To the Members of
PBM Polytex Limited
Report on the Audit of the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of PBMPolytex Limited (the 'Company') which comprise the Balance Sheet as at March 31 2022and the statement of Profit and Loss (including the statement of other comprehensiveincome) Statement of changes in equity and Statement of cash flows for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information(herein after referred as " thestandalone financial statements").
2. In our opinion and to the best of our information and according tothe explanations given to us the standalone financial statements give the informationrequired by the Companies Act 2013 (the "Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2022 and its profit totalcomprehensive income the changes in equity and its cash flows for the year then ended onthat date.
Basis for Opinion
3. We conducted our audit of the standalone financial statements inaccordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act.Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued byInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our opinion on the standalone financial statements.
Key Audit Matters
4. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters.
|Key Audit Matter ||Auditor's Response |
|Measurement of provisions for employee emoluments and benefits ||Principal Audit Procedures |
|The company has made provisions for employee benefits and revision of wages. The estimates made by the management regarding the existence of an obligation as well as the forecast of future cash outflows in connection with these obligations directly impact the recognition and measurement of provisions. The management also make use of their judgements for provisions concerning the legal disputes under negotiations. ||We examined the processes and controls set up to prevent or detect and correct errors relating to the complete recognition and measurements of provisions involving the use of judgement. |
| ||External actuaries were engaged to determine the amounts of provisions of gratuity and leave encashment. We examined the data made available to actuaries for completeness and accuracy. We reviewed the assumptions including the discount rate expected return on plan assets escalation rate etc. |
| ||In respect of provision for wage revision we conducted a critical review of internal analysis notes for the likelihood and potential impact examining the available documents. |
Information other than Financial Statements & Auditors Reportthereon.
5. The Company's Board of Directors is responsible for the OtherInformation. The Other Information comprises the information included in the Board'sReport including Annexures to Board's Report Corporate Governance report and ManagementDiscussion and Analysis (but does not include the standalone financial statementsconsolidated financial statements and our auditor's reports thereon).
Our opinion on the standalone financial statements does not cover theOther Information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above and in doing soconsider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this Other Information; we are required to report that fact. Wehave nothing to report in this regard.
Responsibilities of Management and those charged with Governance forthe Standalone Financial Statements
6. The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity and cash flows of theCompany in accordance
with the Ind AS and accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgement and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
7. In preparing the standalone financial statements Management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
8. The Board of Directors arealso responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone FinancialStatements:-
9. Our objectives are to obtain reasonable assurance about whether thestandalone financialstatements as a whole are free from material misstatement whether dueto fraud or error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they couldreasonably be expected to influence the economic decisionsof users taken on the basis of these standalone financial statements.
10. As part of an audit in accordance with Standard on Auditing weexercise professional judgment and maintain professional skepticism throughout the audit.We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting polices used and thereasonableness of accounting estimates and related disclosures made by the 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 standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.
11. 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.
12. We also provide those charged with governance with a statement thatwe have 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.
13. From the matters communicated with those charged with governancewe determine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
14. 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 are necessary for the purpose of our audit;
(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from the examination of those books;
(c) The Balance Sheet the Statement of Profit and Loss includingstatement of other comprehensive income and the Cash Flow Statement Statement of changesin Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion the aforesaid Standalone financial statementscomply with the Indian Accounting Standards specifiedunder Section 133 of the Act;
(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 31st March 2022 from beingappointed as a director in terms of Section 164(2) of the Act;
(f) With respect to the adequacy of internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in "Annexure A";
(g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of Section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid/provided by the Company to its directorsduring the year is in accordance with the provisions of section 197 read with Schedule Vto the Companies Act 2013;
(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) Rule 2014 in ouropinion and to the best of our information and according to the explanations given to us :
i. The Company has disclosed the impact of pending litigations on thefinancial position of its financial statements - Refer Note 37 to the 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 as disclosed in the notes to the accounts no funds (which arematerial either individually or in the aggregate) have been advanced or loaned or invested(either from borrowed funds or share premium or any other sources or kind of funds) by theCompany to or in any other person(s) or entity(ies) including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the Company("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries.
(b) The Management has represented that to the best of its knowledgeand belief as disclosed in the notes to accounts no funds (which are material eitherindividually or in the aggregate) have been received by the Company from any person(s) orentity(ies) including foreign entities ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the Company shall directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures that has 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 provideunder (a) & (b) above contain any material misstatement.
v. (a) The final dividend proposed in the previous year declared andpaid by the Company during the year is in accordance with Section 123 of the Act asapplicable.
(b) The Company has not declared and paid any interim dividend duringthe year and until the date of this report.
(c) The Board of Directors of the Company have proposed final dividendfor the year which is subject to approval of the members in the ensuing Annual GeneralMeeting. The amount of dividend proposed is in accordance with Section 123 of the Act asapplicable.
15. As required by the Companies (Auditor's Report) Order 2020 (the"Order") issued by the Central Government of India in terms of sub-section (11)of section 143 of the Companies Act 2013 we give in the "Annexure B" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
PBM Polytex Limited
"Annexure A" to the Independent Auditors' Report
Referred to in paragraph 14(f) of Independent Auditor's report of evendate to the members of the Company on Standalone Financial Statements for the year endedMarch 31 2022:
Report on the Internal Financial Controls under Clause (1) ofSub-section 3 of Section 143 of the Companies Act 2013("the Act")
1. We have audited the internal financial controls over financialreporting of PBM Polytex Limited ("the Company") as of March 31 2022 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
2. In our opinion to the best of our information and according toexplanations given to us the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as on March 31 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reports issued by the Institute of CharteredAccountants of India.
Management's Responsibility for Internal Financial Controls
3. The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial controls overFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
4. Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Act 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.
5. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls systems over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's Judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.
6. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting.
7. A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purpose 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 authorizations ofmanagement and directors of the company and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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
8. Because of the inherent limitations of internal financial controlsover financial 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 of procedures may deteriorate.
PBM Polytex Limited
"Annexure B" to the Independent Auditors' Report
Referred to in paragraph 15 under the heading 'Report on Other Legal& Regulatory Requirements' of our report of even date to the financial statements ofthe Company for the year ended March 31 2022:
i. (a) (A) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of Property Plant &Equipment and relevant details of right-of-use assets.
(B) The Company has maintained proper records showing full particularsof intangible assets.
(b) The Property Plant & Equipment have been physically verifiedby the management in a phased manner designed to cover all the items over a period ofthree years which in our opinion is reasonable having regard to the size of the Companyand nature of its business. According to information and explanation given to us nomaterial discrepancies were noticed on such verification.
(c) The title deeds of immovable properties (other than propertieswhere the Company is the lessee and the lease agreements are duly executed in favour ofthe lessee) as disclosed in Note No. 2 on "Property Plant and Equipment" to thefinancial statements are in the name of the company.
(d) The Company has not revalued any of its property plant andequipment (including Right of Use assets) and intangible assets during the year.
(e) No proceedings have been initiated during the year or are pendingagainst the Company as at 31 March 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.
ii. (a) The inventories were physically verified during the year by theManagement at reasonable intervals. In our opinion and according to the information andexplanations given to us the coverage and procedure of such verification by theManagement is appropriate having regard to the size of the Company and the nature of itsoperations. No discrepancies of 10% or more in the aggregate for each class of inventorieswere noticed on such physical verification of inventories when compared with books ofaccount.
(b) During the year The Company has been sanctioned working capitallimits in excess of Rs. 5 crores in aggregate at any point of time during the year frombanks on the basis of security of current assets. In our opinion and according to theinformation and explanations given to us the quarterly returns or statements comprisingstock statements and book debt statements filed by the Company for certain quarters are innot in agreement with the Reviewed books of accounts however such differences betweenbooks of account and those submitted to bank are reconciled. Details of the same are asbelow :
(Rs. In Lakhs)
|Quarter ||Particulars of current assets provided as security ||Amount as per books of accounts ||Amount as per quarterly statements ||Difference ||Reasons for differences |
|June-2021 ||Trade Receivable ||679.57 ||1345.55 ||(665.98) ||Reasons as per the explanation of the management as per note 51 |
|June-2021 ||Inventory - Raw Material ||3403.03 ||3403.00 ||0.03 || |
| || || || || ||-The differences in inventories and trade receivables are majorly on account of goods in transit where the goods have been physically dispatched from the Company location however the same has not been considered as revenue from the purpose of revenue recognition principles and hence reversed from books of accounts for respective quarter ends. |
|June-2021 ||Inventory - Finished Goods ||1722.34 ||1228.00 ||494.34 || |
|June-2021 ||Inventory - Work in Progress ||230.99 ||247.00 ||(16.01) || |
|June-2021 ||Inventory - Stores and Spares ||158.48 ||161.36 ||(2.88) || |
|September- 2021 ||Trade Receivable ||1720.80 ||1720.31 ||0.49 || |
|September- 2021 ||Inventory - Raw Material ||686.00 ||686.00 || || |
|September- 2021 ||Inventory - Finished Goods ||914.39 ||926.00 ||(11.61) || |
| || || || || ||- The management basis their understanding with banks submits stock statement of physical stock as available at respective locations at the period end. Accordingly adjustment for goods in transit (inward and outward) is not considered for the purpose of filing returns with banks. |
|September- 2021 ||Inventory - Work in Progress ||261.14 ||282.00 ||(20.86) || |
|September- 2021 ||Inventory - Stores and Spares ||157.00 ||161.36 ||(4.36) || |
|December- 2021 ||Trade Receivable ||1422.02 ||1634.41 ||(212.39) || |
|December- 2021 ||Inventory - Raw Material ||3494.52 ||3495.00 ||(0.48) || |
|December- 2021 ||Inventory - Finished Goods ||461.48 ||463.00 ||(1.52) || |
| || || || || ||- There are other differences on account of regrouping and |
|December- ||Inventory - ||297.00 ||325.00 ||(28.00) || |
|2021 ||Work in Progress || || || ||reclassification of trade receivable balances. The Company has filed provisional return with banks for the quarter ended March 31 2022 as per the due date and subsequently filed final return with respective banks where amounts as per return matches with underlying books of accounts as at March 31 2022. |
|December- 2021 ||Inventory - Stores and Spares ||261.00 ||166.36 ||(94.64) || |
|March- 2021 ||Trade Receivable ||1402.55 ||1640.94 ||(238.39) || |
|March- 2021 ||Inventory - Raw Material ||5941.61 ||5922.00 ||19.61 || |
|March- 2021 ||Inventory - Finished Goods ||904.04 ||682.00 ||222.04 || |
|March- 2021 ||Inventory - Work in Progress ||334.10 ||408.00 ||(73.90) || |
|March- 2021 ||Inventory - Stores and Spares ||160.88 ||148.27 ||12.61 || |
iii. The Company has not made investments in provided any guarantee orsecurity to companies firms Limited Liability Partnerships and other parties during theyear. The Company has granted loans or advances in the nature of loans secured orunsecured to companies and any other parties during the year in respect of which:
(a) The Company has granted loans or advances in the nature of loansduring the year and details of which are given below:
(Rs. In Lakhs)
|Particulars ||Aggregate Amount during the year (Rs. In Lakhs) ||Balance outstanding at the balance sheet date |
| || ||(Rs. In Lakhs)* |
|- Subsidiaries ||Nil ||Nil |
|- Joint Ventures ||Nil ||Nil |
|- Associates ||308.85* ||308.85 |
|- Others ||40.50** ||15.23 |
* including interest accrued amounting to Rs. 8.85 Lakhs ** includingopening balance as on 1/4/2021
The Company has not given guarantee or provided security to any otherentity during the year.
(b) The grant of all the above-mentioned loans and advances in thenature of loans and guarantees provided during the year are in our opinion prima facienot prejudicial to the Company's interest.
(c) In respect of interest-free loans or advances in the nature ofloans provided by the Company to its employees the schedule of repayment of principal hasbeen stipulated and the repayments of principal amounts are regular as per stipulation insuch cases except for the following:
(Rs. In Lakhs)
|Name of the employee ||Nature ||Amount ||Due Date ||Extent of Delay |
|Ishwarbhai R Sharma ||Staff Loan ||0.68 ||Feb-2022 ||2 Months |
|Devraj Saini ||Staff Loan ||0.64 ||Jan-2022 ||3 Months |
|Sanjay Jadhav ||Staff Loan ||0.26 ||Apr-2020 ||24 Months |
|Sanjay Khetan ||Staff Loan ||0.36 ||Jan-2021 ||15 Months |
|Anil Sharma ||Staff Loan ||0.01 ||Jan-2021 ||15 Months |
In respect of loan to associate company schedule of repayment ofprincipal amount has not been stipulated and is repayable on demand.
(d) In respect of following loans granted and advances in the nature ofloans provided by the Company which have been overdue for more than 90 days at thebalance sheet date as explained to us the management has taken reasonable steps forrecovery :
(Rs. In Lakhs)
|Nos. of cases ||Principal amount overdue (Rs.) ||Interest overdue (Rs.) ||Total overdue (Rs.) |
|4 ||1.27 ||- ||1.27 |
(e) No loan or advance in the nature of loan granted by the Companywhich has fallen due during the year has been renewed or extended or fresh loans grantedto settle the overdues of existing loans given to the same parties.
(f) The Company has granted loans which are repayable on demand orwithout specifying any terms or period of repayment details of which are given below:
|Particulars ||All Parties- Including Related Party* (Rs. In Lakhs) ||Promoters * (Rs. In Lakhs) ||Related Parties* (Rs. In Lakhs) |
|Aggregate amount of loans or advances in the nature of loans which are repayable on demand or without specifying any terms or period of repayment ||309.04* ||Nil ||308.85* |
|Percentage of loans to the total loans ||95.36% ||Nil ||95.30% |
* including interest accrued amounting to Rs. 8.85 Lakhs
iv. In our opinion and according to the information and explanationsgiven to us the company has complied with provisions of Section 185 and 186 of the Act inrespect of investments made and loans granted to the extent applicable to the Company.The company has not given guarantee or provided security as provided in section 185 and186 of the Act.
v. The Company has not accepted any deposit or amounts which are deemedto be deposits. Hence reporting under clause (v) of the Order is not applicable.
vi. The Central Government has prescribed maintenance of Cost Recordsunder section 148(1) of the Companies Act 2013 in respect of manufacturing activities ofthe company. We have broadly reviewed the accounts and the records of the company in thisconnection and are of opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have not however made a detailed examination of the same.
vii. According to information and explanations given to us in respectof statutory dues and on the basis of our examination of the books of account andrecords
(a) The Company has been generally regular in depositing undisputedstatutory dues including Goods and Services Tax Provident Fund Employees StateInsurance Income-Tax Sales Tax Service Tax Duty of Customs Duty of Excise ValueAdded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March 31 2022 for a period of more than six monthsfrom the date on when they become payable.
(b) According to the information and explanations given to us thereare no statutory dues referred to in sub-clause (a) above which have not been deposited ason 31st March 2022 on account of any dispute except the following :
|Name of statue ||Nature of Dues ||Amount (in Lakhs) ||Period to which amount relates ||Forum where the dispute is pending |
|M P Commercial Tax ||Entry Tax ||2.16 ||2015-16 ||Commissioner (Appeals) |
|Goods and Services Tax 2017 ||Value Added Tax ||0.67 ||2014-15 ||Commissioner (Appeals) |
|Goods and Services Tax 2017 ||Value Added Tax ||0.67 ||2015-16 ||Commissioner (Appeals) |
viii. There were no transactions relating to previously unrecordedincome that were surrendered or disclosed as income in the tax assessments under theIncome Tax Act 1961 (43 of 1961) during the year.
ix. (a) In our opinion the Company has not defaulted in the repaymentof loans or other borrowings or in the payment of interest thereon to any lender duringthe year.
(b) The company has not been declared wilful defaulter by any bank orfinancial institution or government or any government authority.
(c) The Company has not taken any term loan during the year and thereare no unutilized term loans at the beginning of the year and hence reporting underclause (ix)(c) of the Order is not applicable.
(d) On an overall examination of the financial statements of theCompany funds raised on short-term basis have prima facie not been used during the yearfor long-term purposes by the Company.
(e) On an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiary associate or joint venture.
(f) The Company has not raised loans during the year on the pledge ofsecurities held in its subsidiary associate or joint venture.
x. (a) According to the information and explanations given by themanagement 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 clausex(a) of the Order is not applicable.
(b) During the year the Company has not made any preferential allotmentor private placement of shares or convertible debentures (fully or partly or optionally)and hence reporting under clause (x)(b) of the Order is not applicable to the Company.
xi. (a) To the best of our knowledge no fraud by the Company and nomaterial fraud on the Company has been noticed or reported during the year.
(b) To the best of our knowledge no report under sub-section (12) ofsection 143 of the Act has been filed in Form ADT-4 as prescribed under rule 13 ofCompanies (Audit and Auditors) Rules 2014 with the Central Government during the yearand upto the date of this report.
(c) As represented to us by the Management there were no whistleblower complaints received by the Company during the year and upto the date of thisreport.
xii. The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable.
xiii. In our opinion the Company is in compliance with Section 177 and188 of the Companies Act where applicable for all transactions with the related partiesand the details of related party transactions have been disclosed in the financialstatements etc. as required by the applicable accounting standards.
xiv. (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.
(b) We have considered the internal audit reports issued to thecompany during the year and covering the period up to 31st March 2022.
xv. In our opinion during the year the Company has not entered into anynon-cash transactions with any of its directors or persons connected with such directorsand hence provisions of section 192 of the Companies Act 2013 are not applicable to theCompany.
xvi. The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Hence reporting under clause (xvi)(a) (b) (c)& (d) of the Order is not applicable.
xvii. The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of theCompany during the year.
xix. On the basis of the financial ratios ageing and expected dates ofrealization of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.
xx. The Company has fully spent the required amount towards CorporateSocial Responsibility (CSR) and there are no unspent CSR amount for the year requiring atransfer to a Fund specified in Schedule VII to the Companies Act or special account incompliance with the provision of sub-section (6) of section 135 of the said Act.Accordingly reporting under clause (xx) of the Order is not applicable for the year.