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Panchsheel Organics Ltd.

BSE: 531726 Sector: Health care
NSE: PANCHSHEEL ISIN Code: INE316G01019
BSE 00:00 | 28 Nov 260.75 -10.65
(-3.92%)
OPEN

269.05

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270.00

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258.70

NSE 05:30 | 01 Jan Panchsheel Organics Ltd
OPEN 269.05
PREVIOUS CLOSE 271.40
VOLUME 12821
52-Week high 425.55
52-Week low 97.95
P/E 25.17
Mkt Cap.(Rs cr) 307
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 269.05
CLOSE 271.40
VOLUME 12821
52-Week high 425.55
52-Week low 97.95
P/E 25.17
Mkt Cap.(Rs cr) 307
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Panchsheel Organics Ltd. (PANCHSHEEL) - Auditors Report

Company auditors report

To the Members of Panchsheel Organics Limited

Report on the Audit of the Standalone Financial Statements

1. Opinion

We have audited the standalone financial statements of Panchsheel Organics Limited

(?the Company ) which comprise the balance sheet as at 31st March 2021 and thestatement of Profit and Loss statement of changes in equity and statement of cash flowsfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.

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 Act in the manner so required and give a true and fair view in conformity with theInd AS and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 and profit total comprehensive incomechanges in equityand its cash flows for the year ended on that date.

2. 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 the

Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountantsof India together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions 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.

3. Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. There are nokey audit matters to communicate. These matters were addressed in the context of our auditof the financial statements as a whole and in forming our opinion thereon and we do notprovide a separate opinion on these matters.

4. Emphasis of Matter

a. As per note no. 42 of the accounts ?Disclosure on Impact of COVID-19 pandemic onCompany we have gone through the details provided in the notes and of the opinion thatconsidering the nature of the business and size of the company the disclosure made by thecompany is proper and the impact on the business operations revenue cash flow of theCompany for the year has been appropriately assessed by the Company. No adjustment isrequired to the financial statement for F.Y 2021-22. The accounts are prepared as a goingconcern and we are of the opinion that the company has properly done it. Being apharmaceutical company the effect of CORONA 19 pandemic is not much effecting thecompany.

b. As per Note No.41 Consequent to the Companies (Corporate Social

Responsibility Policy) Amendment Rules 2021 the Company is required to transfer its unspend CSR fund to a designated bank account the company is require to transfer Rs. 33.98lakhs to designated bank account Company has opened the bank account but has nottransferred the amount till the date of this report.

Our opinion is not modified in respect of the above matters.

5. Management s Responsibility for the Standalone 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 of thesestandalone 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 the

Company‘s ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are also responsible foroverseeing the Company‘s financial reporting process.

6. 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 ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud 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.

7. Other Matters

The Company is require to appoint Internal Auditor as per the requirement of section138 read with Rule 13 of Companies (Accounts) Rules 2014 but has not appointed anyduring the year under audit.

The records of fixed assets as per requirements of clause I of Companies(Auditor‘s Report) Order 2016 (?the Order ) are still under preparation.

8. Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor‘s Report) Order 2016 (?the Order ) issuedby the Central Government of India in terms of sub-section (11) of section 143 of theCompanies Act 2013 we give in the ?Annexure B a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

9. 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 purposes of our audit.

(b) In our opinion proper books of account 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 and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the director isdisqualified from being appointed as a director in terms of section 164(2)(a) of theCompanies Act 2013 as on 31st March 2021.

(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 A .

(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 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 25 to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company

Annexure-A to the Independent Auditors Report

Referred to in paragraph 9(f) of the Independent Auditors‘ Report of even date tothe members of Panchsheel Organics Limited on the Ind AS financial statements for the yearended March 31 2021

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")

1. We have audited the internal financial controls over financial reporting of

Panchsheel Organics Limited (?the Company ) as of March 31 2021 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.

Management s Responsibility for Internal Financial Controls

2. The Company‘s management 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) . These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany‘s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors Responsibility

3. 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 deemed tobe prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial control both applicable to an audit of internal financial control andboth issued by ICAI. Those Standards and the Guidance Note require that I comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 Ind AS financial statements whether due to fraud or error.

5. 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of Ind AS financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASfinancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. 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.

Opinion

8. In our opinion subject to our note no.7 Other Matter of the main reportthe Company has in all material respects an adequate internal financial controls systemover financial reporting and such internal financial controls over financial reportingwere operating effectively as at March 31 2021 based on the internal control overfinancial reporting criteria established by the Company - commensurate with the size ofthe company and nature of its business 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.

Annexure-B to the Independent Auditors Report

Referred to in paragraph (7) of the Independent Auditors Report of even date to themembers of Panchsheel Organics Limited on the Ind AS financial statements for the yearended March 31 2021

I (a) The records of the Company for fixed assets showing full particulars includingquantitative details and situations of fixed assets are still under preparation. (b)According to the information and explanation in absence of records in our opinion it isdifficult to report on whether any material discrepancies have been noticed and properlydealt with in the books of accounts. According to management representation themanagement claims that they have verified the fixed assets during the year and due toproper internal control at the factory there are no chance of discrepancies. As informedto us the management is trying their best to prepare records of fixed assets as requiredbut has not done since last three years.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immoveable properties otherthan self-constructed properties are held in the name of the Company.

II As per the information furnished the inventories have been physically verified bythe management during the year once in a year having regard to the nature of stocks thefrequency of the physical verification is reasonable discrepancies noticed on physicalverification of inventories as compared to book records have been properly dealt with inthe books of accounts..

III As per the information furnished and from verification of the records we are ofthe opinion that the Company has not granted any interest free loans to Companies firmsor other parties covered in the Register maintained under Section 189 of the CompaniesAct 2013; hence para 3(a)(b)(c) of the order is not applicable.

IV In our opinion and according to the information and explanations given to us andfrom verification of the records the Company has not granted any loans or provided anyguarantee or security to the parties covered under section 185. Further the Company hascomplied with the provisions of section 186 of the Companies Act in respect of the loansand investments made and guarantees and security provided by it.

V The Company has not accepted any deposits during the year from the public within themeaning of the provisions of Sections 73 to 76 of the Companies Act 2013 and the rulesframed there under.

VI As per the information provided and from verification of the records We are of theopinion that the Central Government has specified the maintenance of cost records underSection 148(1) of the Companies Act 2013 and the Company has made and maintain suchaccounts and records. Cost audit is applicable to the Company and company has appointedM/s. Talati& Associates Cost Auditor but the audit is not completed and report hasnot been produced till the date of this report.

VII (a) According to the information and explanation given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including Provident Fund Employees‘ State

Insurance Fund Income-tax Sales-tax service tax Custom Duty Excise Duty Cess andother material statutory dues as applicable with appropriate authorities.

(b)According to the records of the Company examined by us and the information andexplanations given to us there are no undisputed amounts payable in respect of IncomeTax Service Tax Custom Duty Sales Tax Excise Duty PF ESIC and any other statutorydues which have remained outstanding as at 31st March 2021 for a period ofmore than six months from the date they become payable.

According to the records of the Company and information and explanation given to us andrecord verified by us the outstanding dues of Sales-tax Custom Duty Excise Duty Incometax service tax cess which have not been deposited on account of dispute with theappropriate authorities are given below:

Sr. No Name of the Statue Nature of Dues Amt Due Period to which the amt. relates Forum where dispute is pending
1 Income Tax Act 1961 80HHC/80I A/ MAT 347684/- FY 1998-99 The Income Tax Appellate Tribunal Indore.
2 Income Tax Act 1961 80HHC/80I A/ MAT 603802/- FY 1999-2000 The Income Tax Appellate Tribunal Indore.
3 Income Tax Act 1961 80HHC/80I A/ MAT 451589/- FY 2000-2001 The Income Tax Appellate Tribunal Indore.
4 Income Tax Act 1961 630140/- FY 2016-2017 Rectification filed with CPC Bangalore
5 Central Sales Tax & VAT Sales Tax Interest & Penalty 488138/- FY 2005-06 The Hon‘ble Registrar MP Commercial Tax Appellate Board Bhopal (MP)
6 Central Sales Tax & VAT Sales Tax Interest & Penalty 273138/- FY 2006-07 The Hon‘ble Registrar MP Commercial Tax Appellate Board Bhopal (MP)
7 Central Sales Tax & VAT Sales Tax Interest & Penalty 591395/- FY 2007-08 The Hon‘ble Registrar MP Commercial Tax Appellate Board Bhopal (MP)
8 Central Sales Tax & VAT Sales Tax Interest&Penalty 688435/- FY 2008-09 The Hon‘ble Registrar MP Commercial Tax Appellate Board Bhopal (MP)
9 Central Sales Tax & VAT Sales Tax Interest & Penalty 0 FY 2008-09 The Hon‘ble Registrar MP Commercial Tax Appellate Board Bhopal (MP)
10 Central Sales Tax & VAT Sales Tax Interest & Penalty 526244/- FY 2009-10 The Hon‘ble Registrar MP Commercial Tax Appellate Board Bhopal (MP)
11 Central Sales Tax & VAT Sales Tax Interest & Penalty 851350/- FY 2010-11 The Hon‘ble Registrar MP Commercial Tax Appellate Board Bhopal (MP)
12 Central Sales Tax & VAT Sales Tax Interest & Penalty 497963/- FY 2011-12 The Hon‘ble Registrar MP Commercial Tax Appellate Board Bhopal (MP)
13 Central Sales Tax & VAT Sales Tax Interest & Penalty 2234783/- FY 2012-13 The Hon‘ble Registrar MP Commercial Tax Appellate Board Bhopal (MP)
14 Central Sales Tax & VAT Sales Tax Interest & Penalty 1870695/- FY 2013-14 The Hon‘ble Registrar MP Commercial Tax Appellate Board Bhopal (MP)
15 Central Sales Tax & VAT Sales Tax Interest & Penalty 1535545/- FY 2014-15 The Hon‘ble Registrar MP Commercial Tax Appellate Board Bhopal (MP)
16 Central Sales Tax & VAT Sales Tax Interest & Penalty 92134/- FY 2015-16 The Hon‘ble Registrar MP Commercial Tax Appellate Board Bhopal (MP)
17 Central Sales Tax & VAT Sales Tax Interest & Penalty 332470/- FY 2016-17 The Hon‘ble Registrar MP Commercial Tax Appellate Board Bhopal (MP)
18 Central Excise Act Excise Duty 471369/- FY 1999-2000 The Asst Registrar Customs Excise & Service Tax Appellate Tribunal New Delhi

VIII. Based on our audit procedures and the information and explanations given by themanagement We are of the opinion that the Company has not defaulted in repayment of itsdues to any banks or financial institutes and debenture holders.

IX. We have verified the records of the Company and of the opinion that the companyhas not raised any money by way of public offer (including debt instruments). The amountof term loan which company have received were applied for the purpose for which those areraised.

X. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practice and according tothe information and explanations given to us we have neither come across any instances ofmaterial fraud by the Company or on the Company by its officers or employees noticed orreported during the year nor have we been informed of any such case by the management.

XI. The Company has provided for managerial remuneration in accordance with therequisite approvals mandated by the Provisions of Section 197 read with Schedule V to theAct.

XII.As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company

XIII.As per the verification of the records We are of the opinion that alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the Ind ASFinancial Statements as required under Ind AS 24 Related Party Disclosures specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

XIV. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) is not applicable to the Company.

XV. The Company has not entered into any non-cash transactions with directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) is not applicableto the Company.

XVI.I have been informed that the company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934. Accordingly the provisions of Clause3(xvi) is not applicable to the Company.

For Jayesh R. Shah & Co

Chartered Accountants0

Firm Registration No. 104182W

Sd/-

Jayesh Shah

Proprietor

Membership No. 033864

Place: Mumbai

Date: 30th June 2021

.