o the Members of priya limited report on the Audit of the FinancialStatements Opinion
We have audited the Financial Statements of priya limited("the Company") which comprise the Balance Sheet as at March 31 2019 and theStatement of Profit and Loss (including Other
Comprehensive Income) Statement of Changes in Equity and Statement ofCash Flows for the year then ended and notes to the Financial Statementsincluding significantaccountingsummaryofthe policies and other explanatory information (hereinafter referred to as"Financial Statements"). In our opinion and to the best of our information andaccording to the explanations given to us the aforesaid Financial Statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2019and its loss including other comprehensive income changes in equity and its cash flowsfor the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(sas) specified under Section
143(10) of the Act. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements Section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India together withethical requirements that are relevant to our audit of the Financial Statements under theprovisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.
Emphasis of Matters
1. We draw your attention to note no. 43 of Financial Statementsregarding the Company's account being declared as Non-Performing Asset (NPA). Basedon the Management Representation and based on the facts described in the said note theFinancial Statements has been prepared on going concern basis and our opinion is notmodified in respect of this matter.
2. Trade Receivables Trade payables and Advance to suppliers whichare long overdue are subject to confirmation and reconciliation if any. Further theManagement is confident enough for receiving the same in due course of time. Our opinionis not modified in respect of this matter.
3. The Company has provided interest amounting to Rs. 2.62 croreson NPA accounts. However in the absence of confirmation from bank regarding rate of penalinterest we are unable to comment upon the booking of provision of such interest. Ouropinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Financial Statements of the current period.These matters were addressed in the context of our audit of the Financial Statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined that there are no key audit matters to be communicatedin our report.
The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany's annual report but does not include the Financial Statements and ourauditors' report thereon.
Our opinion on the 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 Financial Statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Financial Statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.
Responsibilities of Management and those charged with Governance forthe Financial Statements
The Company's management and Board of Directors is responsible forthe matters stated in Section 134(5) of the Act with respect to the preparation of theseFinancial Statements that give a true and fair view of financial position financialperformance changes in equity and cash flows of the
Company in accordance with the accounting principles generally acceptedin India including the
Indian Accounting Standards (Ind AS) specified under Section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand 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 management and Board ofDirectors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.
Board of Directors is also responsible for overseeing theCompany's financial reporting process.
Auditor's responsibilities for the Audit of the FinancialStatements
Our objectives are to obtain reasonable assurance about whether theFinancial 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with sas 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 Financial Statements.
As part of an audit in accordance with sas we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events on the Company's ability to continue asorconditionsthatmaycastsignificant a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor'sreporttotherelateddisclosures financialstatements or if such disclosures are theinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of theFinancial Statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with those charged with governance regarding amongother matters the planned findings including any significant deficiencies in scopeandtimingoftheauditandsignificant internal control that we identify during our audit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the 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 publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other legal and regulatory requirements
1. As required by the Companies (Auditors' Report) Order 2016("the Order") issued by the Central Government of India in terms of Section 143(11) of the Companies Act 2013 we give in the
"Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act we report that:
- We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid Financial Statements.
B) In our opinion proper books of account as required by law relating to preparation of the aforesaid Financial Statements have been kept by the Company so far as it appears from our examination of those books.
C) The Balance Sheet the Statement of Profit and Loss (includingother comprehensive income) the Statement of Changes in Equity and the Cash FlowStatement dealt with by this Report are in agreement with the books of account maintainedfor the purpose of preparation of the Financial Statements.
D) In our opinion the aforesaid Financial Statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Account) Rules
E) On the basis of the written representations received from thedirectors as on March 31 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on March
31 2019 from being appointed as a director in terms of Section 164(2)of the Act.
F) With respect to the adequacy of the internal financial controlsover financial reporting 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 theAuditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:
- The Company does not have any pending litigations which would impact its financial position.
ii. The Company did not have any material foreseeable losses on long-term contracts including derivatives contracts.
ii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the company.
|For Kanu Doshi Associates LLP |
|Chartered Accountants |
|FRN. No. 104746W/W100096 |
|Kunal Vakharia |
|Membership No. 148916 |