The Members PRIMA AGRO LIMITED V-679/C INDUSTRIAL DEVELOPMENT AREA
MUPPATHADAM EDAYAR KOCHI 683 110
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. PRIMA AGRO LIMITED(the Company) which comprise the Balance Sheet as at 31st March 2017 thestatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in section 134 (5) ofthe Companies Act 2013 (the Act) with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordancewith the accounting principlesgenerally accepted in India including the
Accounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue tofraud or error.
Our responsibility is to express an opinion on these financial statements based onouraudit. 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 theprovision of the Act and the Rules made thereunder.
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 misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the financial statements.
In our opinionand to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: a) In the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2017; b) In the case of the statement of Profitand Loss of the profit for the year ended on that date; and c) In the case of the CashFlowStatement of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Companies Act2013 we give in the Annexure statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable
2) As required by Section 143 (3) of the Act we report to the extent applicablethat: a) We have sought andobtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit; b) In our opinionproper books of account as required by law have been kept by the Company so far as appearsfrom our examination of those books.
c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account. d) In our opinion theaforesaid financial statements comply with the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 e) On thebasis of written representations received from the directors as on March 31 2017 andtaken on record by the Board of Directors none of the directorsis disqualified as onMarch 31 2017 from being appointed as a director in terms of Section 164 (2) of the Act.f) The Company has adequate internal financial control over financial reporting and theoperating effectiveness of such controls. g) With respect toother matters to be includedin the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rule 2014 in our opinion and to the best of our information and according to theexplanations given to us: i) The Company do not have any pending litigations which wouldimpact its financial position. ii) The Company do not have any long-term contractsincluding derivative contracts for which there were any material foreseeable losses. iii)There were no amounts which were required to be transferred to the Investor Education andProtection Fund by the Company. iv) The Company has provided requisite disclosure in itsfinancial statements as to holdings as well as dealings in Specified Bank Notes during theperiod from 8th November 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by the Company.
|For VIJAYAKUMAR & EASWARAN |
|FRN Regn. No. 004703S |
|CA. K. EASWARAN PILLAI FCA |
|SENIOR PARTNER |
|Membership No. 022062 |
Place : COCHIN-16 Date :30/05/2017
ANNEXURE TO AUDITOR'S REPORT
(Referred to our report of even date) i. a) The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets. b) All the assets have not been physically verified by the management during theyear but there is a regular program of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. No materialdiscrepancies were noticed on suchverification. c) According to the information's andexplanations given to us the title deeds of the immovable properties are held in the nameof the company. ii. a) The inventory has been physically verified during the year by themanagement. In our . opinion the frequency of verification is reasonable b) The procedureof physical verification of inventories followed by the management is reasonable andadequate in relation to the size of the company and the nature of its business. c) Thecompany is maintaining proper records of inventory and the stock as disclosed in thefinancial statements are valued and certified by the management. The discrepancies noticedon verification between the physical stocks and book records were not material.
a) The Company has granted the following loans to companies firms and other partiescovered in the register maintained u/s.189 under the Companies Act.
|Name of the Company/Firm or Other ||Relation- ship ||Loan Granted/ (Repaid) during the year ||Year end Balance |
|Parties || || || |
|1. Ayyappa Real Estate (P) Ltd ||Entity in ||226.00 ||8478.00 |
|2. PAPL Exim India Ltd ||which ||(20818.00) ||116413.80 |
|3. Prima Alloys (P) Ltd ||Key ||(752.00) ||7500.00 |
| ||Manageri || || |
|4. Prima Credits Ltd ||al Person have ||(1821.00) ||8600.00 |
|5. Prima Industries Ltd ||significan t ||341465.00 ||4090377.00 |
|6. Ayyappa Roller Flour Mills Ltd. ||influence ||5488480.00 ||12747921.08 |
|7. Prima Beverages (P) Ltd. || ||680654.40 ||680654.40 |
b) Due to lack of adequate information we are unable to comment on the rate ofinterest term of repayment andother 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 theinformation and explanations given to us and subject to clause iii above the company hascomplied with the provisions of section 185 and I86 of the Companies Act 2013 in respectof loans investments guarantees and security. v. In our opinion and according to theinformation and explanations given to us the company has not accepted any deposit fromthe public hence the directions issued by the Reserve Bank of India and provisions ofSection 73 to 76or any other relevant provisions of the Companies Act and the Rules framedthereunder are not applicable to this company. vi. In our opinion and according to theinformation and explanations given to us the Central Government has not prescribedmaintenance ofcost records under sub-section (1) of section 148 of the Companies Act. vii.In respect of Statutory Dues: a) According to the information and explanations furnishedto us during the year undisputed statutory dues including provident fund investoreducation protection fund employees state insurance income tax sales tax wealth taxcustoms duty excise duty cess and other material statutory dues applicable to it havebeen deposited with appropriate authorities and there has been no serious delays. b)Accordingto the information and explanation given to us there are no dues of sale taxincome tax customs duty wealth tax excise duty and cess which have not been depositedon account of any dispute. viii. In our opinion and according to the information andexplanation given to us the company during the year has not defaulted in repayment ofdues to the Financial Institutions. ix. Based upon the audit procedures performed and theinformation and explanations given by the management the company has not raised moneysbyway of initial public offer or further public offer including debt instruments or termloan. Accordingly the provisions of clause 3(ix) of the Order is not applicable to theCompany. x. In our opinion and according to the information and explanations given tousno fraud on or by the company has been noticed or reported during the course of our audit.xi. In our opinion and according to the information and explanations given to usmanagerial remuneration has been paid or provided in accordance with therequisiteapprovals mandated by the provisions of section 197 of the Companies Act.
xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Therefore the provisions of clause 4 (xii) of the Orderare not applicable to the Company. xiii. In our opinion and according to the informationand explanations given to us transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 wherever applicable and the details have beendisclosed in the Financial Statements etc. as required by the applicable accountingstandards; xiv. Based upon audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3(xiv) of the Order is not applicable to theCompany and hence not commented upon. xv. In our opinion and according to the informationand explanations given to us the Company has not entered into any non-cash transactionswith directors or persons connected with him.
Accordingly the provisions of clause 3(xv) of the Order is not applicable to theCompany and hence not commentedupon. xvi. In our opinion and according to the informationand explanations given to us the company is not required to be registered under section45 IA of the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3(xvi) of the Order arenot applicable to the Company and hence not commented upon.
For VIJAYAKUMAR & EASWARAN CHARTERED ACCOUNTANTS
FRN Regn. No. 004703S
CA. K. EASWARAN PILLAI FCA
SENIOR PARTNER Membership No. 022062
|Place ||: COCHIN-16 |
|Date ||:30/05/2017 |