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Prism Finance Ltd.

BSE: 531735 Sector: Financials
NSE: N.A. ISIN Code: INE429Q01019
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NSE 05:30 | 01 Jan Prism Finance Ltd
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VOLUME 100
52-Week high 21.80
52-Week low 18.80
P/E 2.90
Mkt Cap.(Rs cr) 13
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 20.00
CLOSE 20.00
VOLUME 100
52-Week high 21.80
52-Week low 18.80
P/E 2.90
Mkt Cap.(Rs cr) 13
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Prism Finance Ltd. (PRISMFINANCE) - Auditors Report

Company auditors report

To

The Members of

PRISM FINANCE LIMITED

Report on the Audit of the Standalone IND AS financial statements

Opinion

We have audited the accompanying standalone IND AS financial statements of PRISMFINANCELIMITED (‘'the Company") which comprise the standalone balance sheetas at March 31 2021 standalone statement of profit and loss (Including othercomprehensive Income) and standalone statement of cash flows for the year then endedstandalone Statement of changes in Equity and notes to the standalone IND AS financialstatements including a summary of significant accounting policies and other explanatoryinformation.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act2013 (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 (financial Position) of the Company as at March 31 2021 and its Profits(financial performance including other comprehensive income) its Cash flows and changesin equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Companies Act 2013. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the Standalone IND ASfinancial statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone IND AS financial statements under the provisions of the Companies Act 2013 andthe Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our opinionon 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 IND AS financial statements of the currentperiod. These matters were addressed in the context of our audit of the standalone IND ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

We have determined that there are no key audit matters to communicate in our report.

Information other than the financial statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the annual report but does not includethe standalone IND AS financial statements and our auditor's report thereon.

Our opinion on the standalone IND AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone IND AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone IND AS financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to reportin this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone INDAS 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 ofthese standalone IND AS financial statements that give a true and fair view of the stateof affairs (financial position) Profit or loss (financial performance) Statement ofchanges in Equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone IND AS financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the standalone IND AS financial statements the Board of Directors isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone IND AS financial statements

Our objectives are to obtain reasonable assurance about whether the standalone IND ASfinancial 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 Standards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone IND AS financial statements.

As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone IND ASfinancial 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 to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct 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 reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 IND AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone IND ASfinancial statements including the disclosures and whether the standalone IND ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

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 with those charged with governance we determine thosematters that were of most significance in the audit of the standalone IND AS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by section 197(16) of the Act we report that the company has not paidany remuneration to its directors during the year in accordance with the provisions of andlimits laid down under section 197 read with schedule V to the Act..

2. As required by the Companies (Auditor's Report) Order 2016 (‘'theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

3. As requited 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) standalone Statement of changes in Equity and the standalonestatement of Cash Flow dealt with by this Report are in agreement with the books ofaccount.

d. In our opinion the aforesaid standalone IND AS financial statements comply with theIndian Accounting Standards specified under section 133 of the Act.

e. On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 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 control 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 were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

FOR PARIKH & MAJMUDAR

Chartered Accountants

FRN : 107525W
Place : Ahmedabad CA DR. HITEN PARIKH
Dated : 30th June 2021

Partner

Membership No. 040230
UDIN -21040230AAAAGX3498

ANNEXURE A –TO THE INDEPENDENT AUDIT REPORT OF EVEN DATE TO THE MEMBERS OF PRISMFINANCE LIMITEDON THE STANDALONE IND AS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH2021

i) Property Plant and Equipments

a) the Company is maintaining proper records showing full particulars includingquantitative details and situation of Property plant & Equipment.

b) Property Plant & Equipment have been physically verified by the management atreasonable intervals and no material discrepancies were noticed on such verification.

c) All the title deeds of immovable properties are held in the name of the Company.

ii) During the year under review the Company does not hold any inventories. Henceparagraph 3(ii) of the Order is not applicable.

iii) The Company has granted interest bearing unsecured loan to companies firms andparties covered in the register maintained under Section 189 of the Act.

a) During the year the Company has granted interest bearing unsecured loan tocompanies firms and parties covered in the register maintained u/s 189 of the CompaniesAct 2013 (the Act).

b) the schedule of repayment of principal and interest has been stipulated and therepayment/receipts of principal amount and interest are regular.

c) In respect of the said loans there are no overdue amounts

iv) As explained to us the Company has not granted any loans or provided anyguarantees or security to the parties covered under section 185 of the Act. The Company isregistered as a Non- Banking Finance Company hence provisions of Section 186 of the Act inrespect of investments made are not applicable to the Company.

v) The Company has not accepted any deposits from public during the year under reviewwithin the meaning of Sections 73 to 76 of the Act and the Rules framed thereunder to theextent notified.

vi) The Central Government of India has not specified the maintenance of cost recordsunder Sub-section (1) of Section 148 of the Companies Act 2013.

vii) a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including income-tax Goods & Servicetax cess and other material statutory dues have been generally regularly deposited duringthe year by the Company with the appropriate authorities. As explained to us providentfund employees state insurance and duty of customs are not applicable to the company.

According to the information and explanations given to us no undisputed amountspayable in respect of income tax Goods & Service tax cess and other materialstatutory dues were in arrears as at 31st March 2021 for a period of more than six monthsfrom the date they became payable.

b) According to the information and explanations given to us there are no materialdues of income tax and Goods & Service tax which have not been deposited with theappropriate authorities on account of any dispute.

viii) According to information & explanations given to us the company does nothave any borrowings from Banks Financial Institutions Government or debenture holders.Accordingly paragraph 3(viii) of the Order is not applicable.

ix) According to the information & explanations given to us the Company did notraise any money by way of initial public offer or further public offer (including debtinstruments)and term loans during the year under review.

Accordingly paragraph 3(ix) of the Order is not applicable.

x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not paid/provided formanagerial remuneration during the year under review.

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 ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone IND AS financial statements as requiredby the applicable IND AS.

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 non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

xvi) The Company is registered as Non-Banking Financial Institution (NBFI) and isholding a Certificate of Registration (CoR) from Reserve Bank of India to carry onbusiness of NBFI in terms of Section 45-1A of the RBI Act 1934.

FOR PARIKH & MAJMUDAR

Chartered Accountants

FRN : 107525W
Place : Ahmedabad CA DR. HITEN PARIKH
Dated : 30th June 2021

Partner

Membership No. 040230
UDIN -21040230AAAAGX3498

Annexure B to the Independent Auditor's Report of Even Date to the Members of PRISMFINANCE LIMITED on the Standalone IND AS financial statements for the year ended on 31stMarch 2021

Independent Auditor's Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

In conjunction with our audit of the standalone IND AS financial statements of M/sPRISM FINANCE LIMITED ("the Company") as at and for the year ended 31stMarch 2021 we have audited the internal financial controls over financial reporting ofthe company as of that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of the company's 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 Act.

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 Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controlsover financial reporting and the Guidance Note issued by ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 standalone IND AS financial statements whether due to fraudor 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 standalone IND AS financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial 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 standalone IND AS financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the standalone 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 31st March 2021based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by the ICAI.

FOR PARIKH & MAJMUDAR

Chartered Accountants

FRN : 107525W
Place : Ahmedabad CA DR. HITEN PARIKH
Dated : 30th June 2021

Partner

Membership No. 040230
UDIN -21040230AAAAGX3498

.