l\V have audited die accompanying Standalone hid AS Financial Statements of Pavna Industries Limited (“the Company") which comprise the Balance Sheet as at March 31,2024, the Statement of Profit and Loss (including the statement of Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for die year then ended' and notes to standalone hid AS 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, tlu- aforesaid Standalone hid AS Financial Statements give the information required by the Companies Act, 2013 as amended, ("the Act") in the manner so required and give a true ami fair view in conformity with the accounting principles generally accepted in India, of tlu- state of affairs of the Company as at March 31, 2023. its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on tliat date.
Basis for Opinion
We conducted our audit of the Standalone Ind AS Financial Statements in accordance with llw Standards On Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities tor the Audit of the Standalone Ind AS Financial Statements section of our report We are independent of the Company in accordance will! the Code of Ethics issued by the Institute ol Chartered Accountants of India, together with the ethical requirements that are relevant to our audit of the Standalone Ind AS Financial Statements under the provisions of the Act, ..ml the Rules thereunder, and we have fulfilled our oilier 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 Ind .AS Financial Statements.
Kev Audit Matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Ind AS Financial Statements tor the financial year ended 31*' March, 202-JL These matters were addressed in the context of our audit of the Standalone Jnd AS Financial Statements as a whole, and informing our opinion thereon, and we do not provide a separate opinion on these matters. We have determined that there are no key audit matters to be communicated in our report.
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Other Information
The Company's Board of Directors is responsible for the other information. The other information comprises the information included in the company's annual report but does rot indude the Standalone Tnd AS Financial Statements and our auditor's report tlicreon.
Our opinion on the Standalone Ind AS Financial Statements does not cover the other inlormation and we do not express any form of assurance conclusion thereon.
.n connection with Our audit ol the standalone Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with die Standalone Ind AS 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 Ind AS Financial Statements
I he Company's Board of Directors is responsible for the matters stated in section 134(5) of tlie Act, with respect to the preparation of these Standalone Ind AS Financial Statements that • give a true and fair view of the financial position, financial performance, including other comprehensive income, changes in equity and cash flows of die Company in accordance with accounting principles generally accepted in India, including Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, ns amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for saloguarding ot the assets of die Company and for preventing and detecting frauds and other irregularities; selection and application Df appropriate accounting policies; making judgments and estimates Quit are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, tliat were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of rhe standalone Ind AS financial statement that give a true amt lair view and are free from material misstatement, whether due to fraud or error.
In preparing the bid AS financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related lo going concern and using live 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 company's financial reporting
process.
Auditor's Responsibilities for the Audit of Standalone Ind AS Financial Statement
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Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS 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 uol*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 arc considered material if, individually or in the aggregate, they could reasonably lx* expected to influence tlie economic decisions of users taken on the basis of these Standalone Ind AS Financial Statements.
A 1 wither description of the auditor's responsibilities for Die audit of tlie Standalone Ind AS Financial Statements is included in Annexure A This description forms part of our auditor's report
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 ("the Older"), 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, to the extent applicable.
2. A. As required by $ectionl-13(3) of tire Act, we report that
a) We have sought and obtained all tlie information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) lu our opinion, proper books of account as required by law have been kept by the C ompany, so far as it appears from our examination of those books except for tlie matters stated in die paragraph 2B(f) below on reporting under Rule 11(g) of die Companies (Audit and Auditors) Rules, 2014.;
c) Hie Standalone Balance Sheet the Standalone Statement of Profit and Loss (including Statement of Other Comprelrensive income), the Standalone Cash Flow Statement and the Standalone Statement of Changes in equity dealt with by this Report are in agreement with the books of account;
d> In our opinion, die aforesaid Standalone Ind AS Financial Statements comply with the ^5. Indian Accounting Standards specified under Section 133 of tire Act read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
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Cl On the lMsis of die written representations received from die directors as on 31st March, 2021 taken on record by die Board of Directors, now of die directors is disqualified as on >1 st March, 2024 from being appointed as a director in terms of Section 161 (2) of the Act; 0 With respect to the adequacy of the Internal Financial Control with reference to these Standalone Ind AS Financial Statements of the Company and Kite operating effectiveness of such controls, refer to our separate Report in "Annexure Cv to this report;
11,0 modifications relating to die maintenance of accounts mid other matters connected therewith are as stated in the paragraph 2A(b) above on reporting under Section 143f3)(b) of die Act and paragraph 2B(f) below on reporting under 'Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
B. 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 ilie best of our information and according to die explanations given to us:
" ,fhe Company has disclosed die impact of pending litigations on its financial position in its Standalone Ind AS Financial Statements. Note No. 43 of notes to accounts
ii) The Company did not have any long- term contracts including derivative contracts for which there were any material foreseeable losses;
There were no amounts which were required to be transferred to die Investor Kducation and Protection Fund by die Company.
iv>
i. The management has represented diat, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (eiUier from borrowed funds or share premium or any other sources or kind of funds) by die Company to or in any oilier persons or entities, 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 mu- 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; n. The management has represented dint, to the best of its knowledge and belief, no hinds have been received by the Company from any persons or entities, including foreign entities ("Funding Parlies"), 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 anv guarantee, security or the like on behalf of the Ulbmate Beneficiaries; and
iii Based on such audit procedures performed that have been considered reasonable and appropriate in die circumstances, nothing lias come to our notice diat has caused us to believe that the representations under sub-clause (a) and (l>) contain any material misstatement
v) The Company has not paid interim dividend during die year.
rf) Based on our examination which included test checks, die Company luis used accounting software for maintaining its books of account, which have a feature ol recording audit trail (edit log) facility and the same has operated w.e.f. 13 June 2023 to " ^c>Jld Dl year f°r all relevant transactions recorded in die respective software
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Further. for the periods where the audit trail (edit log) facility was enabled and operated for the respective accounting software, we did not come across any instance of the audit trail lealurc being tampered with.
C . With respect to the matter to L-e included in tire Auditor's Report under Section 197(16) of the
In our opinion, the managerial remuneration for the year ended March 31, 202-1 has been paid/ prodded by the Company to their directors in accordance with the provisions of .section 197 read with Schedule V to the Act.
lor RAJ EE V KUMAR & COMPANY CHARTERED ACCOUNTANTS FRN: 000633C
PEACE: AUGARII CA RAjp^y KUMAR
DA r li: .30 MAY, 2024 PROPRIETOR
UD1N: 24®^±OaBKC0ML20^1. M.N0.070103
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