Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of PPAP AUTOMOTIVE LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, and the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of changes in equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements, that give a true and fair view and are free from material misstatement, whether due to fraud or error
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the standalone Ind AS financial statements in accordance with the standards on auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs (financial position) of the Company as at 31st March, 2018, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matters
The comparative financial information of the Company for the year ended 31st March, 2017 and the transition date opening balance sheet as at 1st April, 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by us, whose audit report for the year ended 31st March, 2017 & 31st March, 2016 dated 23rd May, 2017 & 19th May, 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Our opinion is not modified in respect of above matter
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in Annexure I a statement on the matters specified in paragraphs 3 and 4 of the said 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 best of 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 the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including the other comprehensive income), the Cash Flow Statement and the Statement of changes in equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended.
(e) On the basis of the written representations received from the Directors as on 31st March, 2018 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March, 2018 from being appointed as a Director in terms of Section 164(2) of the Act.
(f) We are enclosing herewith a report in Annexure II for our opinion on adequacy of internal financial controls system in place in the Company and the operating effectiveness of such controls.
(g) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements. Refer Note 39 to the financial statements.
ii. According to the information and explanations provided to us, the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred during the year, to the Investor Education and Protection Fund by the Company.
iv. The disclosures regarding details of specified bank notes held and transacted during 8th November, 2016 to 30th December, 2016 have not been made since the requirement does not pertain to financial year ended 31st March, 2018.
ANNEXURE- I TO THE INDEPENDENT AUDITORSâ REPORT
(Referred to in paragraph 1 under âReport on other Legal and Regulatory Requirementsâ section of our Report of even date)
i) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) As explained to us, fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. As informed to us no material discrepancies were noticed on such physical verification.
c) Title deeds in respect of all immovable properties are held in the name of the Company.
ii) As explained to us physical verification has been conducted by the management at reasonable intervals in respect of inventories of finished goods, stores, spare parts and raw materials. We were explained that no material discrepancies have been noticed on physical verification.
iii) As informed to us the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
iv) According to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186, wherever applicable, in respect of loans, investments and guarantees given by the Company. We are informed that the Company has not provided any security during the year
v) According to the information and explanations given to us the Company has not accepted any deposits, in terms of the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder
vi) The Central Government has prescribed the maintenance of cost records under sub-section (1) of Section 148 of the Companies Act, 2013 in respect of certain manufacturing activities of the Company. We have broadly reviewed such records and are of the opinion that prescribed accounts and records have been maintained.
vii) a) As per information and explanations given to us, the Company is regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities. As informed to us there are no outstanding statutory dues in arrears as at the last day of the financial year concerned for a period of more than six months from the date they became payable.
b) We have been informed that following disputed demands in respect of VAT, Excise Duty and Income Tax have not been deposited on account of pending appeals:
Particulars |
Financial years of which the matters pertains |
Forum where dispute is pending |
Amount (Rs.) |
Sales Tax / VAT |
2004-2005 |
Joint Commissioner of Sales Tax (Appeals) |
45,441 |
Sales Tax / VAT |
2011-2012 |
Commercial Tax Tribunal (Noida, UP) |
524,112 |
Sales Tax / VAT |
2012-2013 |
Commercial Tax Tribunal (Noida, UP) |
3,559,469 |
Sales Tax / VAT |
2013-2014 |
Additional Commissioner (A) |
269,428 |
Excise Duty |
May 2004 to July 2004 |
Appellate Tribunal (CESTAT), Delhi |
211,792 |
Excise Duty |
October 2003 to August 2004 |
Appellate Tribunal (CESTAT), Allahabad |
4,210,670 |
Income Tax |
AY 2010-2011 |
Appellate Tribunal (ITAT), (Delhi) |
1,876,894 |
Income Tax |
AY 2012-2013 |
Appellate Tribunal (ITAT), (Delhi) |
300,190 |
viii) Based on our audit procedures and on the basis of information and explanations given to us by the management, we are of the opinion that there is no default in repayment of loans or borrowings to the financial institutions and banks as at the year end. There are no loans from Government and the Company has not issued any debentures.
ix) As explained to us term loans obtained during the year were applied for the purpose for which the loans were obtained by the Company. The Company has not raised any money during the year by way initial or further public offer
x) Based upon the audit procedures performed and information and explanations given by the management, we report that, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit for the year ended 31st March, 2018.
xi) According to information and explanations given to us, the managerial remuneration paid and provided by the Company during the year is in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Companies Act, 2013.
xii) The provisions of clause (xii) of the Order are not applicable as the Company is not a Nidhi Company as specified in the clause.
xiii) According to information and explanations given to us we are of the opinion that all related party transactions are in compliance with the Section 177 and 188 of Companies Act, 2013. Necessary disclosures has been made in the financial statements as required by the applicable accounting standards.
xiv) According to information and explanations given to us the Company has not made any preferential allotment or private placement of shares or debentures during the year
xv) According to information and explanations given to us the Company has not entered into any non-cash transaction with the Director or any person connected with him during the year
xvi) I n our opinion, in view of its business activities, the Company is not required to be registered under Section 45IA of Reserve Bank of India Act, 1934.
ANNEXURE- II TO THE INDEPENDENT AUDITORSâ REPORT
(Referred to in paragraph 2(f) under âReport on other Legal and Regulatory Requirementsâ section of our report of even date)
We have audited the internal financial controls over financial reporting of PPAP AUTOMOTIVE LIMITED (âthe Companyâ) as of 31st March, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the standards on auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and, both issued by the ICAI. Those standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence I/we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs internal financial control over financial reporting includes those policies and procedures that:
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and Directors of the Company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on âAudit of Internal Financial Controls over Financial Reportingâ issued by the ICAI.
For O P BAGLA & CO. LLP
Chartered Accountants
Firm Registration No. 000018N / N500091
Place : Noida Atul Bagla
Dated : 21st May, 2018 Partner
Membership no. 091885
Mar 31, 2015
We have audited the accompanying standalone financial statements of
PPAP AUTOMOTIVE LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgements and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement. An audit involves performing
procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected
depend on the auditors' judgement, including the assessment of the
risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
the accounting policies used and the reasonableness of the accounting
estimates made by the Company's Directors, as well as evaluating the
overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the standalone financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:-
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March 2015;
(ii) in the case of the statement of profit and loss, of the profit for
the year ended on that date; and
(iii) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by 'the Companies (Auditor's Report) Order, 2015,
issued by the Central Government of India in terms of sub-section (11)
of Section 143 of the Act (hereinafter referred to as the "Order"),
and on the basis of such checks of the books and records of the Company
as we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 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 best of 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 the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements-Refer Note 33 to the
financial statements.
ii. In our opinion and as per the information and explanations provided
to us, the Company has not entered into any long-term contracts
including derivative contracts, requiring provision under applicable
laws or accounting standards, for material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE AUDITORS' REPORT ON
ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2015
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
2. (a) Physical verification has been conducted by the management at
reasonable intervals in respect of finished goods, stores, spare parts
and raw materials.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion, the Company is maintaining proper records of
inventories. The discrepancies noticed on such verification between the
physical stocks and book records were not significant and the same have
been properly dealt with in the books of account.
3. As informed to us, the Company has not granted loans, secured or
unsecured, to companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act.
4. In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
5. According to the information and explanations given to us, the
Company has not accepted any deposits, in terms of the directives
issued by the Reserve Bank of India and the provisions of sections 73
to 76 or any other relevant provisions of the Companies Act and the
rules framed there under.
6. The Central Government has prescribed the maintenance of cost
records under sub-section (l) of Section 148 of the Companies Act, in
respect of certain manufacturing activities of the Company. We have
broadly reviewed such records and are of the opinion that prescribed
accounts and records have been maintained
7. (a) As per information and explanations given to us, the Company is
regular in depositing undisputed statutory dues including provident
fund, employees' state insurance, income-tax, sales-tax, wealth tax,
service tax, duty of customs, duty of excise, value added tax, cess and
any other statutory dues with the appropriate authorities. There are no
outstanding statutory dues as at the last day of the financial year
under audit for a period of more than six months from the date they
became payable.
(b) We have been informed that following disputed demands in respect of
VAT, Service Tax, Excise Duty, Entry Tax and Income Tax have not been
deposited on account of pending appeals:
Particulars Financial years of
which the Forum where dispute is pending
matters pertains
Sales Tax 2004-2005 Joint Commissioner of Sales
Tax (Appeals)
Excise Duty August 2003 to August 2004 Appellate Tribunal (CESTAT),
Delhi
Excise Duty May 2004 to July 2004 Appellate Tribunal (CESTAT),
Delhi
Income Tax A.Y 2003-2004 Commissioner of Income Tax
Appeal (Delhi)
Income Tax A.Y 2009-2010 Commissioner of Income Tax
Appeal (Delhi)
Income Tax A.Y 2010-2011 Commissioner of Income Tax
Appeal (Delhi)
Income Tax A.Y 2011-2012 Commissioner of Income Tax
Appeal (Delhi)
Income Tax A.Y 2012-2013 Commissioner of Income Tax
Appeal (Delhi)
Particulars Amount
(Rs.)
Sales Tax 44,541
Excise Duty 7,072,066
Excise Duty 211,792
Income Tax 55,655
Income Tax 2,690,995
Income Tax 2,939,730
Income Tax 243,430
Income Tax 300,190
c) In our opinion, and according to the information and explanations
given to us, amounts required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder have been
transferred to such fund within time.
8. The Company has no accumulated losses as at the end of the year. The
Company has not incurred cash losses during the financial year covered
by our audit and in the immediately preceding financial year.
9. Based on our audit procedures and on the basis of information and
explanations given to us, by the management, we are of the opinion that
there is no default in repayment of dues to the Financial Institutions,
banks or debenture holders as at the year end.
10. According to information and explanations given to us the Company
has not given any guarantee for loan taken by others from banks or
financial institutions, the terms and conditions whereof are
prejudicial to the interest of the Company.
11. In our opinion, term loans were applied for the purpose for which
the loans were obtained by the Company.
12. Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31st March, 2015.
For O. P Bagla & Co.
Chartered Accountants
Firm Registration No. 000018N
Place : Noida Atul Bagla
Date : 26th May, 2015 Partner
Membership No. 91885
Mar 31, 2014
1. We have audited the accompanying financial statements of PPAP
AUTOMOTIVE LIMITED (the "Company"), which comprise the Balance Sheet as
at March 31, 2014 , the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information, which we have
signed under reference to this report.
Management''s Responsibility for the Financial Statements
2. The Company''s Management is responsible for the preparation of
these financial statements that give a true and fair view of the
financial position, financial performance and Cash Flows of the Company
in accordance with the Accounting Standards notified under the
Companies Act, 1956 of India (the "Act"), read with the General
Circular 15/ 2013 dated September 13, 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing and other applicable authoritative
pronouncements issued by the Institute of Chartered Accountants of
India. Those Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence,
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments; the auditors consider internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by Management, as well
as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the PROFIT for
the year ended on that date and;
(c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of 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 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 the Company so far as appears from our examination of
those books,
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet , Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards notified under the Act read with the General
Circular 15/ 2013 dated September 13, 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013;
(e) On the basis of written representations received from the directors
as on March 31, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 7 of the Independent Auditors'' Report of even
date to the members of PPAP AUTOMOTIVE LIMITED on the financial
statements as of and for the year ended March 31, 2014.
1. a) The Company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, major fixed assets have been physically verified
by the management during the year. We have been informed that the
discrepancies noticed on such verification as compared to book record
were not material and have been properly dealt with in the books of
account. In our opinion the frequency of verification is reasonable.
c) The Company has disposed off some of its fixed assets during the
year. However in our opinion the same does not affected the going
concern status of the company.
2. a) Physical verification has been conducted by the management at
reasonable intervals in respect of finished goods, stores, spare parts
and raw materials.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of these stocks
followed by the management is reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion the Company is maintaining proper records of
inventories. The discrepancies noticed on such verification between the
physical stocks and book records were not significant and the same have
been properly dealt with in the books of account.
3. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, fixed assets and with regard to the sale of
goods. During the course of audit, no major weakness has been noticed
in the underlying internal control system.
4. a) In our opinion and according to information and explanations
given to us, the transactions that needed to be entered in the register
maintained under section 301 of the Companies Act, 1956 have been
entered in the register. b) In our opinion, the transactions made in
pursuance of contracts/ arrangements entered in the register maintained
under Section 301 of the Companies Act,1956 and exceeding the value of
Rs.500,000 in respect of each party during the year have been made at
prices which appear reasonable as per information available with the
Company.
5. In our opinion and according to the information and explanations
given to us, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
6. The Central Government has prescribed the maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956 in respect
of certain manufacturing activities of the Company. We have broadly
reviewed such records and are of the opinion that prescribed accounts
and records have been made and maintained.
7. a) As per information and explanations given to us, the Company has
been regular in depositing the undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess, Octroi, Entry Tax and other statutory dues with the
appropriate authorities. There are no undisputed statutory dues at the
year end outstanding for a period of more than six months from the date
they become payable.
b) We have been informed that following disputed demands in respect of
Income Tax, Excise Duty, Sales Tax and Entry Tax have not been
deposited on account of pending appeals.
Particulars Financial years the Forum where dispute Amount (Rs.)
of which the is pending
matters pertains
Service Tax 17.08.2002 to
31.03.2004 Deputy Commissioner 63,630
Sales Tax 2004-2005 Joint Commissioner
of Sales Tax (Appeals) 3,51,890
Excise Duty August 2003 to Appellate Tribunal
2004 (CESTAT), Delhi 70,72,066
Excise Duty May 2004 to Appellate Tribunal
July 2004 (CESTAT), Delhi 2,11,672
Income Tax A.Y. 2003-2004 Commissioner of Income
Tax Appeal (Delhi) 55,655
Income Tax A.Y. 2007-2008 Commissioner of Income
Tax Appeal (Delhi) 9,27,572
Income Tax A.Y. 2009-2010 Commissioner of Income
Tax Appeal (Delhi) 19,75,945
Income Tax A.Y. 2010-2011 Commissioner of Income
Tax Appeal (Delhi) 26,80,825
Income Tax A.Y. 2011-2012 Commissioner of Income
Tax Appeal (Delhi) 34,63,470
8. The Company does not have any accumulated losses at the end of the
financial year. Further, there are no cash losses during the financial
year under audit and in the immediately preceding financial year.
9. Based on our audit procedures and on the basis of information and
explanations given to us by the management, we are of the opinion that
there is no default in repayment of dues to the Financial Institution,
Banks or Debenture holders as at the year end.
10. According to the information and explanations given to us, the
term loans taken by the Company have been applied for the purposes for
which the loans were obtained.
11. According to the information and explanations given to us, the
funds raised on short term basis have not been utilized for long term
investments.
12. Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31st March, 2014.
13. Matters specified in clauses (iii), (vi), (xii) to (xv), (xviii)
to (xx) of paragraph 4 of the CARO, 2003 do not apply to the Company.
For O. P. BAGLA & CO.
CHARTERED ACCOUNTANTS
Firm Regn. No. 000018N
(ATUL BAGLA)
Place : Noida PARTNER
Dated : 27.05.2014 M No. 91885
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of PRECISION
PIPES AND PROFILES COMPANY LTD. as at March 31, 2013, which comprise
the Balance Sheet as at March 31, 2013, and the Statement of Profit and
Loss and Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. 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 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 the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Referred to in paragraph of our report of even date on accounts of M/s
Precision Pipes and Profiles Company Ltd. for the year ended 31st
March, 2013.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Fixed Assets are physically verified by the management at
reasonable intervals during the year, which in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies between the book records and the
physical inventory have been noticed.
(c) In our opinion and according to the information and explanation
given to us, the Company has not disposed of a substantial part of
fixed assets during the year.
2. (a) The Inventory of finished goods, stores, spares parts and raw
material have been physically verified by the management at reasonable
intervals and also at the end of the financial year. In our opinion,
the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of the
inventory followed by the management were found reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records were not material.
3. (a) The Company has not granted any loans or advances, secured or
unsecured, to companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956, except in the
ordinary course of business.
(b) The Company has not taken unsecured loans, from the parties listed
in the register maintained under Section 301 of the Companies Act,
1956. The maximum amount involved during the year and the year - end
balance of such loans aggregates of Rs. NIL and NIL respectively.
(c) In our opinion, the terms and conditions of loans taken are not,
prima facie, prejudicial to the interest of the company.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods and services. Further, on the basis of our examination of
the books and records of the Company, and according to the information
and explanations given to us, we have neither come across nor have been
informed of any instance of major weaknesses in the aforesaid internal
control procedures.
5. (a) In our opinion and according to the information and
explanations given to us, the transactions that need to be entered into
the Register maintained under Section 302 of Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contract or
arrangements entered into the register in pursuance of Section 301 of
the Act, and exceeding the value of Rs. Five Lakhs in respect of any
party during the year have been made at prices which are reasonable
having regard to the market prices prevailing at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Companies Act, 1956 and
rules framed there under.
7. In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
8. We have reviewed the books of account maintained by the Company in
respect of product where, pursuant to the rules made by the Central
Government of India, the maintenance of cost records has been
prescribed under section 209(1) (d) of the Companies Act,1956. We are
of the opinion that prima facie the prescribed accounts and records
have been maintained and are being made up. We have not, however, made
a detailed examination of the records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanations given to us and
according to the books records produced and examined by us, in our
opinion, the undisputed statutory dues in respect of Provident Fund,
E.S.I. income tax, sales tax, wealth tax, service tax, customs duty,
excise duty, cess and others as applicable have been regularly
deposited by the Company during the year with the appropriate
authorities.
(b) According to the information and explanations given to us and
records of the Company examined by us there is no undisputed dues of
Provident Fund, E.S.I., income tax, wealth tax, sales tax, customs
duty, excise duty ,cess as at 31st March, 2013.
(c) According to the information and explanations given to us and
record of the company examined by us, details of dues of income tax,
sales tax, wealth tax, service tax, customs duty, excise duty and cess
which have not been deposited on account of any dispute are given
below:
Particulars Financial years of
which the Forum where dispute
is pending Amount (Rs.)
matters pertain
Service Tax 17.08.2002 to
31.03.2004 Deputy Commissioner 63,630.00
Sales Tax 2004-2005 Joint Commissioner of
Sales Tax (Appeals) 4,76,492.00
Excise Duty October 2003 to
August 2004 Commissioner (Appeals)
Central Excise, Noida 84,21,340.00
Excise Duty May 2004 to July
2004 Commissioner (Appeals)
Central Excise, Delhi 2,11,672.00
Income Tax A.Y. 2003-2004 Commissioner of
Income Tax Appeal (Delhi) 55,655.00
Income Tax A.Y. 2007-2008 Commissioner of Income
Tax Appeal (Delhi) 9,27,572.00
Income Tax A.Y. 2009-2010 Commissioner of Income
Tax Appeal (Delhi) 19,75,945.00
10. The Company has neither accumulated losses as at 31st March,2013
nor has it incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to financial institutions, banks.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Provision of any special statute applicable to Chit Fund /
Nidhi / Mutual Benefit Fund/ Societies are not applicable to the
Company.
14. In our opinion and according to the information and explanation
given to us, the Company is not a dealer or trader in securities.
15. In our opinion and according to the information and explanation
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
16. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanation given to us, there are no funds raised on a short-term
basis, which have been used for long term investment, vice versa.
17. The Company has not made any preferential allotments of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year.
18. The Company has not issued any debenture during the year.
19. The Company has not received money by Pubic Issue during the year.
20. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practice in India, and according to the information and
explanation given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
FOR DHARAM TANEJA ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG. NO. : 003563N
D.V.TANEJA
Place : Noida Partner
Date : 24th May, 2013 Membership No. 007718
Mar 31, 2012
1. We have audited the attached Balance Sheet of PRECISION PIPES &
PROFILE COMPANY LTD. as at 31st march 2012 and also the profit & Loss
Account and Cash Flow Statement of the Company forthe year ended on
date annexed thereto. These financial statements are the responsibility
ofthe Company's management. Our responsibility is to express an opinion
on these financial statements based on ouraudit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) ofthe
companies Act, 1956 of India (the act) and on the basis of such checks
as considered appropriate and according to the information and
explanations given to us during the course of audit, we enclosed in the
Annexure hereto a statement on the matters specified in paragraphs 4
and 5 ofthe said order to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary forthe purpose of our
audit;
b) In our opinion proper books of accounts as required by the Law have
been kept by the Company so far as it appears from our examination of
those books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, these accounts have been prepared in compliance with
the applicable accounting standards referred to in sub-section (3C) of
section 211 ofthe CompaniesAct, 1956;
e) On the basis of written representation received from the Directors
as on March 31,2012 and taken record by the Board of Directors, we
report that none ofthe directors is disqualified as on March 31,2012
f) From being appointed as a Director in term of clause (g) of
sub-section (1) of section 274 ofthe CompaniesAct, 1956;
g) In our opinion and to the best of our information and according to
explanations given to us, the said accounts together with notes thereto
and statement of Significant Accounting Policies given in the
prescribed manner the information required by the Companies act, 1956,
and also give, a true and fair view in conformity with the accounting
principles generally accepted in India:-
(I) In the case of Balance Sheet of the State of affairs ofthe Company
as on 31st March, 2012 and;
(ii) In the case of Profit & LossAccount, ofthe profit forthe yearended
on that date.
(iii) In the case ofthe Cash Flow Statement, ofthe cash flow forthe
year ended on that date.
Referred to in paragraph (3) of our report of even date on accounts of
M/s. Precision Pipes & Profiles Company Ltd, for the year ended on 3151
March 2012
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets
(b) The Fixed Assets are physically verified by the management at
reasonable intervals during the year, which in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies between the book records and he
physical inventory have been noticed.
(c) In our opinion and according to the information and explanation
given to us, the Company has not disposed of a substantial part of
fixed assets during the year.
(ii) (a) The Inventory of finished goods, stores, spare parts and raw
material have been physically verified by the management at
reasonable intervals and also at the end ofthe financial year. In our
opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of the
inventory followed by the management were found reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records were not material.
(iii) (a) The Company has not granted any loans or advances, secured or
unsecured, to companies, firms or other parties listed in the
register maintained under Section 301 ofthe Companies Act, 1956, except
in the ordinary course of business.
(b) The Company has not taken unsecured loans, from the parties listed
in the register maintained under Section 301 of the Companies Act,
1956. The maximum amount involved during the year and the year - end
balance of such loans aggregates to Rs. NILand NIL respectively.
(c) In our opinion, the terms and conditions of loan taken are not,
prima facie, prejudicial to the interests ofthe company.
(d) In respect of the aforesaid loans, the loan including interest is
payable on demand.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods and services. Further, on the basis of our examination of
the books and records of the Company, and according to the information
and explanations given to us, we have neither come across nor have been
informed of any instance of major weaknesses in the aforesaid internal
control procedures
(v) (a) In our opinion and according to the information and
explanations given to us, the transactions that need to be entered into
the
Register maintained under Section 301 ofthe Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contract or
arrangements entered into the register in pursuance of Section 301 of
the Act, and exceeding the value of Rs. Five lakhs in respect of any
party during the year have been made at prices which are reasonable
having regard to the market prices prevailing at the relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Companies Act, 1956 and
rules framed there under.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
(viii) We have reviewed the books of account maintained by the Company
in respect of product where, pursuant to the rules made by the Central
Government of India, the maintenance of cost records has been
prescribed under section 209(1)(d) of the Companies Act, 1956. We are
of the opinion that prima facie the prescribed accounts and records
have been maintained and are being made up. We have not, however, made
a details examination of the records with a view to determining whether
they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
according to the books and records are produced and examined by
us, in our opinion, the undisputed statutory dues in respect of
Provident Fund, E.S.I. income tax, sales tax, wealth tax, service tax,
customs duty, excise duty, cess and others as applicable have been
regularly deposited by the Company during the year with the appropriate
authorities.
(b) According to the information and explanations given to us and
records of the Company examined by us there is no undisputed dues of
Provident Fund, E.S.I., income tax, wealth tax, sales tax, service tax,
customs duty, excise duty, cess as at 31st March 2012.
(c) According to the informations and explanation given to us and
record of the company examined by us, details of dues of income tax,
sales tax, wealth tax, service tax, custom duty, excise duty and cess
which have not been deposited on account of any dispute are given
below:
Particulars Financial years
to which the matters pertains Forum where
dispute is pending Amount (Rs.)
Service
tax 17.08.2002 to 31.03.2004 Deputy
Commissioner 63,630.00
Sales tax 2004-2005 Joint
Commissioner
of Sales tax
(Appeals) 45,441.00
Excise
Duty October 2003 to
August 2004 Commissioner
(Appeals) Central
Excise, Noida_84,21,340.00
ExciseDuty May 2004 to July 2004 Commissioner
(Appeals) Central
Excise,
Delhi 2,11,672.00
Excise Duty August2003 to August2004 Commissioner
(Appeals) Central
Excise,Delhi 70,72,186.00
Income
Tax A.Y. 2003-2004 Commissioner of
Income tax Appeal
(Delhi) 55.655.00
Income
Tax A.Y. 2007-2008 Commissioner of
Income tax Appeal
(Delhi) 9,27,572.00
Income Tax A.Y. 2009-2010 Commissioner of
Income tax Appeal
(Delhi) 19,75,945.00
(x) The Company has neither accumulated losses as at 31st march 2012
nor it has incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
(xi) According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to financial institutions, banks.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The Provision of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
(xiv) In ouropinion and according to the information and explanation
given to us, the Company is not a dealer or trader in securities.
(xv) In our opinion and according to the information and explanation
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
(xvi) The Company has obtained term loans from ICICI bank Ltd.
(xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanation given to us, there are no funds raised on a short-term
basis, which have been used for long term investment, vice versa.
(xviii) The Company has not made any preferential allotments of shares
to parties and companies covered in the register maintained
undersection301 of the Companies Act, 1956 during the year.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not received money by Public issue during the
year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practice in India, and according to the information and
explanation given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year,
norhave we been informed of such case by the management.
For DHARAM TANEJA ASSOCIATES
CHARTERED ACCOUNTANTS
(D. V. Taneja)
Partner
Membership No.7718
Place: New Delhi
Dated: 28th May 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of PRECISION PIPES &
PROFILES COMPANY LTD. as at 31st March 2011 and also the Profit & Loss
Account and Cash Flow Statement of the Company for the year ended on
that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 of India (the Act') and on the basis of such checks
as considered appropriate and according to the information and
explanations given to us during the course of audit, we enclosed in the
Annexure hereto a statement on the matters specified in paragraphs 4
and 5 of the said order to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of accounts as required by the Law have
been kept by the Company so far as it appears from our examination of
those books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, these accounts have been prepared in compliance with
the applicable accounting standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the Directors
as on March 31, 2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2011
from being appointed as a director in term of clause ( g ) of
sub-section (1) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
explanations given to us, the said accounts together with notes thereto
and Statement on Significant Accounting Policies given in the
prescribed manner the information required by the Companies Act, 1956,
and also give, a true and fair view in conformity with the accounting
principles generally accepted in India:-
(i) In the case of Balance Sheet, of the state of affairs of the
Company as on 31st March, 2011 ; and
(ii) In the case of Profit & Loss Account, of the Profit for the year
ended on that date.
(iii) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph (3) of our report of even date on accounts of
M/s. Precision Pipes & Profiles Company Ltd, for the year ended on 31st
March 2011
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Fixed Assets are physically verified by the management at
reasonable intervals during the year, which in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies between the book records and the
physical inventory have been noticed.
(c) In our opinion and according to the information and explanation
given to us, the Company has not disposed of a substantial part of
fixed assets during the year.
(ii) (a) The inventory of finished goods, stores, spare parts and raw
materials have been physically verified by the management at reasonable
intervals and also at the end of the financial year. In our opinion,
the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of the
inventory followed by the management were found reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records were not material.
(iii) (a) The Company has not granted any loans or advances, secured or
unsecured, to companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956, except in the
ordinary course of business.
(b) The Company has taken unsecured loans from the parties listed in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount involved during the year and the year - end balance
of such loans aggregates to Rs.385.04 Lacs and NIL respectively.
(c) In our opinion, the terms and conditions of loan taken are not,
prima facie, prejudicial to the interests of the company.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods and services. Further, on the basis of our examination
of the books and records of the Company, and according to the
information and explanations given to us, we have neither come across
nor have been informed of any instance of major weaknesses in the
aforesaid internal control procedures.
(v) (a) In our opinion and according to the information and
explanations given to us, the transactions that need to be entered into
the Register maintained under Section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register in pursuance of Section 301 of
the Act, and exceeding the value of Rs. Five lakhs in respect of any
party during the year have been made at prices which are reasonable
having regard to the market prices prevailing at the relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Companies Act, 1956 and
rules framed there under.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
(viii) We have reviewed the books of account maintained by the Company
in respect of products where, pursuant to the rules made by the Central
Government of India, the maintenance of cost records has been
prescribed under Section 209(1)(d) of the Companies Act, 1956. We are
of the opinion that prima facie the prescribed accounts and records
have been maintained and are being made up. We have not, however, made
a details examination of the records with a view to determining whether
they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the undisputed statutory dues in respect of Provident
Fund, E.S.I. income tax, sales tax, wealth tax, service tax, customs
duty, excise duty, cess and others as applicable have been regularly
deposited by the Company during the year with the appropriate
authorities.
(b) According to the information and explanations given to us and
records of the company examined by us there is no undisputed dues of
Provident Fund, E.S.I., income tax, wealth tax, sales tax, service tax,
customs duty, excise duty, cess as at 31st March 2011.
(c) According to the information and explanations given to us and
record of the company examined by us, details of dues of income tax,
sales tax, wealth tax, service tax, custom duty, excise duty and cess
which have not been deposited on account of any dispute are given
below:
Particulars Financial years to Forum where dispute Amount (Rs.)
which the matter
pertains is pending
Service Tax 17.08.2002 to 31.
03.2004 Deputy Commissioner 63,630.00
Sales Tax 2004-2005 Joint Commissioner of
Sales Tax (Appeals) 45,441.00
Excise Duty October 2003 to
August 2004 Commissioner (Appeals)
Central Excise, Noida 84,21,340.00
Excise Duty May 2004 to July
2004 Commissioner (Appeals)
Central Excise, Delhi 2,11,672.00
Excise Duty August 2003 to
August 2004 Commissioner (Appeals)
Central Excise, Delhi 70,72,186.00
Income Tax A.Y. 2003-2004 Commissioner of Income
Tax Appeal (Delhi) 55,655.00
Income Tax A.Y. 2006-2007 Commissioner of Income
Tax Appeal (Delhi) 8,48,415.00
Income Tax A.Y. 2007-2008 Commissioner of Income
Tax Appeal (Delhi) 9,27,572.00
Income Tax A.Y. 2008-2009 Commissioner of Income
Tax Appeal (Delhi) 11,93,596.00
(x) The Company has neither accumulated losses as at 31st March 2011
nor it has incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
(xi) According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to financial institutions, banks etc.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures, and other
securities.
(xiii) The provision of any special statute applicable to chit fund /
nidhi / mutual benafit fund / societies are not applicable to the
Company.
(xiv) In our opinion and according to the information and explanation
given to us, the Company is not a dealer or trader in securities.
(xv) In our opinion and according to the information and explanation
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
(xvi) The Company has obtained term loans from ICICI Bank Ltd.
(xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis, which have been used for long-term investment, vice versa.
(xviii)The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not received money by public issue during the year
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
for DHARAM TANEJA ASSOCIATES
CHARTERED ACCOUNTANTS
Place : New Delhi (D.V. TANEJA)
Dated : 30th May' 2011 PARTNER
Mar 31, 2010
1. We have audited the attached Balance Sheet of PRECISION PIPES &
PROFILES COMPANY LTD as at 31st march 2010 and also the Profit & Loss
Account and Cash Flow Statement of the Company for the year ended on
that date annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 of India (the Act) and on the basis of such
checks as considered appropriate and according to the information and
explanations given to us during the course of audit, we enclosed in the
Annexure hereto a statement on the matters specified in paragraphs 4
and 5 of the said order to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of accounts as required by the Law have
been kept by the Company so far as it appears from our examination of
those books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, these accounts have been prepared in compliance with
the applicable accounting standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the Directors
as on March 31, 2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2010
from being appointed as a director in term of clause ( g ) of
sub-section (1) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
explanations given to us, the said accounts together with notes thereto
and Statement on Significant Accounting Policies given in the
prescribed manner the information required by the Companies Act, 1956,
and also give, a true and fair view in conformity with the accounting
principles generally accepted in India:-
(i) In the case of Balance Sheet, of the state of affairs of the
Company as on 31st March, 2010; and
(ii) In the case of Profit & Loss Account, of the Profit for the year
ended on that date.
(iii) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph (3) of our report of even date on accounts of
M/s. Precision Pipes & Profiles Company Ltd, for the year ended on 31st
March 2010
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Fixed Assets are physically verified by the management at
reasonable intervals during the year, which in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies between the book records and the
physical inventory have been noticed.
(c) In our opinion and according to the information and explanation
given to us, the Company has not disposed of a substantial part of
fixed assets during the year.
(ii) (a) The inventory of finished goods, stores, spare parts and raw
materials have been physically verified by the management at reasonable
intervals and also at the end of the financial year. In our opinion,
the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of the
inventory followed by the management were found reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records were not material.
(iii) (a) The Company has not granted any loans or advances, secured or
unsecured, to companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956, except in the
ordinary course of business.
(b) The Company has taken unsecured loans, from the parties listed in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount involved during the year and the year - end balance
of such loans aggregates to Rs. 571.30 Lacs and Rs. 379.66 Lacs,
respectively.
(c) In our opinion, the terms and conditions of loan taken are not,
prima facie, prejudicial to the interests of the company.
(d) In respect of the aforesaid loans, the loan including interest is
repayable on demand.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory fixed assets and for the
sale of goods and services. Further, on the basis of our examination of
the books and records of the Company, and according to the information
and explanations given to us, we have neither come across nor have been
informed of any Instance of major weaknesses in the aforesaid internal
control procedures.
(v) (a) In our opinion and according to the information and
explanations given to us, the transactions that need to be entered into
the Register maintained under Section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register in pursuance of Section 301 of
the Act, and exceeding the value of Rs. Five lakhs in respect of any
party during the year have been made at prices which are reasonable
having regard to the market prices prevailing at the relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Companies Act, 1956 and
rules framed there under.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
(viii) We have reviewed the books of account maintained by the Company
in respect of products where, pursuant to the rules made by the Central
Government of India, the maintenance of cost records has been
prescribed under Section 209(1 )(d) of the Companies Act, 1956. We are
of the opinion that prima facie the prescribed accounts and records
have been maintained and are being made up. We have not, however, made
a details examination of the records with a view to determining whether
they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the undisputed statutory dues in respect of Provident
Fund, E.S.I, income tax, sales tax, wealth tax, service tax, customs
duty, excise duty, cess and others as applicable have been regularly
deposited by the Company during the year with the appropriate
authorities.
(b) According to the information and explanations given to us and
records of the company examined by us there is no undisputed dues of
Provident Fund, E.S.I., income tax, wealth tax, sales tax, service tax,
customs duty, excise duty, cess as at 31st March 2010.
(c) According to the information and explanations given to us and
record of the company examined by us, details of dues of income tax,
sales tax, wealth tax, service tax, custom duty, excise duty and cess
which have not been deposited on account of any dispute are given
below:
Particulars Financial
years to Forum where dispute Amount (Rs.)
which the
matter pertains is pending
Service Tax 17.08.2002 to
31.03.2004 Deputy Commissioner 63,630.00
Sales Tax 2004-2005 Joint Commissioner of Sales
Tax (Appeals) 45,441.00
Sales Tax (UP) 2005-2006 Appeal to be
filed with
Joint Commissioner
of Sales Tax
(Appeals) 69,607.00
Sales Tax (UP) 2006-2007 Appeal to be filed with
Joint Commissioner of
Sales Tax (Appeals) 38,837.00
Sales Tax (UP) 01.04.2007 to
31.12.2008 Joint Commissioner of
Sales Tax(Appeals) 1,22,037.00
Sales Tax (UP) 2008-2009 Appeal to be filed
Joint Commissioner of
SalesTax (Appeals) 2,40,815.00
Excise Duty October 2003 to
August 2004 Commissioner (Appeals)
Central
Excise, Noida 84,21,340.00
Excise Duty May 2004 to
July 2004 Commissioner (Appeals)
Central
Excise, Delhi 2,11,672.00
Excise Duty August 2003 to
August 2004 Commissioner (Appeals)
Central
Excise, Delhi 70,72,186.00
Income Tax A.Y. 2003-2004 Commissioner of
Income Tax Appeal
(Delhi) 55,655.00
Income Tax A.Y, 2004-2005 Commissioner of
Income Tax Appeal
(Delhi) 3,90,788.00
Income Tax A.Y. 2006-2007 Commissioner of
Income Tax Appeal
(Delhi) 8,48,415.00
Income Tax A.Y. 2007-2008 Commissioner of
Income Tax Appeal
(Delhi) 927572.00
(x) The Company has neither accumulated losses as at 31s1 March 2010
nor it has incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
(xi) According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to financial institutions, banks.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures, and other
securities.
(xiii) The provision of any special statute applicable to chit fund /
nidhi / mutual benafit fund / societies are not applicable to the
Company.
(xiv)ln our opinion and according to the information and explanation
given to us, the Company is not a dealer or trader in securities.
(xv) In our opinion and according to the information and explanation
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
(xvi)The Company has obtained term loans from ICICI Bank Ltd.
(xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis, which have been used for long-term investment, vice versa.
(xviii)The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
(xix)The Company has not issued any debentures during the year.
(xx) The Company has not received money by public issue during the year
(xxi)During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
for DHARAM TANEJA ASSOCIATES
CHARTERED ACCOUNTANTS
(D.V. TANEJA)
PARTNER
Place : New Delhi.
Dated : 26,h May2010