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Prism Finance Ltd.

BSE: 531735 Sector: Financials
NSE: N.A. ISIN Code: INE429Q01019
BSE 05:30 | 01 Jan Prism Finance Ltd
NSE 05:30 | 01 Jan Prism Finance Ltd

Prism Finance Ltd. (PRISMFINANCE) - Auditors Report

Company auditors report

To

The Members of

PRISM FINANCE LIMITED

Report on the Financial Statements :

We have audited the accompanying financial statements of Prism FinanceLimited ("the Company") which comprise the Balance Sheet as at 31st March 2018the Statement of Profit and Loss and 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 statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of the financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility :

Our responsibility is to express an opinion on the financial statementsbased on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.

Opinion :

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid 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 of the state of affairs of the Companyas at 31st March 2018 and its profit and its 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("the Order") issued by Central Government of India in terms of sub section(11) of section 143 of the Act we give in the Annexure: A a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;(b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books; (c) The Balance SheetStatement of Profit and Loss and Cash Flow Statement dealt with by this Report are inagreement with the books of account; d) In our opinion the Balance Sheet Statement ofProfit and Loss and Cash Flow Statement comply with the Accounting Standards referred toin Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014; e) Onthe basis of written representations received from the directors as on 31st March 2018and taken on record by the Board of Directors none of the directors is disqualified as on31st March 2018 from being appointed as a director in terms of sub section (2) ofsection 164 of the Companies Act 2013. f) With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate Report in Annexure-B and g) With respect tothe other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i. The Company does not haveany pending litigations which would impact its financial position. ii. The Company did nothave any long term contracts including derivative contracts for which there were anymaterial foreseeable losses. iii. There is no amount required to be transferred toInvestor Education and Protection Fund by the Company.

FOR PARIKH & MAJMUDAR
Chartered Accountants
FRN : 107525W
Place

Ahmedabad

CA DR. HITEN PARIKH
Dated

30th May 2018

Partner
Membership No. 040230

Annexure: A to Auditors' Report

(Referred to in paragraph pertaining to "Report on Other Legal andRegulatory Requirement" of our Report of even date to the members of Prism FinanceLimited on the financial statements for the year ended 31st March 2018)

i) a) the Company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets.

b) Fixed assets 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 ofthe Company.

ii) During the year under review the Company does not hold anyinventories. Hence paragraph 3(ii) of the Order is not applicable.

iii) The Company has granted interest free unsecured loan to twocompanies and one party covered in the register maintained under Section 189 of the Act.

a) As explained to us the terms and conditions of the granting of suchloans are not prejudicial to the interest of the Company.

b) No schedule of repayment of principle is stipulated for suchinterest free loans granted by the Company hence reporting under clause 3(iii)(b) as toregularity in repayment of principal of such loans does not arise.

c) As explained to us no such loans are overdue for more than ninetydays hence reporting under clause 3(iii)(c) as to reasonable steps taken for recovery ofprinciple and interest thereon does not arise.

iv) As explained to us the Company has not granted any loans orprovided any guarantees or security to the parties covered under section 185 of the Act.The Company is registered as a Non- Banking Finance Company hence provisions of Section186 of the Act in respect of investments made are not applicable to the Company.

v) The Company has not accepted any deposits from public .

vi) As explained to us the Central Government has not prescribed themaintenance of Cost records under sub section (1) of section 148 of the companies Act2013.

vii) a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted/ accruedin the books of account in respect of undisputed statutory dues including provident fundemployees state Insurance income-tax sales tax value added tax Goods & Service taxduty of customs duty of excise service tax cess and other material statutory dues havebeen regularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees state insurance incometax sales tax value added tax duty of customs Goods & Service tax duty of exciseservice tax cess and other material statutory dues were in arrears as at 31st March 2018for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us there areno material dues of income tax sales tax Goods & Service taxduty of excise servicetax value added tax and duty of customs which have not been deposited with theappropriate authorities on account of any dispute.

viii) According to information & explanations given to us Thecompany does not have any borrowings from Banks Financial Institutions Governmentdebenture holders. Accordingly paragraph 3(viii) of the Order is not applicable.

ix) According to the information & explanations given to us theCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) 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 fraudby the Company or on the Company by its officers or employees has been noticed or reportedduring the course of our audit.

xi) According to the information and explanations give to us and basedon our examination of the records of the Company the Company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act

xii) In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company.

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

xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

xiv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

xv) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.

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

FOR PARIKH & MAJMUDAR

Chartered Accountants

FRN : 107525W

CA DR. HITEN PARIKH

Partner

Membership No. 040230

Place : Ahmedabad Dated : 30th May 2018

Annexure: B to Auditors' Report

(Referred to in paragraph pertaining to "Report on Other Legal andRegulatory Requirement" of our Report of even date to the members of Prism FinanceLimited on the financial statements for the year ended 31st March 2018)

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section143 of the Companies Act 2013 ("the Act").

We have audited the internal financial controls over financialreporting of Prism Finance Limited ("the Company") as of 31st March 2018 inconjunction with our audit of the standalone 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 andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (IFCOFR) issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding 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 to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under Section 143(10) of the Companies Act 2013 to theextent applicable to an audit or internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the 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 aboutthe adequacy of the internal financial controls over financial reporting and theiroperating effectiveness.

Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that material weakness exists and testing and evaluating thedesign and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditors' judgments including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Control Over Financial Reporting

A Company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally-accepted accounting principles and that receiptsand expenditure of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2018 basedon 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.

FOR PARIKH & MAJMUDAR

Chartered Accountants

FRN : 107525W

CA DR. HITEN PARIKH

Partner

Membership No. 040230

Place : Ahmedabad Dated : 30th May 2018