REPORT ON STANDALONE FINANCIAL STATEMENTS
Report as required by the Companies (Auditors Report) Order, 2020 ("the
Order"), issued by the Central Government of India in terms of sub-section (11) of
section 143 of the Companies Act, 2013 (Refer to in paragraph 1 under ‘Report on
Other Legal and Regulatory Requirements section of our report of even date)
With reference to the Annexure A referred to in the Independent Auditors Report to the
members of the Company on the financial statements for the year ended March 31,2023, we
report the following:
(i) (a) (A) The Company is not having any tangible fixed asset such as Property, Plant
and Equipment. Therefore, the provisions of Clause (i)(a)(A) and (i)(b), (c), (d) &
(e) of paragraph 3 of the order are not applicable to the company.
(B) The company is not having any intangible asset. Therefore, the provisions of Clause
(i)(a)(B) and (i)(b), (c),
(d) & (e) of paragraph 3 of the order are not applicable to the company.
(ii) (a) As there is no business operation in the company as such the company does not
have any inventory. Accordingly, reporting under Clause 3(ii) (a) of Order is not
applicable to the Company.
(b) During any point of time of the year, the company has not been sanctioned any
working capital limits, from banks or financial institutions on the basis of security of
current assets. Therefore, the provisions of Clause (ii) (b) of paragraph 3 of the order
are not applicable to the company.
(iii) During the year, the company has not made any investments in, provided any
guarantee or security or granted any loans or advances in the nature of loans, secured or
unsecured, to companies, firms, Limited Liability Partnerships or any other parties.
Therefore, the provisions of clause 3(iii) of the said Order are not applicable to the
company.
(iv) The company has not made any loans, investments, guarantees and security on which
provisions of section 185 and 186 of the Companies Act 2013 are applicable. Therefore, the
provisions of clause 3(iv) of the said Order are not applicable to the company.
(v) In our opinion and according to the information and explanations given to us, the
Company has not accepted any deposits from public. Therefore, the provisions of Clause (v)
of paragraph 3 of the order are not applicable to the Company.
(vi) As explained to us, the Central Government of India 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) (a) The Company is generally regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income tax, Sales Tax, Wealth tax,
Service tax, Duty of Customs, duty of Excise, Value Added Tax, GST, Cess and other
statutory dues with the appropriate authorities to the extent applicable to it. There are
no undisputed amounts payable in respect of income tax, wealth tax, service tax, sales
tax, value added tax, duty of customs, duty of excise or cess which have remained
outstanding as at March 31, 2023 for a period of more than 6 months from the date they
became payable.
(b) According to the information and explanations given to us, there are not any
statutory dues referred in subclause (a) which have not been deposited on account of any
dispute. Therefore, the provisions of Clause
(vii) (b) of paragraph 3 of the order are not applicable to the Company.
(viii) In our opinion and according to the information and explanations given to us,
there is no any transaction not recorded in the books of account that have been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961).
(ix) (a) In our opinion and according to the information and explanations given to us,
the Company has not defaulted in repayment of any loan or other borrowings or any interest
due thereon to any lender.
(b) In our opinion and according to the information and explanations given to us, the
company has not been declared as wilful defaulter by any bank or financial institution or
other lender.
(c) In our opinion and according to the information and explanations given to us, the
loans were applied for the purpose for which the loans were obtained.
(d) In our opinion and according to the information and explanations given to us, there
are no funds raised on short term basis which have been utilised for long term purposes.
(e) In our opinion and according to the information and explanations given to us, the
company has not taken any funds from any entity or person on account of or to meet the
obligations of its subsidiaries, associates or joint ventures.
(f) In our opinion and according to the information and explanations given to us, the
company has not raised loans during the year on the pledge of securities held in its
subsidiaries, joint ventures or associate companies.
(x) (a) The Company has not raised money by way of initial public offer or further
public offer (including debt instruments) during the year. Therefore, the provisions of
Clause (x)(a) of paragraph 3 of the order are not applicable to the Company.
(b) In our opinion and according to the information and explanations given to us, the
company has not made any preferential allotment or private placement of shares or
convertible debentures (fully, partially or optionally convertible) during the year.
(xi) (a) We have not noticed any case of fraud by the company or any fraud on the
Company by its officers or employees during the year. The management has also not reported
any case of fraud during the year.
(b) During the year no report under sub-section (12) of section 143 of the Companies
Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies
(Audit and Auditors) Rules, 2014 with the Central Government.
(c) As auditor, we did not receive any whistle-blower complaint during the year.
(xii) The company is not a Nidhi Company. Therefore, the provisions of Clause (xii) of
paragraph 3 of the order are not applicable to the Company.
(xiii) As per the information and explanations received to us all transactions with the
related parties are in compliance with sections 177 and 188 of Companies Act where
applicable, and the details have been disclosed in the financial statements, etc., as
required by the applicable accounting standards.
(xiv) The company has an Internal Audit system commensurate with the size and nature of
its business. However, the Internal Auditors have not issued any Report.
(xv) The Company has not entered into any non-cash transactions with directors or
persons connected with him for the year under review. Therefore, the provisions of Clause
(xv) of paragraph 3 of the order are not applicable to the Company.
(xvi) (a) The Company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1934.
(b) The company has not conducted any Non-Banking Financial or Housing Finance
activities during the year.
(c) The company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India.
(d) As per the information and explanations received, the group does not have any CIC
as part of the group.
(xvii) The company has incurred cash losses in current financial year as well in
immediately preceding financial year and the amount of cash losses during the year under
review is Rs.11.50 Lakhs.
(xviii) There has been no resignation of the previous statutory auditors during the
year.
(xix) On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, the auditors knowledge of the Board of Directors and management
plans, we are of the opinion that no material uncertainty exists as on the date of the
audit report that company is not capable of meeting its 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.
(xx) There is not liability of the company under the provisions of section 135 of the
Companies Act, relating to Corporate Social Responsibility. Therefore, the provisions of
Clause (xx) of paragraph 3 of the order are not applicable to the Company.
(xxi) The company has made investment in the Joint Venture namely PAOS Productions in
which the company is one of the Partners as such consolidated financial statements are
being prepared by the company. However, the auditors have not made any qualifications or
adverse remarks under the Companies (Auditors Report) Order (CARO) Reports of these
Consolidated Financial Statements of the company.
For Rakshit Khosla & Associates
Chartered Accountants
FRN:017151N
Sd/-
CA. RISHI KHOSLA
Partner
Membership No.: 507930 Ludhiana,
May 30, 2023
UDIN: 23507930 BGZ HS E9938
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT ON STANDALONE FINANCIAL
STATEMENTS
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial control over the financial reporting of "PAOS
Industries Limited" (‘the company) as of 31st March, 2023 in
conjunction with our audit of the standalone 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 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. 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, 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 internal financial controls over
financial reporting of the Company 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") issued by the Institute of Chartered Accountants
of India and the Standards on Auditing prescribed under Section 143(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls. 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 with reference to standalone financial statements and
their operating effectiveness. Our audit of internal financial controls over financial
reporting included obtaining an understanding of internal financial controls with
reference to standalone financial statements, 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 with
reference to financial statements.
Meaning of Internal Financial Controls with reference to Standalone Financial
Statements:
A companys internal financial control with reference to standalone financial
statements 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 with reference to standalone financial statements 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 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 companys assets that could have a
material effect on the financial statements.
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, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
with reference to standalone financial statements and such internal financial controls
with reference to standalone financial statements were operating effectively as at March
31, 2023, based on the criteria for internal control with reference to standalone
financial statements 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 Rakshit Khosla & Associates
Chartered Accountants
FRN:017151N
Sd/-
CA. RISHI KHOSLA
Partner
Membership No.: 507930 Ludhiana,
May 30, 2023
UDIN: 23507930 BGZ HS E9938
+91-9892691696
