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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 5.20
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 5.20
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 Ltd

Report on the Financial Statements

We have audited the accompanying standalone financial statements of Paras PetrofilsLtd which comprise the Balance Sheet as at 31st March 2018 the Statement of Profitand loss account and Cash Flow Statement for the year ended and a summary of significantaccounting policy and notes to the financial statements.

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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances but not for the purpose forexpressing an opinion on the effectiveness of the entity's internal control. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by management as well as evaluating the overallpresentation of the financial statements.

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

Opinion

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

(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2018.

(b) in the case of the Statement of Profit and Loss Account of the profit for theperiod 31st March 2018 on that date; and

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Going Concern

We draw your attention to Note No. 2.3 in the Financial Statements which raisedsubstantial doubt on the assumption of going concern concept in preparation of financialstatement for the reasons that ;

(i) The company has stopped all its business activities for more than two years.

(ii) Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act 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 further 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 appears from our examination of such books;

(iii) the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

(iv) in our opinion the aforesaid standalone financial statements dealt with by thisreport comply with the Accounting Standards specified under section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.

(v) on the basis of the written representations received from the directors as on 31stMarch 2018 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31st March 2018 from being appointed as a director interms of Section 164(2) of the Act.

(vi) With respect to the adequacy of the internal financial over financial reporting ofthe company and the operating effectiveness of such controls refer to our separate reportin Annexure "B" and

(vii) In our opinion and to the best of our information and according to theexplanations given to us we report as under with respect to other matters to be includedin the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014

(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.

For and on behalf of
For R M R & CO.
Chartered Accountants
ICAI Reg.No.106467W
CA M M Modani
Place : Surat Partner
Date : 25th May 2018 Membership No. 043384

ANNEXURE A REFFERED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON THEIR LEGAL ANDREGULARITY REQUIREMENT" OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF THE PARASPETROFILS LTD FOR THE YEAR ENDED 31st March 2018

(i) In respect of fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets of the company have been physically verified by the management atthe end of the year and we are informed that no material discrepancies between bookrecords and the physical inventory have been noticed.

(c) The title deed of immoveable properties are held in the name of company.

(ii) In respect of inventories:

(a) The company do not possess any inventory therefore point 3(ii) of the said orderis not applicable to the company.

(iii) The company has not granted any secured or unsecured loan to the companies andfirms listed in the register maintained under section 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 provision of section 185 and 186 of the companies Act 2013in respect of loans investments guarantees and security. (Refer Note 2.16)

(v) According to the information and on the basis of our examination of records thecompany has not accepted any deposit from the public. No order has been passed by thecompany law board or the national company law tribunal or the Reserve Bank of India or anyother tribunal.

(vi) According to the information and explanations given to us by the company themaintenance of cost records has not been prescribed by the Central Government underSection 148 (1) of the companies Act 2013 for the products/servicesmanufactured/provided by the company.

(vii) a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax wealth tax service tax duty of customs value added tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities.

b) According to the information and explanations given to us there are no materialdues of wealth tax duty of customs and cess which have not been deposited with theappropriate authorities on account of any dispute except Value Added Tax for F.Y.2016-17 of Rs.

16.87 lakhs.

c) As on 31.03.2018 according to the record of the company the following disputeddues have not been deposited with appropriate authorities.

Name of the Statute & F.Y. Nature of Due Amount (in lacs) Form where dispute is pending
Gujarat Sales Tax Act 2002-2003 Sales Tax 83.11 Joint sales Tax Commissioner - Surat
Gujarat Sales Tax Act 2001-2002 Sales Tax 19.86 Joint sales Tax Commissioner - Surat
Gujarat Sales Tax Act 2002-2001 Sales Tax 1.73 Joint sales Tax Commissioner - Surat
Central Excise And Custom Act 2005-2006 Excise Duty 1.98 Joint sales Tax Commissioner - Surat
Central Sales Tax Act 2012-13 Sales Tax 25.42 Joint sales Tax Commissioner - Surat

(viii) The company hasn't made any default in repayment of loans or borrowing to afinancial institution bank Government or dues to debenture holders.

(ix) The company doesn't raise any money by way of initial public offer or furtherpublic offer (including debt instruments)

(x) Neither company has done any fraud nor by its officers or employees so nothing tobe disclosed separately.

(xi) Managerial remuneration has not been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies

(xii) Company is not a Nidhi Company hence nothing to be disclosed for any provisionsapplicable on Nidhi Company.

(xiii) All transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards;

(xiv) The company hasn't made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year.

(xv) The company hasn't entered into any non-cash transactions with directors orpersons connected with him.

(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India

For and on behalf of
For R M R & CO.
Chartered Accountants
ICAI Reg.No.106467W
CA M M Modani
Place : Surat Partner
Date : 25th May 2018 Membership No. 043384

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 Ltd as of 31st March 2018 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'). 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 safeguarding ofits 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 "GuidanceNote") and the Standards on Auditing issued by ICAI and deemed tobe prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial 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 2018 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.106467W
CA M. M. Modani
Place : Surat Partner
Date : 25th May 2018 Membership No. 043384