We have audited the accompanying Ind AS financial statements of M/s Panabyte Technologies Limited (Formerly
Known as Panache Innovations Limited), (the “Company”), which comprise the Balance Sheet as at March 31, 2024, and
the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the
Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other
explanatory information (Hereinafter referred to as the “Financial Statements”).
Opinion
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
the 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 March 31, 2024 and its Loss, total comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements 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
Auditor's responsibilities for the Audit of the Ind AS 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 Ind AS Financial Statements under the
provisions of the Companies Act, 2013 and the Rules made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence
obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Emphasis of Matters
We draw attention towards the Note No. 34 of the General Notes to Accounts of Financial Statements.
"On January 5, 2023, an incidence of fire occurred at one of the warehouse of the company iocated at Bhiwandi, Thane. This
incident led to damage of certain property, plant and equipment, inventory and interrupted business activities. The company
had insurance cover against the damaged inventories. The company had lodged claim of this incident with the insurance
company, which has been finalised during the year and the company has received full and final claim of Rs. 1,24,70,982 /- on
account of damage occured to the plant, property & equipment and inventory. The losses and corresponding credit arising
from insurance claim has been presented as net loss of Rs. 26,81,655/- under Exceptional items in the above result for the
year ended March 31,2024."
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters (KAM) are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Information Other than the Financial Statements and Auditor's Report
The Board of Directors of the Company is responsible for the preparation of other information. The other information
comprise the information included in the Management Discussion and Analysis, Board’s Report including Annexures to
Board’s Report, Business Responsibility Report, Corporate Governance and Shareholder’s Information, but does not
include the financial statements and our auditor’s report.
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 material misstatement of this other information we
are required to report that fact. We have nothing to report in this regard.
Management's Responsibility for the Financial Statements
The Company’s Board of Directors are responsible for the matters stated in section 134(5) of the Companies Act, 2013
(the “Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial
position, financial performance, total comprehensive income, cash flows and changes in equity of the Company including
its joint operation companies in accordance with the Ind AS and accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the
Act for safeguarding 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.
The Board of Directors is also responsible for overseeing the Company’s financial reporting process.
Auditor's Responsibility 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 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 financial 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 controls systems in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management's 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 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.
• 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.
• Obtain sufficient appropriate audit evidence regarding the financial information of the Company and its joint operations
to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of
the audit of the financial statements of such entities included in the financial statements.
Materiality
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 in (i) planning the scope of our audit work and in evaluating
the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 issued by the Central Government of India in
terms of Section 143(11) of the Companies Act, 2013, we enclose herewith; 'Annexure- A’, a statement on the
matters specified in paragraphs 3 and 4 of the said 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 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 Balance Sheet, the Statement of Profit and Loss including 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 (Accounts) Rules, 2014;
e. On the basis of written representations received from the directors as on 31st March 2024, and taken on record
by the Board of Directors, none of the directors is disqualified as on 31st March 2024, from being appointed as
a director in terms of Section 164(2) of the Companies Act, 2013; and
f. Our Opinion on the adequacy of the Internal Financial Controls of the company over the financial reporting and
the operating effectiveness of such controls has been given by us in a separate report in ‘Annexure-B’.
g. 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, in our opinion and to the best of our information and according
to explanations given to us:
(i) The Company has disclosed that there are no pending litigations which would impact its financial
statements.
(ii) The Company did not have any long term contracts for which there were any material foreseeable
losses;
(iii) The Company is not required to transfer any amount to the Investor Education and Protection Fund by
the Company.
(iv) Based on our examination, which included test checks, the Company has used accounting software for
maintaining its books of account for the financial year ended 31st March 2024 which has a feature of
recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. Further, during the course of our audit we did not come across
any instance of the audit trail feature being tampered with.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from 1st April 2023,
reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit
trail as per the statutory requirements for record retention is not applicable for the financial year ended
31st March 2024.
For KPB & Associates
Chartered Accountants
[FRNo. 114841W]
(Partner)
(CA Ketan N. Gada)
(Membership No 106451)
UDIN: 24106451BKBPBF5872
Place: Mumbai
Date: 21.05.2024
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