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 March 31 2014 theStatement of Profit and Loss Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial statements thatgive a true and fair view of the financial position financial performance and cash flowsof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards notified under the Companies Act 1956 ("theAct") read with the General Circular 15/2013 dated September 132013 of the Ministryof Corporate Affairs in respect of section 133 of the Companies Act 2013. Thisresponsibility includes the design implementation and maintenance of internal controlrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.
3. Our responsibility is to express an opinion on these financial statements based onour audit. We conducted our audit in accordance within the Standards on Auditing issued bythe Institute of Chartered Accountants of India. Those Standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditors segment 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 control relevant to the Company's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of Company's internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
6. In our opinion and to the best of our i information and according to theexplanations given to us the financial statements give the information required by tineAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:
i) in the case of the Balance Sheet of the state of affairs of the Company as at March312014;
ii) in the case of Statement of Profit and Loss of the profit for the year ended onthat date; and
iii) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order 2003 ("the Order")issued by tine Central Government of India in terms of sub-section (4A) of Section 227 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs and 5of the Order.
8. As required by Section 227 (3) of the Act we report that:
a. we have obtained all the information and explanations which to the best of ourknowledge 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 appears from our examination of those books;
c. the financial statements dealt with by this report are in agreement with the booksof account;
d. in our opinion the financial statements comply with the Accounting Standardsnotified under the Companies Act 1956 read with the General Circular 15/2013 datedSeptember 13 2013 of the Ministry of Corporate Affairs in respect of section 133 of theCompanies Act 2013; and
e. on the basis of written representations received from the directors as on March 312014 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of Section 274 of the Act.
For Walker Chandiok & Associates
Firm Fiegisiation No.: 001329N
per Siddharth Talwar
Membership No.: 512752
Date: May 24 2014.
Annexure to the Independent Auditors' Report of even date to the members of PTCIndustries Limited on the financial statements for the year ended March 31 2014
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 the normal course of audit we report that:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative 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. No material discrepancies were noticed on such verification.
(c) In our opinion a substantial part of fixed assets has not been disposed off duringthe year.
(ii) (a) 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.
(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) The Company is maintaining proper records of inventory and no materialdiscrepancies between physical inventory and book records were noticed on physicalverification.
(iii) (a) The Company has not granted any loan secured or unsecured to companiesfirms or other parties covered in the register maintained under Section 301 of the Act.Accordingly the provisions of clauses 4(iii)(b) to 4(iii) (d) of the Order are notapplicable.
(e) The Company has taken unsecured loans from two parties covered in the registermaintained under Section 301 of the Act. The maximum amount outstanding during the year isRs.5240375 and the year-end balance is Rs.nil.
(f) In our opinion the rate of interest and other terms and conditions of Loans takenby the Company are not prima facie prejudicial to the interest of the Company.
(g) In respect of loans taken repayment of the principal amount and the interest isregular.
(iv) In our opinion there is an adequate internal control system commensurate with thesize of the Company and the nature of its business for the purchase of inventory and feedassets and for the sale of goods. During the course of our audit no major weakness hasbeen noticed in the internal control system in respect of these areas.
(v) (a) In our opinion the particulars of all contracts or arrangements that need tobe entered into the register maintained under Section 301 of the Act have been so entered.
(b) In our opinion the transactions made in pursuance of such contracts orarrangements and exceeding the value off five lakhs in respect of any party during theyear have been made at prices which are reasonable having regard to the prevailing marketprices at the relevant time.
(vi) The Company has not accepted any deposits from the public within the meaning ofSections 58A and 58AA of the Act and the Companies (Acceptance of Deposits) Rules 1975.Accordingly the provisions of clause 4(vi) of the Order are not applicable.
(vii) In our opinion the Company has an internal audit system commensurate with itssize and the nature of its business.
(viii) 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 underclause (d) of sub-section (1) of Section 209 of the Act in respect of Company's productsand are of the opinion that prima facie the prescribed accounts and records have beenmade and maintained. However we have not made a detailed examination of the cost recordswith a view to determine whether they are accurate or complete.
(ix) (a) The Company is regular in depositing undisputed statutory dues includinginvestor education and protection fund income-tax sales-tax wealth tax service taxcustom duty excise duty cess and other material statutory dues as applicable with theappropriate authorities though there has been a slight delay in a few cases in payment ofprovident fund and employees' state insurance. Further no undisputed amounts payable inrespect thereof were outstanding at the year-end for a period of more than six months fromthe date they become payable.
(b) The dues outstanding in respect of income-tax sales-tax wealth tax service taxcustom duty excise duty cess on account of any dispute are as follows:
|Name of the statute ||Nature of dues ||Amount (Rs.) ||Amount Paid Under Protest (Rs.) ||Period to which the amount relates ||Forum where dispute is pending |
|Central Excise Act 1944 ||MODVAT Credit ||42392845 ||15000000 ||2005-06 ||CESTAT New Delhi |
|Central Excise Act 1944 ||MODVAT Credit ||3315006 ||28155 ||2007-2008 ||Additional Commissioner Central Excise and Service Tax Lucknow |
|Central Excise Act 1944 ||MODVAT Credit ||777745 ||- ||2012-13 ||Assistant Commissioner Central Excise Lucknow |
|Central Excise Act 1944 ||MODVAT Credit ||437412 ||- ||2013-14 ||Assistant Commissioner Central Excise Lucknow |
|Central Excise Act 1944 ||Late Submission of ER-6 ||3500 ||- ||2011-14 ||Superintendent Central Excise Lucknow |
|Central Excise Act 1944 ||Cancellation of Invoice ||500 ||- ||2013-14 ||Superintendent Central Excise Lucknow |
|Income Tax Act 1961 ||Penalty order u/s 271(1)(c) ||1002053 ||500000 ||2009-10 ||Commissioner of Income Tax (Appeal) Lucknow |
(x) In our opinion the Company has no accumulated Iosses at the end of the financialyear and it has not incurred cash losses in the current and the immediately precedingfinancial year.
(xi) In our opinion the Company has not defaulted in repayment of dues to anyfinancial institution or a bank or to debenture- holders during the year.
(xii) The Company has not granted any Ioans and advances on the basis of security byway of pledge of shares debentures and other securities. Accordingly the provisions ofclause 4(xii) of the Order are not applicable.
(xiii) In our opinion the Company is not a chit fund or a nidhi/mutual benefitfund/society. Accordingly provisions of clause 4(xiii) of the Order are not applicable.
(xiv) In our opinion the Company is not dealing or trading in shares securitiesdebentures and other investments. Accordingly the provisions of clause 4(xiv) of theOrder are not applicable.
(xv) The Company has not given any guarantees for loans taken by others from banks orfinancial institutions. Accordingly the provisions of clause 4(xv) of the Order are notapplicable.
(xvi) In our opinion the Company has applied the term loans for the purpose for whichthese loans were obtained.
(xvii) In our opinion no funds raised on short-term basis have been used for long-terminvestment by the Company.
(xviii) During the year the Company has not made any preferential allotment of sharesto companies covered in the register maintained under Section 301 of the Act. Accordinglythe provisions of clause 4(xviii) of the Order are not applicable.
(xix) The Company has unsecured debentures outstanding during the year on which nosecurity or charge is required to be created.
(xx) The Company has not raised any money by public issues during the year.Accordingly the provisions of clause 4(xx) of the Order are not applicable.
(xxi) No fraud on or by the Company has been noticed or reported during the periodcovered by our audit.
For Walker Chandiok & Associates
Firm Registration No.: 001329N
per Siddharth Talwar
Membership No.: 512752
Date: May 24 2014.