To the Members of Padmanabhndustries Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalonend AS standalone financial statements of
Padmanabhndustries Limited ("the Company"), which comprise the balance sheet as
at 31st March 2023, and the statement of profit and loss and statement of cash flows for
the year then ended, and notes to the standalone financial statements,ncluding a summary
of significant accounting policies and other explanatorynformation.
In our opinion and to the best of ournformation and according to the explanations given
to us, except for the possible effects of the matter describedn the Basis for Qualified
opinion section of our report, the aforesaid standalonend AS standalone financials
Statements give thenformation required by the companies Act, 2013 (‘Act)n the manner
so required and give a true and fair viewn conformity with the accounting principles
generally exceptednndia, of the state of affairs and fair view of the company as at March
31,2023,ts profit (or loss), statement of changesn equity and cash flows for the year
ended on that date.
Basis for Opinion
We conducted our auditn accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are
further describedn the Auditors Responsibilities for the Audit of the Financial
Statements section of our report We arendependent of the Companyn accordance with the Code
of Ethicsssued by thenstitute of Chartered Accountants oflndia together with the ethical
requirements that are relevant to our auditofthe financial statements under the provisions
of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other
ethical responsibilitiesn accordance with these requirements and the Code of Ethics.
We believe that the audit evidence we have obtaineds sufficient and appropriate to
provide a basis for our opinion.
Emphasis of Matter
Refer to Notes forming part of statement whichncludes the balance of Sundry Debtors,
Sundry Creditors, Loansncluding deposits and advances are subject to confirmation from and
reconciliation with the relevant parties as on the date of balance sheet date. We are notn
position to verify the amounts at which such balances are receivable and payable.
Key Audit Matters
Key audit matters are those matters that,n our professional judgment, were of most
significancen our audit of the standalone financial statements of the current period.
These matters were addressedn the context of our audit of the standalone financial
statements as a whole, andn forming our opinion thereon, and we do not provide a separate
opinion on these matters. We have determined the matters described below to be the key
audit matters to be communicatedn our report
Othernformation
The Companys Board of Directorss responsible for the othernformation. The
othernformation comprises thenformationncludedn the Directors Report but does notnclude
the standalone financial statements and our auditors report thereon.
Our opinion on the standalone financial statements does not cover the othernformation
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our
responsibilitys to read the othernformation and,n doing so, consider whether the
othernformations materiallynconsistent with the standalone financial statements or our
knowledge obtainedn the audit or otherwise appears to be materially misstated.f, based on
the work we have performed, we conclude thattheres a material misstatement of this
othernformation, we are required to report that fact. We have nothing to reportn this
regard.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directorss responsible for the matters statedn section 134(5) of
the Companies Act, 2013 ("the Act") with respect to the preparation of these
standalone financial statements that give a true and fair view of the financial position,
financial performance, (changesn equity) and cash flows of the Companyn accordance with
the accounting principles generally acceptednndia,ncluding the accounting Standards
specified under section 133 of the Act. This responsibility alsoncludes maintenance of
adequate accounting recordsn accordance with the provisions of the Act for safeguarding of
the assets of the Company and for preventing and detecting frauds and otherrregularities;
selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design,mplementation and maintenance of
adequatenternal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, managements responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
eitherntends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process. Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and tossue an auditors report thatncludes our opinion. Reasonable assurances a high level
of assurance, buts not a guarantee that an audit conductedn accordance with SAs will
always detect a material misstatement whent exists. Misstatements can arise from fraud or
error and are considered materialf,ndividually orn the aggregate, they could reasonably be
expected tonfluence the economic decisions of users taken on the basis of these financial
statements.
As part of an auditn accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit We also:
dentify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence thats sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from frauds
higher than for one resulting from error, as fraud maynvolve collusion, forgery,ntentional
omissions, misrepresentations, or the override ofnternal control.
Obtain an understanding ofnternal control relevant to the auditn order to design audit
procedures that are appropriaten the circumstances. Under section 143(3)(i) of the
Companies Act, 2013, we are also responsible for expressing our opinion on whether the
company has adequatenternal financial controls systemn place and the operating
effectiveness of such controls
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern.f we conclude that a material uncertainty exists,
we are required to draw attentionn our auditors report to the related disclosuresn the
financial statements or,f such disclosures arenadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditors
report However, future events or conditions may cause the Company to cease to continue as
a going concern.
Evaluate the overall presentation, structure and content of the financial
statements,ncluding the disclosures, and whether the financial statements represent the
underlying transactions and eventsn a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings,ncluding any
significant deficienciesnnternal control that wedentify during our audit
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regardingndependence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on ourndependence,
and where applicable, related safeguards. From the matters communicated with those charged
with governance, we determine those matters that were of most significancen the audit of
the financial statements of the current period and are therefore the key audit matters. We
describe these mattersn our auditors report unless law or regulation precludes public
disclosure about the matter or when,n extremely rare circumstances, we determine that a
matter should not be communicatedn our report because the adverse consequences of doing so
would reasonably be expected to outweigh the publicnterest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2020 ("the
order")ssued by the central government ofndian terms of sub section (11) of section
143 of the act, we give a statement on the matters specifiedn paragraphs 3 and 4 of the
order, to the extent applicable.
As required by Section 143 (3) of the Act, we report that:
(a) We have sought and, except for the matters describedn the basis for qualified
opinion paragraph, obtained all thenformation and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit except,
The confirmations of the balances outstanding as on the reporting date with customers,
suppliers, unsecured borrowings, deposits and loans and advances are subject to
confirmation with books of the counter parties.
(b) Except for the possible effects of the matter describedn the basis for qualified
opinion paragraph above,n our opinion proper books of account as required by law have been
kept by the Company so far ast appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss and cash flow statement dealt
with by this Report aren agreement with the books of account
(d)n our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards 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 31st
March, 2023 taken on record by the Board of Directors, none of the directorss disqualified
as on 31st March, 2023 from being appointed as a directorn terms of Section 164 (2) of the
Act.
(f) With respect to the adequacy of thenternal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Reportn "Annexure A".
(g) With respect to the other matters to bencludedn the Auditors Reportn accordance
with Rule 11 of the Companies (Audit and Auditors) Rules, 2014,n our opinion and to the
best of ournformation and according to the explanations given to us:
(a) The Company does not have any pending litigations which wouldmpactts financial
position;
(b) The Company does not have any long-term contractsncluding derivative contracts for
which there were any material foreseeable losses.
(c) There were no amounts which were required to be transferred to thenvestor Education
and Protection Fund by the Company.
(d) (i) The management has represented that, to the best ofts knowledge and belief,
other than as disclosedn the notes to the accounts, no funds have been advanced or loaned
ornvested (either from borrowed funds or share premium or any other sources or kind of
funds) by the company to orn any other person(s) or entity(ies),ncluding foreign entities
("Intermediaries"), with the understanding, whether recordedn writing or
otherwise, that thentermediary shall, whether, directly orndirectly lend ornvestn other
persons or entitiesdentifiedn any manner whatsoever by or on behalf of the company
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(ii) The management has represented, that, to the best ofts knowledge and belief,
other than as disclosedn the notes to the accounts, no funds have been received by the
company from any person(s) or entity(ies),ncluding foreign entities ("Funding
Parties"), with the understanding, whether recordedn writing or otherwise, that the
company shall, whether, directly orndirectly, lend ornvestn other persons or
entitiesdentifiedn any manner whatsoever by or on behalf of the Funding Party
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and
(in) Based on audit procedures which we considered reasonable and appropriaten the
circumstances, nothing has come to their notice that has caused them to believe that the
representations under sub-clause (i) and (ii) contain any material mis-statement.
(e) The company has not declared or paid any dividend during the yearn contravention of
the provisions of section 123 of the Companies Act, 2013.
Date : 25th May, 2023 |
For, V S S B & Associates |
Place : Ahmedabad |
Chartered Accountants |
|
Firm No.l21356W |
|
Sd/- |
|
(Vishves A Shah) |
|
Partner |
|
M. No.109944 |
|
UDIN: 23109944BGTKGS5260 |
"Annexure A" to thendependent Auditors Report of even date on the Financial
Statements of Padmanabhndustries Limited
Report on thenternal Financial Controls Over Financial Reporting under Clause (i) of
Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited thenternal financial controls over financial reporting of
Padmanabhndustries Limited ("the Company") as of March 31, 2023n conjunction
with our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility fornternal Financial Controls
The Board of Directors of the Companys responsible for establishing and
maintainingnternal financial controls based on thenternal control over financial reporting
criteria established by the Company considering the essential components ofnternal control
statedn the Guidance Note on Audit ofnternal Financial Controls over Financial
Reportingssued by thenstitute of Chartered Accountants ofndia. These
responsibilitiesnclude the design,mplementation and maintenance of adequatenternal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct ofts business,ncluding adherence to companys policies, the safeguarding ofts
assets, the prevention and detection of frauds and errors, the accuracy and completeness
of the accounting records, and the timely preparation of reliable financialnformation, as
required under the Companies Act, 2013.
Auditors Responsibility
Our responsibilitys to express an opinion on the Companysnternal financial controls
over financial reporting based on our audit. We conducted our auditn accordance with the
Guidance Note on Audit ofnternal Financial Controls Over Financial Reporting (the
"Guidance Note")ssued byCAI on Auditing prescribed under section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit ofnternal financial controls,
both applicable to an audit ofnternal Financial Controls and bothssued by thenstitute of
Chartered Accountants ofndia. Those Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequatenternal financial controls over financial reporting was established
and maintained andf such controls operated effectivelyn all material respects.
Our auditnvolves performing procedures to obtain audit evidence about the adequacy of
thenternal financial controls system over financial reporting and their operating
effectiveness. Our audit ofnternal financial controls over financial reportingncluded
obtaining an understanding ofnternal financial controls over financial reporting,
assessing the risk that a
material weakness exists, and testing and evaluating the design and operating
effectiveness ofnternal control based on the assessed risk. The procedures selected depend
on the auditors judgment,ncluding the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. We believe that the audit
evidence we have obtained,s sufficient and appropriate to provide a basis for our audit
opinion on the Companysnternal financial controls system over financial reporting.
Meaning ofnternal Financial Controls over Financial Reporting
A companysnternal financial control over financial reportings a process designed to
provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposesn accordance with generally
accepted accounting principles. A companysnternal financial control over financial
reportingncludes those policies and procedures that
(1) pertain to the maintenance of records that,n reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statementsn accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made onlyn
accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
Inherent Limitations ofnternal Financial Controls over Financial Reporting
Because of thenherent limitations ofnternal financial controls over financial
reporting,ncluding the possibility of collusion ormproper management override of controls,
material misstatements due to error or fraud may occur and not be detected. Also,
projections of any evaluation of thenternal financial controls over financial reporting to
future periods are subject to the risk that thenternal financial control over financial
reporting may becomenadequate because of changesn conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has,n all material respects, an adequatenternal financial
controls system over financial reporting and suchnternal financial controls over financial
reporting were operating effectively as at March 31, 2023, based on thenternal control
over financial reporting criteria established by the Company considering the essential
components ofnternal control statedn the Guidance Note on Audit ofnternal Financial
Controls Over Financial Reportingssued by thenstitute of Chartered Accountants ofndia.
Date : 25th May, 2023 |
For, V S S B & Associates |
Place : Ahmedabad |
Chartered Accountants |
|
Firm No.l21356W |
|
Sd/- |
|
(Vishves A Shah) |
|
Partner |
|
M. No.109944 |
|
UDIN: 23109944BGTKGS5260 |
"ANNEXURE B" TO THENDEPENDENT AUDITORS REPORT
(Referred ton paragraph 1 under the heading Report on other Legal & Regulatory
Requirement of our report of even date)
(i)n Respect of the Fixed Assets: -
(a) (A) The Company has maintained proper records showing full particulars,ncluding
quantitative details and situation of Property, Plant and Equipment
(B) The Company has nontangible Assets during the year.
(b) All the Property, Plant and Equipment have been physically verified by the
management during the year and theres a regular program of verification which,n our
opinion,s reasonable having regard to the size of the Company and the nature ofts assets.
No material discrepancies have been noticed on such verification.
(c) Details ofmmovable properties, which are not heldn the name of the company, are
given below: Not Applicable
(d) The Company has not revaluedts Property, Plant and Equipment (including Right of
Use assets) orntangible assets or both during the year.
(e) No proceedings have beennitiated or are pending against the Company for holding any
benami property under the Prohibition of Benami Property Transactions Act, 1988 (45 of
1988) and rules made thereunder.
(ii)n respect ofnventories: Thenventory has been physically verified by the management
during the year.n our opinion, the frequency of such verifications reasonable. According
to thenformation and explanations given to us and as examined by us, no material
discrepancies were noticed on such verification.
(iii) The Company has not madenvestmentsn, provided any guarantee or security or
granted any loans or advancesn the nature of loans, secured or unsecured, to companies,
firms. Limited Liability Partnerships or any other parties. Hence, sub-paragraphs (a) to
(f) of paragraph 3 (iii) of the Companies (Auditors Report) Order, 2020 (the Order) are
not applicable.
(iv)n our opinion and according to thenformation and explanations given to us, the
company has complied with the provisions of section 185 and 186 of the Act, with respect
to the loans andnvestments.
More so company has not provided us the list of persons related to director as defined
under section 185 of the companies act, therefore no comments can be made regarding the
fact that whether any loans has been advanced to such personsn contravention of the act
(v) The Company has not accepted any deposits or amounts which are deemed to be
deposits within the provisions of sections 73 to 76 or any other relevant provisions of
the Companies Act. Therefore, the provisions of paragraph 3(v) of the Order are not
applicable to the Company.
(vi) As explained to us, the Central Government ofndia has not specified the
maintenance of cost records under sub-section (1) of Section 148 of the Act for any of the
products of the Company. Therefore, the provisions of Clause (vi) of paragraph 3 of the
order are not applicable to the Company.
(vii)n Respect of Statutory Dues:
a) The Companys generally regularn depositing undisputed statutory duesncludingncome
tax and other statutory dues with the appropriate authorities to the extent applicable
tot. There are no undisputed amounts payablen respect ofncome tax which have remained
outstanding as at March 31, 2023 for a period of more than 6 months from the date they
became payable.
b) Details of dues ofncome-tax other material statutory dues, as applicable to the
Company which have not been deposited as at March 31, 2023 on account of dispute are given
below:
Name of the Statute |
Nature of the dues |
Amount Rs. |
Forum where disputes pending |
Remarks |
Income T ax Act, 1961 |
Tax Deducted at Source |
1,46,186/- |
TRACES |
Late Filing fees &nterest on Payments u/s 201 |
(viii) The Company has not surrendered or disclosed asncome any transaction not
recordedn the books of account during the yearn the tax assessments under thencome-tax
Act, 1961.
(ix) A) The Company has not borrowed funds from any banks, financialnstitutions or
debenture holders. Hence, the provisions of paragraph 3(ix) of the Order are not
applicable.
B) We report that the Company has not been declared willful defaulter by any bank or
financialnstitution or other lender or government or any government authority.
C) The Company has utilized the money obtained by way of term loans during the year for
the purposes for which the loans have been obtained.
D) On an overall examination of the financial statements of the Company, we report that
no funds raised on short-term basis have been utilized for long-term purposes by the
Company.
E) On an overall examination of the financial statements of the Company, we report that
the Companys not having subsidiaries, associates or joint ventures. Hence, the question of
taking any funds from any entity or person on account of or to meet the obligations ofts
subsidiaries, associates or joint ventures does not arise.
F) We report that the Companys not having subsidiaries, joint ventures or associate
companies. Therefore, the question of raising loans during the year on the pledge of
securities heldnts subsidiaries, joint ventures or associate companies does notarise.
(x) A) The Company has not raised money by way ofnitial public offer or further public
offer (including debtnstruments). Therefore, the provisions of Clause (x)(a) of paragraph
3 of the order are not applicable to the Company.
B) The Company has not made any preferential allotment or private placement of shares
or convertible debentures (fully, partially or optionally convertible) during the year and
therefore the requirements
of compliance with section 42 and section 62 of the Act and utilization of the funds
for the purposes for which they were raised do not arise.
(xi) A) No material fraud by the Company or any fraud on the Company has been noticed
or reported during the year.
B) As no material fraud by the Company or any fraud on the Company has been noticed or
reported during the year, theres no necessity of filing any reportn Form ADT-4 under
sub-section (12) of section 143 of the Companies Act with the Central Government
C) The Companys not required to and has not established whistle-blower mechanism during
the year.
(xii) The Companys not a Nidhi Company. Therefore, the provisions of Clause (xii) of
paragraph 3 of the order are not applicable to the Company.
(xiii) The Company has no enterednto transactions with related partiesn compliance with
sections 177 and 188 of the Companies Act The details of such related party transactions
have been disclosedn the financial statements as required underndian Accounting Standard
(Ind AS) 24, Related Party Disclosures specified under section 133 of the Companies Act,
read with rule 7 of the Companies (Accounts) Rules, 2014.
(xiv) A) Though the Companys required to have annternal audit system under section 138
of the Companies Act,t does not have the same established for the year.
B) We are unable to obtain any of thenternal audit reports of the Company, hence
thenternal audit reports have not been considered by us.
(xv) On the basis of thenformation and explanations given to us,n our opinion during
the year the company has not enterednto any non-cash transactions with directors or
persons connected with him.
(xvi) The Companys not required to be registered under Section 45-IA of the Reserve
Bank ofndia Act, 1934 and hence reporting under clause 3(xvi)(a), (b) and (c) of the
orders not applicable to the company.
In our Opinion, theres no corenvestment company within the "Companiesn the
Group" as definedn the Corenvestment Companies (Reserve Bank) Directions, 2016 and
hence reporting under clause 3(xvi)(d) of the Orders not applicable to the Company.
(xvii) The Company hasncurred cash lossesn the current financial year of Rs. 14,754 and
Rs. 1,57,55,224n themmediately preceding financial year.
(xviii) There has been no any resignation of Auditors during the year.
(xix) On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, othernformation accompanying the
financial statements, our knowledge of the Board of Directors and management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report that Companys not capable of meetingts liabilities existing at
the date of balance sheet as and when they fall due within a period of
one year from the balance sheet date. We, however, state that thiss not an assurance as
to the future viability of the Company. We further state that our reportings based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due.
(xx) As per thenformation and explanations given to us the requirement of section 135s
not applicable to the company.
(xxi) With respect to the adequacy of thenformation, explanation provided and the
operating effectiveness of the company, theres no qualifications or adverse remarks by the
auditorn the companies (Auditors Report) order reports
Date : 25^ May, 2023 |
For, V S S B & Associates |
Place : Ahmedabad |
Chartered Accountants |
|
Firm No.l21356W |
|
Sd/- |
|
(Vishves A Shah) |
|
Partner |
|
M. No.109944 |
|
UDIN: 23109944BGTKGS5260 |
+91-9892691696
