Pasupati Fincap Ltd.
|BSE: 511734||Sector: Financials|
|NSE: N.A.||ISIN Code: INE527C01010|
|BSE 00:00 | 22 Mar||Pasupati Fincap Ltd|
|NSE 05:30 | 01 Jan||Pasupati Fincap Ltd|
|BSE: 511734||Sector: Financials|
|NSE: N.A.||ISIN Code: INE527C01010|
|BSE 00:00 | 22 Mar||Pasupati Fincap Ltd|
|NSE 05:30 | 01 Jan||Pasupati Fincap Ltd|
To the Members of
PASUPATI FINCAP LIMITED
Report on the Financial Statement
We have audited the accompanying financial statements of PASUPATI FINCAP LIMITED HARYANA("the Company") which comprise the Balance Sheet as at March 31 2021 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
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 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.
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 there under.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts 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 financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence obtained by us in terms of the reports referred toin sub-paragraph (a) of the Other Matters paragraph below is sufficient and appropriateto provide a basis for our audit opinion on financial statements
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2021 and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to Note No. 6(a) &6 (b) of the financial statements as at 31March 2021 the Company advanced loans to related companies covered in the registermaintained u/s 189 and to others amounting to Rs.60814.00 (Previous Year Rs.8582697.00) including secured advances of Rs. NIL (Previous Year Rs. 3089150.00) aresubjected to confirmation and recoverability of the same could not be established.
Our opinion is not further qualified on these matters.
Report on the other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order. 2016 issued by the CentralGovernment of India in terms of sub-section (11) of Section 143 of the Act we give in the"Annexure - A" statement on the matters specified in paragraph 3&4 ofthe Order to the extent applicable.
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 appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Amendment Rules 2018.
e) On the basis of written representations received from the directors as on March 312021 taken on record by the Board of Directors none of the directors is disqualified ason 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 controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and
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) Amendment Rules 2017 inour opinion and to the best of our information and according to the explanations given tous:
i) As explained to us The Company does not have any pending litigation as on date ofbalance sheet.
ii) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii) There has been no delay in transferring amounts to the Investor Education andProtection Fund by the Company.
Annexure - A to the Auditors' Report
The Annexure referred to in paragraph 1 with the heading Report on other Legaland Regulatory Requirements' of our report of even date to the members of PASUPATIFINCAP LIMITED on the Financial Statements of the Company for the year ended 31stMarch 2021.
1. The company is not having any Fixed Assets in its books as on date of Balance sheetand hence this clause is not applicable to this company.
2. The company is not having any inventory to report in its books of account as on dateof Balance sheet and hence this clause is not applicable to this company.
3. According to the information and explanations given to us the Company has notgranted any secured or unsecured loan during the reporting period to the persons coveredin the register maintained under section 189 of the Act.
4. 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 loans investments guarantees and security.
5. The Company has not accepted any deposits from public.
6. According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under section 148(1) of the Act forany of the products or services rendered by the Company.
7. (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 income tax sales tax wealthtax service tax value added tax cess and other material statutory dues as applicablehave been generally regularly deposited during the year by the company with theappropriate authorities. Further no undisputed amounts payable in respect thereof wereoutstanding at the year-end for a period of more than six months from the date they becomepayable.
b) According to the information and explanations given to us there are no dues ofincome tax sales tax wealth tax service tax value added tax cess which have not beendeposited with the appropriate authorities on account of any dispute.
8. The Company has not defaulted in repayment of dues to financial institutions orbanks. There were no debentures outstanding during the year.
9. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) nor taken any term loan during the year.
10. According to information and explanations given to us no material fraud on or bythe Company has been noticed or reported during the course of our audit
11. According to information and explanations given to us the company did not paid ormade provision for payment of managerial remuneration for the reporting period.
12. The Company is not a Nidhi Company and therefore this clause is no applicable onit.
13. According to information and explanations given to us all transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.
14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Consequently thisclause is not applicable on it.
15. According to the information and explanations given to us and on the basis of ourexamination of the records of the company Company has not entered into any non-cashtransactions with directors or persons connected with him.
16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and therefore this clause is not applicable on it.
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 PASUPATIFINCAP LIMITED ("the Company") as of 31 March 2021 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
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.
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 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 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
(3) 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
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.
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 2021 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.