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Porwal Auto Components Ltd.

BSE: 532933 Sector: Engineering
NSE: N.A. ISIN Code: INE386I01018
BSE 00:00 | 09 Dec 26.00 -0.40
(-1.52%)
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27.70

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27.70

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25.50

NSE 05:30 | 01 Jan Porwal Auto Components Ltd
OPEN 27.70
PREVIOUS CLOSE 26.40
VOLUME 825
52-Week high 32.90
52-Week low 17.45
P/E
Mkt Cap.(Rs cr) 39
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 27.70
CLOSE 26.40
VOLUME 825
52-Week high 32.90
52-Week low 17.45
P/E
Mkt Cap.(Rs cr) 39
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Porwal Auto Components Ltd. (PORWALAUTOCOMP) - Auditors Report

Company auditors report

To the Members of PORWAL AUTO COMPONENTS LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of Porwal AutoComponents Limited(the Company) which comprise the Balance Sheet as at March 31 2021the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as the standalone financial statements).

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 true and fairview in conformity with the Indian Accounting Standards prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended(Ind AS) and other account ing principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 the profit and total comprehensive incomechanges in equity and its cash flows for the year ended on that date.

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 AuditorsResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAIs Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Companys Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Boards Report including Annexures to Boards Report BusinessResponsibility Report Corporate Governance and Shareholders Information but does notinclude the standalone financial statements and our auditors 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.

Managements Responsibility for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5)of the Act with respect to the preparation of these standalone financial statements thatgive a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe 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 were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Companys 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.

The Board of Directors are responsible for overseeing the Companys financial reportingprocess.

Auditors 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 auditors 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 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 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 relevant to the audit inorder to design audit procedures that are appropriate in the 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 management.

• Conclude on the appropriateness of managements use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Companysability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditors report to the related disclosures in thestandalone 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 ourauditors report. Ho wever 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 financial statements may be influenced. We considerquantitative materiality 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 anyidentified 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 auditors 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 account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified 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 the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct.

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 on the adequacyand operating effectiveness of the Companys internal financial controls over financialreporting.

g) With respect to the other matters to be included in the Auditors Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditors 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 has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

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

2. As required by the Companies(Auditors report)Ord er2016(the Order) issued by theCentral Government in terms of section 143(11) of the Act we give in Annexure B astatement of the matters specified in paragraph 3 and 4 of the order.

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirementssection of our report of even date)

In terms of the information and explanations given to us and the books and recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe state that

(i) (a) The Company has maintained proper records showing full particulars includingquantitative

details and situation of fixed assets.

(b) Major items of fixed assets have been physically verified by the management duringthe year in accordance with a programmed of verification which in our opinion isreasonable having regard to the size of the company and the nature of its assets. Nomaterial discrepancies were

noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of

the Company.

(ii) The management during the year under review has conducted physical verificationof

inventory and no material discrepancies were noticed on such verification.

(iii) The company has not granted any loan to any body corporate covered in theregister maintained under section 189 of the Companies Act 2013. Hence this clause is notapplicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) The Company has not accepted any deposits from public within the meaning of Section73 and 74 of the Act and the rules framed there under to the extent notified.

(vi) The Central Government has not prescribed maintenance of cost records under ofsub- section (1) of Section 148 of the Act for the nature of industry in which theCompany is doing business.

(vii) (a) Undisputed statutory dues including Provident Fund Investor Education andProtection Fund

Employees State Insurance Income Tax Sales Tax Wealth Tax Service Tax CustomsDuty Excise Duty Cess (as applicable) have generally been regularly deposited with theappropriate authorities.

(b) No disputed amounts payable in respect of Wealth Tax Income Tax Service TaxCustom Duty Excise Duty and Cess were in arrears as at 31st March 2021 exceptthe following.

Name of the Statue Nature of Dues Amount Disputed Period to which the amount relates Forum where dispute is pending
Employee Provident Fund 8i Mis. Provisions Act 1952 Provident Fund Rs. 8.05 lacs F.Y. 2005-06 Employee Provident Fund Appellate Tribunal
MP VAT Tax Vat Tax Rs.2.48 lacs F.Y. 2013-14 Appellate Authority Additional Commissioner of Commercial Tax Indore
MP VAT Tax Vat Tax Rs.2.67 lacs F.Y. 2016-17 Appellate Authority Additional Commissioner of Commercial Tax Indore

(viii) The company has not defaulted in repayment of dues to financial institutions orbanks as at the balance sheet date.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments).

(x) No instance of material fraud on or by the Company notice or reported during theyear nor have we been informed of any such case by the Management.

(xi) The Company has paid/provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct.

(xii) The Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order isnot applicable.

(xiii) The transactions with the related parties are in compliance with sections 177and 188 of the Act where applicable and details of such transactions have been disclosedin the financial statements as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully

or partly convertible debentures during the year.

(xv) The Company has not entered into non-cash transactions with directors or personsconnected

with him. Accordingly paragraph 3(xv) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India

Act 1934. Accordingly paragraph 3 (xvi) of the Order is not applicable to the Company.

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 PORWAL AUTOCOMPONENTS LIMITED (the Company) as of 31 March 2021 in conj unction with our audit of theInd AS financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys 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 companys 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 Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the Guidance Note) and the Standards on Auditing issued by ICAI and 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 the Guidance Note 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 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 auditors judgment including the assessment of the risks ofmaterial misstatement of the Ind AS 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 Companys 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion 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 31 March 2021 based on theinternal control over financial reporting criteria 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.

Annexure VII

Independent Auditors Report on Year to Date Fi nancial Result of PORWAL AUTO COMPONENTSLTD Pursuant to the Regulation 33 of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015

To Board of Directors of

PORWAL AUTO COMPONENTS LIMITED

We have audited the financial results of PORWAL AUTO COMPONENTS LIMITED for the yearended 31st March 2021 attached herewith being submitted by the companypursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 as modified by Circular No. CIR/CFD/FAC/62/2016dated July 5 2016.

This statement which is the responsibility of Companys Management and approved by theBoard of Directors has been complied from the related Ind- AS Financial Statements whichhave been prepared in accordance with the Indian Accounting Standards prescribed underSection 133 of the Companies Act 2013 read with relevant Rules issued there under (IndAS) and other Accounting Principles generally accepted in India. Our responsibility is toexpress an opinion on the Statement based on our audit of such Financial Statement.

We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those standards require that we comply withethical requirement and plan and perform the audit to obtain reasonable assurance aboutwhether the financial results are free of material misstatement(s).

An audit involved performing procedures to obtain audit evidence about the amount andthe disclosure in the Statement. The procedure selected depends on the Auditors judgementincluding the assessment of the risk of material mis-statement of the statement whetherdue to fraud or error. In making those risk assessment the Auditor considers internalcontrol relevant to the Companys preparation and fair presentation of the statement inorder to design audit procedure that are appropriate in the circumstances but not for thepurpose of expressing an opinion on the effectiveness of the Companys internal control. Anaudit also includes evaluating the appropriateness of the Accounting Policy used and thereasonableness of the Companys estimate made by the Management as well as evaluating theoverall presentation of the statement.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our opinion.

In our opinion and to the best of our information and according to the explanationsgiven to us the statement:

(i) are presented in accordance with the requirements of Regulation 33 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 as modified byCircular No. CIR/CFD/FAC/62/2016 dated July 5 2016.and

(ii) give a true and fair view in conformity with the aforesaid Indian AccountingStandards and other Accounting principles generally accepted in India of the net profitand other financial information for the vear ended 31st March 2021.

AUDTIORS CERTIFICATE ON CORPORATE GOVERNANCE To the Members of

PORWAL AUTO COMPONENTS LIMITED

We have examined the compliance of conditions of Corporate Governance by Porwal AutoComponents Limited for the year ended on 31 March 2021 as stipulated in Regulations 17to 27 and clauses (b) to (i) of Regulation 46(2) and para C and D of Schedule V of theSEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (ListingRegulations).

The compliance of conditions of Corporate Governance is the responsibility of theManagement. This responsibility includes the design implementation and maintenance ofinternal control and procedures to ensure the compliance with the conditions of theCorporate Governance stipulated in Listing Regulations.

Our responsibility is limited to examining the procedures and implementation thereofadopted by the Company for ensuring compliance with the conditions of the CorporateGovernance. It is neither an audit nor an expression of opinion on the financialstatements of the Company.

We have examined the books of account and other relevant records and documentsmaintained by the Company for the purposes of providing reasonable assurance on thecompliance with Corporate Governance requirements by the Company.

e have carried out an examination of the relevant records of the Company in accordancewith the Guidance Note on Certification of Corporate Governance issued by the Institute ofthe Chartered Accountants of India (the ICAI) the Standards on Auditing specified underSection 143(10) of the Companies Act 2013 in so far as applicable for the purpose of thiscertificate and as per the Guidance Note on Reports or Certificates for Special Purposesissued by the Institute of Chartered Accountants of India which requires that we complywith the ethical requirements of the Code of Ethics issued by the Institute of CharteredAccountants of India.

We have complied with the relevant applicable requirements of the Standard on QualityControl (SQC) 1 Quality Control for Firms that Perform Audits and Reviews of HistoricalFinancial Information and Other Assurance and Related Services Engagements.

Based on our examination of the relevant records and according to the information andexplanations provided to us and the representations provided by the Management we certifythat the Company has complied with the conditions of Corporate Governance as stipulated inRegulations 17 to 27 and clauses (b) to (i) of Regulation 46(2) and para C and D ofSchedule V of the Listing Regulations during the year ended 31 March 2021.

We state that such compliance is neither an assurance as to the future viability of theCompany nor the efficiency or effectiveness with which the Management has conducted theaffairs of the Company.

For S N Gadiya 8i Co.
Chartered Accountants
Firm Reg. No.0020502C
(CA S. N. Gadiya)
Proprietor
M.No.071229
UDIN: 21071229AAAAHF2165
Date: 28/06/2021
Place: Indore

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