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Paos Industries Ltd.

BSE: 530291 Sector: Industrials
NSE: N.A. ISIN Code: INE791C01012
BSE 00:00 | 04 Feb Paos Industries Ltd
NSE 05:30 | 01 Jan Paos Industries Ltd
OPEN 12.12
PREVIOUS CLOSE 12.55
VOLUME 6600
52-Week high 12.72
52-Week low 6.99
P/E
Mkt Cap.(Rs cr) 6
Buy Price 12.20
Buy Qty 170.00
Sell Price 12.72
Sell Qty 500.00
OPEN 12.12
CLOSE 12.55
VOLUME 6600
52-Week high 12.72
52-Week low 6.99
P/E
Mkt Cap.(Rs cr) 6
Buy Price 12.20
Buy Qty 170.00
Sell Price 12.72
Sell Qty 500.00

Paos Industries Ltd. (PAOSINDUSTRIES) - Auditors Report

Company auditors report

Independent Auditor’s Report To The Members of Raj Agro Mills Limited Report onthe Financial Statements

We have audited the accompanying standalone financial statements of Raj Agro MillsLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 and the statement of Profit and Loss (including Other Comprehensive Income)the statement of change in Equity and the Cash Flow Statement for the year then ended anda summary of significant accounting policies and other explanatory information.

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 ofthese standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (IndAS) prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. In conducting our audit we have taken into account the provisions ofthe Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143(11) of the Act.

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor’s judgment including the assessment of the risks of materialmisstatement of the standalone financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial control relevantto the Company’s preparation of the standalone financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the standalonefinancial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

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 theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2018 and its loss total comprehensive income the changes in equity andits cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure "A" a statement on the mattersspecified in paragraphs 3 and 4 of the said Order.

2. As required under the provisions of 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 ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books. c) The Balance Sheet the Statement ofProfit and Loss including Other Comprehensive Income Statement of Changes in Equity andthe Statement of Cash Flow dealt with by this Report are in agreement with the books ofaccount. d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act. e) On the basis ofthe written representations received from the directors of the Company as on March 312018 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2018 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 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’s internal financial controlsover financial reporting. g) With respect to the other matters to be included in theAuditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and accordingto the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements. (ii) The Company did not have anylong-term contracts including derivative contracts for which there were any materialforeseeable losses. (iii) There is no such amount which is required to be transferred tothe Investor Education and Protection Fund by the Company.

For Rajiv Rajeev & Associates

Chartered Accountants

Sd/-

(CA Rajeev Puri)

Partner

M.No: 098937

FRN: 019136N

Place: Ludhiana

Date: 29.05.2018

Annexure- A to the Audit Report

Referred to in paragraph 1 of our Report on Other Legal and Regulatory Requirements

i) (a) The company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. However presently the company is not maintainingany fixed assets.

(c) The company does not own any immovable property.

(ii)There is no business operation in the company as such it is not having anystock inventory in view of which nothing requires to be given under this para.

(iii) The Company has not granted any loan secured or unsecured to thecompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given tous the companies has not provided any loans investments guarantees and security statedin section 185 and 186 of the Companies Act 2013.

(v) In our opinion and according to the information and explanations given tous the company has not accepted any deposit from the public therefore the provisions ofclause (v) of paragraph 3 of the Order is not applicable to the company.

(vi) In our opinion and according to information and explanations given to usthe Companies (Cost Records and Audit) Rules 2014 are not applicable to the Company.Hence the maintenance of cost accounts and records are not required.

(vii) According to the information and explanations given to us in respect ofstatutory dues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees’ State Insurance Income Tax Sales Tax ServiceTax Goods and Service Tax Value Added Tax Customs Duty Excise Duty Cess and othermaterial statutory dues applicable to it with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident FundEmployees’ State Insurance Income Tax Sales Tax Service Tax Value Added TaxGoods and Service Tax Customs Duty Excise Duty Cess and other material statutory duesin arrears as at March 31 2018 for a period of more than six months from the date theybecame payable.

According to the information and explanation given to us and as per records of thecompany as at 31st March 2018 the following are the particulars of dues onaccount of sales tax penalty matters that have not been deposited on account of anydispute:

Amount
Name of the statute Nature of the dues (in Rs.) Period to which the amount relates Forum where dispute pending
The Punjab VAT ACT 2005 Penalty u/s 51(7)(b) 35500/- Fin Year 2006- 2007 Appeal before Deputy Excise & Taxation Commissioner Cum Joint Director (Enforcement) Bathinda

However according to information and explanation given to us a sum of Rs.8 875/- wasdeposited on 22.07.2006 against the above demand.

(viii) The Company does not have any loans or borrowings from any financialinstitution banks government or debenture-holders during the year. Accordinglyparagraph 3(viii) of the Order is not applicable.

(ix) The company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable.

(x) According to information and explanation given to us no material fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe year.

(xi) According to information and explanation given to us and based on ourexamination of records of the company the company has not paid or provided any managerialremuneration during the year. Accordingly paragraph 3(xi) of the Order is not applicable.

(xii) In our opinion the company is not a chit fund or a nidhi company.Accordingly paragraph 3(xii) of the Order is not applicable.

(xiii) According to information and explanation given to us and based on ourexamination of records of the company during the year under review the company has notentered into any transactions with the related parties in terms of section 177 and 188 ofthe Act. Accordingly the provisions of clause (xiii) of paragraph 3 of the Order are notapplicable to the company.

(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year.

(xv) According to information and explanation given to us and based on ourexamination of records of the company during the year under review the company has notentered into non-cash transactions with directors or persons connected with him. (xvi) Thecompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For Rajiv Rajeev & Associates

Chartered Accountants

Sd/-

(CA Rajeev Puri)

Partner

M.No: 098937

FRN: 019136N

Place: Ludhiana

Date: 29.05.2018

ANNEXURE "B" TO THE INDEPENDENT AUDITOR’S REPORT

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial control over the financial reporting of"Raj Agro Mills Limited" (‘the company’) as of 31st March2018 in conjunction with our audit of the standalone financial statements of the companyfor the year ended 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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business 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 Companies Act 2013.

Auditor’s Responsibility:

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting:

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 financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting 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 havea material 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.

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 March 31 2018 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 FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Rajiv Rajeev & Associates

Chartered Accountants

Sd/-

(CA Rajeev Puri)

Partner

M.No: 098937

FRN: 019136N

Place: Ludhiana

Date: 29.05.2018