The Members of
Patel Integrated Logistics Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS Financial Statements of PatelIntegrated Logistics Limited ("the
Company") which comprise the Balance Sheet as on March 31 2021 the Statement ofProfit and Loss (including Other
Comprehensive Income) the Cash Flow Statement and the Statement of Changes in Equityfor the year then ended and notes to the standalone FinancialStatementsincluding significantaccountingpolicies and other explanatory summaryof information (hereinafter referred to as"Standalone Financial Statements")
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind
AS Financial Statements give the information required by the Companies Act 2013 asamended ("the Act") in the manner so required and give a true and fair view inconformity with accounting principles generally accepted in India of the state of affairsof the Company as at March 31 2021 its profit total for the year ended on that date.
Basis of opinion
We conducted our audit in accordance with Standards on Auditing (SAs) specified undersection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with the"Code of Ethics" issued by the Institute of Chartered Accountants of Indiatogether with ethical requirements that are relevant to our audit of the StandaloneFinancial Statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on the Standalone Financial Statements.
Emphasis of Matters
Attention is drawn to Note No.46 to the Standalone financials results which describesthat the extent to which the COVID-19 Pandemic will impact the Company's results in nextfinancial year will depend on future developments which are highly uncertain. Further wewish to highlight that due to the COVID-19 induced restrictions on physical movement andstrict timelines the entire audit team could not visit the offices / various branches ofthe Company for undertaking the procedures as prescribed under ICAI issued Standards onAuditing including but not limited to Inspection examination and verification of theoriginal documents of invoices legal agreements bank accounts statements / loan accountsstatements and files. Participation in the year end activity of physical verification ofCash and Property Plant and Equipment carried on by the management as on March 31 2021however we have performed alternate audit procedures / reconciliation of such items toobtain sufficientappropriate audit evidence about existence of Cash and Our opinion is notmodified in respect of these matters.
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.
We have determined the matters described below to be the key audit matters to becommunicated in our report.
a) Revenue Recognition
The Company enters into contracts with customers for the provision of services.Revenue from these contracts is recognized in accordance with the requirements of Ind AS115 Revenue from Contracts with Customers (as described in note 1B(i) of the stand-aloneInd AS financial statements)
Auditors' Responses Principal Audit Procedures
Assessing the Company's revenue recognition accounting policies in accordance with IndAS 115 Revenue fromContracts with Customers.
We obtained an understanding of management's internal controls over the revenue processand evaluated whether these have been designed in line with the Company's accountingpolicies
We tested relevant internal controls for revenue recognition.
We performed test of details for the selected sample of revenue transactions during theyear and traced these to underlying supporting documentation / evidence.
b) Evaluation of disputed claims against the company under various non-taxmatters The company has disputed claims against it which are pending at variouscourts/forums and are various stages in the judicialprocess.Themanagementhasexercisedsignificantjudgement in assessing the possible outflow insuch matters and accordingly an amount of Rs.62592675/- has been disclosed in Note 34for which the company is contingently liable while possibility of any outflow in thesematters has been considered remote.
Auditors' Responses Principal Audit Procedures
Read and analysed key correspondences internal/external legal opinions/consultationsby management for key disputed non-tax matters.
Reviewed and verified other legal pronouncements wherever available in similar mattersin the case of the company/ other corporates
Discussed with appropriate senior management and evaluated management's underlying keyassumptions in estimating the provisions; and
Assessed management's estimate of the possible outcome of the disputed cases and reliedon the management judgements in such cases.
Information other than the Standalone Financials Statements and Auditors' ReportThereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Directors' Report including Annexures to Directors' ReportCorporate Governance and Shareholder's Information but does not include the standalonefinancialstatements and our auditor's report thereon. The Other information is expected tobe made available to us after the date of this Auditors' report.
Our opinion on the standalone financialstatements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the financialstatementsourresponsibilityistoreadtheotherinformationidentifiedabove when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. When we read the other information if weconclude that there is a material misstatement therein we are required to communicate thematter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial 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 of these Standalone Ind AS FinancialStatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of
Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards
(Ind AS) referred specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2015. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone Ind AS Financial Statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.
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.
The Board of Directors are responsible for overseeing the Company's financial reportingprocess.
Auditor's Responsibility for the Audit of Standalone 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.
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 financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is to provide a basis for our opinion. The risk ofnot detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations 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 theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by 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 related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial disclosures are inadequate to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor's report. However futureevents or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our
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 withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
Report on Other Legal and Regulatory Requirements
1. 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 Act we give in the "Annexure A" a statement on themattersspecifiedinparagraphs 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 purpose 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 including Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;
d) In our opinion the aforesaid Standalone Ind AS Financial Statement comply with theIndian Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2015;
e) On the basis of written representations received from the directors as on March 312021 and 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 controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in"Annexure B"; and
g) In our Opinion the managerial remuneration for the year ended March 31 2021 hasbeen paid/provided by the company to its directors in accordance with the provision ofsection 197 read with Schedule V to 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 opinion and to the best of our information andaccording to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Ind AS
Financial Statements Refer Note 34 to the Standalone Financial Statements.
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 intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company.
"ANNExURE A" FORMING A PART OF INDEPENDENT AUDITOR'S REPORT
The Annexure referred to in Independent Auditor's Report to the members of the Companyon the Standalone Ind AS Financial
Statements for the year ended March 31 2021 we report that:
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of
Property Plant and Equipment (fixed assets).
(b) The company has a regular program for physical verification of its fixed assets bywhich its fixed assets are verified in a phased manner. In our opinion this periodicityof physical verification is reasonable having regard to the size of the company and thenature of its assets. However there were certain fixed assets which were not verifiedduring the year as planned due to outbreak of COVID-19 pandemic. As represented by themanagement these will be covered for verification in the subsequent period. According tothe information and explanations given to us no material discrepancies were noticed onverification of the fixed assets.
(c) According to the information and explanations given to us and the records examinedby us and based on the examination of registered sale deed provided to us we report thatthe title deeds comprising all the immovable properties of land and building owned by thecompany are held in its name. However some of the immovable properties are mortgagedagainst the bank loan. In respect of immovable properties of land that have been taken onlease and disclosed as property in the Standalone Ind AS Financial Statements the leaseagreements are in the name of the company where the company is lessee in the agreement.
ii) In view of there being no requirement to carry and hold any stock of inventoriestherefore the provisions of clause (ii) of the order is not applicable to the company.
iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained u/s 189of the Act therefore the provision of sub - clause (a) (b) and (c) of the Order is notapplicable to the Company.
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 Act with respectto loans and investments made.
v) The Company has complied with the provisions of Sections 73 to 76 of the Act andthe companies (Acceptance of Deposits) Amendment Rules 2015 with regards to the depositsaccepted from public. According to the information and explanation given to us no orderunder the aforesaid sections has been passed by the company Law Board or National CompanyLaw Tribunal or Reserve Bank of India or any court or any other tribunal against theCompany.
vi) The Central Government has not prescribed the maintenance of cost records undersub- section (1) of section 148 of the
Act for any of the activities of the Company.
vii) According to the information and explanations given to us and on the basis of ourexaminations of the books of accounts and records of the Company amount deducted/accruedin the books of accounts in respect of undisputed statutory dues including Provident FundIncome Tax Goods and Service Tax Duty of Customs Duty of Excise Cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of the above were in arrears as at March 31 2021 for the period morethan six months from the date they become payable. According to the information andexplanations given to us there are no material dues of customs income tax duty ofexcise Goods and service tax which have not been deposited with appropriate authoritieson account of any dispute.
viii) In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of loan to a financial institutions banks andGovernment and dues to debenture holders.
ix) Based upon the audit procedures performed and according to the information andexplanations given to us monies has been raised by way of right issue. The proceeds fromthe Right Issue has been credited to Company's accounts on March 28 2021 and hence samehave not yet been utilized except for paying out Right Issue related expenses only.
x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year.
xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the managerial remuneration has been paid orprovided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Act.
xii) In our opinion and according to the information and explanation given to us theCompany is not a Nidhi Company. Therefore this clause of the Order is not applicable tothe Company.
xiii) According to the information and explanations given to us and based on ourexamination of records of the Company transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and the details of suchtransactions have been disclosed in the Standalone Ind AS Financial Statements as requiredby the applicable accounting standards. xiv) According to the information and explanationsgiven to us and based on our examination of records of the Company the Company has notmade any preferential allotment by conversion of share warrants into equity shares orprivate placement of shares or fully or partly convertible debentures during the yearunder review.
xv) According to the information and explanations given to us and based on ourexamination of records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with him. Therefore this clause of theOrder is not applicable to the Company.
xvi) In our opinion and according to the information and explanations given to us thecompany is not required to be registered under section 45 IA of Reserve Bank of India Act1934. Therefore this clause of the Order is not applicable to the
"ANNExURE B" FORMING PART OF INDEPENDENT AUDITOR'S REPORT
"Annexure B" forming part of Independent Auditor's Report on the StandaloneFinancial Statements of Patel Integrated Logistics Limited Report on the InternalFinancial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act").
We have audited the internal financial controls over financial reporting of PatelIntegrated Logistics Limited ("the Company") as of March 31 2021 in conjunctionwith our audit of the Standalone Financial Statements of the Company for the year ended onthat 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the
Company based on our audit. We conducted our audit in accordance with the Guidance Noteon Audit of Internal Financial
Controls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both issued by the Institute of
Chartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the Standalone Ind AS Financial Statements whether dueto fraud or error.
We believe that the audit evidence we have obtained is sufficient and the Company'sinternal financial controls system over 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 Standalone Ind AS Financial Statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of StandaloneInd AS Financial Statements in accordance with generally accepted accounting principlesand that receipts and expenditures of the company are being made only in accordance withauthorizations of management of the company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the company's assets that could have a material effect on the Standalone Ind ASFinancial 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 financialcontrols systemover financial adequateinternal as at March 31 2021 based controlsoverfinancialreportingwere operating effectively reportingandsuchinternalfinancial on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the
Institute of Chartered Accountants of India.
For Hitesh Shah & Associates.
Date: May 26 2021
UDIN : 21040999AAAADX2578