| We have audited the accompanying financial statements of PRIME
INDUSTRIES LTD which comprise the Balance Sheet LTD, as at March 31,
2014, the Statement of Profit and Loss and the Cash Flow Statement for
the year then ended, and a summary of the significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management' The Company's Management is responsible for the preparation
of these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Company
in accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs)
and in accordance with the accounting principles generally accepted in
India. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("CARO" /
"the Order") issued by the Central Government in terms of Section 227
(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of 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 the Company so far as it appears from our examination of those
books.
(c) The Balance Sheet, the 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 Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September ,2013 of the Ministry of Corporate Affairs)
(e) On the basis of the written representations received from the
directors taken on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2014 from being appointed as a
director in terms of Section 274(1)(g) of the Act. For Sukhminder Singh
& Co. Chartered Accountants Place: Ludhiana Date: 30.05.2014 Firm
Registration Number 016737N
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 1 under `Report on Other Legal and Regulatory
Requirements' section of our report of even date)
1. a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, the management has physically verified these
fixed assets during the year and no serious discrepancies have been
noticed. In our opinion, the frequency of verification of fixed assets
is reasonable. To the best of our knowledge, no material discrepancy has
been noticed on verification.
c) No substantial part of the fixed assets has been disposed off during
the year.
2. a) The inventory, which are held in physical form, has been verified
during the year by the management and in our opinion the frequency of
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of verification of inventory followed by the
company are reasonable and adequate commensurate with the size of
company and the nature of its business.
c) The company is maintaining proper record of inventory. The
discrepancies noticed on verification between the physical inventory and
book records were not material and the same have been properly dealt
with the books of account.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
a)The Company has granted loan to 1 party & year end balance is 3.89 mn
and maximum balance outstanding during the year was 53.17 mn. This loan
is receivable on demand.
b) In our opinion and according to the information and explanations
given to us, the rate of interest, wherever applicable and other terms
and conditions are prima facie not prejudicial to the interest of the
Company.
c) In respect of loans taken by the Company, these are repayable on
demand and therefore the question of overdue amounts does not arise.
4. In our opinion and according to the information and explanation given
to us during the course of audit, there are adequate internal control
procedures commensurate with the size of company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods. Further on the basis of our examination of books and
records of the company and according to information and explanations
given to us, we have neither come across nor have been informed of any
instance of major weaknesses in the aforesaid internal control
procedures.
5. a) Based upon the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that the
transactions required to be entered into the register maintained under
section 301 of the Act, have been so entered.
b)In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of the
Act and aggregating during the year to 5 lacs or more in respect of each
party have been made at prices which are reasonable having regard to
market prices for such transactions, prevailing at the relevant time,
where such market prices are available.
6. According to the information and explanations given to us, the
Company has not accepted deposits from the public during the period
covered by our audit report. According to the information and
explanation given to us, no order has been passed by the Company Law
Board or the National Company Law Tribunal or the Reserve Bank of India
or any Court or any other Tribunal in this regard in the case of the
Company.
7. In our opinion, the company has an adequate system of internal audit
which is commensurate with the size and nature of its business.
8. The Central Government has not prescribed the maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956, for any of
the services rendered by the Company. Accordingly paragraph 4(viii) of
the Order is not applicable to it.
9. a) According to the information and explanations provided to us, the
Company has generally been regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, service
tax, income tax, cess and other material statutory dues applicable to it
and there are no dues payable in respect of Employees' State Insurance,
Investor Education and Protection Fund, Excise duty, Custom Duty and
Sales Tax.
b)There were no undisputed amounts payable in respect of income-tax,
sales tax, service tax, wealth tax, custom duty, excise duty, cess and
other material statutory dues in arrears as at March 31, 2014 for a
period of more than six months from the date they became payable.
c) According to the information and explanations given to us, there are
no dues of income tax, sales tax, service tax, wealth tax, custom duty,
excise duty and cess which have not been deposited on account of any
dispute.
10. The accumulated losses of company exceeds 50% of net worth as on
31.03.2014. The Company has not incurred any cash losses during the
year.
11. In our opinion and according to the information and explanations
given to us, the Company has no dues payable to banks or financial
institutions and debenture holders.
12. In our opinion and according to the information and explanations
given to us there are no loans and advances granted on the basis of
security by way of pledge of shares and other securities.
13. The Company does not fall within the category of Chit Fund/ Nidhi/
Mutual Benefit Fund/ Society therefore, the provisions of paragraph 4
(xiii) of the Order are not applicable to the Company.
14. The Company is dealing or trading in shares, securities, debentures
and other investments and maintaining proper records of transactions and
contracts and also timely entries have been made therein. Shares,
securities, debentures and other securities have been held by the
Company in its own name except to the extent of the exemption, if any,
granted under section 49 of the Act.
15. The company has not given any guarantee for loan taken by others
from banks or financial institutions.
16. In our opinion and according to the information and explanations
given to us, no term loans have been obtained during the year.
17. In our opinion and according to the information and explanations
given to us, and on overall examination of the Balance Sheet of the
Company, we report that funds raised by the Company on short term basis
have not been used during the year for long term investments.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties and
companies covered in the Register maintained under Section 301 of the
Companies Act, 1956.
19. The Company has not issued any debentures during the year.
Therefore, the provisions of paragraph 4 (xix) of the Order are not
applicable to the Company.
20 During the year, the Company has not raised any money by way of a
public issue. Accordingly, the provisions of paragraph 4(xx) are not
applicable to it.
21. In our opinion and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
For Sukhminder Singh & Co.
Chartered Accountants
Firm Registration Number 016737N
Place: Ludhiana Sd/
Date: 30.05.2014 (Sukhminder Singh)
Partner
Membership No. 93100
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