To,
The Members,
Poona Dal and Oil Industries Limited,
Pune.
Report on the IND AS Standalone Financial Statements
We have audited the accompanying standalone financial statements of Poona Dal and Oil
Industries Limited, which comprise the standalone Balance Sheet as at 31st
March, 2023 and also the standalone Statement of Profit and Loss and the standalone Cash
Flow Statement for the year ended on that date annexed there to, notes to the standalone
financial statements, including a summary of significant accounting policies and other
explanatory information (hereinafter referred to as "the standalone financial
statements")
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 31 March 2023, and profit and 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 SAs are further
described in the Auditors Responsibilities for the Audit of the Standalone 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 Accountant of India together with the
ethical requirements that are relevant to our audit of the standalone financial statements
under the provision of the Act and the Rules thereunder, and we have fulfilled out other
ethical responsibilities in accordance with these requirements and the Code of Ethics. We
believe that the audit evidence obtained by us is sufficient and appropriate to provide a
basis of our opinion on the standalone financial statements.
Managements and Board of Directors Responsibility for the IND AS Standalone Financial
Statements
The Companys Management and Board of Directors are responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to the
preparation of these IND AS standalone 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 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 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 standalone IND AS financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management and Board of Directors are
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 is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibility
Our responsibility is to express an opinion on these IND AS standalone financial
statements based on our audit. We have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are required to be included in the
audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with standards on auditing issued by the Institute
of Chartered Accountants of India and specified under section 143 (10) of Act. Those
standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the IND AS standalone financial statements is
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the IND AS standalone financial statements. The procedures selected depend
on the auditors judgment, including the assessment of the risks of material misstatement
of the IND AS standalone financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the companys
preparation and fair presentation of the IND AS standalone financial statements in order
to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on effectiveness of the companys internal control. An
audit also includes evaluating the appropriateness of accounting policies used and
reasonableness of accounting estimates made by management, as well as evaluating the
overall presentation of the IND AS standalone financial statement.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the IND AS financial statements give the information as required by the
Companies Act in the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
i) In the case of the Balance Sheet of the state of affairs of the Company as at 31st
March, 2023.
ii) In the case of Statement of Profit and Loss of the Profit for the year ended 31st
March, 2023.
iii) In the case of Cash Flow Statement, of the Cash Flows for the year ended on that
date.
iv) Statement of Changes of Equity for the year ended on that date.
Key audit matters
Key audit matters (‘KAM) are those matters that, in our professional judgment,
were of most significance in our audit of the standalone financial statements of the
current period. These matters were addressed in the context of our audit of the standalone
financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Other Information
The Companys management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Companys
annual report, but does not include the standalone financial statements and our auditors
report thereon.
Our opinion on the standalone 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 standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial statements or our knowledge
obtained in the 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.
Report on Other Legal and Regulatory Requirements
1) 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, we give in the Annexure A, a statement on the matters
specified in paragraph 3 and 4 of the Order, to the extent applicable.
2) (A) 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 accounts as required by law have been kept by the
company so far as appears from our examination of these books.
c) The standalone Balance Sheet and standalone Statement of Profit and Loss Account and
standalone Cash flow statement dealt with by the Report are in agreement with the books of
accounts.
d) In our opinion, the standalone Statement of Profit and Loss Account and the
standalone Balance Sheet comply with the accounting standards specified under section 133
of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules,
2015 as amended.
e) On the basis of the written representation received from the directors as on 31st
March, 2023, and taken on record by the Board of Directors, none of the director is
disqualified as on 31st March, 2023 from being reappointed as a director in
terms of section 164(2) of the Act.
f) As required under clause (i) of sub-section 3 of Section 143 of the companies Act,
2013, we give the report on internal financial controls over financial reporting in the Annexure
B, a statement on the matters and statement on inherent limitations.
(B) With respect to the other matters to be included in the Auditors Report in
accordance with 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:
a) The Company does not have any pending litigations which would impact its financial
position.
b) The Company did not have any long term contract including derivatives contracts for
which there were any material foreseeable losses.
c) There are no transactions during the year which required to be transferred, to the
Investor Education and Protection Fund by the Company.
d) (i) The management has represented that, to the best of its knowledge and belief, no
funds have been advanced or loaned or invested by the company to or in any other person(s)
or entity(ies) including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, directly or indirectly lend or invest in other person or entities identified in
any manner whatsoever by or in behalf of the company ("Ultimate Beneficiaries")
or provide any guarantee, security or like on behalf of the Ultimate Beneficiary.
(ii) The management has represented that, to the best of its knowledge and belief, no
funds have been received by the company from any person(s) or entity(ies) including
foreign entities ("Funding Parties") with the understanding, whether recorded in
writing or otherwise, that the company shall, whether, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security
or like on behalf of the Ultimate Beneficiary.
(iii) In our opinion based on such audit procedures that were considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under the sub-clause (i) and (ii) above contain any
material misstatement.
e) The company has not declared or paid any dividend during the year in compliance with
section 123 of Companies Act, 2013.
(C) With respect to the matter to be included in the Auditors Report under section
197(16) of the Act:
In our opinion and according to the information and explanation given to us, the
remuneration paid by the Company to its directors during the current year is in accordance
with the provisions of section 197 of the Act. The remuneration paid to any director is
not in excess of the limits laid down under section 197 of the Act. The Ministry of
Corporate Affairs has not prescribed other details under section 197(16) of the Act which
are required to be commented upon by us.
Annexure A to the Independent Auditors Report
The Annexure A referred to in our report to the members of Poona Dal and Oil Industries
Limited on the standalone IND AS financial statements for the year ended 31st
March, 2023. We report that:
1) a) A) The company has generally maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
B) The company does not have any intangible assets. Hence this clause of the Order is
not applicable.
b) We are informed that, the company has regular program of physical verification of
its fixed assets by which fixed assets are verified in phase manner over period of five
years. In accordance with this program, certain fixed assets verified during the year and
no material discrepancies were noticed on such verification by the management. In our
opinion this periodicity of physical verification is reasonable having regard to size of
the company and nature of its assets. According to the information and explanations given
to us, no material discrepancies were noticed on physical verification of fixed assets.
c) According to the information and explanations given to us, the title deeds of
immovable properties are held on the name of company except leasehold properties situated
at Shikrapur and Kurkumbh.
d) The company has not revalued any of its Property, Plant and Equipment (including
Right of Use assets) or intangible assets or both during the year. Hence this clause of
the Order is not applicable.
e) We are informed that no proceedings have been initiated or are pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and rules made thereunder. Hence this clause of the Order is not
applicable.
2) a) The Management of the company is maintaining proper records of inventory. We are
informed that, the physical verification of inventory has been conducted during the year
at reasonable intervals by the management. No material discrepancies were noticed on
physical verification of inventory as compared to book records.
b) During the year, the company has not availed any credit facilities from either any
bank or financial institution.
3) According to information and explanation given to us and on the basis of our
examination of the records of the Company, the Company has not made any investments in or
provided security to companies, firms, limited liability partnerships or any other parties
during the year. The Company has granted loans and advances in the nature of loans during
the year to other parties details of which are stated below. The Company has not provided
guarantees or granted loans or advances in the nature of loans during the year to firms or
limited liability partnerships.
(a) (A) Based on the audit procedures carried out by us and as per the information and
explanation given to us, the Company has not given such loans or advances and guarantees
or security to subsidiaries, joint ventures and associates.
(B) Based on the audit procedures carried out by us and as per the information and
explanation given to us, the Company has granted advances to the employees. The aggregate
amount during the year Rs.2,99,100 and balance outstanding at the balance sheet date
Rs.1,78,193.
(b) The investments made, guarantees provided, security given and the terms and
conditions of the grant of all loans and advances in the nature of loans and guarantees
provided are prima facie not prejudicial to the interest of the company;
(c) In respect of loans and advances in the nature of loans, the schedule of repayment
of principal and payment of interest has not been stipulated but the repayments or
receipts are regular;
(d) The amount is not overdue for more than ninety days. Hence this clause of the Order
is not applicable.
(e) According to the information and explanation given to us and on the basis of our
examination of the records of the Company, there is no loan or advance in the nature of
loans granted falling due during the year, which has been renewed or extended or fresh
loans granted to settle the over dues of existing loans or advances in the nature of loans
given to same parties.
(f) The company has not granted any loans or advances in the nature of loans either
repayable on demand or without specifying any terms or period of repayment. Hence, this
clause of the Order is not applicable.
4) In our opinion and according to the information and explanation given to us, the
company has complied with provisions of section 185 and 186 of the Companies act 2013,
with respect to loans and investment made.
5) In our opinion and according to the information and explanations given to us, the
company has not accepted any deposits during the year from the public as per directives
issued by RBI and the provisions of sections 73 to 76 or any other relevant provisions of
the Companies Act and rules framed there under. Hence this clause of the Order is not
applicable.
6) The maintenance of cost records has been specified by the Central Government under
subsection (1) of section 148 of the Companies Act and such accounts and records have been
so made and maintained by the company.
7) a) In our opinion & according to the information and explanations given to us;
and on the basis of the records
produced before us, the company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund, Employees State
Insurance, Income Tax, Customs Duty, GST, and any other material statutory dues applicable
to it. There is no overdue amount payable for more than six months.
b) The statutory dues referred to in sub-clause (a) have been deposited within due
dates & there are no any disputed dues.
8) There are no any transactions which are not recorded in the books of account have
been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (43 of 1961). Hence this clause of the Order is not applicable.
9) a) The company does not have any outstanding over dues of any loan or borrowings to
any financial institutions, banks, and Government or debenture holders during the year.
b) The company is not declared as willful defaulter by any bank or financial
institution or other lender;
c) The company has not obtained any term loans. Hence this clause of the Order is not
applicable.
d) The company has not raised funds on short term basis which have been utilized for
long term purposes. Hence this clause of the Order is not applicable.
e) 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. Hence this clause
of the Order is not applicable.
f) The company has not raised loans during the year on the pledge of securities held in
its subsidiaries, joint ventures or associate companies. Hence this clause of the Order is
not applicable.
10) a) The company did not raise any money by way of initial public offer or further
public offer (including debt instruments) and also not availed any term loans during the
year.
b) According to the information and explanation 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.
11) a) On the basis of our examination and according to the information and explanation
given to us, no fraud by the company or in the company by its officers / employees has
been noticed or reported during the course of our audit.
b) Any report under sub-section (12) of section 143 of the Companies Act has not 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 as this clause of Order is not
applicable.
c) There is no whistle-blower complaints received during the year by the company.
12) In our opinion and according to the information and explanation given to us, the
company is not a Nidhi Company. Hence this clause of the Order is not applicable.
13) Based on the representation and explanation received by us from the board of
directors and based on our examination of the records of the Company, transactions with
the related parties have been disclosed in the financial statements as required by the
applicable IND AS. These transactions are in compliance with section 177 and 188 of the
companies Act, 2013. Since the transactions are in ordinary course of business and on
arms length basis therefore the company is exempted from obtaining prior approval, but as
a part of Good Governance the company has obtained prior approval from members in previous
AGM held on 30th September 2022.
14) a) The company have an internal audit system commensurate with the size and nature
of its business;
b) We have considered the internal audit report of the Company issued for the period
under audit.
15) The Company has not entered into non-cash transactions with directors or
persons connected with them. Hence this clause of the Order is not applicable.
16) The company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934. Hence this clause of the Order is not applicable.
17) The company has not incurred any cash losses in the financial year and in the
immediately preceding financial year. Hence this clause of the Order is not applicable.
18) The previous statutory auditors M/s. Bora N S & Co., Chartered Accountants
resigned from their post and M/s Bharat H Shah & Associates were appointed as
statutory auditors in the Annual General Meeting of the shareholders which was held on 30th
September 2022.
19) On the basis of the financial ratios, ageing and expected dates of realization
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, the auditor is of the opinion that no material uncertainty exists as on the date of
the audit report that company is 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.
20) In our opinion and according to the information and explanations given to us,
there is no unspent amount under subsection (5) of section 135 of the Act pursuant to any
project. Accordingly, clauses 20(a) & (b) of the order are not applicable.
21) This report is prepared on the basis of standalone financial statements.
Consolidated financial statements are not applicable to the company. Hence this clause of
the Order is not applicable.
Annexure B to the Independent Auditors Report
The Annexure B referred to in our report to the members of Poona Dal and Oil Industries
Ltd. for the year ended 31st March, 2023. We report that:
Report on the Internal Financial Controls over Financial Reporting
We have examined the internal financial control over financial reporting of Poona Dal
and Oil Industries Limited, as of 31st March, 2023 in conjunction with our
audit of 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 (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 statements, as
required under the Companies Act, 2013.
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 Standards on Auditing (SAs) specified under section 143 (10) of the Companies
Act, 2013. 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 together with the ethical requirements
that are relevant to our audit of the Companies Act,2013 and the Rules there under, and we
have fulfilled our other ethical responsibilities in accordance with these requirements
and code of Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
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
(a) Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(b) 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
(c) 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 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 March 31, 2023, 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.
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