To the Members of P G Industry Limited
Report on the Audit of Standalone Financial Statements:
We have audited the accompanying standalone financial statements of P G IndustryLimited (the Company) which comprise the Balance Sheet as at 31st March2021 the Statement of Profit and Loss Statement of Cash Flows the Statement of Changesin Equity for the year then ended and a summary of significant accounting policies andother explanatory information (Hereinafter referred as Standalone FinancialStatements).
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the Act) in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31st March 2021 and profit (including othercomprehensive income) changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
Key Audit Matters
Key audit matters (KAM') are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.
Management`s Responsibility on the Financial Statements
The Company's management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs profit / loss changesin equity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. Board of Directors is alsoresponsible for overseeing the Company's financial reporting process.
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Actwe are also responsible for expressing our opinion on whether the company has adequateinternal financial controls with reference to standalone financial statements in place andthe operating effectiveness of such controls. Evaluate the appropriateness of accountingpolicies used and the reasonableness of accounting estimates and related disclosures madeby management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Company's abilityto continue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditor's report to the related disclosures in thestandalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditors' report. However future events or conditions may cause the Company to cease tocontinue as a going concern. Evaluate the overall presentation structure and content ofthe standalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirement
1. As required by the Companies (Auditor's Report) Order 2016 (the Order)issued by the Central Government of India in terms of section 143 of the Act we give inthe Annexure a statement on the matters specified in paragraphs 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 bestof our knowledge and belief were necessary for the purpose of our audit; b) in our opinionproper books of account as required by law have been kept by the Company so far as appearsfrom our examination of those books; c) the Balance Sheet Statement of Profit and Lossand Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount. d) in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards; e) on the basis of written representationsreceived from the directors as on March 31 2021 and taken on record by the Board ofDirectors none of the directors is disqualified as on March 31 2021 from beingappointed as a director in terms of sub-section (2) of section 164 of the Companies Act2013; f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure B. Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company internal financial controls overfinancial reporting; g) In our opinion the managerial remuneration for the year endedMarch 31 2021 has been paid/ provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act; h) with respect to theother matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us:
i. the Company has no pending litigations which have the impact on its financialposition in its financial statements; ii. the Company is not required to make anyprovision as required under the applicable law or accounting standards for materialforeseeable losses if any on long-term contracts including derivative contracts; iii. Noamount is required to be transfer to the Investor Education and Protection Fund by theCompany.
|For Ellahi Goel & Co. |
|Chartered Accountants |
|(CA Mansoor Ellahi) |
|(M. No. 083750) |
|Place: New Delhi |
|Date: 13 August 2021 |
|UDIN 21083750AAAA6559 |
Annexure to Auditors' Report for the year ended on 31st March 2021
The Annexure referred to in paragraph 1 of the Our Report of even date to the membersof P G Industry Limited on the accounts of the company for the year ended 31stMarch 2021.
1) a) The company has maintained proper records showing full particulars includingquantitative details and situations of fixed assets.
b) We are informed that management has carried out the physical verification of thefixed assets at reasonable intervals which is considered reasonable having regard to thesize of the Company and the nature of its business and no material discrepancies have beennoticed on such physical verification to the extent verification was made during the year.
c) The title deeds of immovable properties are held in the name of the Company.
2) a) As explained to us physical verification of inventory has been conducted by themanagement during the year at reasonable intervals. The Company has maintained properrecords of inventories and no material discrepancies were noticed on physicalverification.
3) The company has not granted interest free unsecured loans to any party covered inthe register maintained under section 189 of the Companies Act 2013.
4) In respect of loan investment guarantees and security provision of Sections 185and 186 of the Companies Act 2013 are not applicable on the Company.
5) According to the information and explanation given to us the company has notaccepted any deposits during the year from the public under the provisions of the sections73 to 76 of the Act and the rules framed there.
6) As per information & explanation given by the management maintenance of costrecords has been prescribed by the Central Government under sub-section (1) of section 148of the Act and we are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained.
7) (a) According to the information and explanation given to us in our opinion thecompany is generally regular in depositing undisputed statutory dues including ProvidentFund Employees State Insurance Income Tax Sales Tax Wealth Tax Service Tax CustomDuty and Excise Duty Value Added Tax Goods & Service Tax Cess and any othermaterial statutory dues as applicable with the appropriate authorities.
(b) There are no undisputed amount payable in respect of such statutory dues which haveremained outstanding as at 31st March 2021 for a period more than six months from thedate they became payable.
8) According to the records of the company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of its dues to banksand financial institutions.
9) As per information and explanation given to us the company has not obtained anymoney raised by way of Initial Public Issue or Further Public Issue (including debtinstruments) and term loan during the year.
10) No fraud by the company or on the company by its officers or employees has beennoticed or reported during the year.
11) Managerial Remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.
12) The provisions of any Special Statute applicable to Nidhi Company are notapplicable to the company.
13) All transactions with the related parties are in compliance with the provisions ofsections 177 and 188 of the Companies Act 2013 and the details have been disclosed in theFinancial Statements.
14) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.
15) The company has not entered into any non cash transaction with directors or personconnected with him.
16) The company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934.
For Ellahi Goel & Co.
(CA Mansoor Ellahi)
(M. No. 083750)
Place: New Delhi
Date: 13 August 2021
(Referred to paragraph 2(f) under Report on Other Legal and RegulatoryRequirements' section of our report to the members of P G Industry Limited of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (the Act)
We have audited the internal financial controls over financial reporting of P GIndustry Limited (the Company) as of 31st March 2021 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended on that date.
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 (ICAI'). 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 company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
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 Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the Guidance Note) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated 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 assessment of the risks ofmaterial misstatement 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 a process designedto provide 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 financialreporting includes those policies and procedures that
1. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements 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. provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements .
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 fraud 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2021based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India .
|For Ellahi Goel & Co. |
|Chartered Accountants |
|(CA Mansoor Ellahi) |
|(M. No. 083750) |
|Place: New Delhi |
|Date: 13th August 2021 |
|UDIN 21083750AAAA6559 |