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Prima Agro Ltd.

BSE: 519262 Sector: Others
NSE: N.A. ISIN Code: INE297D01018
BSE 00:00 | 01 Dec 33.40 0.10
(0.30%)
OPEN

33.95

HIGH

33.95

LOW

31.65

NSE 05:30 | 01 Jan Prima Agro Ltd
OPEN 33.95
PREVIOUS CLOSE 33.30
VOLUME 746
52-Week high 59.25
52-Week low 13.55
P/E 4.34
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 33.95
CLOSE 33.30
VOLUME 746
52-Week high 59.25
52-Week low 13.55
P/E 4.34
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Prima Agro Ltd. (PRIMAAGRO) - Auditors Report

Company auditors report

TO THE MEMBERS OF PRIMA AGRO LTD

Report on the Audit of the Standalone Financial Statement

Opinion

We have audited the accompanying standalone financial statements of PRIMA AGRO LTD("the Company") which comprise the Balance Sheet as at March 31 2020 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as "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 31 2020 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). 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 bythe Institute of 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 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.

Emphasis of matter paragraph

• We draw your attention to Note 14 of the financial statements which states thattotal outstanding dues of micro enterprises and small enterprises and total outstandingdues of trade payables other than micro enterprises and small enterprises are notseparately disclosed.

• We draw your attention to Note-21 of financial statements and " Keyaccounting judgments Estimates and assumptions" in Significant accounting policies& Notes forming part of accounts which states that computation as per Ind AS 19"Employee Benefits" has not been applied for accounting for gratuity.

Our opinion is not modified in respect of these matters.

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 of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined that there are no key audit mattersto communicate in our report.

Other Information

The Companies Management and Board of Directors are responsible for the otherinformation. The other Information comprises the information included in the company'sannual report but does not include the standalone financial statements and our auditor'sreport thereon.

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 totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. 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; anddesign implementation 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 is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

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. 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 inaccordance 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 financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such 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 concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue 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 financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements. We communicate with those chargedwith governance regarding among other matters the planned scope and timing of the auditand significant audit findings including any significant deficiencies in internal controlthat we identify during our audit. We also provide those charged with governance with astatement that we have complied with relevant ethical requirements regarding independenceand to communicate with them all relationships and other matters that may reasonably bethought to bear on our independence 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 about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. 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 Statement of Changes in Equity and the Statement of Cash Flow 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 read with Rule 7 of the Companies (Accounts)Rules2014.

e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 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 A". 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 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 remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act. With respect to the othermatters 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 the best of ourinformation and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts except otherwise stated in the financials.

2. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company. As required by the Companies(Auditor's Report) Order 2016 ("the Order") issued by the Central Government interms of Section 143(11) of the Act we give in "Annexure B" a statement on thematters specified in paragraphs 3 and 4 of the Order.

For VBV ASSOCIATES
Chartered Accountants
FRN: 013524S
CA VIPIN M FCA
Partner
Membership No: 215126
Place : Cochin-16
Date :29/06/2020

ANNEXURE "A"TO THE INDEPENDENT AUDITOR'S REPORT (Referred to in paragraph1(f) under ‘Report on Other Legal and Regulatory Requirement' section of our reportof 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 Prima AgroLimited as on March 31 2020 in conjunction with our audit of the standalone Ind ASfinancial statements of the company for the year ended on that date.

Management's Responsibility for Internal Financial Controls.

The Company's management is responsible for establishing and maintaining internalfinancial control based on the internal control over financial reporting criteria theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to respective company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 Ind AS 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 with generallyaccepted accounting principles. A company's internal financial control over financialreporting 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 authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposal of the company's assets that could have materialeffect 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.

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 system over financialreporting were operating effectively as at March 31 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For VBV ASSOCIATES
Chartered Accountants
FRN: 013524S
CA VIPIN M FCA
Partner
Membership No: 215126
Place : Cochin-16
Date :29/06/2020

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT (Referred to in paragraph 2under ‘Report on Other Legal and Regulatory Requirements' section of our report ofeven date)

i. In respect of fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b) All the fixed assets have not been physically verified by the management during theyear but there is a regular program of verification which in our opinionis reasonablehaving regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such physical verification.

c) As per the information and explanations provided to us title deeds of immovableproperties are in the name of the Company as at Balance Sheet date.

ii. As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals and no material discrepancies were noticed on physicalverification.

iii. The Company has granted the following loans to companies firms and other partiescovered in the register maintained u/s.189 under the Companies Act.

S No Name of the Company/Firm or Other Parties Relationship Loan Granted/ (Repaid) during the year Year end Balance
1 Ayyappa Real Estate (P) Ltd - 8478.00
2 Prima Alloys (P) Ltd Entity in which Key Managerial Person have significant influence 2250.00 9750.00
3 Prima Beverages (P) Ltd 119493.00 11057.56
4 PAPL Exim India Ltd - 118184.00
5 Prima Credits Ltd - 15200.00
6 Prima Industries Ltd 2967682.00 1348129.00
7 Ayyappa Roller Flour Mills Ltd. 8326665.00 29147016.08

a) Due to lack of adequate information we are unable to comment on the rate ofinterest term of repayment and other terms and conditions on which loans have been takenfrom/ granted to companies firm & other parties listed in the register maintained u/s189 of the Companies Act 2013 which are prima facie prejudicial to the interest of thecompany since the terms are not defined.

iv. In our opinion and according to the information and explanations given to us andsubject to clause (iii) above the Company has complied with the provisions of section 185and I86 of the Companies Act 2013 in respect of loans making investments and providingguarantees and securities as applicable.

v. According to the information and explanations given to us the company has notaccepted any deposit from the public hence the directions issued by the Reserve Bank ofIndia and provisions of Section 73 to 76 or any other relevant provisions of the CompaniesAct and the Rules framed thereunder are not applicable to this company.

vi. In our opinion and according to the information and explanations given to us theCentral Government has not prescribed maintenance of cost records under sub-section (1) ofsection 148 of the Companies Act.

vii. In respect of Statutory dues

a) According to the information and explanations furnished to us and on the basis ofour examination of records the Company was generally regular in depositing withappropriate authorities undisputed statutory dues towards provident fund investoreducation protection fund employees state insurance income tax sales tax wealth taxcustoms duty excise duty cess and other statutory dues wherever applicable. There wereno arrears of statutory dues as on 31st March 2020 for a period of more than six monthsfrom the date they became payable.

b) According to the information and explanation given to us there are no dues of saletax income tax customs duty wealth tax excise duty and cess which have not beendeposited on account of any dispute.

viii. In our opinion and according to the information and explanation given to us thecompany during the year has not defaulted in repayment of dues or borrowings to financialinstitutions and banks. The Company did not have dues to government and debenture holders.

ix. The company has not raised moneys by way of initial public offer or further publicoffer including debt instruments. In our opinion and according to the information andexplanation given to us moneys raised by way of term loans during the year have beenapplied by the Company for the purposes for which they were raised.

x. To the best of our knowledge and according to the information and explanations givento us no material fraud by or on the Company by its officers or employees has beennoticed or reported during the year.

xi. In our opinion and according to the information and explanations given to usmanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii. The Company is not a Nidhi Company and hence reporting under clause (xii) ofparagraph 3 of the Order is not applicable.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Sections 177 and 188 of Companies Act 2013 whereapplicable for all transactions with related parties and the details of related partytransactions have been disclosed in the Financial Statements etc. as required by theapplicable accounting standards.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of the Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him and hence reporting under clause (xv) of paragraph3 of the Order is not applicable to the Company.

xvi. In our opinion and according to the information and explanations given to us thecompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934 and accordingly the provisions of clause (xvi) of paragraph 3 of the Order isnot applicable to the Company.

For VBV ASSOCIATES
Chartered Accountants
FRN: 013524S
CA VIPIN M FCA
Partner
Membership No: 215126
Place : Cochin-16
Date :29/06/2020

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