THE MEMBERS OF PAWANSUT HOLDINGS LIMITED
To The Members of Pawansut Holdings Limited
Report on the Audit of the Standalone Financial Statements
We have audited the standalone Financial statements of Pawansut Holdings Limited
("the Company"), which comprise the Balance Sheet as at 31st March .2022, the
Statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and Statement of Cash Flows for the year ended on that date, and the
notes to the financial statements, including a summary of significant accounting policies
and other explanatory information, .
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act,
2013 ("the Act") in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2022, its Profit, total comprehensive ncome,
changes n equity and its cash flows for the year ended on that date.
Basis for Opinion .
We conducted our audit in accordance with the Standards on Auditing (SAsJ)
specified under section 143(10) of the Act Our responsibilities under those Standards are
further described in the Auditors Responsibilities for the Audit of the Financial
Statements section of our report We are independent of the Company in accordance with the
Code of Ethics issued by the Institute of Chartered Accountants of India
("ICAf") together with the ethical requirements that are relevant to our audit
of the financial statements under the provisions of the Act and the Rules there under and
we have fulfilled our other ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, n our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context thereon, and we do not provide a separate opinion on these
matters. We have determined that there are no key audit matters to be communicated in our
report.
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone Ind AS financial statements for the financial
year ended 31 March 2022.
These matters were addressed in the context of our audit of the standalone Ind AS
financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. Our description of how our audit addressed the matter
is provided in that context.
(a) Transition to Ind AS accounting framework
The Company has adopted Ind AS with an effective elate of 1 April 2019 for such
transition. For periods up to and including the year ended 31 March 2022, the Company had
prepared and presented its financial statements in accordance with the erstwhile generally
accepted accounting pr nciples in India (Indian GAAP). To give effect of the transition to
Ind AS, these financial statements for the year ended 31 March 2022, together with the
comparative financial information for the previous year ended 31 March 2021 and the
transition date Balance Sheet as at 1 April 2020 have been prepared under Ind AS.
(b) IT Systems and Controls
Key Information technology (IT) systems used in financial reporting process. The
companys oper ational and financial processes are dependent on IT systems due to various
transactions that are processed daily.
Accordingly, our audit was focused on key IT systems and controls due to the pervasive
impact on the financial statements.
Key Information technology (IT) systems used in financial reporting process. The
company’s operational and financial processes are dependent on IT systems due to
large volume of transactions that are processed daily. Accordingly, our audit was focused
on key IT systems and controls due to the pervasive impact on the financial statements.
We tested key automated and manual controls and logic for system generated reports
relevant to the audit that would materially impact the financial statements.
(c) Related Party Transactions
Completeness in identification, accounting and disclosure of related party transactions
in accordance with the applicable laws and financial reporting framework.
We have assessed the systems and processes laid down by the company to appropriately
identify, account and disclose all material related party transactions, if any, in
accordance with applicable laws and financial reporting framework. We have performed audit
procedures in accordance with the guidelines laid down by ICAI to identify, assess and
respond to the risks of material misstatement arising from the entitys failure to
appropriately account for or disclose material related party transactions which includes
obtaining necessary approvals at appropriate stages of such transactions as mandated by
applicable laws and regulations.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation
and presentation of these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the Accounting Standards
(IND-AS) specified under. Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate
accounting records in accordance with the provision of the Act for safeguarding of the
assets of the Company and for preventing and detecting the frauds and other
irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial control, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
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 to issue an auditors report that includes our opinion, Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and
maintain professional skepticism throughout the audit We also:
• Identify 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 that is sufficient and appropriate to provide a
basis for our opinion, The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(Y}
of the Act, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls system in 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. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, 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 presentat on, structure and content of the financial
statements including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the .economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements. .
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, includi ng any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in "Annexure A", a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
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 best
of 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 the
Company so far as it appears from our examination of those books
(c) The Balance Sheet, the Statement of Profit and Loss (including Othei Comprehensive
Income), the Statement of Changes in Equity and the Statement of Cash Flows dealt with by
this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the
Indian Accounting Standards specified 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 31st
March, 2022 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2022 from being appointed as a director in terms of Section
164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial
statement reporting of the Company and the operating effectiveness of such controls, refer
to our separate Report in "Annexure B",
(g) With respect to the other matters to be included in the Auditors Report n
accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the fr
sf of our information and according to the explanations given to us; ^ /
i. The Company does not have any pending litigations which would impact its financial
position.
ii. The Company did not have any long-term conti acts including derivatives contracts
for which there were any material foreseeable losses.
iii. There were no amounts which required to be transferred by the Company to the
Investor Education and Protection Fund.
annexure-a to the independent auditors report *
[Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements
of our Report of even date to the members of Pawansut Holdings Limited on the accounts of
the company for the year ended 31st March, 2022]
On the basis of such checks as we considered appropriate and according to the
information and Explanations given to us during the course of our audit, we report that:
i. In respect of its fixed assets;
[a] The Company has maintained proper records showing full particulars, mcluding
quantitative details and situation of the fixed assets.
[b] As explained to us, fixed assets have been physically verified by the management
during the year in accordance with the phased programme of verification adopted by the
management which, in our opinion, provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and explanations given to us,
no material discrepancies were noticed on such verification.
[c] According to the information and explanations given to us and on the basis of our
examination of the records of the company, no immovable properties are owned by the
company.
ii. In respect of its inventories:
(a) As explained to us, the inventories of finished goods, semi-finished goods, stores,
spares parts and raw mater al were physically verified at regular interval by the
management. In case of inventories ly ng with third parties, certificates of stocks
holding have been received.
(b) In our opinion and according to the information and explanations given to us the
procedures followed by the management for such physical verification are reasonable and
adequate in relation to the size of the company and the nature of its business.
(c) In our opinion Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared to book records
were not material and have been properly dealt with in the books of accounts.
iii. According to the information and explanations given to us, the Company granted any
secured or unsecured loans to companies, firms or other parties covered in the Register
maintained under Section 189 of the Companies Act, 2013; and therefore paragraph 3(iii) of
the Order is applicable.
iv. In our opinion and according to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of the company and the
nature of its business for the purchase of fixed assets and for the sale of goods and
services. During the course of our Audit, we have not observed any continuing failure tc
correct major weaknesses in internal control.
v. In our opinion and according to the information and explanations given to us, The
Company has not accepted deposits during the year and do not have any unclaimed deposits.
Therefore, the provisions of the clause 3 (v) of the Order are not applicable to the
company.
vi. The provisions of clause 3 (vi] of the Order are not applicable to the company as
the respective entities are not covered by the Companies (Cost Records and Audit) Rules,
2014.
vii. In respect of statutory dues:
(a) According to the records of the company and information and explanations given to
us, the Company has generally been regular in depositing undisputed statutory dues,
including Provident Fund, employees state insurance (ESI), Investor Education and
Protection Fund, Income-tax, Tax deducted at sources, Tax collected at source,
Professional Tax, Sales Tax, value added tax (VAT), Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Education Cess and other material statutory dues applicable to it, with the
appropriate authorities.
(b) According to the information and explanations given to us. there were no undisputed
amounts payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise Duty, sales tax,
VAT, Cess and other material statutory dues in arrears were outstanding as at 31 March,
2022 for a period of more than six months from the date they became payable.
(c) There were no amounts which required to be transferred by the Company to the
Investor Education and Protection Fund.
viii. The company does not have the accumulated losses at the end of financial year.
The company has not incurred any Cash losses during the financial covered by our Audit and
the immediately preceding financial year.
ix. In our opinion and according to the information and explanations given to us, the
Company has not defaulted in the repayment of dues to financial institutions, banks and
debenture holders.
x. In our opinion, and according to the information and the explanation given to us,
the company has not given any guarantee for loans taken by others from banks or financial
institutions during the year. Therefore, the provisions of the clause 3(x) of the Order
are not applicable to the company.
xi. The company has not obtained any term loan during the year, so this para of order
is not applicable.
xii. To the best of our knowledge and belief and according to the information and
explanations given to us, no fraud by the Company and no material fraud on the Company has
been noticed or reported during the year.
xiii. According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards (IND-AS).
xiv. According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year,
xv. According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered in to non-cash
transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of
the Order is not applicable.
xvi. The Company is required to be registered under section 45-IA of the Reserve Bank
of India
Act, 1934 and it has obtained the registration.
ANNEXURE -B TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Pawansut
Holdings Limited ("the Company"] as of 31st March 2022 in conjunction
with our audit of the 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 internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (1CAI}. These responsibilit.es
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company s internal financial
controls over financial reporting based on our audit We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by 1CAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. 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
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performi lg procedures to obtain audit evidence about the adequacy
of the internal financial controls system over financial reporting and their operating
effectiveness. Our aud t of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including 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 is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1] pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; [2) provide reasonable assn ranee, that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in 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 company’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 financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected Also,
projections of any evaluation of the internal financial controls over financial reporting
to future periods are subject to the risk that the internal financial control over
financial reporting may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.
Opinion
* In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31st March, 2022,.
based on the interna) control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the institute of
Chartered Accountants of India.
| For M/s Ram Alok & Co. |
| Chartered Accountants |
| (Firm Registration No. 011313C) |
| s, \ (FCA Sumit Agarwal) |
| Partner |
| Membership No. 412339 |
| Date: 30.05.2022 |
| Place: Delhi |
+91-9892691696
