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Pilani Investment & Industries Corporation Ltd.

BSE: 539883 Sector: Financials
NSE: PILANIINVS ISIN Code: INE417C01014
BSE 00:00 | 18 Oct 1992.75 -17.80
(-0.89%)
OPEN

2004.55

HIGH

2021.25

LOW

1981.05

NSE 00:00 | 18 Oct 1989.35 -22.70
(-1.13%)
OPEN

2030.00

HIGH

2030.00

LOW

1978.30

OPEN 2004.55
PREVIOUS CLOSE 2010.55
VOLUME 4227
52-Week high 2248.80
52-Week low 1115.72
P/E 17.83
Mkt Cap.(Rs cr) 2,206
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2004.55
CLOSE 2010.55
VOLUME 4227
52-Week high 2248.80
52-Week low 1115.72
P/E 17.83
Mkt Cap.(Rs cr) 2,206
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Pilani Investment & Industries Corporation Ltd. (PILANIINVS) - Auditors Report

Company auditors report

To the Members of

Pilani Investment and Industries Corporation Limited Report on the Audit of theStandalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of Pilani Investmentand Industries Corporation Limited ("the Company") which comprise thestandalone Balance Sheet as at 31st March 2020 the standalone Statement of Profit andLoss (including Other Comprehensive Income) the standalone Statement of Cash Flows andthe standalone Statement of Changes in Equity for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give 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 31st March 2020and its profit totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilty for the Audit of the Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute 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 audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance 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.

Key Audit Matter Auditor's Response
Valuation of Investments We understood and tested the key controls around the valuation processes including the independent price verification and valuation governance controls. We found these key controls were designed implemented and operated effectively and therefore determined that we could place reliance on these key controls for the purposes of our audit.
As per provisions of Indian Accounting Standards the Company's Investments excluding investments in Subsidiaries and Associates are measured at fair value at each reporting date and this policy of measuring investments at fair value have significant impact on the Company's financial results.
The valuation is performed by the Company using a fair value hierarchy as applicable below: Further we assessed the valuation of all individual investments to determine whether the valuations performed by the Company were within a predefined tolerable differences threshold.
• Level 1: valuations based on quoted prices (unadjusted) in active markets. As part of these audit procedures we assessed the accuracy of key inputs used in the valuation including observable and non-observable inputs.
• Level 2: valuations based on other than quoted prices included within level 1 that are observable either directly or indirectly. We also evaluated the Company's assessment whether objective evidence of impairment exists for individual investments.
• Level 3 : valuations based on unobservable inputs for the asset.
The valuation of investments is inherently subjective - most predominantly for the level 2 and level 3 investments since these are valued using inputs other than quoted prices in an active market. Based on these procedures we have not noted any material differences outside the predefined tolerable differences threshold.
Key inputs used in the valuation of individual level 2 investments are market price of quoted investments illiquidity discount etc. In addition the Company determines whether objective evidence of impairment exists for individual investments.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report for exampleCorporate Overview Key Highlights Directors Report Report on Corporate GovernanceManagement Discussion and Analysis Report Business Responsibility Report etc. but doesnot include the consolidated financial statements standalone financial statements and ourauditor's report thereon.

Our opinion on the standalone financial statements 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 materially 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.

Management's Responsibility for the Standalone Financial 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 includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the Standalone 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 theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgement 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 risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the management.

• 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

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

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone 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 based on our audit 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 accounts 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 the Statement of Cash Flows and the Statement of Changes in Equity dealt with bythis Report are in agreement with the relevant books of account;

(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act.

(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 aredisqualified as on 31st March 2020 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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness on the Company's internal financial control 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 opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe 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 standalone financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

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 Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

For Vidyarthi & Sons
Chartered Accountants
Firm Registration No.000112C
Amit S. Vidyarthi
Partner
Membership No.F-078296
Gwalior July 30 2020 UDIN : 20078296AAAACE3324

Annexure - Rs A Rs to the Independent Auditor's Report

(Referred to in paragraph 1(f) under Rs Report on Other Legal and RegulatoryRequirements Rs section of our Report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the Internal Financial Controls Over Financial Reporting of PilaniInvestment and Industries Corporation Limited ("the Company") as of 31st March2020 in conjunction with our audit of the standalone Ind AS financial statements of theCompany 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 Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the ICAI and the Standardson Auditing prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

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.

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 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 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.

Opinion

In our opinion to the best of our information and according to the explanations 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 31st March 2020 based on the criteria forinternal financial control over financial reporting established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Vidyarthi & Sons
Chartered Accountants
Firm Registration No.000112C
Amit S. Vidyarthi
Partner
Membership No.F-078296
Gwalior July 30 2020 UDIN : 20078296AAAACE3324

Annexure Rs B Rs to the Independent Auditor's Report

(Referred to in paragraph 2 under Rs Report on Other Legal and Regulatory RequirementsRs section of our report

of even date to the members of PILANI INVESTMENT AND INDUSTRIES CORPORATION LIMITED asat and for the

year ended March 31 2020.)

1) In respect of the Company's fixed assets we report that:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. Fixed Assets have been physically verified by the management during the year and nomaterial discrepancies were noticed on such verification.

c. According to the information and explanation given to us by the management thetitle deeds of immovable properties included in the fixed assets are held in the name ofthe Company.

2) The Company's business does not involve inventories and accordingly therequirements under clause (ii) of paragraph 3 of the Order are not applicable to thecompany.

3) According to the information and explanations given to us and on the basis of ourexamination of the books of account the company has during the year not granted anyloans secured or unsecured to Companies Limited liability partnerships Firms or otherparties covered in the register maintained under Section 189 of the Companies Act 2013.Accordingly the provisions of clause (iii) (a) (b) and (c) of paragraph 3 of the Orderare not applicable to the Company and hence not commented upon.

4) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

5) The company has not accepted any deposits from the public covered under Section 73to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Hence the provisions of clause (v) of paragraph 3 of the Order are not applicable to theCompany.

6) To the best of our knowledge and as per information and explanation given to us bythe management the Company is not in the business of sale of any goods. Therefore in ouropinion maintenance of cost records as prescribed by the Central Government undersub-section (1) of Section 148 of the Act is not applicable to the company. Hence clause(vi) of paragraph 3 of the Order is not applicable to the company.

7) According to the information and explanations given to us in respect of statutorydues:

a. The Company is generally regular in depositing undisputed statutory dues withappropriate authorities including Provident Fund Income Tax Goods and Service Tax Cessand any other statutory dues applicable to it. The provisions relating to Employees RsState Insurance Sales Tax Value Added Tax Duty of Customs and Duty of Excise are notapplicable to the Company.

b. There were no undisputed amounts payable in respect of Provident Fund Income TaxService Tax Goods and Service Tax Cess and other material statutory dues wereoutstanding as at the year end for a period of more than six months from the date theybecame payable. The provisions relating to Employees Rs State Insurance Value Added TaxSales Tax Duty of Customs and Duty of Excise are not applicable to the Company.

c. There are no dues in respect of Service Tax Goods and Service Tax Cess which havenot been deposited on account of any dispute. The provisions relating to Employees RsState Insurance Value Added Tax Sales Tax Duty of Customs and Duty of Excise are notapplicable to the Company. The particulars of dues of Income Tax as at March 31 2020which have not been deposited on account of a dispute are as follows:

Name of the Statute Nature of Dues Amount ( Rs in Lacs) Period to which the amount relates Forum where Dispute is pending
Income Tax Act 1961 Income tax on certain disallowances etc. 363.68 lacs 2011-12 2013-14 201415 2017-18 and 2019-20 Deputy Commissioner Income Tax Apellate Tribunal Kolkata

8) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to financialinstitutions banks and government. The Company has not issued any debentures.

9) According to the information and explanation given to us by the management thecompany has not raised any money by way of initial public offer or further public offerincluding debt instruments and term loans. Hence clause (ix) of paragraph 3 of the Orderis not applicable to the Company and is not commented upon.

10) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven to us we have neither come across any instance of fraud by the Company or on theCompany by its officers or employees noticed or reported during the year nor have webeen informed of any such case by the management.

11) According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

12) In our opinion the Company is not a Nidhi Company and the Nidhi Rules 2014 arenot applicable to it. Hence clause (xii) of paragraph 3 of the Order is not applicable andis not commented upon.

13) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Section 177 and 188 of the Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the notes to Standalone FinancialStatements as required by the applicable accounting standards.

14) According to the information and explanations given to us the company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review and hence clause (xiv) of paragraph 3 of the Orderis not applicable to the company and is not commented upon.

15) According to the information and explanations given to us by the management theCompany has not entered into any non-cash transactions with the directors or personsconnected with him as referred to in Section 192 of the Companies Act 2013. Accordinglyclause (xv) of paragraph 3 of the Order is not applicable.

16) According to the information and explanations given to us we report that theCompany is registered as required under Section 45-IA of the Reserve Bank of India Act1934.

For Vidyarthi & Sons
Chartered Accountants
Firm Registration No.000112C
Amit S. Vidyarthi
Partner
Membership No.F-078296
Gwalior July 30 2020 UDIN : 20078296AAAACE3324

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