TO THE MEMBERS OF
PTL ENTERPRISES LIMITED
Report on the Audit of the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of PTL ENTERPRISES LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2020 theStatement of Profit and Loss (including the Statement of Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flow for the year then ended anda summary of significant accounting policies and other explanatory information(hereinafter referred to as "the Ind AS financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31st March 2020 its profit and othercomprehensive income changes in equity and its cash flows for the year then ended.
Basis for Opinion
We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Ind AS Financial Statements' section of our report.We are independent of the Company in accordance with the Code of Ethics' issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the Ind AS financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the Ind AS financial statements of the current period. Thesematters were discussed in the context of our audit of the Ind AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be the key audit mattersto be communicated in our report.
|S.No. Key Audit Matter ||Auditor's Response |
|1 Evaluation of uncertain tax positions ||Principal Audit Procedures |
|The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. See Note C5(a) to the Ind AS Financial Statements. ||We obtained details of completed tax assessments and demands till the year ended 31st March 2020 from the management. We involved our internal experts to evaluate 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. We discussed with management's tax team to understand the status of all significant provisions and any changes to management's judgements in the year. We read correspondence with tax authorities and Company's external tax advisors/lawyers to evaluate our assessment of recorded estimates and evaluate the completeness of the provisions recorded and whether any change was required to management's position on these uncertainties. |
Information other than the Ind AS Financial Statements and Auditor's Report Thereon
The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sAnnual Report but does not include the Ind AS financial statements and our auditor'sreport thereon.
Our opinion on the Ind AS financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.
In connection with our audit of the Ind AS financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the Ind AS financial statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated. If based on the work we haveperformed on the other information obtained prior to the date of this auditor's report weconclude that there is a material misstatement of this other information we are requiredto report that fact. We have nothing to report in this regard.
Management's Responsibility for the Ind AS 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 Ind AS financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.
In preparing the Ind AS financial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's responsibility for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Ind AS 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 Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by 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 Ind AS 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 Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the Ind AS financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Ind AS 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 Ind AS 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 financial statements of thecurrent period and are therefore the key audit matters We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 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 the "Annexure A" a statement on the matters specified inParagraphs 3 and 4 of the Order.
2. 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) Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account.
(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended.
(e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in 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".
(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 as amended inour opinion and to the best of our information and according to the explanations giventous:
i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements - Refer Note C5(a) to the Ind AS financialstatements.
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 other than Rs.2.22 Lakhs pertaining to amount ofdividend which has not been transferred due to pending transmission of equity shares.
3. 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 for the year ended 31st March 2020 has been paid/provided by the Company toits manager in accordance with the provisions of section 197 read with Schedule V to theAct. The Company has not paid any remuneration to its directors during the year ended 31stMarch 2020.
For SCV &Co. LLP
FIRM REGISTRATION No. 000235N/N500089
(RAJIV PURI) PARTNER
MEMBERSHIP No. 084318 ICAI UDIN: 20084318AAAAAZ9639
Place : New Delhi Date : 19th May 2020
Annexure "A" to the Independent Auditors' Report
Annexure referred to in paragraph 1 under the heading "Report on other legal andregulatory requirements" of our Report of even date.
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) Fixed assets verification has been conducted by the management during the year. Allthe fixed assets of the Company have not been physically verified by the management duringthe year but there is a regular phased programme of physical verification which in ouropinion is reasonable having regard to the size of the Company and nature of its fixedassets. No material 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. Physical verification of inventory has been conducted by the management atreasonable intervals during the year.
The discrepancies noticed on verification between the physical stocks and book recordswhich in our opinion were not material have been properly dealt with in the books ofaccount.
iii. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties covered inthe register maintained under Section 189 of the Companies Act 2013. Accordingly theparagraphs 3(iii)(a) 3(iii)(b) and 3(iii)(c) of the Order are not applicable to theCompany.
iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 186 of the Companies Act 2013 inrespect of investment made by it. The Company has not given any loans given guarantees orsecurity during the year which are covered under provisions of section 185 and 186 of theCompanies Act 2013.
v. According to the information and explanations provided by the management we are ofthe opinion that the company has not accepted any deposits from public covered undersection 73 to 76 or any other relevant provisions of the Companies Act 2013 and rulesframed there under. Accordingly the paragraph 3(v) of the Order is not applicable to theCompany.
vi. The maintenance of cost records has not been specified by the Central Governmentunder section 148(1) of the
Companies Act 2013 for the business activities carried out by the Company.Accordingly the paragraph 3(vi) of the Order is not applicable to the Company
vii.(a) According to the information and explanations given to us and on the basis ofour examination of the books of account the Company has been generally regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome-tax sales tax service tax goods and service tax duty of customs duty ofexcise value added tax cess and other material statutory dues applicable to it to theappropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax sales taxservice tax goods and service tax duty of customs duty of excise value added tax cessand other material statutory dues were outstanding as on 31st March 2020 for a period ofmore than six months from the date they became payable.
(b) According to the information and explanations given to us and on the basis of ourexamination of the books of account there are no dues of sales tax or goods and servicetax or duty of customs or duty of excise or value added tax which have not been depositedon account of any dispute.
According to the information and explanations given to us the following dues of incometax and service tax have not been deposited by the Company on account of disputes:
|Name of the Statute ||Nature of dues ||Amount involved (Rs. in lakhs)* ||Amount unpaid (Rs. in lakhs) ||Period to which amount relates ||Forum where dispute is pending |
|Income Tax Act 1961 ||Income demand Tax ||1565.15 ||1565.15 ||2014-2015 ||Commissioner of Income Tax (Appeals) |
|Income Tax Act 1961 ||Income Tax demand ||27.22 ||27.22 ||2016-2017 ||Commissioner of Income Tax (Appeals) |
|The Finance Act 1994 (Service Tax) ||Service Tax on Lease of Medical Equipment's ||34.58 ||33.29 ||2012-2013 to 2014-2015 ||Commissioner of Appeals (Service Tax) |
|The Finance Act 1994 (Service Tax) ||Service Tax on Lease of Medical Equipment's ||3.72 ||3.47 ||2015-2016 ||Commissioner of Appeals (Service Tax) |
* Includes interest and penalty wherever mentioned in order
viii. Based on our audit procedures and on the information and explanations given tous the Company has not taken any loans or borrowings from financial institutions banksand government or has not issued any debentures. Accordingly paragraph 3(viii) of theOrder is not applicable to the Company.
ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year nor it has raised money by wayof term loans. Accordingly paragraph 3(ix) of the Order is not applicable to the Company.
x. According to the information and explanations given to us no fraud by the Companyor any material fraud on the
Company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations given by the management themanagerial remuneration has been paid/ provided in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V to the Companies Act 2013.
xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company.
Accordingly paragraph 3(xii) of the Order is not applicable to the Company.
xiii. 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 in compliance with sections 177 and188 of the Companies Act 2013 where applicable and details of such transactions have beendisclosed in the Ind AS financial statements as required by the applicable accountingstandards.
xiv. According to the information and explanations give to us and based on ourexamination of the records of the
Company the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year. Accordingly provisionsof paragraph 3(xiv) of the Order are not applicable to the Company.
xv. According to the information and explanations given to us and based on ourexamination of the records of the
Company the Company has not entered into non-cash transactions with directors orpersons connected with him as referred to in section 192 of the Companies Act 2013.Accordingly provisions of paragraph 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For SCV &Co. LLP CHARTERED ACCOUNTANTS
FIRM REGISTRATION No. 000235N/N500089
PARTNER MEMBERSHIP No. 084318 ICAI UDIN: 20084318AAAAAZ9639
Place: New Delhi Date: 19th May 2020
Annexure "B" To the Independent Auditor's Report
(Referred to in paragraph 2(f) under Report on Other Legal and RegulatoryRequirements' section of the independent Auditor's Report of even date to the members ofPTL Enterprises Limited on the Ind AS Financial Statements for the year ended 31st March2020)
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 PTLENTERPRISES LIMITED ("the Company") as of 31st March 2020 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.
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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
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 Institute ofChartered Accountants of India and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 judgement 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 Company's internal financial controls systemover financial reporting with reference to these Ind AS financial statements.
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 authorizations 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.
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 31st March 2020 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.
For SCV & Co. LLP
CHARTERED ACCOUNTANTS FIRM REGISTRATION No. 000235N/N500089
PARTNER MEMBERSHIP No. 084318 ICAI UDIN: 20084318AAAAAZ9639
Place: New Delhi Date: 19th May 2020