| We have audited the accompanying financial statements of PREMIER PIPES
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.
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, implementa- tion 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.
Auditor's 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 lndia. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statement are free
from material misstatements.
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 judgement, including the assessment of
the risk 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
evaluating the appropriateness of accounting policies used and
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
explanation 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 Balance Sheet, of the state of affairs of the Company
as at March 31, 2014.
b) In the case of Statement of Profit and Loss, 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") As amended 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 purposes of our
audit.
b. in our opinion, proper Books of Accounts as required by law have
been kept by the Company so far as appears from our examination of
those books.
c. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
d. in our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956; and
e. on the basis of the 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 31 March, 2014
from being appointed as a Director in terms of clause (g) of
sub-section (1)of Section 274 of the Companies Act, 1956.
The Annexure referred to in our report to the members of Premier Pipes
Limited ('the Company') for the year ended 31st March, 2014, We report
that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner. In
accordance with this programme, certain fixed assets were verified
during the year and no material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification
is reasonable having regard to the size of the Company and the nature
of its assets.
(c) There was no disposal of fixed assets during the year, and
therefore, do not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable Intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
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, and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancies were noticed on physical verification of
stocks by the management as compared to book records.
3. (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
granted loans to four bodies corporate covered in the register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount outstanding during the year was Rs. 1266.55 lacs and the year
end balance of such loan amounted to Rs. 706.77 lacs. Other than the
above, the Company has not granted any loans, secured or unsecured to
companies, firm or parties in the register maintained under section 301
of the Act.
(b) In our opinion, the rate of interest and other terms and conditions
on which the loans have been granted to the bodies corporate listed in
the register maintained under Section 301 of the Act are not,
prima-facie prejudicial to the interest of the Company.
(c) In the case of loans granted to the bodies corporate listed in the
register maintained under section 301 of the Act, the borrowers have
been regular in the payment of the interest as stipulated. The terms of
arrangement do not stipulate any repayment schedule and the loans are
repayable on demand. Accordingly, paragraph 4(iii)(c) of the Order is
not applicable to the Company in respect of repayment of the principal
amount.
(d) There are no overdue amounts of more than rupees one lakh in
respect of the loans granted to the bodies corporate listed in the
register maintained under section 301 of the Act.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of accounts, the Company has
taken loans from two bodies corporate and one other parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount outstanding during the year was Rs. 19.47 lacs and
the year end balance of such loan amounted to Rs. 4.38 lacs.
(f) In our opinion, the rate of interest and other terms and conditions
on which the loans have been taken from the bodies corporate and other
parties covered in the register maintained under Section 301 of the Act
are not, prima-facie, prejudicial to the interest of the Company.
(g) In respect of loans taken from the bodies corporate and other
parties covered in the register maintained under section 301 of the
Act, the Company has been regular in the payment of the interest as
stipulated. The terms of arrangement do not stipulate any repayment
schedule and he loans are repayable on demand. Accordingly, paragraph
4(iii)(g) of the Order is not applicable to the Company in respect of
repayment of the principal amount.
4. 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 for the
purchase of inventory and Fixed Assets and for the sale of goods.
During the course of our audit, no major instance of continuing failure
to correct any weaknesses in internal controls has been noticed.
5. (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered in to register maintained under Section 301 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
into during the financial year at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted deposits from the public.
7. As per information and explanation given by the management, the
Company has an adequate internal audit system commensurate with its
size and nature of its business.
8. As per information and explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause(d)of sub-section(1) of section 209 of the Act
and we are of the opinion that prima facie the prescribed accounts and
records has been made and maintained. We have not, however, made a
detailed examination of the same.
9. (a) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, undisputed
statutory dues including provident fund, investor education and
protection fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, customs duty, cess to the extent applicable
and other statutory dues have generally been regularly deposited with
the appropriate authorities. According to the information and
explanations given to us there were no outstanding statutory dues as on
31st March, 2013for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, the dues
of Employees State Insurance, Sales Tax, Income Tax, Customs Duty,
Wealth Tax, Excise Duty and Cess which have not been deposited on
account of any dispute and the forum where the dispute is pending are
as under
Name of the Nature of dues Amount Forum where dispute
Statute (Rupees) is pending
ESI Act, 1948 Damages and Interest 135617.00 Civil Judge (Senior)
ESI, Court,
Kanpur Nagar
10. The Company does not have any accumulated losses as at the year
end,and has not incurred any cash losses during the financial year and
the immediately preceding financial year.
11. Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in shares,
securities, debentures, and other investments.
The investments have been held by the Company in its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. The Company did not have any term loans outstanding during the
year.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short-term basis have been used for long-term
investment.
18. The Company has not made any preferential allotment of shares to
parties or Companies covered in the Register maintained under Section
301 of the Companies Act, 1956.
19. The Company did not have any debentures during the year.
20. The Company has not raised any money by Public issue during the
year.
21. According to the information and explanations given to us, we
report that no fraud on or by the Company has been noticed or reported
during the year, nor have we been informed of such case by the
management.
Place : Kanpur For C. L. Kanodia & Co.
Date : 30.05.2014 Firm's Registration No. :001002C
Chartered Accountants
Sd/-
(C. L. Kanodia)
Prop.
Membership No. 11427 |