|BSE: 532742||Sector: Agri and agri inputs|
|NSE: N.A.||ISIN Code: INE111F01016|
|BSE 00:00 | 09 Dec||8393.90||
|NSE 05:30 | 01 Jan||Paushak Ltd|
|Mkt Cap.(Rs cr)||2,585|
|Mkt Cap.(Rs cr)||2585.32|
Paushak Ltd. (PAUSHAK) - Auditors Report
Company auditors report
To the Members of Paushak Limited
Report on the Audit of the Financial Statements
We have audited the financial statements of Paushak Limited whichcomprise the Balance Sheet as at 31st March 2022 and the Statement of Profitand Loss including Other Comprehensive Income Statement of Changes in Equity andStatement of Cash Flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 (The Act) in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2022 and its profit totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities forthe Audit of the Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence obtained byus is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. There is no key audit matter to communicate in our report.
Information Other than the Financial Statements and Auditor'sReport thereon
The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexures to Board's ReportCorporate Governance and Shareholder's Information but does not include the financialstatements and our auditor's report thereon.
Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.
We have been provided the aforesaid reports and based on the work wehave performed we did not observe any material misstatement of this other information andaccordingly we have nothing to report in this regard.
Management's Responsibility for the Standalone FinancialStatements and for Internal Financial control over Financial Reporting
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements that give a true and fair view of the financialposition and financial performance including other comprehensive income changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the accounting standards (Ind AS) specified under section 133of the Act read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and 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 statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
The Company's Management is responsible for establishing andmaintaining internal financial controls based on essential components of the internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. 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 Act.
In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.
Auditor's Responsibilities for the Audit of the FinancialStatements
We conducted our audit in accordance with the Standards on Auditingspecified under section 143(10) of the Act and the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting. Our objectives are to obtain reasonableassurance about whether the financial statements as a whole are free from materialmisstatement whether due to fraud or error and to issue an auditor's report thatincludes our opinion. Reasonable assurance is a high level of assurance but is not aguarantee that an audit conducted in accordance with SAs will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesefinancial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the Company has adequate internal financial controls system in placeand the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists 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 financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
Meaning of Internal Financial Controls Over Financial Reporting
A Company's internal financial controls over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure "A" a statementon the matters specified in paragraphs 3 and 4 of the 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with theAccounting Standards (Ind AS) specified under Section 133 of the Act read with relevantrules issued thereunder.
(e) On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directorsnone of the directors is disqualified as on 31 March 2022 from being appointed as adirector in terms of Section 164 (2) of the Act.
(f) In our opinion considering nature of business size of theoperation and organizational structure of the entity the Company has in all materialrespects an adequate internal financial controls system over financial reporting and suchinternal financial controls over financial reporting were operating effectively as at 31 stMarch 2022 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India.
In our opinion to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements - Refer item B of Note 31 to FinancialStatements.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement.
v. The final dividend proposed in the previous year declared and paidby the Company during the year is in compliance with section 123 of the Companies Act2013.
The Board of Directors of the Company have proposed final dividend forthe year which is subject to the approval of the members at the ensuing Annual GeneralMeeting. The amount of dividend proposed is in accordance with section 123 of the Act asapplicable.
Annexure "A" to the Independent Auditors' Report
Referred to in paragraph 1 under the heading Report on OtherLegal & Regulatory Requirements' of our report of even date on the financialstatements of the Company for the year ended 31st March 2022:
1) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipments (PPE).
(b) We have been informed that the Property Plant and Equipments havebeen physically verified by the management with a phased programme of verification whichin our opinion is reasonable and to cover all the items of PPE over a period of threeyears having regard to the size of the Company and the nature of its assets. According tothe information and explanations given to us there was no material discrepancies noticedon such verification.
(c) The title deeds of immovable properties are held in the name of theCompany.
(d) The Company has not revalued its Property Plant and Equipment andintangible assets during the year.
(e) No Proceeding have been initiated or pending against the Companyfor holding any Benami property under the Benami Transactions (Prohibition) Act 1988 andrules made thereunder.
2) (a) As explained to us all the inventory of the Company has beenphysically verified by the management at reasonable intervals and at year-end. In ouropinion the frequency of the verification is reasonable. During the period covered underaudit no material discrepancies has been noticed and reported on physical verification ofinventory as compared to book records.
(b) The Company has not been sanctioned any working capital facility onthe basis of security of Current Assets and hence Company is not required to submitquarterly returns or statement with the Bank.
3) In respect of whether the Company has made investment in providedany guarantee or security or granted any loans or advances in nature of loans secured orunsecured to companies firms Limited Liability Partnerships or other parties we statethat:
(a) During the year the Company has made investment in the bonds anddebentures of certain companies the terms and conditions of these investments are notprejudicial to the Company's Interest.
(b) The Company has not provided loans or provided advances in thenature of loans (except employee advances) or stood guarantee or provided security to anyother entity hence sub-clause (a) (c) (d) (e) and (f) of clause 3(iii) is notapplicable to Company.
4) In our opinion and according to information and explanations givento us the Company has complied with the provisions of section 185 and 186 of theCompanies Act 2013 in respect of loans making investments and providing guarantees andsecurities as applicable.
5) According to information and explanations given to us the Companyhas not accepted any deposits including deemed deposits during the year therefore theprovisions of the clause 3 (v) of the Order are not applicable to the Company.
6) To the best of our knowledge and explanations provided by themanagement the maintenance of cost records has been prescribed by the Central Governmentunder sub section (1) of section 148 of the Companies Act 2013 and are maintainedaccordingly.
7) (a) According to information and explanations given to us and onthe basis of our examination of the books of account and records the Company has beengenerally regular in depositing undisputed statutory dues including Goods and Service TaxProvident Fund Employees State Insurance Income Tax Sales Tax Service Tax Duty ofCustoms Duty of Excise Value Added Tax Cess and any other statutory dues with theappropriate authorities.
According to the information and explanations given to us noundisputed amounts payable in respect of the above were in arrears as at 31stMarch 2022 for a period of more than six months from the date on when they becomepayable.
(b) According to the information and explanations given to us and onthe basis the records produced before us by the Company except for the cases statedbelow there are no disputed amounts payable in respect of statutory dues referred insub-clause (a) above which have not been deposited on account of any dispute.
8) There is no transaction of unrecorded income surrendered ordisclosed during the year hence reporting under clause 3(viii) of this Order is notapplicable to the Company.
9) (a) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of loans or borrowing to afinancial institution bank or Government. The Company has not obtained any borrowings byway of debentures.
(b) The Company is not a wilful defaulter by any bank or financialinstitution or other lender.
(c) The Company has not taken any term loans during the year.
(d) No funds raised on short term basis have been utilised for longterm purposes during the year.
(e) The Company doesn't have any subsidiary associates or jointventure hence reporting under clause 3(ix)(e) is not applicable to the Company.
(f) The Company doesn't have any subsidiary associates or jointventure hence reporting under clause 3(ix)(f) is not applicable to the Company.
10) (a) The Company has not raised moneys by way of initial publicoffer or further public offer (including debt instruments) during the year.
(b) The Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully partially or optionally convertible)during the year.
11) (a) According to the information and explanations given to us wehave not noticed or reported any fraud by the Company or any fraud on the Company by itsofficers or employees during the year.
(b) No report under sub-section (12) of section 143 of the CompaniesAct has been filed by the auditors in Form ADT- 4 as prescribed under rule 13 of Companies(Audit and Auditors) Rules 2014 with the Central Government;
(c) As explained to us the Company has not received any whistleblowercomplaint during the year.
12) Clause 3 (xii) of the Order is not applicable to the Company as theCompany is not a Nidhi Company.
13) In our opinion all transactions with the related parties are incompliance with section 177 and 188 of Companies Act 2013 and the details have beendisclosed in the Financial Statements as required by the applicable accounting standards.
14) (a) The Company has internal audit system and it is commensuratewith the size and nature of its business.
(b) We have considered reports of the internal auditors for the periodunder audit.
15) According to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith him and the provisions of section 192 of Companies Act 2013 have been complied with.
16) Clause 3(xvi) of the Order is not applicable to the Company as theCompany is not a required to be registered under section 45-lA of the Reserve Bank ofIndia Act 1934.
17) The Company has not incurred any cash losses during the currentfinancial year and in the immediately preceding financial year.
18) There is no such case of resignation of statutory auditors hencethis clause is not applicable.
19) On the basis of the financial ratios ageing and expected dates ofrealisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements our knowledge of the Board of Directors andmanagement plans we are of the opinion that no material uncertainty exists as on the dateof the audit report and that the Company is capable of meeting its liabilities existing atthe date of balance sheet as and when they fall due within a period of one year from thebalance sheet date.
We however state that this is not an assurance as to the futureviability of the Company. We further state that our reporting is based on the facts uptothe date of audit report and we neither give any guarantee nor any assurance that allliabilities falling due within one year from the Balance Sheet date will get dischargedby the Company as and when they fall due.
20) There is no unspent amount related to CSR pending to be spent bythe Company hence Clause 3 (xx) and its subclauses of this Order are not applicable to theCompany.
21) Since the Company is not required to prepare Consolidated financialstatements clause 3 (xxi) is not applicable.