The Members of
PRERNA INFRABUILD LTD
(Formerly known as Prerna Finsafe Ltd)
Report on Standalone Financial statements
We have audited the accompanying standalone financial statements of PRERNA INFRABUILDLTD ("the company") which comprise the Balance Sheet as at 31st March2020 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.
Management Responsibility for the financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ('the Act') with respect to the preparation of thesestandalone financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards ('IndAS') specified under Section 133 of the Act. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
We have taken into account the provision of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and Rules made there under.
We conducted our audit in accordance with the standards on auditing specified undersection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment the Risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders the internal financial controls relevant to company's preparation of financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing opinion on whetherthe company has in place an adequate internal financial controls system over financialreporting and the operating effectiveness of such controls. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by company's Directors as well as evaluating the overallpresentation of financial statements.
We believe that audit evidence we obtain is sufficient and appropriate to provide basisfor our audit opinion on 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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted
in India including Ind AS specified under Section 133 of the Act of the state ofaffairs (financial position) of the Company as at 31 March 2020 and its profit (financialperformance including other comprehensive income) its cash flows and the changes inequity for the year ended on that date.
Report on other Legal and Regulatory Requirements and Our Opinion:
As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued by theCentral Government of India in terms of Section 143(11) of the Act we give in theAnnexure Aa statement on the matters specified in paragraphs 3 and 4 of the Order.
1) Further to the comments in the Annexure referred to above:
(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;
(b) In our opinion proper books of accounts as required by law have been kept by thecompany so far as it appears from our examination of the books.
(c) The standalone financial statements dealt with by this report are in agreement withthe books of account;
(d) in our opinion the aforesaid standalone financial statements comply with Ind ASspecified under Section 133 of the Act;
(e) On the basis of written representation received from the Directors and taken onrecord by the Board of Directors we report that none of the Director is disqualified ason 31st March 2020 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" and;
(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 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition;
ii. The Company does not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses; and
iii. Unpaid dividend of Rs.246667/- is required to be transferred to the InvestorEducation and Protection Fund by the Company.
Referred to in our report to members of Prerna Infrabuild Limited on the financialstatements for the year 31st March 2020
i. (a) Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) Title deeds of immovable properties are held in the name of the company.
(c) These fixed assets have been physically verified by the management at reasonableIntervals and no material discrepancies were noticed on such verification.
ii. Physical verification of inventory has been conducted at reasonable intervals bythe management and no material discrepancies were noticed.
iii. The company has not granted any loans secured or unsecured to companies firms orother parties covered by clause (76) of Section 2 of the Companies Act 2013.
iv. In our opinon the company has complied with the provisions of Section 185 and 186of the Companies Act 2013 in respect of loans investments guarantees and security.
v. The Company has not accepted any deposits from the public and complied with thedirectives issued by the Reserve Bank of India and the provisions of section 73 to 76 orany other relevant provisions of the Companies Act and the rules framed there underwherever applicable. There is no order passed by the Company Law Board or National CompanyLaw Tribunal or Reserve Bank of India or any court or any other tribunal.
vi. The company has not defaulted in repayment of dues to a financial institution orbank or debenture holders.
vii. We are informed that the Central Government has not prescribed maintenance of CostRecords under Sub Section (1) of Section 148 of the Companies Act for the business inwhich the company is engaged.
viii. (a) According to the records of the Company undisputed statutory dues includingprovident Fund employees' state insurance income-tax sales-tax wealth tax servicetax duty of customs duty of excise value added tax cess and other statutory dues havebeen generally regularly deposited with the appropriate authorities.
a) According to the information and explanations given to us no undisputed amounts ispayable which is outstanding as at 31st March 2020 for a period of more than six monthsfrom the date of becoming payable.
b) According to records of the company no amount is required to be transferred toinvestor education and protection fund in accordance with the relevant provisions of theCompanies Act 2056(1 of 2056) and the rules made there under.
ix. Moneys raised by way of public issue/ follow-on offer (including debt instruments)and term loans were applied for the purposes for which those are raised.
x. Managerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 207 read with schedule V to the CompaniesAct?
xi. Any fraud by the company or any fraud on the Company by its officers/ employees hasnot been noticed or reported during the year.
xii. Since company is not Nidhi Company clause not applicable.
xiii. Company has not made any preferential allotment / private placement of shares orfully or partly convertible debentures during the year under review.
xiv. All transactions with the related parties are in compliance with Section 188 and177 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable IND AS.
xv. The company has not entered into any non-cash transactions with directors orpersons connected with him.
xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 2034.
Referred to in paragraph 1(f) under "Report on other legal and regulatoryrequirements" of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the Internal Financial Control over financial reporting of PrernaInfrabuild Ltd ("the Company") as of 31st March 2020 in conjunction with ouraudit of the standalone financial statements of the Company for the year then ended.
Management Responsibility for the 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
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 andprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
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 Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial controlover financial reporting includes those policies 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 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.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2020based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the ICAI.