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Paragon Finance Ltd.

BSE: 531255 Sector: Financials
NSE: N.A. ISIN Code: INE015E01012
BSE 00:00 | 22 Jun 24.70 0.85
(3.56%)
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24.70

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24.70

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24.70

NSE 05:30 | 01 Jan Paragon Finance Ltd
OPEN 24.70
PREVIOUS CLOSE 23.85
VOLUME 5
52-Week high 31.55
52-Week low 14.85
P/E 5.06
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 24.70
CLOSE 23.85
VOLUME 5
52-Week high 31.55
52-Week low 14.85
P/E 5.06
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Paragon Finance Ltd. (PARAGONFINANCE) - Auditors Report

Company auditors report

To The Members of

PARAGON FINANCE LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Paragon Finance Limited ("theCompany") which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management’s Responsibility 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 and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting 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 statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating the overall presentation of the financial statements.

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

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India :

1. In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017

2. In the case of the Profit and Loss Account of the PROFIT for the year endedon that date; and

3. In the case of Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act [hereinafterreferred to as the Order] we give in the Annexure ‘A’ a statement on thematters 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 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial control over financialreporting of the company and the operating effectiveness of such control refer to ourseparate report in Annexure ‘B’.

(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 litigation and its impact onfinancial position in the financial statement as referred to in Note No. 1.B.8 of theFinancial Statements.

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

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection fund by the Company.

(iv) The Company has provided requisite disclosure in the Financial Statement as toholding as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 on the basis of information available with the Company. Basedon audit procedure and relying on management’s representation we report thatdisclosures are in accordance with the books of accounts maintained by the Company and asproduced to us by the management. Refer Note – 1.B.11.

For MANDAWEWALA & CO.
Chartered Accountants
Firm Reg. No. : 322130E
[CA. ANIL KR. MANDAWEWALA]
Place: Kolkata Partner
Dated: The 30th day of May 2017 Membership No. 055939

ANNEXURE – A TO AUDITORS’ REPORT

The Annexure referred to in paragraph 1 of Our Report of even date to the members ofParagon Finance Limited on the accounts of the company for the year ended March 31 2017.

1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.

b) All the assets have not been physically verified by the management during the yearbut there is a regular program of verification which in our opinion is reasonable havingregard to the size of company and the nature of its assets. No materials discrepancieswere noticed on such verification.

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 Immovable properties areheld in the name of the Company.

2. The inventory has been physically verified during the year by the management. In ouropinion the frequency of verification is reasonable. The company is maintaining properrecords of inventory. The discrepancies noticed on verification between the physicalstocks and the book records were not material.

3. In respect of the loans secured or unsecured granted by the Company to CompaniesFirms Limited Liability Partnership or other parties covered in the register maintainedpursuant to provision of section 189 of the Companies Act 2013- b) The Terms andConditions of the loans granted are not prejudicial to the interest of the Company.

c) In our opinion and according to the information and explanations given to us thereceipt of the Principal amount and interest are regular.

d) In respect of the said loans and interest thereon there are no overdue amounts.

4. In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act2013 in respect of Loans Investments Guarantees and Security.

5. According to the information and explanations given to us the Company has notaccepted any deposit from the public and hence the directives issued by the Reserve Bankof India and the provisions of section 73 74

75 & 76 of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable. Therefore Clause 3(v)of the CARO 2016 are not applicable to the Company.

6. The Central Government of India has not prescribed the maintenance of cost recordsunder sub section (1) of section 148 of the Companies Act 2013 for any of the products ofthe company.

7. a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees’ state insurance income taxsales tax wealth tax service tax duty of custom duty of excise value added tax cessand other material statutory dues applicable to it. According to the information andexplanations given to us no undisputed amounts payable in respects of the aforesaid dueswere outstanding as at 31st March 2016 for a period of more than six months from thedate they became payable.

b) Details of dues of Income Tax Sales Tax duty of Custom Wealth Tax Service Taxduty of Excise Value Added Tax and Cess which have not been deposited as on 31st March2017 on account of dispute are given below :

Sl. No. Name of Statute Nature of Dues Amount in ` Period Forum where dispute is pending
1. Income Tax Act 1961 Income Tax 2107350/- A.Y. 2012-13 CIT (Appeal) – 21 / Kolkata
2. Finance Act 1994 Service Tax 2681414/- A. Y. 2003-08 Commissioner of Service Tax – Kolkata
3. Income Tax Act 1961 Income Tax 1256340/- A.Y. 2013-14 CIT (Appeal) – 21 / Kolkata

8. According to the records of the company examined by us and the information andexplanations given to us we are of the opinion that the company has not defaulted inrepayment of dues to financial institutions banks and debenture holders.

9. The company has not raised any money by way of initial public offer or furtherpublic offer and Term Loan have been applied for the purposes for which they were raised.

10. In our opinion and according to the information and explanation given to us nomaterial fraud by the

Company or on the Company by its officers or employees has been noticed or reportedduring the year.

11. According to the information and explanation given to us and based on ourexamination of the records of the

Company the Managerial Remuneration paid by the Company has been paid or provided inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act.

12. The Company is not a Nidhi Company. Therefore the provisions of clause 3(xii) ofthe Order are not applicable to the Company.

13. According to the information and explanations given to us and based on ourexamination of records of the

Company transactions with the related parties are in compliance with Section 177 and188 of companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

14. According to the information and explanations given to us by the management thecompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review. Accordingly the provisions ofClause 3(xiv) of the Order are not applicable to the Company.

15. According to the audit procedure performed and the information and explanationsgiven to us by the management the company has not entered into any non-cash transactionswith directors or persons connected with him. Accordingly the provisions of Clause 3(xv)of the order are not applicable to the Company.

16. According to the audit procedures performed and the information and explanationgiven to us by the management the company is registered under Section 45-IA of theReserve Bank of India Act 1934.

For MANDAWEWALA & CO.
Chartered Accountants
Firm Reg. No. : 322130E
Place: Kolkata [CA. ANIL KR. MANDAWEWALA]
Dated: The 30th day of May 2017 Partner
055939 Membership No.

ANNEXURE – B TO AUDITORS’ REPORT

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 ParagonFinance Limited ("the Company") as of 31st March 2017 in conjunctionwith our audit of financial statements of the Company for the year ended on 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 Reportingissued 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 safeguardingof its 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 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 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 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany’s assets that could have a material 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 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 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 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants Of India.

For MANDAWEWALA & CO.
Chartered Accountants
Firm Reg. No. : 322130E
[CA. ANIL KR. MANDAWEWALA]
Place: Kolkata Partner
Dated: The 30th day of May 2017 Membership No. 055939