To the Members of PRAG BOSIMI SYNTHETICS LIMITED
REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying Standalone Financial Statements of Prag BosimiSynthetics Limited ("the Company") which comprise the Balance Sheet as at March312020 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 true andfair view in conformity with the Indian Accounting Standards prescribed under Section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("IND AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 312020 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 of Ethics'issued by the Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the Standalone Financial Statements underthe provisions of the Act and the rules thereunder 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 provide a basis for our audit opinion on the Standalone Financial 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 2020. 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 Matters (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 || |
|The Company is involved in legal proceeding as described in Note 20 of the Standalone Financial Statements. ||Our audit procedures include the following: |
|The Company assesses the need to make provision or to disclose a contingent liability on a case-to-case basis considering the underlying facts for each litigation. The eventual outcome of the litigation is uncertain and estimation at Balance Sheet date involves extensive judgements of Management including input from legal counsel due to the complexity of each litigations. Adverse outcomes could impact the Company's reported profit and balance sheet position. || 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. |
| || 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. |
| || Read the disclosures related to provisions and contingent liabilities in the standalone Financial Statements to assess consistency with underlying documents. |
The Company's management and the Board of Directors are responsible for the preparationof the other information. The other information comprises the information included in theCompany's Annual Report but does not include the Standalone Financial Statements and ourAuditor's Report thereon. Our opinion on the Standalone Financial Statements does notcover the other information and we do not express any form of assurance conclusionthereon. In connection with our audit of the Standalone Financial Statements ourresponsibility 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 AND BOARD OF DIRECTORS' RESPONSIBILITY FOR THE STANDALONE FINANCIALSTATEMENTS
The Company's management and the Board of Directors are responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these StandaloneFinancial Statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (IND AS) specified under Section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating 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 andBoard of Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so. Those onBoard of Directors are also responsible for overseeing the Company's financial reportingprocess
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE 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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism 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 and Board of Directors.
Conclude on the appropriateness of management and Board of Directors use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related 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 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 withthose charged with governance we determine those matters that were of most significancein the audit of the standalone financial statements of the current period and aretherefore the key audit matters. We describe these matters in our Auditors' Report unlesslaw or regulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
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 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 Standalone Balance Sheet the Standalone Statement of Profit and Loss includingOther Comprehensive
Income the Standalone Statement of Cash Flows and the Standalone Statement of Changesin Equity 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 IndianAccounting Standards specified under Section 133 of the Act;
e) On the basis of the written representations received from the directors as on March312020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312020 from being appointed as a director in terms of Section 164(2) of theAct;
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 controls overfinancial reporting;
g) 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 March312020 to transfer any sums to the Investor Education and Protection Fund. Hence thequestion of delay in transferring such sums does not arise; and
h) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended :
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.
|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 |
|UDIN - 20109049AAAAMD6278 ||UDIN - 20068018AAADX5691 |
|Place: Mumbai ||Place: Mumbai |
|Date: July 312020 ||Date: July 31 2020 |
ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTSof Prag Bosimi Synthetics Limited for the year ended March 312020
i. 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) According to the information and explanations given to us the title deeds ofimmovable properties included Property Plant and Equipment are held in the name of thecompany. In case of immovable properties taken on lease and disclosed asright-of-use-assets in the standalone financial statements the lease agreements are inthe name of the Company.
ii. 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 within the meaning ofSections 73 74 75 and 76 of the Companies Act 2013 and the Rules framed there under tothe extent notified.
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 the Company is regular in depositing undisputedstatutory dues including income-tax goods and services tax cess and any other statutorydues to the appropriate authorities.
|The Act Applicable ||Details of Tax ||Amount |
|The Assam Professions Trades Callings and Employments Taxation Act 1947 ||Professional Tax ||Rs 2008455 |
b) information and explanations given to us and on the basis of examination of therecords of the Company there are no dues of income tax or sales tax or service tax orduty of customs or duty of excise or value added tax which have not been deposited onaccount 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 term loans during the year. Accordinglyparagraph 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.
xiii. According to the information and explanations given to us and based on ourexaminations of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the standalone financial statements asrequired by applicable Indian Accounting Standards.
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 Dalai & Associates
Firm Registration No.: 112449W
Devang M. Dalai
Membership No.: 109049
UDIN - 20109049AAAAMD6278
For AMD & Associates
Firm Registration No.: 318191E
Membership No.: 068018
UDIN - 20068018AAADX5691
Date: July 312020
ANNEXURE - B
TO THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS of PragBosimi Synthetics Limited for the year ended March 312020
Report On The Internal Financial Controls With Reference To The Aforesaid StandaloneFinancial Statements Under Section 143(3)(1) Of The Companies Act 2013
We have audited the Internal Financial Controls with reference to Standalone FinancialStatements of Prag Bosimi Synthetics Limited ("the Company") as of March 312020 in conjunction with our audit of the Standalone Financial Statements of the Companyfor the year ended on that date.
In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to Standalone Financial Statements and suchinternal financial controls were operating effectively as at March 312020 based on theinternal financial controls with reference to Standalone Financial Statements 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.
MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls with reference to Standalone FinancialStatements criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to Standalone Financial Statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively 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 financial statements whether due to fraud or 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 controls systemover financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO STANDALONE FINANCIALSTATEMENTS
A company's internal financial controls with reference to Standalone FinancialStatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial control with reference to Standalone Financial Statements includes thosepolicies and procedures that:
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO STANDALONEFINANCIAL STATEMENTS
Because of the inherent limitations of internal financial controls with reference toStandalone Financial Statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols over financial reporting to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.
For M. H Dalai & Associates
Firm Registration No.: 112449W
Devang M. Dalai
Membership No.: 109049
UDIN - 20109049AAAAMD6278
For AMD & Associates
Firm Registration No.: 318191E
Membership No.: 068018
UDIN - 20068018AAADX5691
Date: July 312020