CAPEX Audit Programme and Manual

PARRY ENTERPRISES INDIA LIMITED PKF Sridhar & Santhanam

www.pkfindia.in Chartered Accountants Chennai

Internal Audit – March, 2014 Manual

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants COVERAGE A. CAPEX B. Statutory Compliances AUDIT TEAM 1. Vignesh 2. Subramanya Bhagirath

TEAM LEADER Mr. Sudarshan PARTNER-IN-CHARGE CA Prasanna

Copy to: 1. Mr. 2. Mr. 3. Mr. 4. Mr.

Bhaskar Prasanna Sudarshan Vignesh

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

CAPEX Audit – Dimensions, Focus 1

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants CAPEX Audit:

CAPEX Audit – Dimensions, Focus 2

Dimensions: 1. Requirement Analysis 2. Budgets & Approvals 3. Contracts & Commercials 4. Results 5. Monitoring and maintenance 6. Financial Focus Areas: Each of the above dimensions are enumerated with focus areas to guide the audit to test the presence / absence of controls and/or efficacy of controls and procedures in place. A detailed checklist each of the focus areas is annexed hitherto. S.N o 1

Dimension

Focus Areas

Requirement Analysis

In this area, we will be looking at the situation before incurring the CAPEX and justification for expansion or expense. The areas of concentration would be to reason with the need for capital expansion and/or capital expenditure. The following questions will be dealt. 1. What was capacity utilisation before CAPEX? 2. What was the source or origin for requirement? 3. Was a technical analysis done before considering expense? What was the result of such analysis? 4. Were any possible adjustments without requiring expansion/expense were considered? 5. Were user’s opinion was taken, and if taken what was majority opinion, and if not what was the reason behind not taking user’s opinion? 6. Was there a complete requisition for expansion from the user department with details as to Technical Analysis of current plant/unit, throughput of current plant vis-à-vis requirement, features / results

Detailed checklist in Annexure – 1.

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

Information/Documents/Questionn aire 1. Plant capacity utilisation certificates. 2. Production reports. 3. Pre-budget technical analysis report of the existing plant. 4. Details of consultants engaged in the analysis. 5. User opinion reports. 6. Minutes of the meeting where the proposal was discussed. 7. Proposal document with complete annexures and explanations viz., technical, financial, operational and safety.

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants 3 S.N Dimension Focus Areas o expected through expansion / expense? 7. Whether the technical analysis was performed by third party specialised consultants or internal technical team? The report may be studied to understand the basis for expansion / expense. 8. Any other area which needs to be checked as result of above analysis. 2 Budgets & This area focuses on capital budgeting and delegation of Approvals authorities. 1. CAPEX policy of the company. 2. Delegation of authorities to approve or consult for CAPEX requisitions. 3. Technical impact analysis of CAPEX. 4. Capital budgeting analysis such as Payback, IRR, NPV etc., and their results from the company. 5. Finalisation of budgets and respective justification notes from the management. 6. Approvals and sanctions. 7. Sources of finance considered for the expansion / expense. 8. Justification of sources of finance by the management. 9. Allocation of budget amounts among the requisitions. 3 Contracts & This area considers the contract administration and CAPEX Commercials execution. 1. Bidding process. 2. Price justification note. 3. Terms and conditions of each contract / work order. 4. Legal exculpation clause and impact of the same that were considered in contract documentation. 5. Bank guarantees, bonds and contractor profiling. 6. Insurance, Warranties and guaranties. Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

CAPEX Audit – Dimensions, Focus Information/Documents/Questionn aire

1. Copy of DOA, KRA and Approval matrix relating to CAPEX. 2. Policy on CAPEX. 3. Board approval copy and MoM copy. 4. Investment committee (if any) appraisal. 5. MoM for discussion on submitted proposal. 6. Original and all revisions to the approved budget. 7. Capital budgeting reports. 8. Sanction letters from the banks for term loans. (if any). 9. Quotes taken from banks for application of loans. 1. Policy on contracts and commercials. 2. DOA, KRA and approval matrix relating to contracts. 3. Contracts and work order copies. 4. Amendments, addendums and variations to contracts. 5. Claims from contractors and

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants 4 S.N Dimension Focus Areas o 7. Sub-contractors and outsourcing jobs. 8. Appointment/delegation of supervisors 9. Material and field quality plans and assurance as to their execution. 10.Milestone reports, progress reports, provisional acceptance, final acceptance reports. 11.Take-over reports. 12.Testing, inspection and trial runs. 13.Labour and environmental laws compliance from the contractor side. 14.Schedule of the contract. 15.Training and supervision of the staff. 16.Payment terms and process review i.e. hold, retention and clearance of Advance payment bonds periodically. 17.Variation and/or amendment orders. 18.Punch lists and payment process of retention money to the contractor. 19.Any other area that requires substantive tests.

4

Results

This area compares the results obtained as to results expected out of the expansion / expenditure. 1. Whether the there is expected impact through expansion? 2. Additional costs incurred and justification. 3. Approvals for additional costs. 4. Impact of delay in the completion of CAPEX and levy

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

CAPEX Audit – Dimensions, Focus Information/Documents/Questionn aire their supporting. 6. Running account bills and ledger copies of the contractors. 7. MoMs held with the contractors. 8. Work certification and progress reports. 9. Material and Field quality plan documents. 10.Recovery from contractors along with supportings. 11.Product specification manuals, training manuals. 12.Approved sub-contractors and sub-vendors list. 13.Test, Inspection and trial run reports. 14.Punch lists. 15.Material / spares and consumables records used in the CAPEX. 16.Sub-Contractor and Sub-Vendor ledgers. 17.Insurance, warranty and guarantee documents. 1. Test run reports. 2. Capacity utilisation reports after expansion / expense. 3. Contractor claims and recovery documents and supporting 4. Product manuals. 5. Training records.

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants 5 S.N Dimension Focus Areas o of Liquidated damages. 5. Breaches during the contract period and impact of the same on the take-over of the plant. 6. Training, specification and product manuals. 7. Commitment vs Actual analysis. 5 Monitoring & This area focuses on the post-Capex maintenance and Maintenance monitoring. 1. Insurance. 2. Warranties & guaranty conditions and stipulations. 3. Maintenance contracts. 4. User training. 5. Performance reports, capacity utilisation reports. 6 Financial This area focuses on the financial management of the CAPEX made during the period of audit. 1. Adherence to payment terms. 2. Controls in payment process. 3. Invoicing and billing. 4. Retention amounts and hold amounts. 5. Capitalisation procedures and issues. 6. Validity of bonds and bank guarantees. 7. Recovery of expenses from contractors. 8. Any other matter of importance as a result of the above process.

Detailed checklist follows next page.

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

CAPEX Audit – Dimensions, Focus Information/Documents/Questionn aire 6. Delay analysis and approval for short levy or non-levy of Liquidated damages. 7. Final and provisional take-over certificates. 1. Annual maintenance contract documents. 2. Insurance documents 3. Warranty and Guarantee documents 4. Performance reports of the machine 1. Contractor ledger copy 2. MIS for the CAPEX shared with top management and internal communication purposes. 3. Invoices and bills 4. Capitalisation workings 5. Bank guarantee copies and MIS 6. Recovery MIS 7. Claims MIS.

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants

CAPEX Audit – Dimensions, Focus 6

ANNEXURES S.N o 1 2 3 4 5 6

7 8 9 10 11 12

CheckPoint REQUIREMENT ANALYSIS What was capacity utilisation before CAPEX? Review difficulties if any faced. What was the source or origin of CAPEX requisition? Was a technical analysis done before considering the proposal? What was the result of the analysis? Were any possibilities of adjustments that do not require capital expense was considered ? Was capital expense avoidable? Were users opinion taken? If not Why? If yes, what was majority opinion? Was there a complete requisition with all the attachments as to Technical analysis of current capacity, throughput of plant vis-à-vis requirements, features expected through expansion etc., Whether the technical analysis performed by third party consultant or in-house expert.What was their opinion? BIDDING AND APPROVALS Was board approval taken? Was the approval within the delegated authority as per company DOA. Whether there is any Investment committee in place. If yes, what was their appraisal?

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

Y/N/NA

Remarks

Control Sheet No.

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants S.N o 13 14

15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

CheckPoint What is the company policy on CAPEX. A recent applicable copy of such policy should be obtained. DOA, KRA and approval matrix. Obtain a copy and check compliance. What were the sources of finance considered for CAPEX and whether it was appropriately approved as per delagtion of powers. Justification of sources by the management. How the blanket budget approval was allocated among different CAPEX and what was the basis.? CONTRACTS AND COMMERCIALS CONTRACT BIDDING PROCESS Press Tender has been invited Limited Tender based on previous experience with group companies, recommendation of Engineering Consultant Minimum 3 nos. of vendors have been invited to quote Price comparison statement available at each stage of negotiation Difference in non-price factors has been valued and vendors bought on an equal footing. Technical Recommendation for placement of order by the Engineering Consultant Scope of work detailed in Order is as per enquiry specifications. Price is all-inclusive, except E.D. to be reimbursed against Cenvat Invoices. Whether contract is on EPC basis if yes, than segregation of price for supply and supervision portion If imported supply than has EPCG benefit been considered Effective date of contract mentioned Payment terms are based on milestones achieved

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

CAPEX Audit – Dimensions, Focus 7

Y/N/NA

Remarks

Control Sheet No.

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants S.N o 32 33 34 35 36 37 38 39 40 41 42 43 44

45 46 47 48 49 50 51

CheckPoint Advances have been secured against Bank Guarantees Advance Bank Guarantee clause covers the scheduled completion period Performance Bank Guarantee clause covers the warranty period L.D. clause for delay in supplies is there – Minimum 5% of the contract value L.D. clause for performance parameters is there – linked with technical parameters Withholding Taxes in case of foreign contracts to be borne by PEIL/Vendor WCT, TDS, Service Tax considered in case of Works/Labour Contracts Completion Schedule mentioned in the Contract Arbitration clause considered in the contract Place of Jurisdiction of Courts is Udaipur, Rajasthan Tender Award Note Approved by Tender Award Committee Contract has been awarded to L-1, party. If no reasons given in Tender Award Note Letter of Intent / Order signed/approved by M.D. in case value exceeds Rs. 1 crore

BANK GUARANTEES Whether the BG is issued by the local Bank If so whether the BG is issued in Stamp paper. Stamp paper value is commensurate with the guaranteed amount Whether two officers of the Bank signed if the value exceeds Rs.5,00,000/-(Changes from Bank to Bank) Whether the BG is dated

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

CAPEX Audit – Dimensions, Focus 8

Y/N/NA

Remarks

Control Sheet No.

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants S.N o 52 53 54 55

56 57 58 59

60 61 62 63 64 65 66

CheckPoint Whether the date of the BG is later to the date of stamp paper bought. Whether the Bank seal has been affixed in all the pages. Whether the Guarantee correctly indicates the Party on whose behalf the same is given Whether the BG mentions correctly the reference of the contract/PO etc., (Applicable for foreign Bank/Branch as well. Whether the BG specifies correctly their liability in conformity to the order requirement viz., Advance, SD, Performance Guarantee, etc. Whether the validity period indicated in the BG is in accordance with the order terms. Whether the claim period has been indicated in the BG Whether there is a clear gap of minimum 3 months between the validity period and claim period Whether there is a clause for not absolving the Bank for any liquidation, winding up, etc., of the party on whose behalf the BG is issued Whether the power of the Bank official is indicated in the BG for issuing such Guarantee Whether the BG specifies about the irrevocability of the BG/right to subrogation. Whether the definitions of all parties involved have been correctly mentioned. Whether the effective date of the BG in force is specified Whether the liberty of PEIL to alter the terms of the contract has been specified. Whether the jurisdiction of Udaipur courts is specified in case of litigation/remedies.

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

CAPEX Audit – Dimensions, Focus 9

Y/N/NA

Remarks

Control Sheet No.

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants S.N o 67 68 69 70 71 72 73

74

75

76 77 78 79 80 81

CheckPoint Whether the succession /assignment of the BG is specified in case of any change in the constitution of Bank/party. Whether a final synopsis indicating the liability, validity period / claim period is given Whether confirmation from Banker is available for issue of such BG In case of BG issued through fax by foreign banker whether the same is authenticated by his local Agency. FOREX TRANSACTIONS FOR AQUIRING CAPITAL ASSETS Review the Forex Policy and ensure that the Latest Policy is there on records with us. Ensure that the above Policy is approved by the Forex Committee. For each of the import contracts, find out the expected delivery schedule from the Commercial Section. Update the same in the Forex File maintained as a soft copy. The expected payment date is called as the “Value Date” For each instalment payable by PEIL on the respective dates in Foreign Currency, ensure that Forex Cover is taken. This information would be available with the Forex Department. Ensure that the rates negotiated for Forex cover with the bank are reasonable. Please note that the Forex Cover rate consists of the following: (a) Spot Rate. (b) Forward Premium / Discount. (c) Margin. (d) The total of the above (a) + (b) + (c) is the Net Rate. Verify the confirmation given by the bank for the intimation sent to the bank for taking the Forex Cover.

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

CAPEX Audit – Dimensions, Focus 10

Y/N/NA

Remarks

Control Sheet No.

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants S.N o

82 83 84 85 86 87 88 89 90 91 92

93 94 95 96 97 98

CheckPoint To ensure the rates quoted for the spot rate is correct, verify the same with the RBI Reference Rate. The RBI reference rate can be made available from their website namely www.rbi.org. The rate quoted by the RBI would not be exactly matching with the banker’s spot rate. From The Policy verify the following: (a) What is the % of the cross leg to be covered. (eg euro-usd). (b) What is the % of direct leg to be covered. (eg. Usd – inr). Whether the above is as per the latest policy. Review the Policy for the following: (a) ECB ( External Commercial Borrowing) (b) Buyer’s credit Report for the extent of coverage based on the utilization of the same. Enter the above details in the Forex folder maintained in the Excel Format in the Computer system. (PW:prithvi) Rollovers: For the Rollovers made check the following: (a) The Rollover date is the next due date or value date for which the payment is postponed. For this there are rollover charges and the same needs to be verified by us. (b) To ensure that the next due date is confirmed by the Commercial Department. Cancellation of Forex Covers: In case the Forex covers are cancelled the following needs to be verified: (a) The rate at which the Forex cover is cancelled. (b) To ascertain the reasons why the cover is cancelled – whether there is any change in Forex Policy. ( c) To find the Profit / Loss on Exchange fluctuation and the same is booked in SAP Accounting System.

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

CAPEX Audit – Dimensions, Focus 11

Y/N/NA

Remarks

Control Sheet No.

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants S.N o 99 100 101 102

103 104 105 106 107

108 109

110 111

CheckPoint (d) To ensure that such profit / loss is correctly taken in the monthly MIS. You can also take the help of SBI reference rates for Forex Payments made. To ensure that the “Stop Loss Levels”/ “Take Profit Levels” are correctly adhered to as per policy. MANAGEMENT INFORMATION SYSTEMS AND STATEMENTS Ensure all small value contracts are entered in the Commitments and the payments for the same is recorded in the payments / cash outflow. Ensure Infrastructure / Administration expenses are correctly recorded in the MIS and are adequately supported. Ensure that the Interest accrued but not due is correctly calculated and disclosed by way of note to the Final Summary. Excise Duty which is not included in the Cash Outflow is disclosed separately. The note to the Final Summary should mention the amount paid through Buyer’s Credit in the Cash Outflow. Ensure that the Capex Estimate figures are the same as disclosed in the previous month’s MIS and also compare the same with the Original MIS. Report if there are any differences. Ensure that Internal Transfers between various Capex Heads is not done. Ensure that the Payouts are tallied with the Individual Account of Capital WIP maintained under the SAP Accounting System. Report for any differences. Ensure that the monthly Bank Reconciliation Statement is prepared and report for any long outstanding cheques.

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

CAPEX Audit – Dimensions, Focus 12

Y/N/NA

Remarks

Control Sheet No.

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants S.N o 112 113 114 115 116 117

118 119 120 121 122

123 124 125 126 127 128 129 130 131 132 133

CheckPoint CONTRACT CLOSURE Review of original BOQ/ Purchase orders Review of revised BOQ /change order Finalization of rates for extra items Sign off on final BOQ Review of final letter issued to contractor for amended value of the contract Review of original technical specifications and subsequent technical specifications issued to the contractor and to highlight the major deviations. Review of consumption of materials with bar bending schedules and technical drawings. Review of consumption of reinforcement steel for lapping with engineering standards. Review of normal wastage with actual wastages and claims made on the contractor. Review of issue of material to parties Review of reconciliation and recovery of expenditure pertaining to material, labour, and crane hire charges, other expenses incurred by the company on behalf of contractors Transfer of unutilized stores, materials, spares etc. Review of contracts /contractor correspondence and minutes. Review of Insurance compliances Review of Labour Compliances Issues pertaining to taxation as per contract ( Direct /Indirect taxes ) Work Certification on mile stone basis Quality and quantity/measurement test checks Poor quality / rework /excess and short work Review of warranties and guarantees Availability of bank guarantee as per the terms of the

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

CAPEX Audit – Dimensions, Focus 13

Y/N/NA

Remarks

Control Sheet No.

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants S.N o 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160

CheckPoint contract Review of adhoc advances paid to the contractors Review of adjustment of deductions made Release of retention money/security deposits Invoice validation process Review of accounting process. Review of payment process Compliance to all contractual obligations Closure of punch list Certification work completion Certification material delivery Certification engineering completion Review of material reconciliation statement from contractor Review of invoice reconciliation statement from contractor Review of site clearances Equipment performance guarantee release Note for approval for closure of contract NOC issued to the contractor Cost capturing in SAP Deviation –Planned vs. Actual FINANCE PAYMENTS Bill has been certified for payment by Project team. In case of Civil/Erection works quantities have been certified by Uhde India Ltd. (Quantity Surveyor) For Supply Bills Stores Issue Voucher accompanies the RCIR. PEIL name appears as consignee/buyer in Excise Invoices and MODVAT credit has been taken. Bill quantities are verified with RCIR quantities. RCIR has been certified by stores and Project Manager

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

CAPEX Audit – Dimensions, Focus 14

Y/N/NA

Remarks

Control Sheet No.

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants S.N o 161 162 163 164

165 166 167 168

169 170 171 172 173 174 175 176 177 178 179 180

CheckPoint Specifications of Material not Different from P.O. Rate as given in the bill is verified with rate as per order/billing schedule Arithmetical Calculations checked, subtotals and Main totals verified Payments Terms as per contract are checked before certifying bills. In case of Bill for Advance Payment, bank guarantee for Advance/Security Deposit is verified with PEIL FormatValidity, Claim period is in order. In case of EPC Payments – Quantities are entered in Control Sheet maintained with us. Actual Billed Quantity not more than P.O./BOQ. If yes, approval from Project Team. Bill is in the name of the Vendor on whom P.O. has been placed In case of Bill for contractual work/professional services/erection TDS has been deduced. TDS to be deducted on amount exclusive of Service Tax. Work Contract Tax has been deducted in case of bills for Civil Work Completion Period as mentioned in Contract is verified. Sales Tax Reg. No. for supply of Material PAN No. for supply of Services Service Tax Registration No. where Service Tax is charges Time Taken for Processing of Bills Deduction of Advance Check for Excise duty, whether price inclusive / exclusive Check fir Declared goods ST rate within state Check for DRR dates / Weighment slip dates Check for Cenvat taken/ availed in manual records

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

CAPEX Audit – Dimensions, Focus 15

Y/N/NA

Remarks

Control Sheet No.

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants S.N o 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196

CheckPoint

CAPEX Audit – Dimensions, Focus 16

Y/N/NA

Control Sheet No.

Remarks

In case of service taxable bills ensure Service Tax charged separately If any recoveries, whether adjusted RESULTS Whether the there is expected impact through expansion? Additional costs incurred and justification. Approvals for additional costs. Impact of delay in the completion of CAPEX and levy of Liquidated damages. Breaches during the contract period and impact of the same on the take-over of the plant. Training, specification and product manuals. Commitment vs Actual analysis. MAINTENANCE & MONITORING Insurance. Warranties & guaranty conditions and stipulations. Maintenance contracts. User training. Performance reports, capacity utilisation reports.

STATUTORY COMPLIANCES List of Statutory Compliances we will be looking at: S.N o 1 2 3 4

Particulars Companies Act, 1956 Income Tax Act, 1961 and Income Tax Rules, 1962 Service Tax Laws and Rules Central Excise Act, 1944

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

Applicability Applicable at plant Applicable at plant Applicable at plant Applicable at plant

level level level level

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants S.N o 5 6 7 8

CAPEX Audit – Dimensions, Focus 17

9 10 11 12 13

Particulars Local Sales Tax Customs Act, 1962 The Employees' Provident Fund and Miscellaneous Provisions Act, 1952 The Employees' State Insurance Act, 1948 The Payment of Gratuity Act, 1972 & 'The Payment of Gratuity (Central) Rules, 1972 The Payment of Bonus Act, 1965 & Payment of Bonus Rules, 1975 The Payment of Wages Act, 1936 Minimum Wages Rules The Indian Stamp Act, 1899

14 15 16 17 18 19 20 21 22 23 24 25 26

Foreign Exchange Management Act Foreign Trade Regulation Act Negotiable Instruments Act, 1881 The Apprentices Act, 1961 Tax On Profession, Traders, Callings Employment Act Shops and Establishments Act Property Tax Transfer of Property Act, 1882 Prevention of Money Laundering Act, 2002 Sale of Goods Act, 1930 Micro small and medium enterprises development Act, 2006 Wealth Tax Act, 1957 Indian Contract Act, 1872

27

Indian Registration Act, 1908

Applicability Applicable at plant level Applicable at plant level Check GMD File Check GMD File Check GMD File Applicable at plant level Applicable at plant level Applicable at plant level Applicable at plant level Dealt at Parry Travels and Tuflex Applicable at plant level Applicable at plant level Applicable at plant level Applicable at plant level Check GMD File

Applicable at plant level Applicable at plant level Applicable at plant level

Note: Any other document or statute may be checked into if need so arises as the audit progresses.

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.

PKF Sridhar & Santhanam Areas & Checklist. Chartered Accountants

CAPEX Audit – Dimensions, Focus 18

Thank You.

Parry Enterprises India Limited Polynet Unit, Palej, Gujrat.