PH Trading Ltd.
|BSE: 512026||Sector: Others|
|NSE: N.A.||ISIN Code: INE603D01017|
|BSE 00:00 | 15 Apr||PH Trading Ltd|
|NSE 05:30 | 01 Jan||PH Trading Ltd|
|BSE: 512026||Sector: Others|
|NSE: N.A.||ISIN Code: INE603D01017|
|BSE 00:00 | 15 Apr||PH Trading Ltd|
|NSE 05:30 | 01 Jan||PH Trading Ltd|
To the Members of PH Trading Limited
Report on the Audit of the Standalone IND AS Financial StatementsOpinion
We have audited the standalone financial statements of PH TradingLimited ("the Company") which comprise the Balance Sheet as at 31st March2020 and the statement of Profit and Loss statement of changes in equity and statementof cash flows for the year then ended and notes to the financial Statements including asummary 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 standalone financial statements give theinformation required by the Companies Act 2013 ("Act") in the manner sorequired and give a true and fair view In conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2020and loss changes in equity and its cash flows for the year ended on that date
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 for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial 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 we haveobtained 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 Ind A5 Financial Statements of the currentperiod. These matters were addressed in the context of our audit of the Ind AS FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.
We have determined that there are no key audit matters to communicatein our report.
Emphasis of Matter
We draw attention to Note 31 of the financial statements as regards tothe management's evaluation of COVID-19 impact on the future performance of the Company.
Our opinion is not modified in resped of this matter
information Other than the Financial Statements and Auditor's ReportThereon
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 and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon opinion on thefinancial statements does not cover the other information and we do not express any formof 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 In the audit or otherwise appears to be materially 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
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 standalone financial statements that give a true and fair view of thefinancial position financial performance changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards specified under Section 133 of the Act This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other Irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant of the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to Issue an auditor's report that includes our opinion Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith As will always detect a material misstatement when it exists. Misstatements can arisefrom fraud 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 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 misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.
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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Centra! Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the Annexure- "A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
2. 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 accounts 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 Statement ofChanges in Equity and the Cash Flow Statement dealt with by this Report are in agreementwith the books of accounts.
In our opinion the aforesaid standalone financial statements complywith the Indian Accounting Standards specified under Section 133 of the Act read with theCompanies (Indian Accounting
Standards) Rules 2015 as amended.
(e) On the basis of the written representations received from thedirectors as on 31st March 2020 taken on record by the Board of Directors none of thedirectors Is disqualified as on 31st March 2020 from being appointed as a director interms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controlsover financial reporting of the
Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure -B"
(g) 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:
h) The Company does not have any pending litigation as at 31.03.2020which would impact its financial position.
(ii) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses
(iii) There were no amounts which were required to be transferred tothe investor Education and Protection Fund by the Company.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in Paragraph 1 of Report on Other Legal and RegulatoryRequirements of our Report of even
On the basis of such checks as we considered appropriate and in termsof the information and explanations
given to us we state that:
i The Company does not hold any fixed assets as on 3103.2020. So thecomment of this clause Is not applicable
ii. As explained to us inventories have been physically verifiedduring the year at reasonable interval by the Management which in our opinion isreasonable and discrepancies which were noticed have been properly dealt with in the booksof accounts.
iii. According to the information and explanations given to us theCompany has granted advances to its wholly owned subsidiary covered in the registermaintained under section 189 of the Companies Act 2013 The maximum amount involvedduring the year was Rs. 25971236/- and year-end balance is Rs. 21877236/-.
a. In our opinion the rate of interest and other terms and conditionson which the loans had been granted to the Firm listed in the register maintained underSection 189 of the Act were not prima facie prejudicial to the interest of the Company.
b. In the case of the loans granted to the Parties listed in theregister maintained under section 189 of the Act the borrowers have been regular in thepayment of the principal as stipulated.
c. There are no overdue amounts in respect of the loan granted to aFirm listed in the register maintained under section 189 of the Act.
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 theCompanies Act2013 in respect of loans investments guarantees and security madewherever applicable
v. According to the information and explanations given to us there isno such deposits accepted by the Company for which directives issued by the Reserve Bankof India and the provisions of sections 73 to 76 or any other relevant provisions of theCompanies Act2013 and the rules framed there under are applicable.
vi. The maintenance of cost records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Companies Act 2013. Hencecomment on clause (vi) of the said order does not
vii. (a) According to the records of the Company and as per theinformation and explanations given to us the Company is regular in depositing undisputedstatutory dues including Provident Fund Employee's State Insurance Goods and Servicestax income tax Sales tax Duty of Custom Cess and any otherstatutory dues as applicable to the appropriate authorities during the year. According tothe information and explanations given to us no undisputed statutory dues wereoutstanding as at
31st March 2020 for a period of more than six months from the datethey became payable.
(b) There are no dues of income tax or sales tax or service tax or dutyof custom or duty of excise or value added tax or cess on account of any dispute.
viii. On the basis of records examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to a financial institution banks. Government or dues to debenture holders.
ix. The Company has not raised any money by way of Initial Public Offeror Further Public Offer (including debt instruments) and term loan during the year Hencethe comment on the clause (ix) of the said order does not arise
X. According to the information and explanations given to us no fraudby the Company or on the Company by its Officers or Employees has been noticed or reportedduring the course of our audit.
xi. According to the information and explanations given to us and basedon our examination of the records of the Company Managerial remuneration has beenpaid/provided by the Company in accordance with the provisions of Section 197 read withSchedule V to the Companies Act 2019
xii. The Company is not a Nidhi company as specified in the NidhiRules 2014. Hence comment on clause
(xii) of the said order does not arise.
xiii. According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with Sections 177 and 188 of the Act where applicable and suchtransactions have been disclosed in the financial statements as required by the applicableindian accounting standards.
xiv. The company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year. Hencecomment on the clause (xiv) of the said order does not arise
xv. To the best of our knowledge and belief and as per the informationand explanations given to us the Company has not entered into any non-cash transactionwith directors or persons connected with him. Hence comment on the clause (xv) of thesaid order does not arise
xvi The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1994.
ANNEXURE B' TO THE INDEPENDENT AUDITOR'S REPORT
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act. 2013 ("the Act")
(Referred to Paragraph 2 (f) of Report on Other Legal and RegulatoryRequirements of our Report of even dote)
We have audited the internal financial controls over financialreporting of PH Trading Limited ("the Company") as of 31st March 2020 inconjunction with our audit of the financial statements of the Company for the year endedon that date.
Management's Responsibility for Internal Financial Controls
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. Theseresponsibilities Include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility Is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirement and plan and perform the audit to obtain reasonable assurance about whetheradequate Internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy 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 judgement including the assessment of therisks of material misstatement of the INS AS financial statements whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting
Meaning of Internal Financial Controls over Financial Reporting
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 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.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2020 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.