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PNB Gilts Ltd.

BSE: 532366 Sector: Financials
NSE: PNBGILTS ISIN Code: INE859A01011
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VOLUME 25701
52-Week high 94.65
52-Week low 37.15
P/E 5.67
Mkt Cap.(Rs cr) 1,173
Buy Price 65.15
Buy Qty 68.00
Sell Price 65.20
Sell Qty 1.00
OPEN 66.80
CLOSE 66.00
VOLUME 25701
52-Week high 94.65
52-Week low 37.15
P/E 5.67
Mkt Cap.(Rs cr) 1,173
Buy Price 65.15
Buy Qty 68.00
Sell Price 65.20
Sell Qty 1.00

PNB Gilts Ltd. (PNBGILTS) - Auditors Report

Company auditors report

To

The Members of PNB Gilts Ltd

Report on the Audit of the Ind AS Financial Statements Opinion

We have audited the accompanying financial statements of PNB Gilts Ltd.("the Company") which comprise the Balance Sheet as at 31st March 2020 theStatement of Profit and Loss the Statement of Changes in Equity and the Cash FlowStatement for the year ended on that date and a summary of the significant accountingpolicies and other explanatory information (hereinafter referred to as "the financialstatements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid 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 2020 its profit changes inequity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance withthe standards on Auditing as specified under section 143(10) of the Act (SAs). Ourresponsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areIndependent to the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the independence requirements thatare relevant to our audit of the standalone financial statements under the provisions ofthe 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.We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr. Key Audit Matter No. Auditor's Response
1 As described in Note 11 D to the standalone financial statements the Company has adopted Modified Retrospective approach of Ind AS 116 Leases (Ind AS 116) in the current year. The application of this accounting standard is complex and is an area of focus in our audit since the Company has unexpired leases with different contractual terms. As per the Company Ind AS 116 do not apply to expired leases. Ind AS 116 introduces a new lease accounting model wherein unexpired lessees are required to recognise a right-of-use (ROU) asset and a lease liability arising from a lease on the balance sheet. The lease liabilities are initially measured by discounting future lease payments during the unexpired lease term as per the contract/ arrangement. Adoption of the standard involves significant judgments and estimates including determination of the discount rates and the lease term. Our audit procedures on adoption of Ind AS 116 include:
• Assessed and tested processes and controls in respect of the lease accounting standard (Ind AS 116);
• Assessed the Company's evaluation on the identification of leases based on the contractual agreements on unexpired leases ;
• Involved our specialists to evaluate the reasonableness of the discount rates applied in determining the unexpired lease liabilities;
• We performed the following procedures:
? assessed the key terms and conditions of each lease with the underlying lease contracts; and
? evaluated computation of lease liabilities and challenged the key estimates such as discount rates and the lease term.
Refer Note 11D to the standalone financial statements. • Assessed and tested the Company's presentation and disclosures relating to Ind AS 116 including disclosures which is duly supported by the Independent calculation and opinion of M/s Lodha & Co. the Internal. Auditors of the company.
Evaluation of uncertain income tax positions: Principal Audit Procedures:
The Company has material uncertain income tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. Refer Note 37 to the Financial Statements. Obtained detailed positions of tax assessments and demands from the management duly certified by the tax retainers of the Company. We involved our internal experts to challenge the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. Our internal experts also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions. Additionally we considered the effect of new information in respect of uncertain tax positions as at the time of audit to evaluate whether any change was required to management's position on these uncertainties.

Information other than the Financial Statements and Auditor'sReport thereon

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Business Responsibility Report Corporate Governance andShareholder's Information but does not include the standalone financial statementsand our auditor's report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Management / Board of Directors is responsible for thematters stated in Section 134(5) of the Act with respect to preparation and presentationof these financial statements that give a true and fair view of the financial positionfinancial performance change in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the FinancialStatements

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 assurance is a high level of assurance but is not aguarantee that an audit conducted in accordance with SAs will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesefinancial 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 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 relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

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.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit wereport 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 account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account.

d. In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under 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 thedirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 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 overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A".

g. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

h. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements.

ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts.

iii. There has been no delay in transferring amounts required to betransferred to the 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 of the Act we give in Annexure "B" a statement on thematters specified in paragraphs 3 and 4 of the Order.

3. As required by the Comptroller and Auditor General of India throughdirections issued under section 143(5) of the Act we give a report in the attachedAnnexure "C".

For Rasool Singhal & Co
Chartered Accountants (FRN: 500015N)
Sd/-
Date : June 4 2020 (CA. Kanti Kumar Gupta)
Place : New Delhi Partner
Membership No. 071615
UDIN: 20071615AAAAAO6408

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

(Referred to in paragraph 1(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of PNB Gilts Limited ofeven date)

Report on the Internal Financial Controls with reference to financialstatements under Clause (i) of Subsection 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls over financialreporting of PNB Gilts Ltd. ("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 Board of Directors of the Company is responsible for establishingand maintaining 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 respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the 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 Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and 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 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 ofthe risks of material misstatement of the 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 internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting isa process 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 controlover financial reporting includes those policies and procedures that-

(1) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;

(2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and

(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the Company's assetsthat 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.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312020 based on theinternal control over financial reporting criteria approved by the Company's Boardconsidering 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.

For Rasool Singhal & Co
Chartered Accountants (FRN: 500015N)
Sd/-
Date : June 4 2020 (CA. Kanti Kumar Gupta
Place : New Delhi Partner
Membership No. 071615
UDIN: 20071615AAAAAO6408

"Annexure B" to the Independent Auditor's Report

(Referred to in paragraph 2 under ‘Report on Other Legal andRegulatory Requirements' section of our report to the

Members of PNB Gilts Limited of even date).

Based upon the information and explanations furnished to us and thebooks and records examined by us in the

normal course of our audit we report that:

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and

situation of fixed assets.

(b) As reported by the management of the Company one of its staffmembers has conducted physical verification of its fixed assets on quarterly basis for thehead office and yearly for the branch offices. No discrepancies were reported during thephysical verification of assets.

(c) The Company owns 18 flats as immovable properties and 4 flats asInvestment Properties. The title deeds of the flats are in the name of the Company.

(ii) The Company's inventory comprising of Treasury Bills andDated Government Securities are held in the form of Subsidiary General Ledger (SGL)account maintained with the Reserve Bank of India and the said stock is verified by themanagement with the confirmation certificates received from Reserve Bank of India on amonthly basis. The stock of other securities held by the Company in de-materialized formwith NSDL/ SHCIL is verified by the management with the confirmation certificatesreceived from them on a monthly basis. In our opinion the frequency of such verificationis reasonable. No discrepancies were observed during the physical verification ofinventory as compared to book records.

(iii) The Company has not granted any loans secured or unsecured tocompanies firms or other parties covered

in the register maintained u/s 189 of the Act. The Company has nottaken any loans secured or unsecured from companies firms or other parties covered in theregister maintained u/s 189 of the Act.

(v) According to the information and explanations given to us noloans investments guarantees and securities have been given by the Company to concernswhich are covered under section 185 of the Companies Act 2013 and section 186 of theCompanies Act 2013.

(vi) According to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of Section 73 to76 of the Companies Act 2013 or any other relevant provisions of the Companies Act 2013and rules framed there under.

(vi) According to the information/explanations given to us maintenanceof the cost records for the products/ services/activities of the Company has not beenprescribed by the Central Government under Section 148 (1) of the Companies Act 2013.

(vii) (a) According to the information/explanations given to us theCompany is regular in depositing undisputed statutory dues including Provident fundEmployees' State Insurance Income TaxSales Tax Service Tax Duty of Customs Dutyof Excise Value Added Tax Cess and any other statutory dues to the appropriateauthorities.

(b) According to the information/explanations given to us the Companyhas some disputes which have resulted into demands under the Income Tax Act 1961 whichhave been not deposited. However no amount of interest payable on such disputed demandand penalties if any has been shown as contingent liabilities in note no. 37. Thedetails of which are given below:

(' in lacs)

Assessment Year Section under which demand raised Amount provided in the books and not paid Amount not provided for and treated as contingent liability Forum where dispute
2006-07 220(2) 11.44 - ITAT
2007-08 220(2) 0.01 - Assessing Officer
2007-08 115WE (1) - 1.33 Assessing Officer
2008-09 115WE (1) - 0.13 Assessing Officer
2008-09 143(3) - 1.78 Assessing Officer
2010-11 143(3) 5.14 - Assessing Officer
2011-12 154 - 3.21 Assessing Officer
2012-13 143(3) 13.78 342.80 ITAT
2013-14 250 14.74 - ITAT
2014-15 250 9.02 201.57 ITAT
2014-15 271(1)(c) - 7.12 CIT (Appeals)
2016-17 143(3) 7.97 123.83 CIT (Appeals)
2017-18 143(3) 8.65 180.63 CIT (Appeals)
2019-20 143(1) - 252.83 CPC
Total 70.75 1115.23

(viii) According to the information and explanations given to us theCompany has not defaulted in repayment of dues to a financial institution or banks.

(ix) According to the information and explanations given to us theCompany has not raised any money out of initial public offer or further public offer(including debt instruments). Term loans and short term borrowings through commercialpaper raised by the Company were applied for the purposes for which those are raised.

(x) According to the information and explanations given to us we haveneither come across any instance of fraud on or by the Company noticed or reported duringthe year nor have we been informed of such case by the management during the course of ouraudit.

(xi) According to the information and explanations given to us themanagerial remuneration paid by the Company is in accordance with provisions of Section197 read with Schedule V to the Companies Act 2013. The Company has also taken requisiteapprovals as mandated by the provisions of section 197 in terms of managerial remunerationbeing paid.

(xii) According to the information and explanations given to us theCompany is not a Nidhi Company thus this para does not apply to it.

(xiii) According to the information and explanations given to us theCompany has complied with requirements of section 177 of the Companies Act 2013 andSection 188 of the Companies Act 2013 in relation to the related parties. The Company hasalso disclosed the requirements as laid down in the accounting standards in the relationto the related parties in the financial statements in the note No. 34 Related PartyInformation.

(xiv) According to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares orconvertible debentures during the year under review.

(xv) According to the information and explanations given to us theCompany has not entered into any non-cash transactions with the Directors or personsconnected with it during the year under review.

(xvi) According to the information and explanations given to us theCompany is a NBFI already registered under section 45 I-A of the Reserve Bank of IndiaAct 1934.

For Rasool Singhal & Co
Chartered Accountants (FRN: 500015N)
Sd/-
Date : June 4 2020 (CA. Kanti Kumar Gupta)
Place : New Delhi Partner
Membership No. 071615
UDIN: 20071615AAAAAO6408

Annexure ‘C' to the Independent Auditor's Report

Directions indicating the areas to be examined by the StatutoryAuditors during the course of audit of annual accounts of PNB Gilts Limited for the year2019-20 issued by the Comptroller & Auditor General of India under Section 143 (5) ofthe Companies Act 2013.

Sr. No. Area Examined Observations/Findings
1. Whether the Company has system in place to process all the accounting transactions through IT system? If yes the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications if any may be stated. The Company has system of processing of accounting transactions partially through system with human intervention and partially by direct feeding manually. The implication of processing of accounting transactions outside IT system has no effect on the integrity of the accounts.
2. Whether there is any restructuring of an existing loan or cases of waiver / write off of debts / loans / interest etc. made by a lender to the Company due to the Company's inability to repay the loan? If yes the financial impact may be stated. There is no case of restructuring / waiver/ write off of debts / loans / interest reported by the management and / or observed during our audit of the year.
3. Whether funds received / receivable for specific schemes from Central / State agencies were properly accounted for / utilized as per its terms and condition? List the cases of deviations. There is no case of funds received / receivable for specific schemes from Central / State agencies reported by the management and / or observed during our audit of the year.

 

For Rasool Singhal & Co
Chartered Accountants (FRN: 500015N)
Sd/-
Date : June 4 2020 (CA. Kanti Kumar Gupta)
Place : New Delhi Partner
Membership No. 071615
UDIN: 20071615AAAAAO6408

Non Banking Financial Companies Auditor's Report for the YearEnded 31.03.2020

To

The Board of Directors PNB Gilts Ltd.

5 Sansad Marg New Delhi-110001

In terms of Reserve Bank of India Master Direction-Non BankingFinancial Companies Auditor's Report (Reserve Bank) Directions 2016 dated September29 2016 we report that -

The Company is engaged in the business of Non-Banking FinancialInstitution as Primary Dealer (PD). The Company has received Registration CertificateNo.14.00007 as provided in Section 45-IA of the Reserve Bank of India Act 1934 (2 of1934) from Reserve Bank of India on February 10 1998. The Company is entitled to continueto hold Certificate of Registration in terms of its Principal Business criteria (financialasset/income pattern) as on March 312020.

The Company is meeting the required net owned fund required in terms ofMaster Direction-Non-Banking Financial Company-Systemically Important Non-Deposit TakingCompany and Deposit taking Company (Reserve bank) Directions 2016.

A resolution for non-acceptance of any public deposits was passed inthe meeting of the Board held on April 20 2019 and the Company has not accepted anypublic deposits during the year ended March 312020.

The Company has complied with the prudential norms relating to incomerecognition accounting standards assets classification and provisioning for bad anddoubtful debts as applicable to it in terms of Master Direction NonBanking FinancialCompany-Systemically Important Non- Deposit Taking Company and Deposit taking Company(Reserve Bank) Directions 2016.

The Company has correctly arrived at the Capital Adequacy Ratio (CRAR)as disclosed in the return submitted to Reserve Bank of India in Form NBS-7 and this ratiois in compliance with the minimum CRAR prescribed. The Company has furnished the annualstatement of Capital Fund Risk Assets/Exposure and Risk Asset Ratio (NBS-7) withinstipulated period to Reserve Bank of India.

For Rasool Singhal & Co
Chartered Accountants (FRN: 500015N)
Sd/-
Date : June 4 2020 (CA. Kanti Kumar Gupta)
Place : New Delhi Partner
Membership No. 071615
UDIN: 20071615AAAAAO6408

Comments of The Comptroller and Auditor General of India

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION143(6) (b) OF THE COMPANIES ACT 2013 ON THE FINANCIAL STATEMENTS OF PNB GILTS LIMITED FORTHE YEAR ENDED 31 MARCH 2020

The preparation of financial statements of PNB Gilts Limited for theyear ended 31 March 2020 in accordance with the financial reporting framework prescribedunder the Companies Act 2013 (Act) is the responsibility of the management of theCompany. The statutory auditor appointed by the Comptroller and Auditor General of Indiaunder Section 139(5) of the Act is responsible for expressing opinion on the financialstatements under section 143 of the Act based on independent audit in accordance with thestandards on auditing prescribed under section 143(10) of the Act. This is stated to havebeen done by them vide their Audit Report dated 4 June 2020.

I on behalf of the Comptroller and Auditor General of India haveconducted a supplementary audit of the financial statements of PNB Gilts Limited for theyear ended 31 March 2020 under section 1436)(a) of the Act. This supplementary audit hasbeen carried out independently without access to the working papers of the statutoryauditor and is limited primarily to inquiries of the statutory auditor and companypersonnel and a selective examination of some of the accounting records.

On the basis of my supplementary audit nothing significant has come tomy knowledge which would give rise to any comment upon or supplement to statutoryauditor's report under section 143(6)(b) of the Act.

For and on behalf of the Comptroller & Auditor General of India

 

(C. Nedunchezhian)
Principal Director of Commercial Audit &
Place: New Delhi Principal Director of Audit
Date: 03 August 2020 (Industry & Corporate Affairs)
New Delhi

.