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Prismx Global Ventures Ltd.

BSE: 501314 Sector: Others
NSE: N.A. ISIN Code: INE286N01010
BSE 00:00 | 16 Apr 68.55 1.30
(1.93%)
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68.45

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68.55

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NSE 05:30 | 01 Jan Prismx Global Ventures Ltd
OPEN 68.45
PREVIOUS CLOSE 67.25
VOLUME 1043
52-Week high 68.55
52-Week low 5.26
P/E 298.04
Mkt Cap.(Rs cr) 195
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 68.45
CLOSE 67.25
VOLUME 1043
52-Week high 68.55
52-Week low 5.26
P/E 298.04
Mkt Cap.(Rs cr) 195
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Prismx Global Ventures Ltd. (PRISMXGLOBAL) - Auditors Report

Company auditors report

To The Members of

Prismx Global Ventures Limited (Formerly known as Gromo trade and Consultancy Limited)

Report on the Audit of the Financial Statements Opinion

We have audited the accompanying financial statements of Prismx Global VenturesLimited (Formerly known as Gromo trade and Consultancy Limited) ("theCompany") which comprise the balance sheet as at 31st March 2020 and the statementof Profit and Loss including statement of Other Comprehensive Income statement of cashflows and statement of changes in equity and for the year ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Financial Statements give the information required by theCompanies Act 2013 as amended("the Act") in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2020 and profit/lossincluding other comprehensive income its cash flows and changes in equity for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the 'Auditors' Responsibilities for the Audit of theFinancial 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 thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder in accordance with these requirements and the Code of Ethics. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour opinion on Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements for financial year ended March 312020. These matters were addressed in the context of our audit of the financial statementsas a whole and in forming our opinion thereon and we do not provide a separate opinionon these matters. For each matter below our description of how audit addressed the matteris provided in the context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibility described in theAuditors' Responsibilities for the Audit of the Financial Statements of our reportincluding in relation to these matters. Accordingly our audit included the performance ofprocedures designed to respond to our assessment of the risk of material misstatement ofthe Financial Statements. The result of our audit procedures. Including the proceduresperformed to address the matters below provide the basis of our audit opinion onaccompanying Financial Statements.

Description of each key audit matter in accordance with SA 701

Key Audit matters How our audit addressed the key audit matter
Inter Corporate Loans Our audit procedure included considering the appropriateness of the company's accounting policies for impairment of financial assets and assessing compliance with Ind AS 109.
- The value of loans as at 31st March 2020 is significant and there is a high degree of complexity and judgment
involved for the company in the estimating individual and collective credit impairment provisions and write-offs against these loans. For loans which are assessed for impairment on a portfolio basis we performed particularly the following procedures:
- The Company's impairment provision for receivables from financing business is based on the expected credit loss approach laid down under Ind AS 109. Under this approach the management has been required to exercise judgement in areas such as; - We understood the methodology and policy laid down for loans given by the company.
- we have verified the existence of recovery process plant in the event of default.
- calculation of past default rates - we have verified the historical trends of repayment of principal amount of loan and repayment of interest.
- applying macro-economic factors to arrive at forward looking probability of default; and - we tested the reliability of the key data inputs and related management controls.
- significant assumption regarding the probability of various scenarios and discounting rates for different industries considering individual borrower profile. - we have assessed the assumptions made by the company in making provision considering forward looking information.
In view of the high degree of estimation involved in the process of calculation impairment provision and considering its significance to the overall Ind AS financial statement whereby any error or omission
in estimation may give rise to a material misstatement of Ind AS financial statements it is considered as a key audit matter.
Measurement of Investment in accordance with Ind AS 109 " Principal Audit procedure:
Financial Instruments" - Obtaining an understanding of the companies' objectives for such investments and assessment thereof in terms of Ind AS 109.
On initial recognition investment is recognized at fair value in vase of investment which are recognized at fair value through FVOCI. In that case that transaction costs are attributable to the acquisition value of the investments. - Obtaining an understanding of the determination of the measurement of the investments and tested the reasonableness of the significant judgement applied by the management.
The Company's investment are subsequently classified into following categories based on the objective to manage the cash flows and options available in the standard: - Evaluated the design of internal controls relating to measurement and also tested the operating effectiveness of the aforesaid controls.
- Obtaining understanding of basis of valuation adopted in respect of fair value investment and ensured that valuation techniques used are appropriate in circumstances and for which sufficient
- At amortised cost
- At fair value through profit or loss (FVTPL)
- At fair value through Other comprehensive Income (FVTOCI) The company has assessed following two objectives:
- Held to collect contractual cash flows.
- Realising cash flows through sale of investments.
The Company makes decision based on assets fair value and manages the assets to realize those fair values.

Information other than Financial Statements and Auditors' 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 Financial Statements and our auditors' report thereon.

Our opinion on Standalone Financial Statements does not cover the other information andwe do not express any form of conclusion thereon.

In connection with our audit of Financial Statements our responsibility is to read theother information and in doing so consider whether such other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If based on the work we have performed weconclude that there is material misstatement of this other information we are required toreport that fact. We have nothing to report in this regard.

Emphasis of Matters

1. During the year company has provided for written of receivables to the extent of Rs.142.08 lakhs against non-recoverability of the amount receivable.

2. The company has invested in 684000 12% Non-cumulative Preference shares ofSaptashrungi Alloy Private Limited at issue price of Rs. 70 out of which Rs. 50 has beenpaid balance Rs. 20 per share is payable on demand and no future obligation has beenaccounted in books of accounts of the company.

Our opinion is not modified in respect of above matter.

Responsibilities of Management for the 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 cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the accounting Standards specified under section133 of the Act. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of 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.

In preparing the financial statements the Board of Directors 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 unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas 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 Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risk 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 control 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 hasadequate internal financial controls systems in place and the operating effectiveness ofsuch 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 uncertaintyexits 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 exitswe 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.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including andsignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we may havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in audit of Standalone financial Statements for thefinancial year ended March 31 2020 and are therefore the Key audit matters. We describethat these matters in our Auditors' report unless law and regulations precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should be not communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunications.

Other Matters

In certain cases the Company has not charged interest on Loans and advances given tocertain parties. The non-charging interest makes these loans Interest free loans andthereby violates section 186(7) of the Companies Act 2013. Effect on the aforesaid cannotbe quantified.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by Companies (Auditors' report] Order 2016 ("The order")issues by the central government of India in terms of sub section (11) of Section 143(3)of the Act we give in the "Annexure 1" a statement on the mattersspecified in paragraph 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 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) Balance Sheet the Statement of Profit and Loss including other comprehensiveIncome the Cash Flow Statement and Statement of changes in equity dealt with by thisReport are in agreement with the books of account

(d) In our opinion the aforesaid standalone 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 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in termsof Section 164 (2] of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to financial statements and the operatingeffectiveness of such controls refer to our separate Report in "Annexure 2"to this report;

(g) In our opinion the management remuneration for the year ended March 31 2020 hasbeen paid/provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act.

(h) 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 in our opinionand to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 23 to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Dassani& Associates
Chartered Accountants
(FRN No : 009096C.)
Sd/-
CA Churchil Jain
(Partner)
(Membership No: 409458)
UDIN : 20409458AAAABA3427
Place of Signature: Indore
Date:22/07/2020

ANNEXURE "1"

Referred to in Paragraph 1 under the heading of "Report on other Legal andRegulatory Requirements" of our report to the members of Prismx Global VenturesLimited (Formerly known as Gromo trade and Consultancy Limited) of even date

On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we report that: -

i. In respect of companies fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

b) The Company has a regular program of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this program certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

c) There are no immovable properties held by the Company.

ii. The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

iii. According to the information and explanations given to us the Company has notgranted loans secured or unsecured to companies firms Limited Liability Partnershipsor other parties listed in the register maintained under Section 189 of the Companies Act2013. Accordingly the provisions of clauses 3(iii) (a) (b) and (c) of the order are notapplicable to the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has not advanced loans to directors / to a company in which the Director isinterested to which provisions of section 185 of the Companies Act 2013 apply and hencenot commented upon. In our opinion and according to the information and explanations givento us in certain cases the Company has not charged interest on Loans and advances given tocertain parties. The non-charging interest makes these loans Interest free loans andthereby violates section 186(7) of the Companies Act 2013. Effect on the aforesaid cannotbe ascertained from the available information and explanations given to us by the companyand hence not commented upon.

v. The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3(v) of the Order are not applicable to the Company

vi. The maintenance of cost records has not been specified by the Central Governmentunder Section 148(1) of the companies Act 2013 for the business activities carried out bythe company thus reporting under clause 3(vi) of the order is not applicable to theCompany.

vii.

a) According to information and explanations given to us the Company has beengenerally regular in depositing undisputed statutory dues including Provident FundEmployees' State Insurance Income Tax Goods and Service Tax Custom Duty CessProfessional Tax and other material statutory dues applicable to it with the appropriateauthorities.

b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax goods andservice tax sales-tax duty of custom duty of excise cess and other material statutorydues were outstanding at the year end for a period of more than six months from the datethey became payable

c) According to the information and explanations given to us there are no dues ofincome tax sales-tax goods and service tax service tax customs duty excise dutyvalue added tax and cess which have not been deposited on account of any dispute.

viii. The Company has not taken any loans from Government any Financial Institution ordebenture holders during the year.

ix. The Company did not raise any money by way of Initial Public offer further publicoffer or term loan during the year thus reporting under clause 3(ix) of the order is notapplicable to the Company.

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

xi. In our opinion and according to the information and explanations given to us thecompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Therefore paragraph 3(xii) of the Order is notapplicable.

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

xiv. During the Year the company has not made any preferential allotment or privateplacement of shares fully or partly paid convertible debentures and hence reporting underclause 3 (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 to its directors and hence provisions of Section 192 of theCompanies Act 2013 are not applicable to the Company.

xvi. According to the information and explanations given to us the provisions of thesection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the company.

For Dassani& Associates
Chartered Accountants
(FRN No : 009096C.)
Sd/-
CA Churchil Jain
(Partner)
(Membership No: 409458)
UDIN : 20409458AAAABA3427
Place of Signature: Indore
Date:22/07/2020

Annexure 2

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 controls over financial reporting of PrismxGlobal Ventures Limited (Formerly known as Gromo trade and Consultancy Limited)("theCompany") as of March 31 2020 in conjunction with our audit of the financialstatements 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 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 Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to respective company's policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required by the Act.

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 deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial 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 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 with reference to Financial Statements.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting with reference to theseStandalone Financial Statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting with referenceto these Financial Statements includes those policies and procedures that (1) pertain tothe maintenance 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 expenditures 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 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 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 Dassani& Associates
Chartered Accountants
(FRN No : 009096C.)
Sd/-
CA Churchil Jain
(Partner )
(Membership No: 409458)
UDIN : 20409458AAAABA3427
Place of Signature: Indore
Date:22/7/2020

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