PPAP Automotive Ltd

BSE: 532934 | NSE: PPAP | ISIN: INE095I01015 
Market Cap: [Rs.Cr.] 161.42 | Face Value: [Rs.] 10
Industry: Auto Ancillaries

Auditor's Report
INDEPENDENT AUDITORS

To The Members of

PRECISION PIPES AND PROFILES COMPANY LTD.

Report on the Financial Statements

We have audited the accompanying financial statements of PRECISION PIPES ANDPROFILES COMPANY LTD. as at March 31, 2013, which comprise the Balance Sheet as atMarch 31, 2013, and the Statement of Profitand Loss and Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that giveposition, financial performance and cash flows of the Company in accordance with thesub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). Thisresponsibility includes the design, implementation and maintenance of internal controlrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment, including the assessment of the risks of material misstatement ofthe 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 fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us, the financial the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as atMarch 31, 2013;

(b) In the case of the Profit and Loss Account, of the profit for the year ended onthat date; and

(c) In the case of the Cash Flow Statement, of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2003 ("theOrder") issued by the Central Government of India in terms of sub-section (4A) ofsection 227 of the Act, we give in the Annexure a statement on the matters specifiedparagraphs 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 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 comply with the Accounting Standards referred to in subsection (3C) of section211 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 disqualifiedas on March 31, 2013, from being appointed as a director in terms of clause (g) ofsub-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 whichthe cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued anyRules under the said section, prescribing the manner in which such cess is to be paid, nocess is due and payable by the Company.

FOR DHARAM TANEJA ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG. NO. : 003563N
D.V.TANEJA
Place : Noida Partner
Date : 24th May, 2013 Membership No. 007718

ANNEXURE TO THE AUDITORS’ REPORT

Referred to in paragraph of our report of even date on accounts of M/s Precision Pipesand Profiles Company Ltd. for the year ended 31st March, 2013.

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

(b) The Fixed Assets are physically verified by the management at reasonable intervalsduring the year, which in our opinion, is reasonable having regard to the size of theCompany and the nature of its assets. No material discrepancies between the book recordsand the physical inventory have been noticed.

(c) In our opinion and according to the information and explanation given to us, theCompany 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 beenphysically verified by the management at reasonable intervals and also at the end of thefinancial year. In our opinion, the frequency of verification is reasonable.

(b) In our opinion, the procedures of physical verification of the inventory followedby the management were found reasonable and adequate in relation to the size of theCompany and nature of its business.

(c) On the basis of our examination of the inventory records, in our opinion, thecompany is maintaining proper records of inventory. The discrepancies noticed on physicalverification 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, tocompanies, 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 registermaintained under Section 301 of the Companies Act, 1956. The maximum amount involvedduring the year and the year – end balance of such loans aggregates of Rs. NIL andNIL 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, thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business with regard to purchase of inventory, fixed assets and for the saleof goods and services. Further, on the basis of our examination of the books and recordsof the Company, and according to the information and explanations given to us, we haveneither come across nor have been informed of any instance of major weaknesses in theaforesaid 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 ofCompanies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, thetransactions made in pursuance of contract or arrangements entered into the register inpursuance of Section 301 of the Act, and exceeding the value of Rs. Five Lakhs in respectof any party during the year have been made at prices which are reasonable having regardto the market prices prevailing at the relevant time.

6. The Company has not accepted any deposits from the public within the meaning ofSection 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 withits size and nature of its business.

8. We have reviewed the books of account maintained by the Company in respect ofproduct where, pursuant to the rules made by the Central Government of India, themaintenance of cost records has been prescribed under section 209(1) (d) of the CompaniesAct,1956. We are of the opinion that prima facie the prescribed accounts and records havebeen maintained and are being made up. We have not, however, made a detailed examinationof 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 thebooks records produced and examined by us, in our opinion, the undisputed statutory duesin 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 bythe Company during the year with the appropriate authorities.

(b) According to the information and explanations given to us and records of theCompany 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 companyexamined by us, details of dues of income tax, sales tax, wealth tax, service tax, customsduty, excise duty and cess which have not been deposited on account of any dispute aregiven below:

Particulars Financial years of which the matters pertain 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) 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 hasit incurred any cash losses during the financial year ended on that date or in theimmediately preceding financial year.

11. According to the records of the company examined by us and the information andexplanation given to us, the Company has not defaulted in repayment of dues to financialinstitutions, banks.

12. The Company has not granted any loans and advances on the basis of security by wayof pledge of shares, debentures and other securities.

13. The Provision of any special statute applicable to Chit Fund / Nidhi / MutualBenefit Fund/ Societies are not applicable to the Company.

14. In our opinion and according to the information and explanation given to us, theCompany is not a dealer or trader in securities.

15. In our opinion and according to the information and explanation given to us, theCompany has not given any guarantee for loans taken by others from banks or financialinstitutions.

16. On the basis of an overall examination of the balance sheet of the Company, in ouropinion and according to the information and explanation given to us, there are no fundsraised 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 andcompanies covered in the register maintained under section 301 of the Companies Act, 1956during 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, andaccording to the information and explanation given to us, we have neither come across anyinstance of fraud on or by the company, noticed or reported during the year, nor have webeen 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
   
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Future Data Not present
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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