The Members of
Pee Cee Cosma Sope Limited
Report onthe Financial Statements
Opinion: We have audited the accompanying Financial Statements of Pee Cee Cosma SopeLimited ("the Company) which comprise the Balance Sheet as at 31st March 2021the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended and Notes toFinancial Statements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the 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 theCompanies Act 2013 ("the Act) in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards (Ind AS) prescribed undersection 133 of the Act read with the Companies Rules 2015 as amended and accountingprinciples generally accepted In India of the state of affairs of the Company as at 31stMarch 2021 and the profit (including other comprehensive income changes in equity andits cash flows forthe year then ended.
Basis for Opinion:
We conducted our audit of the financial statements in accordance with the Standards onAuditing(SAs) specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe Standalone financial statements under the provisions of the Act and the Rules madethereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI s Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provides basis for our audit opinion on thefinancial statements.
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. Wehave determined that there are no key audit matters to be communicated in our report.
Information Other than the Financial Statements and Auditor's Report Thereon:
The Company's Management and Board of Directors are 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 ReportBusiness Responsibility Report Corporate Governance and Shareholders Information butdoes not include the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained duringthe course of our audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard. Management's Responsibility for the Financial Statements :
The Company's Management and Board of Directors are responsible for the matters statedIn section 134(5) of the Act with respect to the preparation of these financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes In equity and cash flows of the Company in accordance withthe accounting principal generally accepted in India including Ind AS specified undersection 133 of Act. This responsibility also includes maintenance of adequate accountingrecords In accordance with the provisions of the Act for safeguarding 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 statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements Management and Board of Directors areresponsible 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 Board of Directors either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company's financial reportingprocess.
Auditor's Responsibilities for the Audit of the 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 financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(l) of the Act 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 reasonable nessof accounting estimates and related disclosures in the Financial Statements by Managementand Board of Directors.
Conclude on the appropriateness of Management's use of the going concern basisof accounting 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 statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and event s in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in
(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 financialstatements.
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 audit.
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 with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits 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 in terms of Section 143(11) of the Act we give in"Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder.
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 purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.
d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Boa rd of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164 (2) of the Act.
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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
g) With respect to the other matters to be Included In the Auditor's Report inaccordance 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 the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of 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 as amended 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 Its financialposition in its financial statements - Refer Note 35 to the financial statements;
II. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.
III. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
| ||FOR BSD & CO. Chartered Accountants (Firm Reg No-000312S) |
|Place: New Delhi Dated: 25.06.2021 ||(SujataSharma) Partner Membership number: 087919 UDIN : 21087919AAAADY6066 |
ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under the heading "Report on other Legal andRegulatory Requirements section of our report to the members of Pee Cee Cosma SopeLimited of even date):
1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.
2. (a) The inventories except material lying with the third parties has beenphysically verified at reasonable intervals by the Management during the year.
(b) In our opinion and according to the information and explanations given to us theprocedures followed by the Management for such physical verification are reasonable andadequate in relation to the size of the Company and the nature of its business.
(c) In our opinion Company is maintaining proper records of inventory. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material and have been properly dealt with in the books of accounts.
3. According to the information and explanation given to us the Company has not grantedany secured or unsecured loans to companies firms limited liability partnerships orother parties covered in the register maintained under section 189 of the Companies Act2013. Accordingly paragraph 3(iii) of the order is not applicable to the Company.
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 Act with respectto the loans and investments made.
5. The Company has not accepted any deposits from the public. Accordingly paragraph 3(v) of the order is not applicable to the Company.
6. According to the information and explanations given to us the cost records havebeen maintained by the company pursuant to section 148 (1) of the Companies Act 2013 andare of the opinion that prima facie the prescribed cost records have been made andmaintained however we have not made a detailed examination of such cost records.
7. (a) According to the information & explanations given to us and on the basis ofour examination of the records of the Company Company is generally regular in depositingwith the appropriate authorities undisputed statutory dues including provident fundemployees' state insurance income tax sales tax service tax duty of customs GST dutyof excise value added tax cess and any other statutory dues applicable to it and thereare no undisputed statutory dues outstanding as at 31st March 2021 for a period exceedingsix months from the date they became payable.
(b) According to the information & explanations given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise GST value added taxwhich have not been deposited on account of any dispute except the following.
|Name of Statute ||Nature of the dues ||Amount (Rs) ||Forum where dispute is pending |
|ESI Act ||ESI (2004-05) ||105241.00 ||Civil Court Agra |
|M.P Land Revenue Act 1959 ||Land Conversion Charges ||1403603.00 ||Court of Collector Bhind (M.P.) |
|VAT Act ||VAT Act (F.Y. 2014-15) ||2831205.00 ||Joint Commissioner Corporate Agra |
8 In our opinion and according to the information and explanations given to us we areof the opinion that the Company has not defaulted in repayment of dues to a financialinstitution bank or government. The Company has not issued any debentures.
9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments).
10. 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 course of our audit.
11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.
12. According to the information and explanation given to us the Company is not NidhiCompany as prescribed under Section 406 of the Act. Accordingly paragraph 3(xii) of theOrder is not applicable to the Company.
13. According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of the Act whereapplicable and details of related party transaction have been disclosed in the financialstatements as required by the applicable accounting standards.
14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered in to non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv)ofthe Order is not applicable.
16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
| ||FOR BSD & CO. Chartered Accountants (Firm Reg No-000312S) |
|Place: New Delhi Dated: 25.06.2021 ||(Sujata Sharma) Partner Membership number: 087919 UDIN: 21087919AAAADY6066 |
ANNEXURE - B TO THE INDEPENDENT AUDITORS' REPORT
(Referred to the paragraph 2 (f) under Report on other Legal and RegulatoryRequirements'' section of our report to the Members of Pee Cee Cosma Sope Limited of evendate)
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 Pee CeeCosma Sope Limited ("the Company") as of 31st March 2021 in conjunction with ouraudit of financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls:
The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the 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 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. to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout 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 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 of the Company.
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 to the best of our information and according to the explanation givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls overfinancialreporting were operating effectively as at 31st March 2021 based on the internal controlover financial 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 ofIndia.
| ||FOR BSD & CO. Chartered Accountants (Firm Reg No-000312S) |
|Place: New Delhi ||(SujataSharma) |
|Dated: 25.06.2021 ||Partner Membershipnumber: 087919 UDIN : 21087919AAAADY6066 |