Pyxis Finvest Ltd.
|BSE: 534109||Sector: Financials|
|NSE: N.A.||ISIN Code: INE883L01018|
|BSE 00:00 | 20 May||Pyxis Finvest Ltd|
|NSE 05:30 | 01 Jan||Pyxis Finvest Ltd|
|BSE: 534109||Sector: Financials|
|NSE: N.A.||ISIN Code: INE883L01018|
|BSE 00:00 | 20 May||Pyxis Finvest Ltd|
|NSE 05:30 | 01 Jan||Pyxis Finvest Ltd|
To The Members of Pyxis Finvest Limited
Report on the Audit of the Financial Statements
We have audited the accompanying standalone financial statements of Pyxis FinvestLimited ("the Company") which comprise the Balance Sheet as at March 312021 the Statement of Profit and Loss the Cash Flow Statement for the year endedand a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act2013(Act') in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including theAccounting Standards prescribed under section 133 of the Act read with rule 7 of theCompanies (Accounts) Rule2014 (as amended) of the state of affairs of the Company as at 31stMarch 2021 and its Loss and its cash flows for the year ended on that date.
Basis of Opinion:
We conducted our audit in accordance with the Standards of Accounting under section143(10) of the Act. Our responsibilities under those standards are further described inthe Auditor's Responsibilities for the Audit of the 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 ethicalrequirements that are relevant to our Audit of the financial statements under theprovision of the Act and the rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisof our opinion.
Information other than the financial statement and auditor's report thereon:
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Director's Report along with theannexures but does not include the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstatements. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
Matter of Emphasis
(i) We draw attention to point no "O" of Additional disclosures as requiredby the Reserve Bank of India covered under Note No 17 to the financial statements whichdescribes the exceeding of the single party and Single Group exposure limit.
(ii) The Company has granted unsecured Loan to single group other than related party inearlier year amounting to Rs.128750000/-which is classified as Non-Performing Assetsand provision for the same has been made in according with prudence norms prescribed byRBI Directions 2007.
(iii) The Income tax payment of Rs. 5219695/-and provision of Rs.3325000/-pertaining to prior year 31.03.2016 are still pending for reconciliation. The same will beaccounted for when it is settled.
Our Opinion is not modified in respect of above.
Responsibility of Management and those charged with Governance for the FinancialStatement
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance (changes in equity) and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. 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 financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements management is responsible for assessing theCompany'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 Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 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 omission misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in circumstances.
Evaluate the appropriateness of accounting policies used and reasonableness ofaccounting estimates and related disclosure made by management.
Conclude on appropriateness of management's 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 Company'sability to continue as a going concern. If we conclude that material uncertainty existswe are required to draw attention in our Auditor's Report to the related disclosure areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of Auditor's Report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentations structure and content of the standalonefinancial statements including the disclosure and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
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 through to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our Auditor's Report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so should 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 Companies Act 2013 we give in the Annexure A' statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable:
2. Further to our comments in Annexure I As required by Section 143(3) of the Act wereport 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid financial statements comply with the AccountingStandards 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 the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a directorin terms of Section 164 (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 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 contracts forwhich there were any material foreseeable losses
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company
3. Company has not paid or provided for any managerial regulation during the yearaccordingly reporting under section 197(16) of the act is not Applicable.
ANNEXURE "A'' TO INDEPENDENT AUDITORS' REPORT (Annexure referred under the headingof Report on Other Legal and Regulatory Requirements' of Independent Auditors reportof even date.)
On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we report that: -
(i) The Company does not have any fixed assets hence the clause is not applicable.
(ii) The Company is a NBFC primarily engaged in the financing activity. Accordinglyit does not hold any physical inventories. Hence clause 3(ii) of the report is notapplicable to the Company.
(iii) The Company has granted loan unsecured to companies firms or other partiescovered in the register maintained under section 189 of the Companies Act 2013 and
(a) In our opinion and according to the information and explanation given to us theterms and conditions of the grant of such loan during the year are not prejudicial to theCompany's interest;
(b) The schedule of repayment of principal has been stipulated wherein the principalamounts are repayable on demand. In our opinion repayment of the principal and payment ofinterest are regular during the year;
(c) There is no overdue amount in respect of principal amount and interest. (iv) TheCompany has not given any loans investments guarantees and security covered undersection 185 and 186 of the Companies Act 2013.
(v) The Company has not accepted any deposits from the public within the meaning 73 to76 of the Companies Act 2013 and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Hence the clause (v) of the Order is not applicable to the Company.
(vi) To the best of our knowledge and according to information and explanations givento us the Central Government has not prescribed the maintenance of cost records underSection 148(1) of the Companies Act 2013 for any services rendered by the Company.
(vii) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund investor education protection fundemployees' state insurance income tax sales tax service tax custom duty excise dutyCess and other material statutory dues extent to applicable except income tax liability ofRs.4112400/- for the year ended 31.03.2019 which is yet to be paid.
(b) According to the information and explanations given to us disputed amounts payablein respect of income tax Service Tax sales tax custom duty excise duty and cess whichin arrears as on 31st March 2021 is as follows
Statutory Dues Payable more than 6 Months
Note: The above income tax demand has been subjected to rectification with income taxdemand and hence the same will be provided in the book when communication relating to therectification is received from income tax department.
(viii) During the year the Company did not have any loans or borrowing from tofinancial institutions banks or debenture holders or from the Government.
(ix) The Company has not raised moneys by way of initial public offer or further publicoffer and not availed any term loan during the year. Hence clause (ix) of the report isnot applicable.
(x) Based on the audit procedure performed and the information and explanations givenby the management we report that no fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year.
(xi) No Managerial remuneration has been paid or provided. Hence clause (xi) of thereport is not applicable.
(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company.
(xiii) Based upon the audit procedures performed and according to the information andexplanations given to us all transactions with related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial statements etc. as required by the applicable accountingstandards.
(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly the provisions of clause 3 (xiv) of the order are not applicable.
(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with them covered under Section 192 of the Act. Accordingly theprovisions of clause 3(xv) of the Order are not applicable.
(xvi) As the Company is engaged in the business of Non-Banking Financial Institutionthe Company is registered under section 45-IA of Reserve bank of India Act 1934.
ANNEXURE "B" TO INDEPENDENT AUDITORS' REPORT
(Annexure referred under the heading of Report on Other Legal and RegulatoryRequirements' of Independent Auditors report of even date.)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
1. We have audited the internal financial controls over financial reporting of ('theCompany') as of 31st March 2021 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
3. 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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Company's internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. A Company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company's internal financial control overfinancial reporting 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
7. 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.
8. In our opinion Subject to read with remark of above Para the Company has in allmaterial respects an adequate internal financial controls system over financial reportingand such internal financial controls over financial reporting were generally operatingeffectively as
9. at March 31 2021. However there is a need of further strengthening thesystem.