok & Associates
Chartered Accountants
Firm Registration No: 001329N
per Arun Tandon
Partner
Membership No.: 517273
Place: New Delhi
Date: 29 May 2018

Annexure II

Independent Auditor's Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (‘the Act')

1. In conjunction with our audit of the financial statements of PTC Industries Limited(‘the Company') as at and for the year ended 31 March 2018 we have audited theinternal financial controls over financial reporting (‘IFCoFR') of the Company as atthat date.

Management's Responsibility for Internal Financial Controls

2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the ‘Guidance Note') issued by the Institute of Chartered Accountants ofIndia (‘ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of the Company's business including adherenceto the Company's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's Responsibility

3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India (‘ICAI') and deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of IFCoFR and theGuidance Note issued by the ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate IFCoFR were established and maintained and if suchcontrols operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR includes obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sIFCoFR include those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that the IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such controls were operating effectivelyas at 31 March 2018 based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note issued by the ICAI.

For Walker Chandiok & Associates
Chartered Accountants
Firm's Registration No.: 001329N
per Arun Tandon
Partner
Membership No.: 517273
Place: New Delhi
Date: 29 May 2018