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Punjab Alkalies & Chemicals Ltd.

BSE: 506852 Sector: Industrials
NSE: PUNALKALI ISIN Code: INE607A01022
BSE 00:00 | 24 Jun 62.75 0.10
(0.16%)
OPEN

62.15

HIGH

64.80

LOW

62.15

NSE 05:30 | 01 Jan Punjab Alkalies & Chemicals Ltd
OPEN 62.15
PREVIOUS CLOSE 62.65
VOLUME 51195
52-Week high 100.90
52-Week low 15.80
P/E 26.82
Mkt Cap.(Rs cr) 1,521
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 62.15
CLOSE 62.65
VOLUME 51195
52-Week high 100.90
52-Week low 15.80
P/E 26.82
Mkt Cap.(Rs cr) 1,521
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Punjab Alkalies & Chemicals Ltd. (PUNALKALI) - Auditors Report

Company auditors report

To the Shareholders of

Punjab Alkalies & Chemicals Limited

Report on the Ind AS Financial Statements

Opinion

We have audited the accompanying Ind AS financial statements of Punjab Alkalies &Chemicals Limited ("the Company") which comprise the Balance Sheet as at March31 2021 the Statement of Profit and Loss (including the statement of Other ComprehensiveIncome) the Statement of Changes in Equity and the Cash Flow Statement for the year endedon that date and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the Ind As financial statements") Inour opinion and to the best of our information and according to the explanations given tous the aforesaid Ind AS financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 the profit and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We have conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Ind AS 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 (ICAI) together with the independencerequirements that are relevant to our audit of the Ind AS financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Ind AS financial statements.

Management's Responsibility for the Financial Statements

1. 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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act. read with Rule 7 of the Companies (Accounts) Rules 2014 and theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Ind AS financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing thecompany's financial reporting process

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

2. An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation of the Ind AS financial statements.

3. 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.

Report on Other Legal and Regulatory Requirements

4. 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 Act we give in the "Annexure A" statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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 Profit and Loss statement including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

d) In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 Companies (Indian Accounting Standards) Rules 2015 as amended;

e) On the basis of written representations received from the directors as on March 312021 and taken on record by the Board of Directors none of the directors of the companyis disqualified as on March 31 2021 from being appointed as a director in terms ofsection 164 (2) of the Act;

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B" to this report;

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of Section 197 of 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigation on its financial positionin its 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 amount which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended 31st March 2021.

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

Auditors Report of even date to the Shareholders of Punjab Alkalies & ChemicalsLimited on the Accounts for the year ended 31st March 2021

(i) a) The Company has maintained proper records showing full particulars includingthe quantitative details and situation of Fixed Assets.

b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) As explained to us inventories apart from goods in transit were physicallyverified during the year by the Management at reasonable intervals and no materialdiscrepancies were noticed on physical verification.

(iii) The Company has not granted any loans secured or unsecured to Companies Firmsor other parties covered in the register maintained under Section 189 of the CompaniesAct 2013.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) The Company has not accepted any deposits from the public during the year withinthe meaning of Section 73 to 76 of the Act and the rules framed there-under.

(vi) We have broadly reviewed the books of account as required to be maintained by theCompany under Section 148(1) of the Companies Act 2013 and are of the opinion that primafacie the prescribed accounts and the records have been made and maintained.

(vii) a) Undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax customs duty excise duty value added taxGoods & Services Tax cess and other statutory dues have generally been regularlydeposited with appropriate authorities though there has been a slight delay in a fewcases.

b) Following dues are not deposited on account of disputes pending at various forumsand the same provided in the books of accounts:-

Name of the Statue Nature of Dues Amt in Lakhs Period to which amount relates Forum where dispute is pending
Central Excise Act1944 Excise Duty & Penalty 60.17 2004-2008 CESTAT
Central Excise Act1944 Excise Duty & Penalty 5.49 April'08 to June'08 CESTAT
Finance Act 1994 Service Tax Penalty 4.66 April'11 to Dec'11 CESTAT
Finance Act 1994 Service Tax Penalty 116.09 Feb'07 to March'11 CESTAT
Central Excise Act1944 Excise Duty & Penalty 3.11 Jan'12 to Nov'12 CESTAT
Central Excise Act1944 Excise Duty & Penalty 5.32 July'11 to Dec'11 CESTAT
Finance Act 1994 Service Tax Penalty 25.79 Jan'12 to Nov'12 CESTAT
Finance Act 1994 Service Tax Penalty 35.85 July'13 to Dec'13 Dec'12 to June'13 CESTAT
Pb. Value Added Tax 2005 Entry Tax 2.35 2009-10 VAT Tribunal Chandigarh
Pb. Value Added Tax 2005 Entry Tax 64.4 2011-12 Dy. Excise & Taxation Commissioner (Appeal) Mohali/Rupnagar.
Pb. Value Added Tax 2005 Entry Tax 23.73 2012-13 VAT Tribunal Chandigarh
Pb. Value Added Tax 2005 Entry Tax ETO Ropar 3.15 2013-14 Appeal Filed on 23.11.2020
House Tax House Tax 79.84 Revision is Pending

(viii) According to the information and explanations given to us the company has notdefaulted in repayment of dues to the banks.

(ix) According to the information and explanations given to us the company has appliedthe Term Loans received during the year for the purposes for which the loans wereobtained.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(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 and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has allotted 4000000 Sweat EquityShares of Rs 10/- each at premium of Rs 39.38 each to Shri Naveen Chopra ManagingDirector of the company.

(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. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT

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 PunjabAlkalies & Chemicals Limited ("the Company") as of 31st March 2021 inconjunction with our audit 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 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 authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised 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

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.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Hari S. & Associates Chartered Accountants
ICAI Firm Registration Number 007709N ICAI UDIN 21523735AAAAKA4541
Place of Signature: Chandigarh Sd/- Kapil Vohra Partner
Date: May 21 2021 Membership No.: 523735

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