Report on the Ind AS Financial Statements:
We have audited the accompanying ind AS financial statements of Pee Cee Cosma Sope Limited (‘the
Company’), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss
(including Other Comprehensive lncome/(loss)),the Statement of Changes in Equity and the Cash Flow Statement
for the year then ended, and a summary of significant accounting policies and other explanatory
information.
Management’s Responsibility for the Ind AS 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 and presentation of these Ind AS financial
statements that give a true and fair view of the financial position, financial performance (including other
comprehensive income/(loss)) 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 relevant rules issued thereunder. 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 Ind AS 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
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 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 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 Ind AS financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the Ind AS 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 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
Company’s Directors, as well as evaluating the overall presentation of the IndAS 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 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 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 of the Company as at 31st March 2018 and its profit (including
other comprehensive income/(loss)) its cash flows and the changes in equity for the year ended on that
date.
Other Matters : The Financial information of the Company for the year ended 31.03.2017
and the transition date opening balance sheet as at 1.4.2016 included in the Ind AS financial statements, are
based on the previously issued statutory financial statements for the years ended 31.03.2017 and 31.03.2016
prepared in accordance with the Companies (Accounting Standard) rules 2006 (as amended) which were audited by
another auditor namely M/s Doogar & Associates, Chartered Accountants, on which they expressed an unmodified
opinion dated 29th May, 2017 and 28th May,2016 respectively. The adjustments to those financial statements for
the differences in accounting principles adopted by the Company on transition to Ind AS have been audited by
us, on which we have expressed an unmodified opinion vide our report dated 26th May,2018.
Our opinion is not qualified in respect of their matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued
by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the
Annexure “A”, a statement on the matters specified in the paragraph 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 (including Other Comprehensive lncome/(loss))
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 Ind AS financial statements comply with the Indian Accounting
Standards prescribed under Section 133 of the Act, read with relevant rules issued thereunder;
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) With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate report in “Annexure
B”; and
g) 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, as amended, 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 34to the IndAS 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.
III. There has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company.
The Annexure referred to in Independent Auditors’ Report to the members of the Company on
the Ind AS financial statements for the year ended 31st March 2018, 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 over a period of three years. 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) According to the information and explanations given to us and on the basis of our examination of
the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2. (a) The inventories, except material lying with the third parties, has been physically verified at
reasonable intervals by the management during the year.
(b) In our opinion and according to the information and explanations given to us the procedures
followed by the management for such physical verification are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) In our opinion Company is maintaining proper records of inventory. The discrepancies noticed on
physical verification of inventory as compared to book records were not material and have been properly dealt
with in the books of accounts.
3. According to the information and explanation given to us the Company has not granted any secured or
unsecured loans, to companies, firms, limited liability partnerships or other parties covered in the register
maintained under section 189 of the Companies Act, 2013. Accordingly, paragraph 3 (iii) of the order is not
applicable to the Company.
4. In our opinion and according to the information and explanations given to us, the Company has
complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments
made.
5. The Company has not accepted any deposits from the public. Accordingly, paragraph 3 (v) of the
order is not applicable to the Company.
6. According to the information and explanations given to us, the cost records have been maintained by
the company pursuant to section 148 (1) of the Companies Act 2013 and are of the opinion that, prima facie,
the prescribed cost records have been made and maintained, however, we have not made a detailed examination of
such cost records.
7. (a) According to the information & explanations given to us and on the basis of our examination of
the records of the Company, Company is generally regular in depositing with the appropriate authorities
undisputed statutory dues including provident fund, employees’ state insurance, income tax , sales tax,
service tax, duty of customs, GST, duty of excise, value added tax, cess and any other statutory dues
applicable to it and there are no undisputed statutory dues outstanding as at 31st March, 2018 for a period
exceeding six months from the date they became payable.
(b) According to the information & explanations given to us, there are no dues of income tax, sales tax,
service tax, duty of customs, duty of excise, GST, value added tax which have not been deposited on account of
any dispute, except the following, along with the forum where dispute is pending:.
|
Name of Statute
|
Nature of the dues
|
Amount
(Rs)
|
Forum where dispute is pending
|
|
ESI Act
|
ESI (2004-05)
|
1,05,241
|
Civil Court, Agra
|
|
M.P Land Revenue Act, 1959
|
Land Conversion Charges
|
14,03,603
|
Court of Collector, Bhind (M.P.)
|
8. In our opinion and according to the information and explanations given to us, we are of the opinion
that the Company has not defaulted in repayment of dues to a financial institution, bank or government. The
Company has not issued any debentures.
9. The Company did not raise any money by way of initial public offer or further public offer
(including debt instruments). The Company has availed term loan facility and term loans were generally been
applied for the purposes for which those are raised.
10. According to the information and explanations given to us, no material fraud by the Company or on
the Company by its officers or employees has been noticed or reported during the course of our audit.
11. According to the information and explanations given to us and based on our examination of the
records of the Company, the Company has paid/provided for managerial remuneration in accordance with the
requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a
nidhi company. Accordingly, paragraph 3 (xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the
records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of
the Act where applicable and details of such transactions have been disclosed in the financial statements as
required by the applicable accounting standards.
14. According to the information and explanations given to us and based on our examination of the
records of the Company, the Company has not made any preferential allotment or private placement of shares or
fully or partly convertible debentures during the year. Accordingly, paragraph 3 (xiv) of the Order is not
applicable.
15. According to the information and explanations given to us and based on our examination of the
records of the Company, the Company has not entered in to non-cash transactions with directors or persons
connected with him. Accordingly, paragraph 3 (xv) of the Order is not applicable.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act
1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of Pee Cee Cosma Sope
Limited (“the Company”) as of 31st March 2018 in conjunction with our audit of the Ind AS
financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls : The Company’s
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
company’s 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.
Auditors’ Responsibility : Our responsibility is to express an opinion on the
Company''s 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
“Guidance Note”) 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 Institute of
Chartered Accountants of India. 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 auditor’s 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 we have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting : A company''s 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 company''s 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 company''s 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 Audit of Internal Financial Controls Over Financial Reporting issued by
the Institute of Chartered Accountants of India.
FOR BSD & CO.
Chartered Accountants
(Firm Reg No-000312S)
Place: Agra (CA.
WarshaSinghania)
Dated: 26.05.2018
Partner
Membership No. 520935 |
