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Paras Petrofils Ltd.

BSE: 521246 Sector: Industrials
NSE: PARASPETRO ISIN Code: INE162C01024
BSE 00:00 | 04 Mar Paras Petrofils Ltd
NSE 05:30 | 01 Jan Paras Petrofils Ltd
OPEN 0.26
PREVIOUS CLOSE 0.26
VOLUME 23693
52-Week high 0.27
52-Week low 0.00
P/E 8.67
Mkt Cap.(Rs cr) 9
Buy Price 0.26
Buy Qty 17194.00
Sell Price 0.27
Sell Qty 100.00
OPEN 0.26
CLOSE 0.26
VOLUME 23693
52-Week high 0.27
52-Week low 0.00
P/E 8.67
Mkt Cap.(Rs cr) 9
Buy Price 0.26
Buy Qty 17194.00
Sell Price 0.27
Sell Qty 100.00

Paras Petrofils Ltd. (PARASPETRO) - Auditors Report

Company auditors report

TO

The Members of PARAS PETROFILS LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of PARAS PETROFILS LIMITED whichcomprise the Balance Sheet as at 31st March 2022 the Statement of Profit and lossaccount (including other comprehensive income) statement of change in Equity Cash FlowStatement for the year ended a summary of significant accounting policy and otherexplanatory 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 withIndian Accounting Standards prescribed under section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended ("Ind AS") the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2022 profit other comprehensive income change in equity and its cash flows forthe year ended on that date.

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 theFinancial Statements section of our report We are independent of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India togetherwith the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Companies Act 2013 and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate 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 financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

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 other comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the accounting Standards specified under section 133 of the Act Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 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 theCompany'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 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 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 financial statements.

Report on Other Legal and Regulatoiy Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure A statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

As required by section 143(3) of the Act we report that:

(i) 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.

(ii) 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

(iii) 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

(iv) 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.

(v) on the basis of the written representations received from the directors as on 31stMarch 2022 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31st March 2022 from being appointed as a director interms of Section 164(2) of the Act

(vi) 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".

(vii) With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rule 2014; in our opinion and to thebest of our information and according to the explanations given to us;

(a) The Company does not have any pending litigations which would impact its financialposition.

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

(c) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company

As per our Report of even date
For R M R & CO.
Chartered Accountants
ICAI Reg.No.106467W
CA M. M. Modani

Partner

Place : Surat

Membership No. 043384

Date : 30th May 2022 UDIN: 22043384AJXOCB197 9

ANNEXURE-A INDEPENDENT AUDITOR'S REPORT

REFFERED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON THEIR LEGAL AND REGULATIRYREQUIREMENT" OF OUR REPORT ON EVEN DATE TO THE MEMBERS OF PARAS PETROFILS LIMITED FORTHE YEAR ENDED ON 31st March 2022.

(i) In respect of the Company's Property Plant and Equipment and Intangible Assets:

a) (A) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment and relevant detailsof right-of-use assets.

(B) The Company does not have intangible assets and hence this clause is notapplicable.

b) The Company has a program of physical verification of Property Plant and Equipmentand right-of-use assets at reasonable interval having regard to the size of the Companyand the nature of its assets. According to the information and explanations given to usno material discrepancies were noticed on such verification.

c) The title deeds of all the immovable properties (other than properties where thecompany is the lessee and the lease agreements are duly executed in favour of the lessee)disclosed in the financial statements are held in the name of the company.

d) The Company has not revalued any of its Property Plant and Equipment (includingright-of-use assets) and intangible assets during the year.

e) No proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

(ii) The Company does not have any inventory and hence reporting under clause 3(ii)(a)of the Order is not applicable.

(iii) The Company has not been sanctioned working capital limits in excess of ^ 5crore in aggregate at any points of time during the year from banks or financialinstitutions on the basis of security of current assets and hence reporting under clause3(ii)(b) of the Order is not applicable.

(iii) During the year the company has not made investments in not provided anyguarantee or security but has granted loans or advances in the nature of unsecured loansto companies firms Limited Liability Partnerships and any other parties as mentioned inpoint no. 2.16 of Notes to Financial Statements.

(a) During the year the company has provided loans or advances in the nature of loansor stood guarantee or provided security to any other entity [not being companies whoseprincipal business is to give loans]-

(A) The company has not provided any such loans or advances and guarantees or securityto subsidiaries joint ventures and associates;

(B) The company has provided loan amounting to Rs. 5.295 crores duringthe year and balance outstanding at the balance sheet date with respect to such loans oradvances and guarantees or security to parties other than subsidiaries joint ventures andassociates is Rs. 4.690 crores;

(b) The investments made guarantees provided security given and the terms andconditions of the grant of all loans and advances in the nature of loans and guaranteesprovided are not prejudicial to the company's interest;

(c) As the loan granted is in the nature of loans either repayable on demand or withoutspecifying any terms or period of repayment hence clause 3 (iii) (c) to (e) of the Orderis not applicable.

(d) The company has granted loans or advances in the nature of loans either repayableon demand or without specifying any terms or period of repayment amounting to Rs. 1397.44crores which is 100% to the total loans granted while the company has not granted anyloans or advances to Promoters related parties as defined in clause (76) of section 2 ofthe Companies Act 2013; Refer point no. 2.16 of Notes to Financial Statements.

(iv) The company has not given any loans has not made any investments and not providedany guarantees or security as mentioned under provisions of section 185 and 186 of theCompanies Act 2013 hence reporting under clause 3(iv) of the Order is not applicable.

(v) The Company has not accepted any deposit or amounts which are deemed to bedeposits. Hence reporting under clause 3(v) of the Order is not applicable.

(vi) In our opinion and according to information and explanation given to us themaintenance of cost records has not been specified by the Central Government undersub-section (1) of section 148 of the Companies Act 2013 for the business activitiescarried out by the Company. Hence reporting under clause 3(vi) of the Order is notapplicable to the Company.

(vii) a) The company is regular in depositing undisputed statutory dues includingprovident fund Employee's state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and any other material statutory duesapplicable to the appropriate authorities.

b) According to the information and explanations given to us no undisputed amountspayable in respect of income tax wealth tax sales tax custom duty service tax exciseduty and cess were in arrears as at 31st March 2022 for a period of more than six monthsfrom the date they become payable.

(viii) There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act 1961 (43 of 1961).

(ix) a) The company has not made any default in repayment of loans or other borrowingsor in the payment of interest thereon to any financial institution bank Government ordues to debenture holders or to any lender.

b) The Company has not been declared wilful defaulter by any bank or financialinstitution or government or any government authority.

c) On an overview examination of the financial statement it is observed that theCompany has not raised any funds from the term loans and hence reporting under clause3(ix)(c) of the Order is not applicable.

d) The Company has not raised any on short-term funds during the year and hencereporting under clause 3(ix)(d) of the Order is not applicable.

e) The Company do not have any subsidary and hence reporting under clause 3(ix)(e.) ofthe Order is not applicable.

f) The Company do not have any subsidary and also do not hold any securities in jointventure or associate companies and hence reporting under clause 3(ix)(f) of the Order isnot applicable.

(x) a) The Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year and hence reporting under clause3(x)(a) of the Order is not applicable.

b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause 3(x)(b) of the Order is not applicable.

(xi) a) No fraud by the Company and no material fraud on the Company has been noticedor reported during the year.

b) No report under sub-section (12) of section 143 of the Companies Act has been filedin Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and upto the date of this report

c) No such whistle-blower complaints were received during the year by the company andhence reporting under clause 3(xi)(c) of the Order is not applicable.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

(xiii) In our opinion the Company is in compliance with Section 177 and 188 of theCompanies Act 2013 with respect to applicable transactions with the related parties andthe details of related party transactions have been disclosed in the standalone financialstatements as required by the applicable accounting standards.

(xiv) In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its business.

(xv) In our opinion during the year the Company has not entered into any non-cashtransactions with its Directors or persons connected with its directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.

(xvi) a) In our opinion the Company is not required to be registered under section45-1A of the Reserve Bank of India Act 1934. Hence reporting under clause 3(xvi)(a) (b)and (c) of the Order is not applicable.

b) In our opinion there is no core investment company within the Group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016) and accordingly reportingunder clause 3(xvi)(d) of the Order is not applicable.

(xvii) The Company has not incurred cash losses during the financial year covered byour audit and the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors of the Company duringthe year.

(xix) On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

(xx) Compliance in regards to second proviso to sub-section (5) of section 135 of theCompanies Act 2013 is not applicable to the company and reporting under clause 3(xx)(a)& (b) of the Order is not applicable.

As per our Report of even date
For R M R & CO.
Chartered Accountants
ICAI Reg.No.106467W
CA M. M. Modani

Partner

Place : Surat

Membership No. 043384

Date : 30th May 2022 UDIN: 22043384AJXOCB1979

ANNEXURE - "B" TO THE 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 PARASPETROFILS LIMITED as of 31st March 2022 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

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'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including 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 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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 31 March 2022 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 and on behalf of
For R M R & CO.
Chartered Accountants
ICAI Reg.No.l06467W
CAM. M. Modani

Partner

Place : Surat

Membership No. 043384

Date : 30th May 2022 UDIN: 22043384AJXOCB1979

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