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Prag Bosimi Synthetics Ltd.

BSE: 500192 Sector: Industrials
NSE: PRAGBOSIMI ISIN Code: INE962B01011
BSE 00:00 | 03 Apr 2.01 -0.09
(-4.29%)
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NSE 05:30 | 01 Jan Prag Bosimi Synthetics Ltd
OPEN 2.20
PREVIOUS CLOSE 2.10
VOLUME 585
52-Week high 3.23
52-Week low 1.82
P/E
Mkt Cap.(Rs cr) 15
Buy Price 2.01
Buy Qty 200.00
Sell Price 2.12
Sell Qty 200.00
OPEN 2.20
CLOSE 2.10
VOLUME 585
52-Week high 3.23
52-Week low 1.82
P/E
Mkt Cap.(Rs cr) 15
Buy Price 2.01
Buy Qty 200.00
Sell Price 2.12
Sell Qty 200.00

Prag Bosimi Synthetics Ltd. (PRAGBOSIMI) - Auditors Report

Company auditors report

To the Members of Prag Bosimi Synthetics Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of Prag BosimiSynthetics Limited ("the Company") which comprise the balance sheet as at March312019 the Statement of Profit and Loss (including the Statement of Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and notes to the Standalone Financial Statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 (‘the Act’) in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under Section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 312019 its loss including othercomprehensive income its Cash Flows and the Changes in Equity for the year ended on thatdate.

Basis for opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing (SAs) specified under section 143 (10) of the Act. Ourresponsibilities 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 ofEthics’ issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the Standalone FinancialStatements under the provisions of the Act and the rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and theICAI’s Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the StandaloneFinancial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements for the financial yearended March 31 2019. These matters were addressed in the context of our audit of theStandalone Financial Statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. We have determined the matter describedbelow to be the key audit matters to be communicated in our report.

Key Audit Matter (KAMs) How the KAMs were addressed in our audit
Revenue Recognition
We have identified this as an area of importance because the Company’s revenue is a material item in view of adoption of Ind AS 115 "Revenue from Contracts with Customers". The application of the new revenue accounting standard involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue. Our audit procedures include the following:
• Evaluation of the Company’s accounting principles in relation to implementation of the new revenue accounting standard;
• Created an understanding of the Company’s routines and internal controls associated with revenue recognition;
• Examination of a selection of transactions to ensure that they have been reported correctly according to agreements and in the correct periods;
Litigation Our audit procedures include the following:
The Company is involved in legal proceeding as described in Note 21 of the Standalone Financial Statements. • Evaluation of the design and testing the operating effectiveness of controls in respect of the identification evaluation of litigations the recording / reassessment of the related liabilities provisions and disclosures.
The Company assesses the need to make provision or to disclose a contingent liability on a case-to-case basis considering the underlying facts of each litigation. • Obtained a list of litigations from the management; and performed inquiries with the management of the Company; obtained and read the underlying documents to assess the assumptions used by management in arriving at the conclusions.
The eventual outcome of the litigation is uncertain and estimation at balance sheet date involves extensive judgement of Management including input from legal counsel due to complexity of each litigation. Adverse outcomes could impact the Company’s reported profit and balance sheet position. • Read the disclosures related to provisions and contingent liabilities in the standalone Financial Statements to assess consistency with underlying documents.

Information Other than the Standalone Financial Statements and Auditor’s ReportThereon

The Company’s Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board’s Report including Annexures to Board’s ReportCorporate Governance and Shareholder’s information but does not include theStandalone Financial Statements and our Auditor’s Report thereon. Our opinion on theStandalone Financial Statements does not cover the other information and we do not expressany form of assurance conclusion thereon. In connection with our audit of the StandaloneFinancial Statements our responsibility is to read the other information and in doingso consider whether the other information is materially inconsistent with the StandaloneFinancial Statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated. If based on the work we have performed we concludethat there is a material misstatement of this other information; we are required to reportthat fact. We have 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 stated in Section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone FinancialStatements that give a true and fair view and are free from material misstatement whetherdue 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. Those Board of Directors arealso responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Standalone Financial Statements. As part of an auditin accordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign 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 hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concernbasis 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 conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Standalone Financial Statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the Standalone Financial Statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor’s report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Statement of Cash Flows and Statement of Changes in Equity dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting.

g) In our opinion and to the best of our information and according to the explanationsgiven to us the managerial remuneration paid/provided by the Company to its directorsduring the year is in accordance with the provisions of section 197 of the Act read withSchedule V to the Act; and

h) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i) The Company does not have any pending litigations which would impact its financialposition.

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii) There has not been an occasion in case of the Company during the year ended March312019 to transfer any sums to the Investor Education and Protection Fund. Hence thequestion of delay in transferring such sums does not arise.

For M.H Dalal & Associates For AMD & Associates
Chartered Accountants Chartered Accountants
Firm Registration No.: 112449W Firm Registration No.: 318191E
Devang M. Dalal Debashish Bardoloi
Partner Partner
Membership No.: 109049 Membership No.: 068018
Place : Mumbai
Date : May 27 2019

ANNEXURE - A TO THE INDEPENDENT AUDITORS’ REPORT

With reference to the Annexure referred to in the Independent Auditor’s Report onthe Standalone Ind AS financial statements for the year ended 31st March 2019we report the following:

i. In respect of its Fixed Assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The assets have been physically verified by the management in accordance with thephased programmed of verification adopted by the Company. In our opinion the frequency ofthe verification is reasonable having regard to the size of the Company and nature offixed assets. No material discrepancies have been noticed in respect of the assetsphysically verified during the year.

(c) Title Deeds of immovable properties are held in the name of the company.

ii. In respect of its Inventories:

As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals. Inventory lying with the third parties and in transithave been verified by the management with reference to the confirmation received from themand/or subsequent receipt of goods.

iii. In our opinion and according to information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013. Accordingly paragraph 3(iii) of the Order is notapplicable to the company.

iv. According to the information and explanations given to us and on the basis ofexamination of the records of the Company the Company has complied with the provisions ofSection 185 and 186 of the Companies Act 2013 with respect to the loans and investmentsmade and guarantees and security provided by it.

v. The Company has not accepted any deposits from the public in accordance with theprovisions of Sections 73 to 76 of the Companies Act 2013 and the Rules framed thereunder.

vi. The Central Government has not prescribed the maintenance of cost records underSection 148(1) of the Act for the Company.

vii. a) According to the information and explanations given to us and on the basis ofexamination of the records of the

Company there is following undisputed amounts payable in respect of aforesaid dues fora period exceeding six months from the date of becoming due as on 31st March2019:

The Act applicable Details of outstanding Amount Amount (Rs in Lakhs)
The Assam Professions Trades Callings and Employments Taxation Act 1947 Professional Tax 17.23

b) According to the information and explanations given to us and on the basis ofexamination of the records of the Company there are no dues of income tax or sales tax orservice tax or duty of customs or duty of excise or value added tax which have not beendeposited on account of any dispute..

viii. Based on our audit procedures and as per the information and explanations givenby the management we are of the opinion that the company has not defaulted in repaymentof loans and borrowings to a financial institution banks government or dues to debentureholders.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and not obtained term loans during the year.Accordingly paragraph 3(ix) of the Order is not applicable.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees have been noticed or reportedduring the course of our audit.

xi. The managerial remuneration has been paid or provided in accordance with theprovisions of Section 197 read with Schedule V of the Act. The provision of Section 197read with schedule 5 to the Companies Act 2013 is not applicable to the Company.Accordingly paragraph 3(xi) of the Order is not applicable.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company there are no transactions with the relatedparties. Accordingly paragraph 3(xiii) of the Order is not applicable to the Company.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with its directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicable tothe Company.

For M.H Dalal & Associates For AMD & Associates
Chartered Accountants Chartered Accountants
Firm Registration No.: 112449W Firm Registration No.: 318191E
Devang M. Dalal Debashish Bardoloi
Partner Partner
Membership No.: 109049 Membership No.: 068018
Place : Mumbai
Date : May 27 2019

ANNEXURE - B TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements’ of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub - section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of PRAGBOSIMI SYNTHETICS LIMITED ("the Company") as of 31st March 2019in conjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of standalone Ind AS financial statements for external purposes inaccordance with generally accepted accounting principles. A company’s internalfinancial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company’s assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For M.H Dalal & Associates For AMD & Associates
Chartered Accountants Chartered Accountants
Firm Registration No.: 112449W Firm Registration No.: 318191E
Devang M. Dalal Debashish Bardoloi
Partner Partner
Membership No.: 109049 Membership No.: 068018
Place : Mumbai
Date : May 27 2019