REPORT OF THE INDEPENDENT AUDITOR’S TO THE SHARE HOLDERS
To the Members of Pricol Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Pricol Limited
("the Company"), which comprise the Balance Sheet as at March 31, 2015, the
Statement of Profit and Loss, the Cash Flow Statement for the year then ended and a
summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors are 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 judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls and ensuring their operating effectiveness and the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the standalone 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 there under.
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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the standalone financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the
standalone financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant to the Companys
preparation of the standalonefinancial statements that give a true and fair view in order
to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of the accounting estimates made by the Companys Directors,
as well as evaluating the overall presentation of the standalone 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, of the state of affairs of the Company
as at 31st March, 2015, its loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
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 written representations received from the directors as on March 31,
2015, and taken on record by the Board of Directors, none of the directors are
disqualified as on March 31, 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
Auditors 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 financial statements Refer Note 2.30 to the standalone
financial statements;
(ii) The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts Refer
Note 2.29 to the standalonefinancial statements;
(iii) There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
|
For Haribhakti & Co. LLP |
|
Chartered Accountants |
|
ICAI Firm Registration No.103523W |
|
C. S. Sathyanarayanan |
| Coimbatore |
Partner |
| 25th May 2015 |
Membership No.028328 |
ANNEXURE TO INDEPENDENT AUDITORS’ REPORT
[Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements
in the Independent Auditors Report of even date to the members of Pricol Limited on the
financial statements for the year ended 31st March, 2015]
(i) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) During the year, the fixed assets of the Company have been physically verified by
the management and as informed, no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification is reasonable having regard to
the size of the Company and the nature of its assets.
(ii) (a) The inventory (excluding stocks lying with third parties) has been physically
verified by the management during the year. In respect of inventory lying with third
parties, these have substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
(b) 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) The Company is maintaining proper records of inventory. Material discrepancies
noticed on physical verification carried out during the year have been properly dealt with
in the books of accounts.
(iii) As informed, the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained under Section 189 of
the Act. Accordingly, the provisions stated in paragraph 3 (iii)(a) and 3 (iii)(b) of the
Order are not applicable.
(iv) In our opinion and according to the information and explanations given to us,
there exists 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 our audit, we have not observed any
continuing failure to correct major weaknesses in internal control system of the Company.
(v) In our opinion and according to the information and explanations given to us, the
Company has not accepted any deposits from the public within the provisions of Sections 73
to 76 of the Act and the rules framed there under.
(vi) The Central Government of India has not prescribed the maintenance of cost records
for any of the products of the Company under sub-section (1) of Section 148 of the Act and
the rules framed there under.
(vii) (a) The Company is regular in depositing with appropriate authorities, undisputed
statutory dues including provident fund, employees state insurance, income tax, sales
tax, wealth tax, service tax, value added tax, customs duty, excise duty, cess and any
other material statutory dues applicable to it except in respect of sales tax where there
have been slight delay in few cases.
AND
According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, value added tax, customs duty, excise duty, cess and any other
material statutory dues applicable to it, were outstanding, at the year end, for a period
of more than six months from the date they became payable.
(b) According to the information and explanation given to us, the dues outstanding with
respect to, income tax, sales tax, wealth tax, service tax, value added tax, customs duty,
excise duty, cess and any other material statutory dues applicable to it, on account of
any dispute, are as follows:
| Name of the Statute |
Period to which the amount relates |
Nature of dues |
Amount Disputed Rs. Million |
Amount paid Rs. Million |
Forum where dispute is pending |
| 1. Central Excise Act / |
1990-2014 |
i) Excise Duty |
23.131 |
Nil |
Supreme Court |
| Service tax / Customs |
|
ii) Excise Duty |
36.561 |
Nil |
CESTAT |
|
|
iii) Service Tax |
152.031 |
Nil |
CESTAT |
|
|
iv) Service Tax |
0.252 |
Nil |
Commissioner (Appeals) |
|
|
v) Customs Duty |
0.910 |
Nil |
Joint Secretary, Finance Ministry |
| 2. Sales Tax |
1995-1997 |
i) Sales Tax |
13.325 |
Nil |
High Court |
|
|
ii) Penalty |
19.988 |
Nil |
|
|
2009-2010 |
iii) CST |
6.964 |
0.900 |
DC (Appeals) |
|
2009-2010 & 2010-2011 |
iv) CST |
7.439 |
Nil |
Additional Commissioner |
|
2009-2010 |
v) VAT |
0.431 |
0.220 |
Appellate Tribunal |
(c) According to the information and explanations given to us, there has been no delay
in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company.
(viii) The Company does not have accumulated losses at the end of the financial year
nor has incurred cash losses in the current and immediately preceding financial year.
(ix) According to the information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institution(s), bank(s) or debenture
holder(s).
(x) In our opinion and according to the information and explanations given to us, the
terms and conditions of the guarantees given by the Company, for loans taken by others
from banks or financial institutions are not prejudicial to the interest of the Company.
(xi) According to the information and explanations given to us, the term loans have
been applied for the purpose for which the loans were obtained.
(xii) 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 any such instance by the management.
|
For Haribhakti & Co. LLP |
|
Chartered Accountants |
|
ICAI Firm Registration No.103523W |
|
C.S. Sathyanarayanan |
| Coimbatore |
Partner |
| 25th May, 2015 |
Membership No. 028328 |
+91-9892691696
