To The Members of
Pratik Panels Limited.
Report on the Audit of the standalone financial statements
Opinion
We have audited the accompanying standalone financial statements of Pratik Panels
Limited (hereinafter "the Company"), which comprise the Balance Sheet as at
March 31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income),
the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and
notes to the Standalone Financial Statements including a summary of the 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, as amended (the ‘Act’) in the manner so required and
give a true and fair view in conformity with the accounting principles generally accepted
in India including Indian Accounting Standards (‘Ind AS’) specified under
Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015,
as amended, ("Ind AS") and other accounting principles generally accepted in
India, of the state of affairs (financial position) of the Company as at March 31, 2023
and its profit (financial performance including other comprehensive income), its cash
flows and the changes in equity for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act (SAs). Our responsibilities under those standards are further
described in the Auditor’s 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 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 audit opinion on the standalone financial
statement.
Emphasis of Matter
We draw attention to Note 2.8 (e) to the financial statement that pursuant to the
application by the company, a scheme of capital reduction was approved by National Company
Law Board ("The NCLT") vide their letter dated July 08, 2022. As per scheme of
capital reduction, there is reduction of existing Issued, Subscribed and paid-up Equity
Capital (prior to fresh allotment) to 38,98,500 fully paid up Equity Shares of Re.1/- each
and adjusting capital reduction of Rs.3,50,86,500/- with the brought forward balance of
accumulated losses. Fresh equity share capital of Rs.6 Crores was issued during the year
resulting in positive net worth of the company.
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters 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 financial statements as a
whole, for the year ended on March 31, 2023 and in forming our opinion thereon and we do
not provide a separate opinion on these matters. We do not have any key audit matter to be
communicated except as provided in emphasis of matter in the previous paragraph of this
report.
Information other than the financial statements and Auditor’s Report thereon
The Company’s Board of Directors is responsible for the other information. The
other information comprises the information included in the Board Report including
Annexures to Board’s Report, Management Discussion and Analysis, Corporate Governance
and Shareholder’s Information and Business Responsibility Report but does not include
the standalone financial statements and our auditor’s 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 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 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.
Responsibilities of Management and Those Charged with Governance for the standalone
financial statements
The Company’s Board of Directors is responsible for the matters stated in Section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the state of affairs (financial position), profit or
loss (financial performance including other comprehensive income), changes in equity and
cash flows of the Company in accordance with the accounting principles generally accepted
in India, including the Ind AS specified under Section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended. 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, management is responsible for assessing the
Company’s 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.
Those Board of Directors are also responsible for overseeing the Company’s
financial reporting process.
Auditor’s 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 auditor’s 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
Standards on Auditing 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 Standards on Auditing, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
a) 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.
b) 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 explaining our opinion on whether the Company has
adequate internal financial controls system in place and the operating effectiveness of
such controls.
c) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
d) Conclude on the appropriateness of management’s use of the going concern basis
of accounting and based on audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s 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
auditor’s report. However, future events or conditions may cause the Company to cease
to continue as a going concern.
e) 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.
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.
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
auditor’s 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
As required by the Companies (Auditor’s Report) Order, 2020 ("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 B" a statement on the matters
specified in paragraphs 3 and 4 of the Order.
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 purpose 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 standalone financial statements 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
Accounting Standards specified under Section 133 of the Act read with Companies (Indian
Accounting Standards) Rules, 2015, as amended;
e) on the basis of the written representations received from the directors and taken on
record by the Board of Directors, none of the directors is disqualified as on March
31,2023 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 with reference to
Standalone Financial Statements and the operating effectiveness of such controls, refer to
our separate Report in "Annexure A";
g) In our opinion, the managerial remuneration for the year ended March 31,2023 has
been paid / provided by the Company to its directors in accordance with the provisions of
section 197 read with Schedule V to the Act;
h) with respect to the other matters to be included in the Auditor’s Report in
accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), 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 the standalone financial statements;
ii. the Company has made provision, as required under the applicable law or Accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts;
iii. there has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company during the year ended March
31,2023;
iv. Other matters:
(a) The Management has represented that, to the best of its knowledge and belief, other
than as disclosed in the notes to the accounts, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of
funds) 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 persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, 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 the like on
behalf of the Ultimate Beneficiaries;
(c) Based on such audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided in (a) and
(b) above, contain any material misstatement.
v. Since the Company has not declared or paid any dividend during the year, the
question of commenting on whether dividend declared or paid is in accordance with Section
123 of the Companies Act, 2013 does not arise.
For R Shah & Co,
Chartered Accountants
Firm’s Registration Number: 502010C
CA Adityendra Soni
Partner
Membership Number: 400149
Date: May 12, 2023
UDIN: 23400149BGYIIA4856
ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT
Independent Auditor’s report on the Internal Financial Controls under Clause (i)
of Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")
In conjunction with our audit of the financial statements of Pratik Panels Limited ("the
Company") as on and for the year ended March 31, 2023, we have audited the internal
financial controls over financial reporting (IFCoFR) of the company as on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s Board of Directors is responsible for establishing and maintaining
internal financial controls based on the criteria being specified by the management. These
responsibilities include design, implementation and maintenance of adequate internal
financial controls, that were operating effectively, for ensuring orderly and efficient
conduct of the company’s business including adherence to company’s policies,
safeguarding of its assets, prevention and detection of frauds and errors, accuracy and
completeness of the accounting records, and timely preparation of reliable financial
information, as required under the Act.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Companys IFCoFR based on our audit.
We conducted our audit in accordance with the Standards on Auditing, issued by the
Institute of Chartered Accountants of India (ICAI) and deemed to be prescribed under
section 143(10) of the Act, to the extent applicable to an audit of IFCoFR, and the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the
"Guidance Note") 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 IFCoFR were 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 IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining an
understanding of IFCoFR, 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 auditor’s judgment, including
assessment of 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 Company’s IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting
A companys IFCoFR 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
IFCoFR includes those policies and procedures that Pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company;
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 the management and directors of the company; and
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 IFCoFR, 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 IFCoFR to future
periods are subject to the risk that IFCoFR 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, adequate internal financial
controls over financial reporting and such internal financial controls over financial
reporting were operating effectively as at March 31, 2023, based on the criteria being
specified by management.
For R Shah & Co,
Chartered Accountants
Firm’s Registration Number: 502010C
CA Adityendra Soni
Partner
Membership Number: 400149
Date: May 12, 2023
UDIN: 23400149BGYIIA4856
ANNEXURE B TO THE INDEPENDENT AUDITORS’ REPORT
(Referred to in paragraph 1, under ‘Report on Other Legal and Regulatory
Requirements’ section of our Report of even date)
In terms of the information and explanations sought by us and given by the Company and
the books of account and records examined by us in the normal course of audit and to the
best of our knowledge and belief, we state that:
i. In respect of Property, Plant and Equipment:
The company does not own any property, plant and equipment therefore in view of that,
reporting under this clause is not applicable to the company.
ii. In respect of Inventories:
The company has not carried out any business during the year and in the recent previous
years therefore, do not have any inventories. In view of that, reporting under this clause
is not applicable to the company.
iii. According to the information and explanations given to us and on the basis of
examination of books and records by us,
a. (i) The Company has given unsecured loan to three parties. No disclosure is made in
respect of advances given to supplier including advances given to related parties.
(ii) The aggregate amount of loan granted and recovery of loan during the year and
balance outstanding at the balance sheet date with respect to such loan is as per the
table given below:
| Particulars |
Amount (Rs. In Lakhs) |
| During the year Loan Granted: |
|
| - To Companies |
98.00 |
| - To Others |
205.00 |
| During the year Recovered/Received: |
|
| - From Companies |
- |
| Balance outstanding as on March 31, 2023 in respect of: |
|
| - Loan to Companies |
98.00 |
| - To Others |
205.00 |
b. In respect of above said loan granted to Companies and others, the terms and
conditions of loans granted are not prejudicial to the company’s interest, based on
the information and explanation provided by the Company.
c. In respect of loans outstanding as on the balance sheet date, the schedule of
repayment of principal and payment of interest (as applicable) has been stipulated by the
Company. Except for the aforesaid instances (where in the absence of stipulation of
repayment/payment terms, we are unable to comment on the regularity of repayment of
principal and payment of interest), the parties are repaying the principal amounts, as
stipulated, and are also regular in payment of interest as applicable.
d. There are no amounts of loans granted to companies which are overdue for more than
ninety days.
e. There were no loans which had fallen due during the year, that have been renewed or
extended or fresh loans granted to settle the overdue of existing loans given to the same
parties.
The company has not granted loans or advances in the nature of loans either repayable
on demand or without specifying any terms or period of repayment.
iv. The Company has not granted any loans or provide any guarantees or securities to
parties covered under Section 185 of the Act. Further, the company has not granted any
loans or made investments or given any guarantees and security therefore provisions of
sections 186 of the Companies Act, 2013 is not applicable. Accordingly, reporting under
this clause of the Order is not applicable.
v. During the year no deposits from the public have been accepted by the Company,
falling in the purview of Section 73 to 76 or any other provision of the Companies Act,
2013.
vi. The maintenance of cost records has not been specified by the Central Government
under sub-section (1) of section 148 of the Companies Act, 2013 for the business
activities carried out by the Company. Hence, reporting under clause (vi) of the Order is
not applicable to the Company.
vii. In respect of statutory dues:
a. According to books of accounts examined by us and as per information and
explanations given to us, the company is generally regular in depositing undisputed
statutory dues including provident fund, employees state insurance, income-tax,
sales-Lax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess
and any other statutory dues with the appropriate authorities and if not, the extent of
the arrears of outstanding statutory dues as at the last day of the financial year
concerned for a period of more than six months from the date they became payable.
b. According to the information and explanations given to us, there are no dues of
income tax or sales tax or service tax or duty of customs or duty of excise or value added
tax or cess have not been deposited on account of any dispute. (A mere representation to
the concerned Department shall not constitute a dispute)
viii. According to the information and explanations given to us and the records of the
Company examined by us, the Company has not surrendered or disclosed any transaction,
previously unrecorded in the books of account, in the tax assessments under the Income Tax
Act, 1961 as income during the year. Accordingly, the requirement to report on clause
3(viii) of the Order is not applicable to the Company.
ix. In respect of repayment of borrowings and interest thereupon:
a. According to the information and explanations given to us and records examined, the
Company has not defaulted in repayment of loans or other borrowings or in the payment of
interest to any lender during the year.
b. According to the information and explanations given to us, we report that the
Company has not been declared Wilful Defaulter by any bank or financial institution or
government or any government authority.
c. In our opinion, and according to the information and explanations given to us, the
term loans have been applied, on an overall basis, for the purposes for which they were
obtained.
d. According to the information and explanations given to us and on an overall
examination of the standalone financial statements of the Company, we report that the
Company has not used funds raised on short-term basis for long-term purposes.
e. According to the information and explanations given to us and on an overall
examination of the standalone financial statements of the Company, we report that 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. According to the information and explanations given to us and procedures performed
by us, we report that the Company has not raised loans during the year on the pledge of
securities held in its subsidiaries, joint ventures or associate companies.
x. In respect of Initial Public Offer or Preferential allotment:
a. In our opinion and according to information and explanation the company has not
raised moneys by way of Initial Public Offer or Further Public offer (incl. debt.
Instrument).
b. The Company has not made any preferential allotment or private placement of shares
or fully or partially or optionally convertible debentures during the year. Accordingly,
the reporting under Clause 3(x) (b) of the Order is not applicable to the Company.
xi. In respect of Fraud:
a. During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, we have neither come across any
instance of material fraud by the Company or on the Company, noticed or reported during
the year, nor have we been informed of any such case by the Management.
b. During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, a report under Section 143(12)
of the Act, in Form aDt-4, as prescribed under rule 13 of Companies (Audit and Auditors)
Rules, 2014 was not required to be filed with the Central Government. Accordingly, the
reporting under Clause 3(xi)(b) of the Order is not applicable to the Company.
c. During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, the Company has not received
any whistle-blower complaints during the year.
xii. In our opinion and according to information and explanations given to us, the
company is not a Nidhi Company accordingly the reporting under Clause 3(xii) of the Order
is not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with
the provisions of Sections 177 and 188 of the Act. The details of such related party
transactions have been disclosed in the standalone financial statements as required under
Indian Accounting Standard 24 "Related Party Disclosures" specified under
Section 133 of the Act.
xiv. In respect of Internal Audit:
a. In our opinion and according to the information and explanation given to us, the
Company has an internal audit system commensurate with the size and nature of its
business.
b. The reports of the Internal Auditor for the period under audit have been considered
by us.
xv. As per the information and explanations given to us, the company has not entered
into any non-cash transactions with directors or persons connected with him accordingly,
the reporting on compliance with the provisions of Section 192 of the Act under Clause
3(xv) of the Order is not applicable to the Company.
xvi. In respect of provisions of NBFC
a. As per the information and explanations given to us, the company is not required to
be registered under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) and
accordingly, the reporting under Clause 3(xvi)(a) of the Order is not applicable to the
Company.
b. The Company has not conducted non-banking financial / housing finance activities
during the year. Accordingly, the reporting under Clause 3(xvi)(b) of the Order is not
applicable to the Company.
c. The Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India. Accordingly, the reporting under Clause 3(xvi)(c) of
the Order is not applicable to the Company.
d. Based on the information and explanations provided by the management of the Company,
the Group does not have any Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India.
xvii. The company has earned profit of Rs.3.93 Lakhs in the current financial year and
incurred cash loss of Rs.14.88 Lakhs in the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors during the year and
accordingly the reporting under Clause 3(xviii) of the Order is not applicable to the
Company.
xix. According to the information and explanations given to us and 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 standalone financial
statements, our knowledge of the Board of Directors and management plans and based on our
examination of the evidence supporting the assumptions, nothing has come to our attention,
which causes us to believe that any material uncertainty exists as on the date of the
audit report that the 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. We, however, state that this is not an assurance as to the future
viability of the Company. We further state that our reporting is based on the facts up to
the date of the audit report and we neither give any guarantee nor any assurance that all
liabilities falling due within a period of one year from the balance sheet date, will get
discharged by the Company as and when they fall due.
xx. As per the information and explanations given to us and on basis of books and
records examined by us, we report that since the Company has average net losses during the
immediately preceding three financial years, it is not required to spend any money under
sub-section (5) of section 135 of the Act and accordingly, any reporting under clause (xx)
of the Order is not applicable to the Company for the year.
xxi. The reporting under Clause 3(xxi) of the Order is not applicable in respect of
audit of standalone financial statements. Accordingly, no comment in respect of the said
clause has been included in this report.
For R Shah & Co,
Chartered Accountants
Firm’s Registration Number: 502010C
CA Adityendra Soni
Partner
Membership Number: 400149
Date: May 12, 2023
UDIN: 23400149BGYIIA4856.
+91-9892691696
