We have audited the financial statements of PRECISION CONTAINEURS
LIMITED (the Company), which comprise the Balance Sheet as at 31st
March, 2015, the Statement of Profit and Loss, the Cash Flow Statement
for the year then ended, and a summary of the significant accounting
policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE 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 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 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,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, 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.
Our responsibility is to express an opinion on these 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
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 financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. 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. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the 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 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 financial
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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, and its profit & loss and its 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, 2015 (the
order) issued by the central government of India in exercise of power
conferred by sub section (11) of the companies Act 2013, We give in the
Annexure a statement on the matters specified in paragraph 3 and 4 of
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
c. The balance sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with books of
d. In our opinion, the aforesaid 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 the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
f. 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, in our opinion and to the best of our
information and according to the explanation given to us :
i. In our opinion, the Company has disclosed the impact for all
pending litigations on its financial position in its financial
ii. In our opinion, the Company has made all provisions, as required
by law or accounting standards, for foreseeable losses on long term
contracts including derivative contracts.
iii. There were no amounts which were required to be transferred to the
investors Education And Protection Fund by the company.
THE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE
TO THE MEMBERS OF PRECISION CONTAINEURS LIMITED ON THE ACCOUNTS OF THE
COMPANY FOR THE YEAR ENDED 31ST MARCH, 2015
1. (a) The Company has maintained Proper Records showing Full
Particulars including Quantitative Details and situation of Fixed
(b) All the assets have been physically verified by the Management
during the year and there is a Regular Program of Verification which,
in our opinion, is Reasonable having regard to the size of the Company
and the nature of its Fixed Assets. No material discrepancies were
noticed on such verification.
2. According to the information and explanation given to us the
inventory was Nil
3. The Company has granted Un-secured loans to parties covered in the
register maintained under section 189 of the Companies Act, 2013.
(a) There are no covenants, so we are not able to comment about
repayment, the rate of interest and other terms and conditions of loans
given by the company.
4. In our opinion and according to the information and explanations
given to us, there are adequate Internal Control Procedures
Commensurate with the Size of the Company and the nature of its
Business with regard to the Purchases of Inventory, Fixed Assets and
Sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in Internal Controls.
5. The Company has not accepted any Deposits from the Public.
6. As per information & explanation given by the management,
maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of section 148 of the
Act, & contingently the clause is not applicable to the company.
7. (a) According to 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, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities though there has been a delay in a few cases.
According to the information and explanations given to us there were no
outstanding statutory dues as on 31 st of March, 2015 for a period of
more than six months from the date they became payable.
Sr. Name of the Nature Period Amount
No. Statue (Rs.)
1 Services Tax Service Tax 2013-14 168,336
3 Notified Area Notified Area Prior years 54,129
4 Sales Tax CST Prior to 2014 240,500
VAT Prior to 2014 77
7 Income Tax TDS 2014-2015 12,090
(b) In our opinion, the company is not in dispute in regards to amount
deposited on account of income tax or wealth tax or service tax or duty
of customs or duty of excise or cess.
8. The accumulated loss at the end of Financial year are more than 50%
of the net worth and has incurred cash losses during the financial year
covered by our audit & immediately preceding the financial year.
9. According to the information and explanation given to us, the
Company has defaulted in repayment of dues to financial institutions,
banks and debenture holders. Further we informed that these amounts
are outstanding for a long period and exact length of period cannot be
Sr. Name of the Principal Interest Total
Institution (Rs.) (Rs.) (Rs.)
1 GSFC Term 40,926,838 63,921,388 104,848,226
2 Term Loan IDBI 133,500,000 61,370,076 194,870,076
3 Non Conv. 30,000,000 24,093,375 54,093,374
Debenture - IDBI
The company has in Principle received an approval from IDBI and GSFC
for One Time Settlement of all its Dues at Rs. 886.90 lacs against
which a Cumulative sum of Rs 755.38 Lacs has been paid. And the same is
shown net in the financial.
10. According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from a
bank or financial institution.
11. The Company has utilized the loan for the purpose for which it was
12. According to the information and explanation given to us, No Fraud
on or by the Company has been Noticed or Reported during the course of
For KAKARIA & ASSOCIATES
Firm Regn. No.: 104558W
(Kakaria Ujwal K.)
Place : Mumbai Partner
Date : 08/08/2015 Membership No.: 35416