The Members ASIA PACK LIMITED Nathdwara
We have audited the financial statements of ASIA PACK LIMITED ("TheCompany") which comprise the balance sheet As at 31st March 2020 and the statementof profit and loss statement of changes in equity and statement of cash flows for theyear ended 31st March 2020 and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information in which it included theReturns for the year ended on 31st March 2020.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid IndAs financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the CompanyAs at 31st March 2020 and its profit including its cash flows and the changes in Equityfor the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thosestandards are further described in the Auditor's Responsibilities for the Audit of thefinancial statement's sec on of our report. We are independent of the company inAccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provision of the Companies Act 2013 and the rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.
Responsibility of Management for the Financial Statements:
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate implementation and maintenance ofaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
Those Board of Directors are also responsible for overseeing the company's financialreporting process
Auditors' Responsibility for the Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our Audit opinion of the Ind ASfinancial statements.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Report on the Internal Financial Controls over Financial Reporting under Clause
(i) of Sub-section 3 of Section 143 of The Companies Act 2013 ("The Act")we have given in
ANNEXURE A' o
f Independent Auditor's Report.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Act we give in the ANNEXURE -B' a statement on the matters specified inthe paragraph 3 & 4 of the order.
As required by section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanations to the best of ourknowledge 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 theCompany so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit & Loss including the Cash FlowStatement & Statement of Changes in Equity dealt with by this report are in agreementwith the books of account.
d) In our opinion the aforesaid IndAs financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rule 2014 & the Companies (Indian Accounting Standards) Rules 2015 asamended.
e) On the basis of written representations received from the directors as on March 312020 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2020 from being appointed as a director in terms of Section 164(2) of theAct.
Annexure - A to the Independent Auditors' Report
Report on the Internal Financial Controls over financial reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act").
In conjunction with our audit of the financial statements of the Company as of and forthe year end as on 31st March 2020 we have audited the internal financialcontrols over financial reporting of ASIA PACK LIMITED ("The Company") asof that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the company considering the essential components of internal control statedin the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India ("the Guidance Note"). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Standard of Auditing prescribed under section 143(10) of the Act and the GuidanceNote to extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note Required that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessments of the risks ofmaterial misstatements of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company's internal financial control over financial reporting is process designed toprovide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles.
A company's internal financial control over financial reporting includes those policiesand procedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statement in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company's assets that could have a material effect on thefinancial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material Misstatements due to error or frauds may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operation effectively As at 31st March 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal Controlsover Financial Reporting issued by the Institute of Chartered Accountants of India.
"ANNEXURE-B"TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in Independent Auditor's Report to the members of the Companyon the Standalone financial statements for the year ended 31 March 2020 we report that:
|(i) (a) Whether the company is maintaining proper records showing full particulars including quantitative detail and situation of Property Plant and Equipment; ||Yes the company is maintaining full details of the particulars of Property Plant & Equipment as well as Intangible Assets. |
| whether the company is maintaining proper records showing full particulars of intangible assets; || |
|(b) Whether these Property Plant and Equipment have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed in such verification and if so whether the same have been properly dealt with in the books of accounts; ||Property Plant & Equipment have been physically verified by the management at regular intervals. |
|(c) whether the title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favor of the lessee) disclosed in the financial statements are held in the name of the company if not provide the details thereof. ||Yes the same is complied. |
|(d) whether the company has revalued its Property Plant and Equipment (including Right of Use assets) or intangible assets or both during the year and if so whether the revaluation is based on the valuation by a Registered Valuer; specify the amount of change if change is 10% or more in the aggregate of the net carrying value of each class of Property Plant and Equipment or intangible assets; ||No revaluation done by the company during the FY 2019-20 |
|(e) whether any proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder if so whether the company has appropriately disclosed the details in its financial statements; ||No |
|(ii) (a) whether physical verification of inventory has been conducted at reasonable intervals by the management and whether in the opinion of the auditor the coverage and procedure of such verification by the management is appropriate; whether any discrepancies of 10% or more in the aggregate for each class of inventory were noticed and if so whether they have been properly dealt with in the books of account; ||Company does not have inventory as on 31st March 2020. |
|(b) whether during any point of time of the year the company has been sanctioned working capital limits in excess of five crore rupees in aggregate from banks or financial institutions on the basis of security of current assets; whether the quarterly returns or statements filed by the company with such banks or financial institutions are in agreement with the books of account of the company if not give details; ||Company does not have sanctioned working capital in excess of Five Crore rupees. |
|(iii) whether during the year the company has made investments in provided any guarantee or security or granted any loans or advances in the nature of loans secured or unsecured to companies firms Limited Liability Partnerships or any other parties if so- ||The Company is holding shares of Rs. 48910687 in Equity Shares of other companies which are the long term investments and not prejudicial to the interest of company. |
|(a) whether during the year the company has provided loans or provided advances in the nature of loans or stood guarantee or provided security to any other entity if so indicate - || |
| ||The Company also has Capital Contribution of Rs.33631599. |
| the aggregate amount during the year and balance outstanding at the balance sheet date with respect to such loans or advances and guarantees or security to subsidiaries joint ventures and associates; || |
| ||The Company also has advances loans of Rs. 81820564. |
| the aggregate amount during the year and balance outstanding at the balance sheet date with respect to such loans or advances and guarantees or security to parties other than subsidiaries joint ventures and associates; || |
| ||a. Company advance such loan to its related party but none of them is its subsidiaries associates or joint venture. |
|(b) whether the investments made guarantees provided security given and the terms and conditions of the grant of all loans and advances in the nature of loans and guarantees provided are not prejudicial to the company's interest; || |
| ||b. Company charged interest @9% p.a. on such loan hence we can conclude that the loans provided are not prejudicial to the interest of company. |
|(c) in respect of loans and advances in the nature of loans whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular; || |
|(d) if the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the principal and interest; ||c. No repayment schedule is there for loans stipulating the payment of principal & interest however receipts are regular. |
| ||d. No amount is overdue for more than 90 days. |
|(e) whether any loan or advance in the nature of loan granted which has fallen due during the year has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties if so specify the aggregate amount of such dues renewed or extended or settled by fresh loans and the percentage of the aggregate to the total loans or advances in the nature of loans granted during the year ||No loan granted which has fallen due during the year has not been renewed nor extended or fresh loans granted to settle the overdues of existing loans given to the same parties |
|(f) whether the company has granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment if so specify the aggregate amount percentage thereof to the total loans granted aggregate amount of loans granted to Promoters related parties as defined in clause (76) of section 2 of the Companies Act 2013; ||All the loans granted are without repayment schedule. |
|(iv) In respect of loans investments guarantees and security whether provisions of section 185 and 186 of the Companies Act 2013 have been complied with. If not provide details thereof. ||Yes |
|(v) in respect of deposits accepted by the company or amounts which are deemed to be deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules made thereunder where applicable have been complied with if not the nature of such contraventions be stated; if an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not; ||The company has not accepted any deposit from the public. |
|(vi) Where maintenance of cost records has been prescribed by the Central Government under sub-section (1) of section 148 of the Act where such accounts and records have been made and maintained; ||No requirement for maintenance of cost records are prescribed by the government. |
|(vii) (a) whether the company is regular in depositing undisputed statutory dues including Goods and Services Tax provident fund employees' state insurance income-tax sales-tax service tax duty of customs duty of excise value added tax cess and any other statutory dues to the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated; ||The company is regular in depositing all statutory dues. |
|(b) where statutory dues referred to in sub-clause (a) have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned (a mere representation to the concerned Department shall not be treated as a dispute); || |
|(viii) whether any transactions not recorded in the books of account have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act 1961 (43 of 1961) if so whether the previously unrecorded income has been properly recorded in the books of account during the year; ||No such transaction present |
|(ix) (a) whether the company has defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender if yes the period and the amount of default to be reported ||The company does not have any loans or borrowings from any financial institutions banks government or debenture holders during the year. Accordingly this para is Not applicable. |
|(b) whether the company is a declared willful defaulter by any bank or financial institution or other lender; ||As per the explanation and information provided to us company is not declared wilful defaulter by any bank or financial institution. |
|(c) whether term loans were applied for the purpose for which the loans were obtained; if not the amount of loan so diverted and the purpose for which it is used may be reported; ||No term loan is obtained by the company. |
|(d) whether funds raised on short term basis have been utilized for long term purposes if yes the nature and amount to be indicated; ||No such case observed |
|(e) whether the company has taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries associates or joint ventures if so details thereof with nature of such transactions and the amount in each case; ||No |
|(f) whether the company has raised loans during the year on the pledge of securities held in its subsidiaries joint ventures or associate companies if so give details thereof and also report if the company has defaulted in repayment of such loans raised; ||No |
|(x) (a) whether moneys raised by way of initial public offer or further public offer (including debt instruments) during the year were applied for the purposes for which those are raised if not the details together with delays or default and subsequent rectification if any as may be applicable be reported; ||Not applicable |
|(b) whether the company has made any preferential allotment or private placement of shares or convertible debentures (fully partially or optionally convertible) during the year and if so whether the requirements of section 42 and section 62 of the Companies Act 2013 have been complied with and the funds raised have been used for the purposes for which the funds were raised if not provide details in respect of amount involved and nature of noncompliance; ||No allotment done by the company during the year |
|(xi) (a) whether any fraud by the company or any fraud on the company has been noticed or reported during the year if yes the nature and the amount involved is to be indicated; ||As per the management there is no such case as on the date of balance sheet. |
|(b) whether any report under sub-section (12) of section 143 of the Companies Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 with the Central Government; ||No |
|(c) whether the auditor has considered whistle-blower complaints if any received during the year by the company; ||As per the explanation and information provided to us no whistle blower complaints received during the year by the company. |
|(xii) whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1: 20 to meet out the liability; ||Not applicable as company is not a Nidhi company |
| whether the Nidhi Company is maintaining 10 % unencumbered term deposits as specified in the Nidhi Rules 2014 to meet out the liability; || |
| whether there has been any default in payment of interest on deposits or repayment thereof for any period and if so the details thereof; || |
|(xiii) Whether all transactions with related parties are in compliance with section 188 and 177 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the accounting standards and Companies Act 2013. ||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. |
|(xiv) whether the company has an internal audit system commensurate with the size and nature of its business; ||Yes the company have system of Internal Audit system commensurate the size and nature of its business. |
| whether the reports of the Internal Auditors for the period under audit were considered by the statutory auditor || |
| ||Yes it was considered. |
|(xv) Whether the company has entered into any non- cash transactions with directors or persons connected with him and if so whether provisions of section 192 of Companies Act 2013 have been complied with. ||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 into non-cash transactions with directors or persons connected with him hence this para is not applicable. |
|(xvi) (a) whether the company is required to be registered under section 45-IA of the Reserve Bank of India Act 1934 (2 of 1934) and if so whether the registration has been obtained ||The company is not required to be registered under section 45-ia of the reserve bank of India act 1934 &none of these |
|(b) whether the company has conducted any Non-Banking Financial or Housing Finance activities without a valid Certificate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act 1934; ||clause is applicable to the company. |
|(c) whether the company is a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India if so whether it continues to fulfil the criteria of a CIC and in case the company is an exempted or unregistered CIC whether it continues to fulfil such criteria; || |
|(d) whether the Group has more than one CIC as part of the Group if yes indicate the number of CICs which are part of the Group || |
|(xvii) whether the company has incurred cash losses in the financial year and in the immediately preceding financial year if so state the amount of cash losses; ||As per the information given to us and the examination of books of accounts no such cash loss incurred by the company. |
|(xviii) whether there has been any resignation of the statutory auditors during the year if so whether the auditor has taken into consideration the issues objections or concerns raised by the outgoing auditors; ||No resignation has been made by the statutory auditor during the year |
|(xix) on the basis of the financial ratios ageing and expected dates of realization of financial assets and payment of financial liabilities other information accompanying the financial statements the auditor's knowledge of the Board of Directors and management plans whether the auditor is of the opinion that no material uncertainty exists as on the date of the audit report that company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date; ||On the basis of our analysis of the financial ratios ageing and expected dates of realization of financial assets and payment of financial liabilities other information accompanying the financial statements our knowledge of the board of directors and management plans there is no material uncertainty exists as on the date of audit report that company is capable of meeting its liability existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date |
|(xx) (a) whether in respect of other than ongoing projects the company has transferred unspent amount to a Fund specified in Schedule VII to the Companies Act within a period of six months of the expiry of the financial year in compliance with second proviso to sub-section (5) of section 135 of the said Act; ||Section 135 is not applicable to the company |
|(b) (b) whether any amount remaining unspent under sub-section (5) of section 135 of the Companies Act pursuant to any ongoing project has been transferred to special account in compliance with the provision of subsection (6) of section 135 of the said Act; || |