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Priyadarshini Ltd.

BSE: 503873 Sector: Industrials
NSE: PSMSPGMILL ISIN Code: INE165C01019
BSE 00:00 | 16 Feb Priyadarshini Ltd
NSE 05:30 | 01 Jan Priyadarshini Ltd
OPEN 5.50
PREVIOUS CLOSE 5.50
VOLUME 117500
52-Week high 5.50
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 6
Buy Price 5.48
Buy Qty 1.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.50
CLOSE 5.50
VOLUME 117500
52-Week high 5.50
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 6
Buy Price 5.48
Buy Qty 1.00
Sell Price 0.00
Sell Qty 0.00

Priyadarshini Ltd. (PSMSPGMILL) - Auditors Report

Company auditors report

To

The Members of Priyadarsini Limited

Hyderabad.

Report on the financial statements

We have audited the accompanying financial statements of M/S.PRIYADARSINI LIMITEDHyderabad ('the Company) which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss of the Company and Cash Flow Statement of the Company for theyear ended 31st March 2017 and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the financial statements

The Company's Board of Directors is responsible for the matters stated in Sec.134(5) ofthe Companies Act2013(the Act") with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flow of the company in accordance with the Accounting principles generallyaccepted in India including the Accounting Standards specified under Sec. 133 of the Actread with Rule 7 of the Companies (Account) Rules 2014. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of 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 financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the standards on Auditing specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial control system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Basis for Qualified Opinion

1. The Companies accounts have been classified as NPA by all the Secured Creditors andin order to revive the company which has become sick by restructuring the securedcreditors a proposal of OTS is in Process. Hence no provision is made for interest in theaccounts which is estimated at Rs.5700 lakhs since the date of classification as NPA.

2. The provision for gratuity was not made on actuarial valuation

Opinion

Note: 1 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:

I) In the case of the Balance Sheet of the State of Affairs of the Company as at 31stMarch 2017;

ii) In the case of Statement of Profit and Loss of the Loss of the Company for theyear ended on that date; and iii) the case of Cash Flow statement of the cash flows forthe year ended as on that date.

Report on other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ('the Order" ) issuedby the Central Government of India in terms of Sub-Section (11) of Section 143 of the Actwe give in the 'Annexure A' a statement on the matters specified in paragraph 3 and4 of the said order.

As required by Section 143 (3) of theAct we report that: a) We have obtained all theinformation and explanations which to the best of our knowledge and belief were necessaryfor 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 Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Sec. 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the Directors as on 31stMarch 2016 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March2017 from being appointed as 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 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 to us.

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.

iv) The company has provided requisite disclosures in its financial statements as tothe holdings as well as dealings in Specified Bank Notes during the period from 8November 2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the company.

Refer Note No.2.33 to the financial statements.

For P.SRINIVASAN & Co.
Chartered Accountants
Firm's Registration No.004055S

 

K.RANGANATHAN
Hyderabad
Place: Hyderabad Partner
Date: 29-05-2017 Membership No. 010842

ANNEXURE ' A' to the Auditors' Report

Annexure referred to in Paragraph 1 of section – Report on Other Legal andRegulatory Requirements of the Independent Auditor's Report of even date M/S.PRIYADARSINILIMITED Hyderabad ('the Company') on the financial statements for the yearended March 31 2017

I. In respect of fixed assets

a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

b) As explained to us all the fixed assets have been physically verified by theManagement during the year. No material discrepancies were noticed on such verification.

c) The title deeds of immovable property are held in the name of company.

ii. In respect of its inventories:

a) As explained to us the inventories excepting in case of goods in transit werephysically verified during the year by the Management at reasonable intervals.

b) In our opinion procedures of physical verification of inventory followed by theManagement are reasonable and adequate in relation to the size of the Company and thenature of its business.

c) On the basis of our examination of records of the inventory in our opinion theCompany is maintaining proper records of inventory. No material discrepancies were notedon such verification.

iii. In respect of loans:

As informed to us the company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act. iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theAct in respect of grant of loans making investments and providing guarantees andsecurities as applicable.

v) The company has not accepted any deposits and hence clause (v) of Companies(Auditor's Report) Order 2016 is not applicable.

vi) We have broadly reviewed the books of account maintained by company pursuant torules prescribed by the central government of India for maintenance of cost records underSection 148(1) of the Companies Act 2013 in respect of products of the company and are ofthe opinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the records.

vii. a) According to the information and explanations given to us and the records asproduced and examined by us in our opinion the company regular in depositing undisputedstatutory dues like income tax and not regular in depositing other material statutory duesduring the year by the company with the appropriate authorities. As explained to us thecompany has dues on account of Employee's State Insurance Provident Fund and Sales Tax.

According to the information and explanations given to us undisputed amounts payablein respect of Provident Fund ESI and Sales Tax were in arrears as at 31 March 2017 for aperiod of more than six months from the period they became payable. b) According to theinformation and explanations given to us the company did not have any dues of exciseduty sales tax etc with the appropriate authorities on account of dispute.

As informed to us the company did not have any dues on account of Wealth tax.

viii. In our opinion and according to the information and explanations given to us thecompany has defaulted in repayment of dues to its bankers and financial institutions.

ix. In our opinion and according to the information and explanations given to us thecompany has not raised any money by way of public offer or further public offer (includingdebt instruments) and the term loans were applied for the purposes for which those areraised.

x) In our opinion and according to the information and explanations given to us nofraud by the company or on the company by its officers or employees has been noticed orreported during the course of audit.

xi. According to the information and explanations given to us the company has not paidor provided any managerial remuneration during the year.

xii. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of theOrder is not applicable.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly 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 theAct are not applicable.

xvi. The Company is not required to be registered under Section 45-IAof the ReserveBank of IndiaAct 1934.

For P.SRINIVASAN & Co.
Chartered Accountants
Firm's Registration No.004055S
K.RANGANATHAN
Partner
M.No. 010842
Place: Secunderabad
Date: 29-05-2017

ANNEXURE 'B' to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 ('theAct')

We have audited the internal financial controls over financial reporting ofM/S.PRIYADARSINI LIMITED Hyderabad ('the Company') as of 31 March 2017 in conjunctionwith our audit of the financial statements 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 the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the CompaniesAct 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 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 auditors' 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.

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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations of theManagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 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 2017 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 ofCharteredAccountants of India.

For P.SRINIVASAN & Co.
Chartered Accountants
Firm's Registration No.004055S
K.RANGANATHAN
Partner
M.No.
010842
Place: Secunderabad
Date: 29-5-2017