PPAP Automotive Ltd

BSE: 532934 | NSE: PPAP | ISIN: INE095I01015 
Market Cap: [Rs.Cr.] 152.25 | Face Value: [Rs.] 10
Industry: Auto Ancillaries

Auditor's Report
INDEPENDENT AUDITORS

To The Members of

PPAP AUTOMOTIVE LIMITED, NEW DELHI

Report on the Financial Statements

1. We have audited the accompanying financial statements of PPAP AUTOMOTIVE LIMITED (the"Company"), which comprise the Balance Sheet as at March 31, 2014 , theStatement of Profit and Loss and Cash Flow Statement for the year then ended, and asummary of significant accounting policies and other explanatory information, which wehave 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 financialstatements that give a true and fair view of the financial position, financial performanceand Cash Flows of the Company in accordance with the Accounting Standards notified underthe 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 Section133 of the Companies Act, 2013. This responsibility includes the design, implementationand maintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We conducted our audit in accordance with the Standards on Auditing and otherapplicable authoritative pronouncements issued by the Institute of Chartered Accountantsof India. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence, about the amountsand disclosures in the financial statements. The procedures selected depend on theauditors' judgment, including the assessment of the risks of material misstatement of thefinancial statements, whether due to fraud or error. In making those risk assessments; theauditors consider internal control relevant to the Company's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Management, as well as evaluating the overall presentation of thefinancial statements.

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

Opinion

6. In our opinion, and to the best of our information and according to the explanationsgiven to us, the accompanying financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as atMarch 31, 2014;

(b) in the case of the Statement of Profit and Loss, of the PROFIT for the yearended on that date and;

(c) in the case of Cash Flow Statement, of the cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

7. As required by 'the Companies (Auditor's Report) Order, 2003', as amended by 'theCompanies (Auditor's Report) (Amendment) Order, 2004', issued by the Central Government ofIndia in terms of sub-section (4A) of section 227 of the Act (hereinafter referred to asthe "Order"), and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us, we give in the Annexure a statement on the matters specified in paragraphs 4and 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 ourknowledge and belief, were necessary for the purpose of our audit;

(b) In our opinion, proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books,

(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet , Statement of Profit and Loss and Cash FlowStatement dealt with by this report comply with the Accounting Standards notified underthe Act read with the General Circular 15/ 2013 dated September 13, 2013 of the Ministryof 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 disqualifiedas on March 31, 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Act.

For O. P. BAGLA & CO.
CHARTERED ACCOUNTANTS
Firm Regn. No. 000018N
(ATUL BAGLA)
Place : Noida PARTNER
Dated : 27.05.2014 M No. 91885

ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

Referred to in paragraph 7 of the Independent Auditors' Report of even date to themembers of PPAP AUTOMOTIVE LIMITED on the financial statements as of and for theyear ended March 31, 2014.

1. a) The Company has maintained proper records to show full particulars includingquantitative details and situation of fixed assets.

b) As explained to us, major fixed assets have been physically verified by themanagement during the year. We have been informed that the discrepancies noticed on suchverification as compared to book record were not material and have been properly dealtwith 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 inour opinion the same does not affected the going concern status of the company.

2. a) Physical verification has been conducted by the management at reasonableintervals 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, theprocedure of physical verification of these stocks followed by the management isreasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

c) In our opinion the Company is maintaining proper records of inventories. Thediscrepancies noticed on such verification between the physical stocks and book recordswere 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, thereis an adequate internal control system commensurate with the size of the Company and thenature of its business with regard to purchase of inventories, fixed assets and withregard to the sale of goods. During the course of audit, no major weakness has beennoticed in the underlying internal control system.

4. a) In our opinion and according to information and explanations given to us, thetransactions that needed to be entered in the register maintained under section 301 of theCompanies Act, 1956 have been entered in the register. b) In our opinion, the transactionsmade in pursuance of contracts/ arrangements entered in the register maintained underSection 301 of the Companies Act,1956 and exceeding the value of Rs.500,000 in respect ofeach party during the year have been made at prices which appear reasonable as perinformation available with the Company.

5. In our opinion and according to the information and explanations given to us, theCompany has an adequate internal audit system commensurate with its size and nature of itsbusiness.

6. The Central Government has prescribed the maintenance of cost records under section209(1)(d) of the Companies Act, 1956 in respect of certain manufacturing activities of theCompany. We have broadly reviewed such records and are of the opinion that prescribedaccounts and records have been made and maintained.

7. a) As per information and explanations given to us, the Company has been regular indepositing the undisputed statutory dues including Provident Fund, Investor Education andProtection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, ServiceTax, Custom Duty, Excise Duty, Cess, Octroi, Entry Tax and other statutory dues with theappropriate authorities. There are no undisputed statutory dues at the year endoutstanding 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 pendingappeals.

Particulars Financial years of which the matters pertains Forum where dispute is pending Amount (Rs.)
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 2004 Appellate Tribunal (CESTAT), Delhi 70,72,066
Excise Duty May 2004 to July 2004 Appellate Tribunal (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 theimmediately preceding financial year.

9. Based on our audit procedures and on the basis of information and explanations givento us by the management, we are of the opinion that there is no default in repayment ofdues 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 bythe 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 onshort term basis have not been utilized for long term investments.

12. Based upon the audit procedures performed and information and explanations given bythe management, we report that, no fraud on or by the Company has been noticed or reportedduring 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) ofparagraph 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
   
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Key Information

Key Executives:

Ajay Kumar Jain , Managing Director

Abhishek Jain , Whole-time Director

Pravin Gupta , Independent Director

Sonia Bhandari , Company Secretary


Company Head Office / Quarters:

54 Okhla Industrial Estate,
Phase-III,
New Delhi,
New Delhi-110020
Phone : New Delhi- / New Delhi-
Fax : New Delhi- / New Delhi-
E-mail : investor@precisionpipes.com
Web : http://www.precisionpipes.com

Registrars:

Link Intime India Pvt Ltd
A-40 II Flr Phase-II,Naraina Indl Area,Near Batra Banquet,New Delhi - 110 028

 
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