To The Members of Polygenta Technologies Limited
Opinion
Report on the Audit of Financial Statements
We have audited the accompanying financial statements of Polygenta Technologies
Limited ("the Company"), which comprises of Balance Sheet as at March 31,
2021, the Statement of Profit and Loss, Other Comprehensive Income, the Statement of
Changes in Equity and the Statement of Cash Flow for the year then ended, and 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 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 Indian Accounting Standards prescribed under section 133 of the Act
read with Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind
AS") and other accounting principles generally accepted in India, of the state of
affairs of the Company as at 31st March 2021, its profit, other comprehensive income,
changes in 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 (SAs) 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 (ICAI) together with the
ethical requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the Rules made thereunder, 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 audit opinion on the financial statements.
Material Uncertainty Related to Going Concern:
Without qualifying, we draw attention to note no.33 to the financial statements of the
Company having been prepared on a going concern basis which contemplates the realization
of assets and satisfaction of liabilities in the normal course of business, although the
Companys net worth stands fully eroded and it had been incurring losses over last several
years.
The management believes that it appropriate to prepare the financial statements on a
going concern basis since the Companys business performance has improved in the last two
years , has increased its capacity during the year by debottlenecking certain processes
and has planned expansion near its existing plant . Besides, Perpetual Technologies GmbH
(the Holding Company) has confirmed its intention to provide to the Company with the
financial, technical and administrative support to the Companys operations and honor the
commitments of the Company and accordingly, the financial statements do not include any
adjustments relating to the recoverability and classification of recorded assets and to
the amounts of liabilities that might be necessary should the Company be unable to
continue its operations as a going concern.
Emphasis of Matter
We draw your attention to note no 40 (v) of the financial statements with regard to
Managements assessment of, inter-alia, realisability of Inventories of Rs 146.6 Mn and
recoverability of Trade receivables measured at amortised cost of Rs. 141.7 Mn due to
re-surge in COVID 19 pandemic outbreak. The management apart from considering the internal
and external information upto the date of approval of these financial statements, it has
also performed sensitivity analysis on the assumptions used and based on current
indicators of future economic conditions, it expects to recover the carrying amount of
these assets.
The impact of the global health pandemic may be different from that estimated as at the
date of approval of these financial statements. Considering the continuing uncertainties,
the management will continue to closely monitor any material changes to future economic
conditions.
Our Opinion is not modified in respect of this matter.
Information Other than the Financial Statements and Auditors report thereon
The Companys Board of Directors is responsible for the preparation of other
information. The Other information comprises the information included in the Boards
Report including Annexures to the Board report and Shareholders information, but does not
include the financial statement and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of Management and those charged with Governance for the Financial
Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these financial statements that give
a true and fair view of the financial position, financial performance, other comprehensive
income, changes in equity and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the accounting Standards specified under
section 133 of the Act, read with Rule 7 of the Companies (Account) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the Company
and for preventing and detecting 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 controls, 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.
In preparing the financial statements, the Management is 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
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The 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 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 judgment 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)(I)
of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial control 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 the 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 entitys
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 entity to cease to continue as
a going concern.
Evaluate the overall presentation, 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 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 (i) in 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, including 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.
Report on Other Legal and Regulatory Requirements
1. Pursuant to 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 Act, we give in the Annexure "A" a statement on the matters specified in
paragraphs 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 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 and records.
(c) The Balance sheet, the Statement of Profit & Loss, Other Comprehensive Income,
Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are
in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Account) Rules, 2014.
(e) On the basis of the written representation received from the directors as on March
31, 2021 taken on records by the Board of Directors, none of the directors are
disqualified as on March 31, 2021 from being appointed as a Directors in terms of Section
164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in Annexure "B".
(g) In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of Section 197 of the Act. The Company is obtaining
necessary approval of its members in respect of commission payable to its non executive
directors.
(h) With respect to the matters to be included in the Auditors report in accordance
with the rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to
the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial
position in its financial statements. [Refer Note No.34]
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There were no amounts required to be transferred, to the Investor Education and
Protection Fund by the Company.
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For Bagaria & Co. LLP |
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Chartered Accountants |
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Firm Registration No: |
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113447W/W-100019 |
|
Vinay Somani |
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Partner |
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Membership No: 143503 |
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UDIN :21143503AAAALN9924 |
| Place: Mumbai |
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| Date : July 30, 2021 |
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Annexure "A" referred to in "Report on Other Legal and Regulatory
Requirements" section of our report to the members of Polygenta Technologies Limited
of even date
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 state that:
i) a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment (Fixed Assets).
b) According to the information and explanations given to us, the fixed assets have
been physically verified by the management in a phased manner, which in our opinion is
reasonable considering the size of the Company and nature of its fixed assets. As
explained, 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, title deeds of the immovable property
(presently mortgaged to a lender Refer note no 37) are held in the name of the Company.
ii) According to the information and explanations given to us, the inventories have
been physically verified during the year by the management at reasonable intervals and no
material discrepancies were noticed on such verification.
iii) According to the information and explanations given to us, the Company has not
granted any loans secured or unsecured to companies, firms, Limited Liability Partnerships
covered in the register maintained under section 189 of the Act. Accordingly, the
provisions of clause 3(iii) of the Order are not applicable to the Company.
iv) In our opinion and according to the information and explanations given to us, the
Company has not entered into any transactions referred in section 185 and 186 of the Act.
Accordingly, the provisions of clause 3(iv) of the Order are not applicable to the
Company.
v) No deposits within the meaning of directives issued by RBI (Reserve Bank of India)
and Sections 73 to 76 or any other relevant provisions of the Act and rules framed
thereunder have been accepted by the Company.
vi) We have broadly reviewed the books of account maintained by the Company pursuant to
the rules made by the Central Government of India, regarding the maintenance of cost
records under sub-section (1) of Section 148 of the Act and are of the opinion that prima
facie, the prescribed accounts and records have been maintained. We have, however, not
made a detailed examination of the records with a view to determine whether they are
accurate or complete.
vii) a) According to the information and explanations given to us and on the basis of
our examination of the records, the Company is regular in depositing undisputed statutory
dues including Provident Fund, Employees State Insurance, Income Tax, Duty of Customs,
Goods and Service Tax and other material statutory dues applicable to the Company with the
appropriate authorities. No undisputed amounts in respect of the aforesaid statutory dues
were outstanding as at the last day of the financial year for a period of more than six
months from the date they became payable.
b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there are no dues of Income Tax, Goods and
Service Tax and Duty of Customs which have not been deposited on account of any dispute.
viii) In our opinion and according to the information and explanations given to us, the
Company has not defaulted in repayment of borrowings to Banks during the year. During the
year Company has not taken any loans or borrowings from a financial institution or issued
any debenture.
ix) In our opinion and according to the information and explanations given to us, the
term loans have been applied for the purpose for which they were raised. The Company has
not raised any money by way of initial public offer or further public offer (including
debt instruments) during the year or in the recent past.
x) According to the information and explanations given to us, we have not come across
any instance of material fraud by officers or employees of the Company, noticed or
reported during the year, nor have we been informed of such case by the management.
xi) According to the information and explanations given to us and based on the
examination of the records, the Company has paid / provided for managerial remuneration in
accordance with the requisite approvals mandated by the provisions of Section 197 read
with Schedule V to the Act except for necessary approval of members is being obtained in
respect of commission payable to its non executive directors.
xii) The provisions of Nidhi company are not applicable to the Company. Therefore, Para
3 (xii) of the Order is not applicable to the Company.
xiii) According to the information and explanations given to us, the provision of
Section 177 and 188 of Act, to the extent applicable, in respect of transactions with the
related parties have been complied by the Company and the details have been disclosed in
the Ind AS Financial Statements as required by the applicable accounting standards in Note
No. 38 to the Ind AS Financial Statements.
xiv)During the year, the Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures. Therefore, Para 3 (xiv) of
the Order is not applicable to the Company.
xv) According to the information and explanations given to us, during the year, the
Company has not entered into any non-cash transactions with directors or persons connected
with him under Section 192 of the Act.
xvi)The Company is not required to be registered under Section 45 IA of the Reserve
Bank of India Act, 1934.
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For Bagaria & Co. LLP |
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Chartered Accountants |
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Firm Registration No: |
|
113447W/W-100019 |
|
Vinay Somani |
|
Partner |
|
Membership No: 143503 |
|
UDIN :21143503AAAALN9924 |
| Place: Mumbai |
|
| Date : July 30, 2021 |
|
Annexure "B" referred to in "Report on Other Legal and Regulatory
Requirements" section of our report to the members of Polygenta Technologies Limited
of even date:
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of
Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls over financial reporting of Polygenta
Technologies Limited
("the Company") as of March 31, 2021 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 Board of Directors of the Company 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 component 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 (ICAI). These
responsibilities 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 Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys 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 deemed to be prescribed
under section 143(10) of the Act 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 ICAI. 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 performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit 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 assurance 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 entity are being made only in accordance with authorisations of
management; (3) provide reasonable assurance regarding prevention or timely detection of
un-authorised acquisition, use, or disposition of the entitys assets that could have a
material effect on the financial statements and (4) also provide us reasonable assurance
by the internal auditors through their internal audit reports given to the Company from
time to time.
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 best of our information and according to the explanations given to
us, the Company has, broadly 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 March 31, 2021, based on the internal
control over financial reporting criteria established by the Company considering the
essential Component 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 Bagaria & Co. LLP |
|
Chartered Accountants |
|
Firm Registration No: |
|
113447W/W-100019 |
|
Vinay Somani |
|
Partner |
|
Membership No: 143503 |
|
UDIN :21143503AAAALN9924 |
| Place: Mumbai |
|
| Date : July 30, 2021 |
|
+91-9892691696
