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Paramone Concepts Ltd.

BSE: 531364 Sector: IT
NSE: N.A. ISIN Code: INE005E01013
BSE 10:52 | 27 Jul 35.25 1.50
(4.44%)
OPEN

33.50

HIGH

35.45

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33.50

NSE 05:30 | 01 Jan Paramone Concepts Ltd
OPEN 33.50
PREVIOUS CLOSE 33.75
VOLUME 6367
52-Week high 36.20
52-Week low 9.00
P/E 7.06
Mkt Cap.(Rs cr) 53
Buy Price 34.50
Buy Qty 100.00
Sell Price 35.15
Sell Qty 25.00
OPEN 33.50
CLOSE 33.75
VOLUME 6367
52-Week high 36.20
52-Week low 9.00
P/E 7.06
Mkt Cap.(Rs cr) 53
Buy Price 34.50
Buy Qty 100.00
Sell Price 35.15
Sell Qty 25.00

Paramone Concepts Ltd. (PARAMONECONCEPT) - Auditors Report

Company auditors report

To the Members of Paramone Concepts Limited

(formerly known as Aqua Pumps Infra Ventures Limited)

Report on the Audit of Standalone Ind-AS Financial Statements

Opinion

We have audited the standalone Ind-AS financial statements of Paramone Concepts Limited(formerly known as Aqua Pumps Infra Ventures Limited) which comprise the balance sheet asat March 312020. and the statement of Profit and Loss (including other comprehensiveincome) statement of changes in equity and statement of cash flows for the year thenended and notes to the Ind AS financial statements including a summary of significantaccounting policies and other explanatory information (hereinafter referred to as"the Ind AS financial statements'').

In our opinion and to the best of our information and according to the explanationsgiven to us. the aforesaid Ind AS financial statements give the information required bythe Companies Act. 2013. as amended ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 312020. and loss and othercomprehensive income changes in equity and its cash flows for the year then ended.

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 IndAS Financial 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 together with the ethical requirements that are relevant to our audit of the Ind ASfinancial statements under the provisions of the Companies Act. 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements for the financial year endedMarch 312020. These matters were addressed in the context of our audit of the Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Key Audit Matters How our audit addressed the key audit matter
Revenue from contracts with customers
(described in Note 2 (J) of the Ind AS financial statements)
Revenue from contracts with customers is recognized when services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. We assessed the Company's process to identify the impact of adoption of new revenue accounting standard.
We assessed the design and tested the operating effectiveness of internal controls related to revenue recognition discounts and rebates.
The Company is engaged in business of multi-expertise consulting operations and related activities. It has developed procedures to record the revenue on the basis of the movement of the cargo and revenue accrues as per Indian Accounting Standard 115. We performed sample tests of individual sales transaction and traced to related documents considering the terms of performance We tested cut-off procedures with respect to year-end sales transactions made.
Due to different terms with different customers and transaction price there is a risk that the revenue or discounts or rebates; might not be recorded correctly. We also performed monthly analytical procedures of revenue by streams to identify any unusual trends.
Revenue is a key parameter to ascertain the Company's performance. The Company focuses on revenue as a key performance measure which could create an incentive for revenue to be recognized before the risk and rewards have been transferred. Based on our combination of procedures involving enquiry and observation performance and inspection of evidence in respect of operation of these controls we have concluded that the revenue has been recognized in accordance with the relevant accounting standards
Accordingly due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 'Revenue from contracts with customers' it has been considered to be a key audit matter in our audit of these financial statements.

Information Other than the Standalone Financial Statements and Auditors' Report Thereon

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon.

Our opinion on the Ind AS financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements our responsibility isto read the other information and. in doing so. consider whether the other information ismaterially inconsistent with the Ind AS financial statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated. If. based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Ind ASFinancial Statements

The Company's Board of Directors are responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Ind AS financial statementsthat give a true and fair view of the state of affairs profit/loss and othercomprehensive income 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. The respective Board of Directors of the companyare responsible for the maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding of the assets of the Company and for preventing anddetecting frauds and other irregularities; the selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind-AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS 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 with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud 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 Ind AS 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 Ind AS 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 todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(l)of the Companies Act. 2013. we are also responsible for expressing our opinion on whetherthe Company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and. based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the ability ofthe Company to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the Ind AS financial statements or. if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance of the Company regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

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 Ind AS financial statements forthe year ended March 31.2020 and are therefore the key audit matters. We describe thesematters in our auditor's report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order. 2016 ("the Order")issued by the Central Government in terms of section 143 (11) of the Act we give in the‘Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

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 (including other comprehensiveincome) the Statement of Cash Flow and the Statement of Changes in Equity dealt with bythis Report are in agreement with the relevant books of account;

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act; read with Companies (IndianAccounting Standards) Rules 2015. as amended;

e) On the basis of the written representations received from the directors of thecompany as on March 31.2020 taken on record by the Board of Directors none of thedirectors are disqualified as on March 312020 from being appointed as a director in termsof Section 164 (2) of the Act;

0 With respect to the adequacy and operating effectiveness of the internal financialcontrols over financial reporting with reference to the Ind AS financial statements of theCompany refer to our separate Report in "Annexure A" to this report:

g) In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act.

h) 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 does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at March 31.2020.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 312020.

For Agarwal Desai & Shah
Chartered Accountants
Firm Registration Number: 124850W
Sd/-
Rishi Sekhri
Place : Mumbai Partner
Date : June 26. 2020 Membership Number: 126656
UDIN : 20126656AAAANS5486

Annexure A to Independent Auditors' Report

Referred to in paragraph 2(f) under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of ParamoneConcepts Limited (formerly known as Aqua Pumps Infra Ventures Limited)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act

1. We have audited the internal financial controls over financial reporting of ParamoneConcepts Limited (formerly known as Aqua Pumps Infra Ventures Limited) ("theCompany") as of March 312020 in conjunction with our audit of the financialstatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Board of Director's are 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 FinancialReporting" issued by the Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls which were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial Information as required under the Companies Act 2013.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these financial statements based onour audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting ("the Guidance Note") andthe Standards on Auditing as specified under Section 143( 10) of the Companies Act. 2013.to the extent applicable to an audit of internal financial controls and both issued bythe Institute of Chartered Accountants of India (ICAI). Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting with reference to these financial statements 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 with reference to thesefinancial statements and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting with reference to these financial statementsassessing 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.

5. We believe that the audit evidence we have obtained is sufficient and appropnate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting with reference to these financial statements.

Meaning of Internal Financial Controls Over Financial Reporting with Reference to theseFinancial Statements

6. A company's internal financial control over financial reporting with reference tothese financial statements is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles A company'sinternal financial control over financial reporting with reference to these financialstatements includes those policies and procedures that:

(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(ii) 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 authorisations of management and directors of the company: and

(iii) provide reasonable assurance regarding prevention or timely detection ofunauthorised 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 withReference to these Financial Statements

7. Because of the inherent limitations of internal financial controls over financialreporting with reference to these financial statements including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to these financialstatements to future periods are subject to the risk that the internal financial controlover financial reporting with reference to these financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate

Opinion

8. In our opinion and to the best of our Information and according to the explanationsgiven to us. the Company has. in all material respects an adequate internal financialcontrols system over financial reporting with reference to these financial statements andsuch internal financial controls over financial reporting with reference to thesefinancial statements were operating effectively as at March 31 2020. 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 Agarwal Desai & Shah
Chartered Accountants
Firm Registration Number: 124850W
Sd/-
Rishi Sekhri
Place : Mumbai Partner
Date : June 26. 2020 Membership Number: 126656
UDIN : 20126656AAAANS5486

Annexure B to Independent Auditors' Report

Referred to in paragraph 1 under the heading "Report on Other Legal and RegulatoryRequirements" of our report of even date to the members of Paramone Concepts Limited(formerly known as Aqua Pumps Infra Ventures Limited)

I. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) The property plant and equipment are physically verified by the Managementaccording to a phased programme designed to cover all the items over a period of 3 yearswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. No material discrepancies have been noticed on such verification.

(c) The title deeds of immovable properties as disclosed in Note 3 on Property. Plantand Equipment to the financial statements are held in the name of the Company.

ii. The company is in the business of rendering services and consequently does nothold any inventory. Therefore the provisions of clause 3(ii) of the said order are notapplicable to the company.

iii. The Company has granted unsecured loan to the subsidiary company covered in theregister maintained under Section 189 of the Act.

a) In respect of the aforesaid loan the terms and conditions under which such loan wasgranted are not prejudicial to the Company's interest.

b) In respect of the aforesaid loan the same is repayable on demand and hence theschedule of repayment of principal has not been stipulated.

c) In respect of the aforesaid loan there is no amount which is overdue.

iv. The company has not granted any loans or made any investments or provided anyguarantees or securities to the parties covered under Section 185 and 186. Therefore theprovisions of Clause 3(iv) of the said Order are not applicable to the Company.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73.74.75 and 76 of the Act and the Rules framed there under to the extentnotified.

vi. The Central Government of India has not specified the maintenance of cost recordsunder sub-section (1) of Section 148 of the Act for any of the products of the Company.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us. in

our opinion the Company is regular in depositing the undisputed statutory duesincluding provident fund employees' state insurance income tax sales tax service tax.goods & service tax. duty of customs duty of excise value added tax. and othermaterial statutory dues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income tax. sales tax. service tax. goods& service tax. duty of customs duty of excise or value added tax or cess which havenot been deposited on account of any dispute.

viii. 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 loans or borrowingsto any financial institution or banks at the balance sheet date. The Company does not haveany loans or borrowings from Government. Further the Company has not issued anydebentures.

ix. During the year the Company has not raised moneys by way of initial public offeror further public offer (including debt instruments). In our opinion and according to theinformation and explanations given to us. the term loans have been applied by the Companyfor the purposes for which they were raised.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us. we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor we have been informed of any such case by theManagement.

xi. The Company has paid/ provided 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. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under the IndianAccounting Standard (lnd*AS) 24. "Related Party Disclosures" specified underSection 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) of the Order are not applicable to the Company.

xv. The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For Agarwal Desai & Shah
Chartered Accountants
Firm Registration Number: 124850W
Sd/-
Rishi Sekhri
Place: Mumbai Partner
Date : June 26.2020 Membership Number: 126656
UDIN :20126656AAAANR1348

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