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Prolife Industries Ltd.

BSE: 538392 Sector: Industrials
NSE: PROLIFE ISIN Code: INE994V01012
BSE 05:30 | 01 Jan Prolife Industries Ltd
NSE 00:00 | 24 Sep 98.00 -0.35
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Prolife Industries Ltd. (PROLIFE) - Auditors Report

Company auditors report

To the Members of Prolife Industries Limited

Report on the Financial Statements

Opinion

We have audited the accompanying financial statements of ProlifeIndustries Limited (CIN : L24231GJ1994PLC022613) which comprise the Balance Sheet asat March 31 2020 the Statement of Profit and Loss for the year ended and a summary ofsignificant accounting policies and other explanatory information.

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:

(a) In case of the Balance Sheet of the state of affairs of the Company as at 31st March 2020;
(b) In case of the Statement of Profit and Loss the profit of the Company for the year end on that date and
(c) In case of the Statement of Cash Flow of the Company for the year end on that date

Basis of Opinion

We conducted our audit in accordance with the standards on auditingspecified under section 143 (10) of the Companies Act 2013. Our responsibilities underthose Standards are further described in the auditor's responsibilities for the auditof the financial 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 Act and the rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and thecode of ethics.

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

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.

Information other than the financial statements and auditors'report thereon

The Company's board of directors and management are responsiblefor the preparation of the other information. The other information comprises theinformation included in the Board's Report including Annexures to Board'sReport Business Responsibility Report but does not include the financial statements andour auditor's 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 connectionwith our audit of the financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibility for the Financial Statements

The management and Board of Directors of the Company are responsiblefor the matters stated in

Section 134(5) of the Companies Act 2013 (‘the act') withrespect to the preparation of these financial statements that give a true and fair view ofthe financial position financial performance 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 Companies (Accounts) Rules2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. The boards of directors are alsoresponsible for overseeing the Company's financial reporting process.

Auditor's Responsibility

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 financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

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 matterscommunicated with those charged with governance we determine those matters that were ofmost significance in the audit of the financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor's reportunless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1.As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the

Central Government of India in terms of sub-section (11) of section143of the Act we give in the Annexure A statement on the matters Specified inparagraphs 3 and 4 of the Order.

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

a) We have sought and obtained all the information and explanations which 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 the Company so far as appears from our examination of those books;
c) The Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion the aforesaid financial statements comply with the applicable Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014
e) On the basis of written representations received from the directors as on March 31 2020 and taken on record by the Board of Directors none of the directors is disqualified as on March 31 2020 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 Controls over financial reporting of the company and the operating effectiveness of such controls refers to our separate report in Annexure B.
g) In our opinion and to the best of our information and according to the explanations given to us we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 :

 

i. The Company has disclosed the impact of pending litigations on its financial statements in accordance with the generally accepted accounting practice also refer note 3.26 to financial statements;
ii. The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise.
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the company during the year ended on 31st March 2020.

 

For BIHARI SHAH & CO.
Chartered Accountants
PLACE: AHMEDABAD (BIHARI B. SHAH)
DATE : 30/06/2020 PARTNER
M. No. 007058
FRN NO. 119020W
UDIN: 20007058AAAACB9297

ANNEXURE ‘A' TO THE INDEPENDENT AUDITOR'S REPORT

(The Annexure referred to in Paragraph 1 under "Report on OtherLegal and Regulatory Requirements" section of our report on even date)

i.
(a) The Company has maintained records showing full particulars including details and situation of fixed assets to the extent.
(b) The Company has a regular programme for physical verification in a phased periodic manner which in our opinion is reasonable having regards to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us we report that the title deeds comprising all the immovable properties of land and buildings which are freehold are held in the name of the Company as at the balance sheet date except stated below. In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed asset in the financial statements the lease agreements are in the name of the Company where the Company is the lessee in the agreement.

 

ii. As explained to us the company is dealing into company is engaged in the business of manufacturing special and exclusive range of intermediates for dyes pigments pharmaceuticals agrochemicals and others; We have relied upon inventories records as provided by the management before us for the purpose of verification as on 31st March 2020
iii. According to information and explanation provided to us the Company has not taken loan from parties covered in the Register maintained u/s. 189 of the Companies Act 2013. During the Year under review company has not granted new unsecured loans and advances to the parties covered under Section 189 of the Companies Act 2013 and the terms and conditions of the grant of such loans are prima facie not prejudicial to the Company's interest. During the year under review Company has entered transaction for the purpose of business with the parties covered under Section 185 of the companies Act 2013. As per the information provided to us for the verification company has complied with provisions of Section 185 & 186 of Companies Act 2013 wherever applicable.
iv. In our opinion and according to the information and explanations provided to us provisions of section 185 and 186 of the Companies Act 2013 and in respect of loans to directors including entities in which they are interested and in respect of loans and advances given investments made and guarantees and securities given have been complied with by the Company.

Further we report the following:-

Office at Thailand is in the name of Director of the Company Mr.Maninder Singh Jolly.

v. According to information and explanation provided to us the Company has not accepted any deposits from the public under Section 73 to 76 or any other relevant provisions of the Companies Act 2013 and rule framed there under where applicable.
vi. We are informed that the Central Government has not prescribed the maintenance of cost records under section 148 (1) of the Companies Act 2013 in respect of the activities carried on by the Company.
vii. According to the information and explanations given to us in respect of statutory dues :

 

(a) The Company has generally been regular in depositing undisputed statutory dues including Provident Fund Income Tax Goods and Service Tax Customs Duty Cess and other material statutory dues applicable to it with the appropriate authorities.
(b) According to the information and explanations given to us there were no undisputed amounts payable in respect of Provident Fund Employees' State Insurance Goods and Service Tax Customs Duty Cess and other material statutory dues in arrears as at March 31 2020 for a period of more than six months from the date they became payable.
(c) Details of dues of Income Tax Sales Tax Service Tax Excise Duty and Value Added Tax which have not been deposited as at March 31 2020 on account of dispute are given below:

 

Nature of the statute Nature of dues Forum where Dispute is pending Period to which the amount relates Amount (In Lakhs) Amount paid under protest (In Lakhs)
The Income Tax Act 1961 Income Tax Commissioner of Income Tax A.Y. 2013- 14 4.79 0.72
AA DGFT Export Obligation Jt. Director General of Foreign Trade A.Y. 2001- 02 3.16 -
Value Added Tax VAT Commissioner of sales Tax F.Y. 2014-15 13.44 -
Value Added Tax VAT Commissioner of sales Tax F.Y. 2014-15 21.06 -
Value Added Tax VAT Commissioner of sales Tax F.Y. 2015-16 7.18 -

 

viii. In our opinion and according to the information and explanations given to us the company has not defaulted in repayment of any dues to its financial institutions bankers and government. The Company has not issued any Debentures during the year.
ix. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause 3 (ix) of the Order is not applicable to the Company.
x. To the best of our knowledge and according to the information and explanations given to us no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us the Company has provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act 2013 where applicable for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
xiv. During the year the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to us during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its directors and hence provisions of section 192 of the Companies Act 2013 are not applicable to the Company.
xvi. According to the information and explanation provided to us company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

 

For BIHARI SHAH & CO.
Chartered Accountants
PLACE: AHMEDABAD (BIHARI B. SHAH)
DATE : 30/06/2020 PARTNER
M. No. 007058
FRN NO. 119020W
UDIN: 20007058AAAACB9297

ANNEXURE - B TO THE AUDITOR'S REPORT

Report on the Internal Financial Controls under Clause (i) ofsub-section 3 of Section 143 of the

Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Prolife Industries Limited (‘the Company') as at 31stMarch 2020 in conjunction with our audit of Standalone Financial Statements of thecompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Respective Board of Directors of the Company and which are companyincorporated in India are responsible for establishing and maintaining internal financialcontrols based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe 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 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 Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance

Note on Audit of Internal Financial Controls over Financial Reporting(the ‘Guidance Note') issued by ICAI and the Standards on Auditing issued byICAI and deemed to be prescribed under Section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both issued by the Instituteof Chartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system 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 a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditors' judgment 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 internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting isa process 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 controlover financial reporting includes those policies and procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;
(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the Company'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 which are company incorporated in Indiahave in all material respects an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at 31st March 2020 based on the internal control overfinancial 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 ICAI.

For BIHARI SHAH & CO.
Chartered Accountants
PLACE: AHMEDABAD (BIHARI B. SHAH)
DATE : 30/06/2020 PARTNER
M. No. 007058
FRN NO. 119020W
UDIN: 20007058AAAACB9297

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