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Panafic Industrials Ltd.

BSE: 538860 Sector: Financials
NSE: N.A. ISIN Code: INE655P01029
BSE 00:00 | 27 Jan 1.26 -0.04
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NSE 05:30 | 01 Jan Panafic Industrials Ltd
OPEN 1.34
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VOLUME 335998
52-Week high 4.23
52-Week low 1.16
P/E
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.34
CLOSE 1.30
VOLUME 335998
52-Week high 4.23
52-Week low 1.16
P/E
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Panafic Industrials Ltd. (PANAFICINDUSTRI) - Auditors Report

Company auditors report

To the Members of Panafic Industrials Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Panafic Industrials Limited(the 'Company') which comprise the Balance Sheet as at 31 MarcRs 2022 the Statement ofProfit and Loss (including Other Comprehensive Income) Statement of Changes in Equity andStatement of Cash Flow for the year then ended and a summary of the significantaccounting policies and other explanatory information (hereinafter referred to as"the financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us theaforesaid financial statements give the information required by theCompanies Act 2013(the 'Act') in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including IndianAccounting Standards ('lnd AS') specified under Section 133 of the Act of the state ofaffairs of the Company as at 31 MarcRs 2022 and its profit (financial performanceincluding other comprehensive income) changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit of the financial statement in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Our responsibilities under thosestandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ('1CA1') together with the ethical requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the rules thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence we have obtainedinsufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter

We draw your attention to Note 30 to financial statements which explains themanagement's assessment of the financial impact on the financial statements of the Companydue to lockdown and other restriction imposed by the Government of India and otherconditions related to the COVID-19 pandemic situation due to which the Company's businessmay also be affected in short to medium term

Our opinion is not modified in respect of above mentioned matter.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the annual report but does not includethe financial statements and our auditor's report thereon. The annual report is expectedto be made available to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the Company's Annual Report if based on the work we have performed weconclude that there is a material misstatement therein we are required to communicate thematter to those charged with governance.

Management's Responsibility for the Financial Statements

The Company's management and Board of Directors is responsible for the matters statedin Section 34(5) of the Act with respect to the preparation of these financial statementsthat give true and fair view of the state of affairs (financial position) profit or loss(financial performance including other comprehensive income) changes in equity and cashflows of the Company in accordance with accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) . This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the 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. The Board of Directors is alsoresponsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the 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 withStandards on Auditing will always detect material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

i. Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

ii. Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3) (i) of the Act we are also responsible for explaining our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

iii. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

iv. Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion Ourconclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

v. Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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.

Report on Other Legal and Regulatory Requirements

1) The Company has not paid any managerial remuneration during the year hence theprovisions of and limits laid down under Section 197 read with Schedule V to the Act arenot applicable.

2) As required by the Companies [Auditor's Report) Order 2020 (the 'Order') issued bythe Central Government of India in terms of Section 143(11) of the Act we give in theAnnexure A a statement on the matters specified in paragraphs 3 and 4 of the Order

3) Further to our comments in Annexure A as required by Section 143(3) of the Act wereport that:

a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany sofa as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with the lnd AS specifiedunder Section 133 of the Act.

e) On the basis of the written representations received from the directors as on MarcRs31 2022taken on record by the Board of Directors none of the directors is disqualifiedas on March31 2022 from being appointed as a director in terms of Section 164 (2) of theAct.

f) With respect to the adequacy of the internal financial controls of the Company andthe operating effectiveness of such controls refer to our separate Report in"Annexure B". Our report expresses an unmodified opinion on the adequacy andoperating effectiveness of the company's internal financial controls over financialreporting.

g) with respect to the other matters to be included in the Auditor's Report inaccordance with rule 11 of the Companies (Audit and Auditors) Rules 2014 (as amended) inour opinion and to the best of our information and according to the explanations given tous

(i) The Company has disclosed the impact of pending litigation on its financialposition in the financial statements- Refer note no 35 of the financial statements

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;

(iii) There has been no amount which was required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended 31 March 2022;

(iv) The disclosure in the financial statements regarding holding as well as dealing inspecified bank notes during the period from 08 November 2016 to 30 December 2016 have-notbeen made in the since they do not pertain to the financial year ended 31MarcRs 2022.

(v) a. The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentity ("Intermediaries") With the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of thecompany ("ultimate beneficiaries") or provide any guarantee security or thelike on behalf of the ultimate Beneficiaries.

b. The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in aggregate) have been received bycompany from any person or entity including foreign entity ("Funding parties") with the understanding whether recorded in writing or otherwise that the companyshall. Whether directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the Funding party ("UltimateBeneficiaries") or provide any guarantee Security or the like on behalf of UltimateBeneficiaries.

c. Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material mis-statement.

(v) During the year company has not declared or paid dividend during the year which isin compliance with section 123 of the Companies Act 2013.

Place: New Delhi

Date: 30.06.2022

UDIN:22088583AKRTVW7869

"Annexure A" to the Independent Auditor's Report

Pursuant to the Companies (Auditor's Report) Order 2020 (the 'Order') issued by theCentral Government of India in terms of Section 143(11) of the Act.

(Referred to in paragrapRs 2 under 'Report on Other Legal and Regulatory Requirements'section of our report to the Member of Panafic Industrials Limited of even date)

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property Plant and Equipment's and IntangibleAssets.

(b) The Company has a regular programme of physical verification of its Property Plantand Equipment's annually. In our opinion the periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on such verification.

(c) As informed to us the Company does not own any immovable property hence clause3(i)(c) of the order is not applicable.

(d) The Company has not revalued any of its Property Plant and Equipment's andIntangible Assets during the year.

(e) No Proceedings have been initiated during the year or are pending against thecompany as at MarcRs 31st 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

ii As informed to us the Company does not hold any inventory; hence clause 3(ii) ofthe Order is not applicable.

iii. The Company has not granted any loans secured or unsecured to other partiescovered in the register maintained under Section 189 of the Act. Further there are nolimited liability partnerships or firms which are covered in the register maintained underSection 189 of the Act; hence clause 3(iii) of the Order is not applicable.

iv. According to the information and explanations given to us the Company has notgiven any loans and guarantees to parties covered under section 185 and 186 of theCompanies Act 2013.

v. In our opinion and according to explanations given to us the Company has notaccepted any deposits from public to which directives issued by Reserve Bank of India andprovisions of Section 73 to 76 of the Companies Act 2013 including rules framed thereunder apply

vi. The Company is a Non-Banking finance Company hence clause 3 (vi) of the orderregarding compliance of maintenance of cost record sunder sub-section (1) of Section 148of the Act is not applicable on the Company.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Employees‘State Insurance Income-tax Service tax Goods and Service tax and other materialstatutory dues have generally been regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of Value added-tax Sales-tax CAS s Duty of excise and Duty of customs.

According to the information and explanations given to us no undisputed amountspayable in respect of Income-tax Provident Fund Service tax Good and Service tax andother material statutory dues were in arrears as at 31 MarcRs 2022 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues onaccount of Income-tax Goods and service tax Provident Fund and Service tax which havenot been deposited with the appropriate authorities on account of dispute as at31 MarcRs2022.

viii. There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act. 1961.

ix. a. In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of Loans or borrowings or in the interestfrom the banks or financial institutions.

b. The Company has not been declared wilful defaulter by any bank or financialinstitution or government or government authority.

c. The Loans were applied to the purpose for which they aere taken. No instances ofdiversion of funds were identified during the audit.

d. On an overall examination of the financial statements of the company no funds wereraised for short term by the company. Hence reporting under this clause is not applicable.

e. On an overall examination of the financial statements of the company the Companyhas not taken any funds from the entity or person on account of or to meet the obligationsof its subsidiaries.

f. The company has not raised any loans during the year and hence reporting of theclause 3(ix)(f) is not applicable.

x. Based upon the audit procedures performed and the information and explanations givenby the management the Company has not raised money by way of initial public offer orfurther public offer including debt instruments and term loans. Also Company has not madeany Preferential allotment or private placement of the shares or convertible debentures(fully or partly or optionally). Accordingly the provisions of clause 3(x) of the orderare not applicable to the company and hence not commented upon.

xi. Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the company or on the company by itsofficers or employees has been noticed or reported during the year. Also there were nowhistle blower complaints received by the company which could be considered whiledetermining the Nature Timing and Extent of the Audit procedures hence reporting underclause 3(xi) is not applicable.

xii. According to the information and explanations given to us the Company is not aNidhi Company. Hence clause 3(xii) of the Order is not applicable.

xiii. According to the information and explanations given to us and on the basis ofour examination of the records of the Company there are no transactions with the relatedparties which are not in compliance with Section 177 and 188 of the Act and the detailshave been disclosed in the financial statements as required by the applicable accountingstandards.

xiv. a. In our opinion the company has an adequate internal audit system commensuratewith the size and the nature of its business.

b. We have considered the internal audit reports for the year under audit issued tothe company during the year and till date in determining the nature timing and extent ofour audit procedures.

xv. According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly clause 3(xv) of the Order is notapplicable.

xvi. a. According to the information and explanations given to us the Company isregistered under Section 45-1A of the Reserve Bank of India Act 1934. We have obtainedcopy of the registration certificate of the Company.

b. The company has not conducted any Non-banking Financial or Housing Financeactivities without a valid Certificate of Registration (COR) from Reserve bank of IndiaAct 1934.

c. The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India.

d. There are no CIC as a part of the group.

xvii. The Company has not incurred any cash losses during the financial year underaudit and in the proceeding financial year.

xviii. There has been no resignation of statutory auditors of the company during thefinancial year.

xix. On the basis of financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit reports indicating the company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tofuture viability of the company. We further state that our reporting is based on the factsup to the date of the audit report and we neither give any guarantee nor any assurancethat all liabilities failing due within a period of one year from the balance sheet datewill get discharged by the company as they fall due.

xx. The CSR requirements are not applicable on the company. Hence reporting under thisclause 3(xx) is not applicable.

For SRDP & Co.

Chartered Accountants

FRN 509930C

Place: New Delhi

Date :: 10.06.2022

UDIN: 22088583AKRTV

"Annexure B" to the Independent Auditor's Report

(Referred to in paragrapRs 3(f) under 'Report on Other Legal and RegulatoryRequirements 'section of our report to the Member of Panafic Industrials Limited of evendate)

Report on the Internal Financial Controls under clause (i) of Sub-section 3 of section143 of Companies Act 2013

We have audited the internal financial controls over financial reporting of PanaficIndustrials Limited ("the Company") as of 31 March 2022 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management and Board of Directors are responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Notion Audit of Internal Financial Controls overFinancial Reporting 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 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.

Auditors' Responsibility

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 Act2013 to the extent applicableto an audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 internal financial controls system overfinancial reporting of the Company.

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 thereparation 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.

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 misstatement due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal Financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

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 operating effectively as at 31 March 2022 based on internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

Place: New Delhi

Date :: 10.06.2022

UDIN:2 2088583AKRTVW7869

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