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Paramount Communications Ltd.

BSE: 530555 Sector: Engineering
NSE: PARACABLES ISIN Code: INE074B01023
BSE 00:00 | 24 Jun 10.77 0.12
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OPEN 10.62
PREVIOUS CLOSE 10.65
VOLUME 22423
52-Week high 24.60
52-Week low 9.63
P/E 25.64
Mkt Cap.(Rs cr) 209
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 10.62
CLOSE 10.65
VOLUME 22423
52-Week high 24.60
52-Week low 9.63
P/E 25.64
Mkt Cap.(Rs cr) 209
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Paramount Communications Ltd. (PARACABLES) - Auditors Report

Company auditors report

To

The Members of

PaRamOUnt cOmmUnicatiOnS limiteD

Report on the Standalone financial statements

Opinion

We have audited the accompanying standalone financial statement of PaRamOUntcOmmUnicatiOnS limiteD ("the Company") which comprise the Balance Sheet asat March 31 2021 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information(hereinafter referred to as the Standalone Financial Statements).

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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the as at 31 March 2021 and its profit stateof total comprehensive income its cashflows and the changes in equity for the year ended on that date.

Basis of Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Our responsibilitiesunder those Standards are further described in the Auditor’s Responsibilities for theAudit of the Standalone financial statements section of our report. We are independent ofthe Company in accordance with Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the standalone financial statements under the provisions of the Companies Act 2013 andthe Rule thereunder and we have fulfilled our 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 of our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report

Description of Key Audit Matter How our audit addressed the key audit matter
Provision of Doubtful Debts 1. We Obtain a detailed age analysis of the year end of debtors and test the analysis for a selection of the balances;
2. Obtain an analysis of the provision for doubtful debts;
3. Scrutinize the analysis and identify those debts which appear doubtful;
4. Discuss with management their reasons if any of these debts are not included in the provision for bad debts;
5. Perform further testing where any disputes exists;
6. Reach a final conclusion regarding the adequacy of the bad debts provision
Accuracy of Recognition Measurement Presentation and Disclosure of Revenue We assessed the company’s process to identify the impact of the new revenue accounting standard.
Impairment of Assets We perform the analytical procedure to assess the impairment loss and review the market value for impairment loss as per IND AS 36.

Information Other than the Standalone financial statements and auditor’s Reportthereon

The Company’s Board of Directors is responsible for the other information. Theother information comprises the information included in the Annual report but does notinclude the standalone financial statements and our auditor’s report thereon. TheAnnual Report is expected to be made available to us after the date of this Auditors’Report. Our opinion on the standalone financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with atements. st our audit of the standalone financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. 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 standalone financialstatement that and fair view and are free from material misstatement whether due to fraudor error.

In preparing the standalone financial statements management is responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting 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 also responsible for overseeing the Company’s financialreporting process.

Auditors’ Responsibility

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a 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 economic decisions ofusers taken on the basis of these standalone financial As part of an audit in accordancewith SAs we exercise professional judgment and maintain professional skepticismthroughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficientand 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 to designaudit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

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

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 give a true related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialand whether the standalone financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings reporting of theCompany and 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.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsfor the financial year ended March 31 2021 and are therefore the key audit matters. Wedescribe these matters in our auditor’s report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 the paragraph 3 and 4 of the Order 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 Change in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under Section 133 of the with Rule 7 of theCompanies (Accounts) Rules 2015;

(e) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct.

(f) With respect to the adequacy of the internal financial including any significantdeficiencies controls over financial the operating effectiveness of such controls referto 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 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 as at 31stMarch 2021 on its financial position in its standalone financial statements Refer Note No43.

ii. The Company did not have any long-term contracts including derivative contracts asat 31st March 2021.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended on 31stMarch 2021.

(h) The managerial remuneration for the year ended 31st March 2021 has beenpaid/ provided for by the Company to its directors in accordance with the provisions ofSection 197 read with Schedule V to the Act.

For P. BHOlUSaRia & cO.
CHARTERED ACCOUNTANTS
Firm Registration No: 000468N
Pawan Bholusaria
Partner
Place: New Delhi M.No.080691
Date: 26.06.2021 UDIN: 21080691AAAABE2936

anneXURe ‘a’ tO inDePenDent aUDitORS’ RePORt

(Annexure referred to in our report of even date to the members of ParamountCommunications Limited on the accounts for the year ended March 31 2021)

i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The verified have been physically

The discrepancies noticed on such verification were not material and have been properlydealt with in the books of account. In our opinion the frequency of verification isreasonable.

(c) The title deeds of immovable properties as disclosed in

Note 5 on Property Plant & Equipment to the financial statements are held in thename of the Company except for one free hold land having gross block and net block of `60417500/- which is yet to be registered transferred in the name of company. The sameis held in the name of erstwhile partnership firm Paramount Cable Corporation.

In respect of immovable property being Leasehold Land as shown in Note 6 Right of UseAssets the lease deed is in the name of the Company.

ii. The physical verification of inventory (excluding stocks with third parties) havebeen conducted at reasonable intervals by the Management during the year. In respect ofinventory lying with third parties these have substantially been confirmed by them. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material.

iii. The Company has not granted any loans secured or unsecured to Companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of the loans given and investments made to the extent applicable to thecompany. The company has not given any guarantees or provided any security in connectionwith the loan taken by others.

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. Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have by been the made Management andmaintained. during We the have year. not however made a detailed examination of therecords with a view to determine whether they are accurate or complete.

vii. a) According to the records of the Company and information and explanations givento us and the records of the Company examined by us the Company has been generallyregular in depositing the undisputed statutory dues including provident fund employeesstate insurance income tax Investor education and protection fund customs duty cessgoods and service tax and other material statutory dues applicable to it with theappropriate authorities. However there have been some delays in few cases.

b) There were no undisputed amounts payable in respect of provident fund employeesstate insurance income tax Investor education and protection fund customs duty cessgoods and service tax and other material statutory dues in arrears as at 31stMarch 2021 for a period of more than six months from the date they became payable.

c) According to the information and explanations given to us and according the recordsof the Company examined by us the particular of statutory dues which have not beendeposited as at 31st March 2021 on account of pending disputes are as follows:

Name of the Statute Name of the Due Amount ` Period to which the amount relates Forum where dispute is pending
Customs Act Customs Duty 1312721 F.Y. 2005-06 & 2006-07 CESTAT
Income Tax Act Income Tax 6478182 A.Y. 2017-18 CIT(A)

viii. In our opinion on the basis of books and records examine by us and according tothe information and expiations given to us the Company has not defaulted in repayment ofloans/ borrowings from Banks Financial Institutions Assets Reconstruction company andNon-Banking Finance Company during the year. The company does not have any borrowings fromdebenture holders or Government.

ix. The Company has not raised moneys by way of initial public offer (including debtinstruments) or term loans. However the Company has made preferential allotment of equityshares to promoters/ promoter group entities and the same were utilized for the purposefor 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 have we been informed of any such case by theManagement.

xi. The Company has paid/ 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. 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 standalone financial statements as required by theapplicable accounting Standard.

xiv. The Company has made preferential allotment of fully paid up Equity Shares (uponconversion of Warrants) during the year. The company has complied with the requirements ofsection 42 of the companies Act 2013 to the extent applicable. The amount raised wereused for the purposes for which the funds were raised.

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. According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India 1934.Accordingly provisions of clause 3 (xvi) of the Order are not applicable to the Company

For P. BHOlUSaRia & cO.
CHARTERED ACCOUNTANTS
Firm Registration No: 000468N
Pawan Bholusaria
Place: New Delhi Partner
Date: 26.06.2021 M.No.080691

anneXURe ‘B’ tO inDePenDent aUDitORS’ RePORt

Annexure referred to in our report of even date to the members of ParamountCommunications Limited on the accounts for the year ended 31st March 2021.

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 ParamountCommunications Limited ("the Company") as of 31st March 2021 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 and the components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India (ICAI). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 atements. st 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 procedures selected depend on the auditor’s judgment including the assessmentof the risks of material misstatement of the financial statements whether due to fraud orerror.

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 standalone financial statements for external purposes in accordancewith generally accepted accounting principles. A Company’s internal financial controlover financial 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 standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance 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

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 2021based on the internal control over financial reporting criteria established by the Companyand the components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the ICAI.

For P. BHOlUSaRia & cO.
CHARTERED ACCOUNTANTS
Firm Registration No: 000468N
Pawan Bholusaria
Place: New Delhi Partner
Date: 26.06.2021 M.No.080691

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