THE MEMBERS OF PRATIKSHA CHEMICALS LIMITED
Report on the IND AS Financial Statements Qualified Opinion
We have audited the accompanying financial statements of PRATIKSHA CHEMICALS LIMITED("the Company") which comprise the Balance Sheet as at 31st March2019 the Statement of Profit and Loss (including other comprehensive income) for theperiod 01st April 2018 to 31st March 2019 the Cash Flow Statementfor the year then ended and the statement of changes in equity for the period and asummary of the significant accounting policies and other explanatory information (hereinafter referred to as "Ind AS financial statements")
In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the 'Basis forQualified Opinion' section of our report the aforesaid Ind AS financial statements givethe information required by the Act in the .manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2019 and its profit (including othercomprehensive income) its cash flows and the statement of changes in equity for the yearended on that date.
Basis for Qualified Opinion
i. Adhering to significant accounting policy the company is accounting for Gratuity& Leave encashment on cash basis. This is not in according with Ind AS - 1 on"Presentation of Financial Statement" and Ind AS -19 on "EmployeeBenefits" prescribed by the Institute of Chartered Accounting of India and contraryto provision contained in Section 133 of
The Companies Act 2013. The extent of non-compliance in terms of value is not
ii. Ind AS - 2 for "Inventories" has not been followed. The technicalvaluation claimed by company is not quantifiable hence; we are not in a position toquantify the effect on the profit and loss account and balance sheet.
iii. Ind AS - 101 requires the company to make an explicit and unreserved statementin the financial statements of compliance with Ind AS how we same is not made and hencethe extent of non-compliance in terms
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 matter to be communicated in our report-
1. Key Audit Matter - Utilization of Indirect tax receivables
As at March 31 2019 balances with revenue authorities amounting to Rs 22.49 lakhswhich are pending for reconciliation with individual bifurcation under CGST SGST &IGST.
We reviewed the reconciliation of the amounts which can be utilized against each headand the credits which were unlikely to be utilized were written off by the company.
Management's Responsibility for Ind AS Financial Statements
The Company's Board of Directors is responsible for the preparation of these Ind ASfinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed under Section 133 of theCompanies Act 2013 ("the Act") read with relevant rules issued there under.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers Internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of the accounting estimates made by the Company's Directorsas well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.
Report on Other Legal and Regulatory Requirements
I. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of section 143(11) of the Act we givein the Annexure A a statement on the matters specified in the paragraph 3 and 4 of theOrder.
II. As required by Section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the 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) the statement of cash flows and the statement of changes in equity dealt with bythis Report are in agreement with the books of account;
d) In our opinion the aforesaid Ind AS financial statements subject to the mattersmentioned in the 'Basis for Qualified Opinion' para above comply with the Ind ASspecified under Section 133 of the Act read with relevant rules issued there under;
e) On the basis of the written representations received from the directors as on 31March 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2019 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 B"; and
g) 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 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivative contractshaving any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended 31 March 2019.
|For H. K. Shah & co. |
|Chartered Accountants |
|FRN: 109583W A |
|Gopesh Shah |
|M. No.: 106204 |
|Place: Ahmedabad |
|Date: 28/05/2019 |