TO THE MEMBERS OF PIX TRANSMISSIONS LIMITED
Report on the Audit of the Standalone financial Statements
We have audited the accompanying standalone financial statements ofPIXTRANSMISSIONS LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2019 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year ended onthat date and a summary of the significant accounting policies and otherexplanatoryinformation (hereinafter referred to as "the standalone financialstatements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2019the profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.
We conducted our audit of the standalone financial statements inaccordance 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'sResponsibilities for the Audit of the Standalone financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Instituteof Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto providea basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined that there are no key auditmatters to be communicated in our report.
Information Other than the Standalone financial Statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's
Report including Annexures to Board's Report Business ResponsibilityReport Corporate Governance and Shareholder's Information but does not include thestandalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion there on.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Management's Responsibility for the Standalone financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the IndAS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a trueand fair view and are free from material m isstatement whether due to fraud or error.
In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company'sfinancial reporting process.
Auditor's Responsibilities for the Audit of the Standalone financialStatements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue 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 auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism through out the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations the override of internal control.
Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually orin aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to out weigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act based on our audit wereport that:
a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b) In our opinion proper books of account as required by law have beenkept 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 OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account.
d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of the written representations received from thedirectors as on March 31 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2019 from being appointed as a director intermsof Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.
g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:
i. There were no pending litigation which would impact the financialposition of the Company.
ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts.
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund bythe Company.
2. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in "Annexure B" a statement on the matters specified inparagraphs 3and 4ofthe Order.
ForB. L. AJMERA&CO.
(Firm's Registration No. 001100C)
Date :May 03 2019
ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT (Referred to inparagraph 2 under 'Report on Other Legal and Regulatory Requirements' section of ourreport to the Members of PIX TRANSMISSIONS LIMITED of even date)
(i) a) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets.
b) The assets have been physically verified by the management in amanner which in our opinion is reasonable having regard to the size of the company andnature of its assets and no major discrepancies were noticed on such physicalverification.
c) According to the information & explanation given to us and onthe basis of our examination of the records of the company the title deed of immovableproperties are held in the name of company.
(ii) In our opinion the inventories have been physically verifiedduring the year by Management at reasonable intervals and as explained to us no materialdiscrepancies were noticed on physical verification.
(iii) As informed to us the Company has granted unsecured loans tocompanies firms or other parties listed in the register maintained under section 189 ofthe Companies Act 2013 during the year under audit.
(a) The terms and conditions of grant of unsecured loans to partiescovered u/s 189 of the Companies Act are not prejudicial to the company's interest.
(b) There is no stipulation as to the time period for payment of theprincipal amount of unsecured loans granted. Hence the provisions of sub-clauses (b) and(c) of clause (iii) of paragraph 3 of the Order are not applicable.
(iv) In our opinion and according to the in formation and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct in respect of grant of loans making investments and providing guarantees andsecurities.
(v) According to the information & explanation given to us theCompany has not accepted any deposits from the public. Therefore the provisions of clause(v) of Paragraph 3 of the order are not applicable to the company.
(vi) We have broadly reviewed the cost records maintained by thecompany pursuant to Companies (Cost records and Audit) Rules 2014 prescribed by theCentral Government under section 148(1) (d) of the Companies Act 2013 and are of theopinion that prima facie the prescribed accounts and cost records have been maintained.We have however not made a detailed examination of cost records with a view to determinewhether they are accurate or complete.
(vii) a) As per information and explanations given to us undisputedstatutory dues including Provident
Fund Income Tax Sales Tax Value Added Tax Wealth Tax Goods andServices Tax Service Tax Custom Duty Excise Duty Cess and other material statutorydues to the extent applicable to it have generally been regularly deposited with theappropriate authorities and there are no undisputed dues outstanding as on 31st March 2019for a period of more than six months from the date they became payable
b) According to the information and explanations given to us andnecessary audit procedures performed by us there are no statutory dues of income tax orsales tax or service tax which have not been deposited on accountof any dispute
(viii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of loans or borrowings tofinancial institutions banks and Government and dues to debenture holders.
(ix) The company has not raised any money by way of Initial PublicOffer or Further Public Offer. Term Loans taken by the company have been utilised for thepurposes for which they were raised.
(x) In our opinion and according to the information and explanationsgiven to us no material fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanationsgiven to us the company has paid /provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theCompanies Act 2013.
(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Accordingly paragraph 3(xii) of theOrderis not applicable.
(xiii) In our opinion and according to the information and explanationsgiven to us and based on our examination of the records of the Company transactions withthe related parties are in compliance with the Sections 177 and 188 of the Companies Act2013 where applicable and details of transactions with the related parties have beendisclosed in the Standalone Ind AS financial statements as required by applicableAccounting Standard.
(xiv) According to the information and explanations give to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Therefore clause (xiv) of Paragraph 3 of the order is notapplicable to the company.
(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with them as per section 192 ofCompanies Act 2013. Accordingly clause (xv) of Paragraph 3 of the order is notapplicable to the company.
(xvi) In our opinion and according to the information and explanationsgiven to us the Company is not required to beregistered under section45-IAof the ReserveBank of India Act 1934.
ForB. L. AJMERA&CO.
(Firm's Registration No. 001100C)
Date :May 03 2019