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Prime Industries Ltd.

BSE: 519299 Sector: Financials
NSE: N.A. ISIN Code: INE543F01010
BSE 00:00 | 24 Aug Prime Industries Ltd
NSE 05:30 | 01 Jan Prime Industries Ltd
OPEN 1.14
PREVIOUS CLOSE 1.14
VOLUME 10
52-Week high 1.26
52-Week low 1.14
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.14
CLOSE 1.14
VOLUME 10
52-Week high 1.26
52-Week low 1.14
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Prime Industries Ltd. (PRIMEINDS) - Auditors Report

Company auditors report

To

The Members of Prime Industries Ltd.

Report on the Financial Statements

We have audited the accompanying Ind AS financial statements of Prime Industries Ltd.(the Company‘) which comprise the Balance Sheet as at 31 March 2018 and theStatement of Profit and Loss (including other comprehensive income) the Cash FlowStatement and the Statement of changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information(hereinafter referred toas Ind AS financial statements').

Management's 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 andpresentation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance cash flows and change in equity of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; 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 Ind AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder. We conducted our audit of Ind ASFinancial Statements in accordance with the Standards on Auditing specified under Section143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the Ind ASfinancial statements are free from material misstatements. An audit involves performingprocedures to obtain audit evidence about the amounts and disclosures in the Ind ASfinancial statements. The procedures selected depend on the auditor‘s judgmentincluding the assessment of the risks of material misstatement of the Ind As financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company‘s preparation of the IndAs financial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company‘s directors as well as evaluating the overallpresentation of the Ind AS financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Indian Accounting Standardof the financial position of the Company as at March 31 2018 and its financialperformance including other comprehensive income and its cash flows and the change inequity 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 ( ?the Order )issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder 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 Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andthe Statement of Change in Equity dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 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'

(g) with respect to the other matters to be included in the Auditor's Report inaccordance with the rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 19 to the IND AS financial statements.

(ii) The Company did not have any outstanding long-term contracts including derivativecontracts as at 31 March 2018 for which there were any material foreseeable losses: and

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Sukhminder Singh & Co.
Chartered Accountants
FRN 016737N
Sukhminder Singh
Place: Ludhiana Partner.
Date: 30.05.2018 Membership No. 93100

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements‘ section of our report of even date)

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) Fixed assets have been physicallyverified by the management during the year at reasonable intervals and no materialdiscrepancies were identified on such verification. (c) According to the information andexplanations given to us and on the basis of our examination of the records of theCompany the title deeds of immovable properties are held in the name of the Company.

2. The inventory which are held in dematerialized/ physical form has been verified atreasonable intervals by the management and no material discrepancies were identified onsuch verification.

3. The Company has granted unsecured loans to one party covered in the registermaintained under section 189 of the Act. a) In our opinion the rate of interest and otherterms and conditions on which the loans had been granted to the parties covered in theregister maintained under section 189 of the Act were not prima facie prejudicial to theinterest of the Company. b) In the case of the loan granted to the parties covered in theregister maintained under section 189 of the Act the borrowers have been regular in thepayment of the interest as stipulated. The terms of arrangements do not stipulate anyrepayment schedule and loans are repayable on demand. Accordingly paragraph 3(iii)(b) ofthe Order is not applicable to the Company in respect of the principal amount. c) Thereare no overdue amounts in respect of the loans granted to the parties covered in theregister maintained under section 189 of the Act.

4. In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of Section 185 read with section 186 and section186 of the Act with respect to the loans and advances made.

5. In our opinion and according to the information and explanations given to us theCompany has complied with the directives issued by the Reserve Bank of India and theprovisions of Section 73 to 76 of the Act or any other relevant provisions of the Act andthe rules framed thereunder with regard to deposits accepted from the public. We have beeninformed that no order has been passed by Company Law Board or National Company LawTribunal or Reserve Bank of India or any Courtor any other Tribunal in this regard.

6. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company.

7. (a) According to the information and explanations given to us and on the basis ofour examination of the record of the Company the Company has generally been regular indepositing with appropriate authorities undisputed statutory dues including providentfund investor protection fund wealth tax GST employees‘ state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess andany other statutory dues applicable to it. According to the information and explanationsgiven to us no undisputed amounts payable in respect of provident fund investorprotection fund wealth tax GST employees‘ state insurance income tax sales taxwealth tax service tax duty of customs duty of excise value added tax cess and anyother statutory dues applicable to it were in arrears as at 31 March 2018 for a period ofmore than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise investor protectionfund wealth tax GST and value added tax which have not been deposited on account of anydispute.

8. Based on our audit procedures and as per the information and explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofloans or borrowing to a financial institution bank or government .

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3(ix) of the Order is not applicable to the Company.

10. According to the information and explanations given to us no material fraud by theCompany or any fraud on the company by its officers or employees has been noticed orreported during the course of our audit.

11. According to the information and explanations given to us and based on ourexamination of the records of the company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

12. 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.

13. According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with Section 177 and 188 of Companies Act 2013 where applicable and details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards.

14. 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 share or fully or partly convertible debentures duringthe yearunder review and therefore the provisions of clause 3(xiv) of the Companies(Auditor's Report) Order2016 are not applicable to the Company.

15. 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 non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable. 16. According to the information and explanations given to usand based on our examination of the records of the company the company is not required tobe registered under section 45-IA of the Reserve Bank of India Act 1934.

For Sukhminder Singh & Co.
Chartered Accountants
FRN 016737N
Sukhminder Singh
Place: Ludhiana Partner.
Date: 30.05.2018 Membership No. 93100

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

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 controlsover financial reporting of Prime Industries Ltd ( the Company‘) as of 31 March 2018in conjunction with our audit of the Ind AS financial statements of the Company for theyear 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 Reporting('the Guidance Note') issued by the Institute of Chartered Accountants of India ( ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company‘s policies thesafeguarding 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.

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 deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were 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 on 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 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 Ind AS financial statements for external purposes in accordancewith generally 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 Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company‘s assets that could havea material effect on the Ind AS 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 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 31 March 2018 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 Sukhminder Singh & Co.
Chartered Accountants
FRN 016737N
Sukhminder Singh
Place: Ludhiana Partner.
Date: 30.05.2018 Membership No. 93100