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Phoenix International Ltd.

BSE: 526481 Sector: Others
NSE: PHOENXINTL ISIN Code: INE245B01011
BSE 16:00 | 27 Oct 19.35 0.60
(3.20%)
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19.50

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19.50

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18.25

NSE 05:30 | 01 Jan Phoenix International Ltd
OPEN 19.50
PREVIOUS CLOSE 18.75
VOLUME 1587
52-Week high 23.25
52-Week low 10.51
P/E
Mkt Cap.(Rs cr) 32
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 19.50
CLOSE 18.75
VOLUME 1587
52-Week high 23.25
52-Week low 10.51
P/E
Mkt Cap.(Rs cr) 32
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Phoenix International Ltd. (PHOENXINTL) - Auditors Report

Company auditors report

To

The Members

Phoenix International Limited.

Opinion

We have audited the standalone financial statements of Phoenix International Limited ("The Company") which comprise the Balance sheet as at 31st March2020. The Statement of Profit and Loss (including Other Comprehensive Income) statementof changes in equity the Statement of Cash Flow for the year then ended and notes to thefinancial statement including a summary of significant accounting policies and otherexplanatory information. (Hereinafter referred to as "the Standalone financialstatements")

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Financial Statements given the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under Section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2020 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statement in accordance with theStandards on Auditing (SAs) specified U/s 143(10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of financial Statements section of our report. We areindependent of the company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the Independence requirements that arerelevant to our audit of the Financial Statements under the provisions of the Act and theRules there under and we have fulfilled our other ethical responsibilities in accordancewith these 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 on thestandalone financial Statements.

Key audit matters

Key audit matters are those matters that in our professional judgment were of mostsignificant in our audit of the standalone financial Statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

a) Accuracy of recognition measurement presentation and disclosure of revenue andother releated balances in view of adoption of Ind AS 115 "Revenue from Contractswith Customers" (new revenue accounting standard).

The application of the new revenue accounting standard involves certain key judgmentsrelating to identification of distinct performance obligations determination oftransaction price of the identified performance obligations the appropriateness of thebasis used to measure revenue recognized over a period. Additionally new revenueaccounting standard contains disclosures which involves collation of information inrespect of disaggregated revenue and periods over which the remaining performanceobligations will be satisfied subsequent to the balance sheet date.

Auditor's Response Principal Audit Procedures

We assessed the Company's process to identify the impact of adoption of the new revenueaccounting standard.

Our audit approach consisted testing of the design and operating effectiveness ofinternal control and substantive testing as follows:

• Evaluated the design of internal controls relating to implementation of the newrevenue accounting standard and tested the operating effectiveness of such internalcontrols;

• Selected a sample of continuing and new contracts and tested the operatingeffectiveness of the internal control relating to identification of the distinctperformance obligations and determination of transaction price. We carried out acombination of procedures involving enquiry and observation reperformance and inspectionof evidence in respect of operation of these controls.

• Selected a sample of continuing and new contracts and performed the followingprocedures:

- Read the agreements with the customers to identify the distinct performanceobligations the transaction price and its allocation to the performance obligation in thecontract and the classification of the contract for the basis of revenue recognition inaccordance with Ind AS 115..

- Compare these performance obligations with that identified and recorded by theCompany.

- Considered the terms of the Contracts to determine the transaction price includingany variable consideration to verify the transaction price used to compute revenue and totest the basis of estimation of the variable consideration.

- Samples in respect of revenue recorded for time and material contracts were testedusing a combination of approved time sheets including customer acceptances subsequentinvoicing and historical trend of collections and disputes.

- Sample of revenue disaggregated by type and services offering was tested with theperformance obligation specified in the underlying contracts.

- Performed analytical procedures for reasonableness of revenues disclosed by type andservice offerings.

b) Recognition measurement presentation and disclosures of revenue arising from leasearrangement has been recognized as per Ind AS 116

As prescribed in Note 37 to the Standalone financial Statements Company has adoptedInd-As 116 "Leases" in the Current year. The application and transition to thisaccounting standard is complex and is an area of focus in our audit.

Ind AS 116 introduces as a new lease accounting model wherein lessees are required torecognize a right-of-use (ROU) asset and a lease liability arising from a lease on thebalance sheet. The lease liabilities are initially measured by discounting future leasepayment during the lease term as per the contract / arrangement. Adoption of the standardinvolves significant judgments and estimates including determination of discount rate andthe lease term. Refer Note 37 to the standalone financial statement.

Auditor's Response Principal Audit Procedures

-Assessed the Company's evaluation on the identification of lease based on thecontractual agreements and our knowledge of the business; Upon transition as at 1stApril 2019:

- Verified the accuracy of recognition of leasing/rental income in the books inaccounts.

- Verified the depreciation policy for depreciable leased assets. It is in consistencewith the lessor's normal depreciation policy for similar assets and depreciation has beencalculated in accordance with Ind AS 16 and Ind As 38.

2. Evaluation of tax positions

The company has uncertain tax positions matter under dispute which involves significantjudgment to determine the possible outcome of These disputes.

Refer notes to accounts no. 33 of the Standalone Financial Statements Auditor'sResponse

Principal Audit Procedures

Obtained details of completed tax assessments and demands for the year ended March 312020 from management. We involved our internal experts to challenge the management'sunderlying assumptions in estimating the tax provisions and possible outcome of disputes.Our internal experts also considered legal precedence and other rulings in evaluatingmanagement's position on these uncertain tax positions. Other Information

The company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Managementdiscussion and analysis Board's report including Annexure to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notincluded the standalone financial Statements and our Auditor's report thereon.

Our opinion on the standalone financial statement does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be martially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management's and Those Charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance changesin equity and cash flows of the company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified u/s 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgment 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 is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelating 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.

Those Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibility for the Audit of the financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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 SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in the aggregatethey could reasonably be expected to influence the economic decisions of users taken onthe basis of standalone 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 standalonefinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risk 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 financial controls relevant to the audit inorder to design audit procedures that are appropriate in circumstances. Under Section143(3)(i) 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 reasonablenessof accounting estimates and related disclosures made by the management.

• Concluded on the appropriateness of the management's use of the going concernbasis 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 your auditor's report to therelated disclosure 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 futures events or conditions maycause the company to cease to continue as a going concern.

• Evaluate the overall presentation structures and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieve fairpresentation.

Materiality is the magnitude of misstatement in the standalone financial statementthat individually or in aggregate make it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materially and qualitative factors in (i) Planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyindentified misstatements in the financial statements.

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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when 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 Section 143(3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from our examination of those books and proper returnsadequate for the purpose of our audit have been received from the branches not visited byus.

c. The Balance sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of changes in Equity and the Cash Flow statement dealt with by thisreport are in agreement with the Books of Accounts.

d. In our opinion the Aforesaid standalone financial statements comply with theAccounting Standards specified u/s 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 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in termsof section 164(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 - A'

g. With respect to the other matter to be included in the Auditors report in accordancewith the requirement of Section 197(16) of the Act as amended:

In our opinion and to best of our information and according to the explanation given tous the remuneration paid by the company to its directors during the year in accordancewith the provisions of Section 197 of the Act.

(i) The Company has disclosed the impact of pending litigation on its financialposition in its financial statement 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 includingderivate contracts - to the financial Statements.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor education and Protection Fund by the Company.

2. As required by the Company (Auditor's report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we given in"Annexure B" a statement on the matter specified in paragraph 3 and 4 of theOrder.

Place : New Delhi For Pradip Bhardwaj & Co.
Date : 31.07.2020 Chartered Accountants
Firm Registration No.: 013697C
Sd/-
(Pradip Bhardwaj)
Partner
M.No. 500219

ANNEXURE - A TO THE AUDITORS REPORT

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 PhoenixInternational Limited ("the Company") as of 31st March 2020 inconjunction with our audit of the standalone Ind AS financial statements of the companyfor 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 Guidance Note of Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India ("ICAI") 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.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal Financial controls overfinancial reporting based on our audit. We conducted our audit in accordance with theGuidance note on Audit of Internal Financial Controls over Financial reporting (the"Guidance Note") an the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the companies Act 2013 to the extent applicable toan Audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and Guideline notes require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls systems over financial reporting and their operatingeffectiveness. Our audit of internal financial control 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 ofinternal financial controls systems 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 risk of materialmisstatements 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 internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is process designed toprovide reasonable assurance regarding 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Control 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 may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

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 over financialreporting were operating effectively as at 31 March 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in Guidance note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountant ofIndia.

Place : New Delhi For Pradip Bhardwaj & Co.
Date : 31/07/2020 Chartered Accountants
Firm Registration No.; 013697C
Sd/-
(Pradip Bhardwaj)
Partner
M.No. 500219

ANNEXURE - B REFERRED TO IN PARAGRAPH ‘2' UNDER THE HEADING "REPORT ON THEOTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR AUDIT REPORT OF EVEN DATE TO THEMEMBERS OF PHOENIX INTERNATIONAL LIMITED

1. In respect of the company's fixed assets

a. According to the information and explanations given to us the Company ismaintaining proper records of fixed assets including the quantitative details and itssituations;

b. Physical verification of fixed assets has been made by the management during theyear and no material discrepancies were noticed on such verification;

c. According to the information and explanations given to us and on the basis ofrecords maintained by the Company the title deeds of immovable properties are held in thename of the Company;

2. The management has conducted physical verification of inventory at reasonableinterval during the period and no material discrepancies were noticed on physicalverification;

3. The company has not granted any loans secured and unsecured to Company firmLimited Liability Partnership or parties covered in register maintained u/s 189 ofcompanies Act 2013.

4. According to the information and exploration given to us the company has compliedwith the provisions of Section 185 & 186 of Companies Act 2013 with respect to loan& investment made;

5. According to the information and explanations given to us the Company has notaccepted any deposits in terms of directives issued by Reserve Bank of India and theprovisions of Section 73 to 76 or any other provisions of the companies Act and the rulesframed there under hence clause V of paragraph 3 of Companies (Auditor's Report) Order2016 is not applicable;

6. According to the information and explanations given to us maintenance of costrecords have not been specified by the Central Government under sub-section (1) of Section148 of the Companies Act 2013 hence clause vi of paragraph 3 of Companies Auditor'sReport Order 2016 is not applicable;

7. (a) According to the information and explanations given to us the Company isgenerally regular in depositing with appropriate

Authorities undisputed statutory dues as applicable to the Company;

According to the information and explanations given to us undisputed statutory duesincluding amounts payable in respect of Provident Fund Employees State Insurance IncomeTax Duty of Customs Cess and any other statutory dues have generally been regularlydeposited with the appropriate authorities though there has been a slightly delay in fewcases as at 31.03.2020 for a period of more than six month from the date they becomepayable;

(b) As per information and explanation provide to us the following are the contingentliabilities against which the appeal is pending to various authorities.

Particulars Nature of Dues Authorities Period to which the amount relates Amounts
1. Central Excise Act 1944 (2018) Central Excise CESTAT August 1996 to December 1996 3038292

8. According to the information and explanation given to us the company has a TermLoan from Oriental Bank of Commerce but there is no default in repayment of principal andinterest during the year;

9. According to the information and explanations given to us the company has a Termfrom Oriental Bank of Commerce and the amount raised from the same is applied for thepurpose for which loan was raised;

10. According to information and explanation 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 audit.

11. According to information and explanations given to us and on the basis of recordmaintained by the Company the company has paid/ provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act 2013;

12. In our opinion and according information and explanations given to us the Companyis not a Nidhi Company. Accordingly paragraph 3 (xii) of the Order is not applicable tothe Company;

13. According to information or explanations given to us transactions with relatedparty are in compliance with Section 177 & 188 of the Companies Act 2013 and detailsof which have been disclosed in the financial statements;

14. According to the information and explanations given to us and based on ourexaminations of the records maintained by the Company the Company has not made anypreferential allotment/ private placement of shares or fully or partly convertibledebentures during the year. Hence clause 3 (xiv) is not applicable on the company;

15. According to information and explanations given to us the Company has not enteredinto non-cash transactions with directors or persons connected with him. Accordinglyparagraph 3 (xv) is not applicable on the Company;

16. According to information and explanations given to us the Company is not requiredto be registered under Section 45- 1A of Reserve Bank of India Act 1934 Hence clause 3(xvi) is not applicable on the Company;

Place : New Delhi For Pradip Bhardwaj & Co.
Date : 31/07/2020 Chartered Accountants
Firm Registration No.: 013697C
Sd/-
(Pradip Bhardwaj)
Partner
M.No. 500219

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