The Members of Olympic Cards Limited
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. Olympic Cards Limited("the Company") which comprise the Balance Sheet as at March 312017 and theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; 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..
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 include in the audit report under theprovisions of the Act and the Rules made thereunder.
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 a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 312017;
(b) in the case of the Profit and Loss Account of the profit for the year ended onthat date; and
(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
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 section 143 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.
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 purpose 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 [and proper returnsadequate for the purposes of our audit have been received from branches not visited byus];
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 [and with the returns receivedfrom branches not visited by us];
d) in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under Section 133 of the Actread with relevant rule issued thereunder;
e) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2017 from being appointed as a Director in terms of Section 164 (2) ofthe 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"; and
g) With respect to the other matters to be included in the auditors' report inaccordance with the rule 11 of the Companies (Audit and Auditors) Rule 2014 in ouropinion and to the best of our information and according to the explanations given to us:
i. The company does not have any pending litigations and therefore disclosing impact onits financial positions in its financial statements does not arise.
ii. The company does not have material foreseeable loss if any on long term contractsincluding derivative contracts.
iii. There has been no delay in transferring amounts required to be transferred tothe investor education and protection fund by the company.
iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 31 December 2016 and these are in accordance with the books of accountsmaintained by the Company. (Refer to Note.16) to the financial statements.
For C.S. HARIHARAN &CO.
Firm Regn. No.001086S
Chennai May 222017
ANNEXURE - A TO THE AUDITORS' REPORT
1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment in terms of Section 143 (11) of the Companies Act 2013 we enclose in theannexure a statement on the matters specified in the paragraph 3 & 4 of the said orderand on the basis of the information and explanations given to us and the books and recordsexamined by us in the normal course of our audit and to the best of our knowledge andbelief we report that:
i) In respect of Fixed Assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the management inaccordance with a phased programme of Verification which in our opinion provides forphysical Verification of all fixed assets at reasonable intervals having regard to thesize of the Company nature and value of its assets. According to the information andexplanations given to us no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the company.
(a) As explained to us inventories were physically verified during the year by themanagement at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) In our opinion and according to the information and explanations given to us TheCompany has generally maintained proper records of its inventories and no materialdiscrepancies were noticed on physical verification.
iii) Loans Granted:
The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the Register maintained under Section 189 of the Companies Act2013 and accordingly the provisions of Clause (iii) of paragraphs of the Order are notapplicable to the Company.
iv) Loans Investments Guarantees & Securities:
Since the details of granting of loans investments guarantees given and Securitiesprovided in view of provisions of section 185 and 186 of the Companies Act 2013 are notavailable to the Company reporting on the matters specified in clause 3 (iv) of theCompanies (Auditor's Report) Order 2016 are not applicable to the Company.
v) Deposits from Public:
According to the information and explanations given to us the Company has not acceptedany deposits from the public during the financial year under report within the meaning ofsections 73 to 76 or any other relevant provision of the Companies Act 2013 and rulesframed there under.
vi) Cost Records:
We have broadly reviewed the books of accounts maintained by the company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148 of the Companies Act 2013 and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate andcomplete.
vii) Statutory dues:
a) According to the information and explanations given to us and the records of theCompany examined by us the Company is generally regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income Tax SalesTax Wealth Tax Custom Duty Excise Duty Cess and any other material statutory dues.
b) We are informed that there are no dues of Sales tax VAT Income tax deducted atsource which have not been deposited on account of any dispute.
viii) Default in repayment of dues:
Based on our audit procedures and according to information and explanation given to uswe are of the opinion that the Company has not defaulted in repayment of dues to FinancialInstitutions and banks Government.
ix) Initial Public Offer/Further Public Offer and Term Loans:
a) Company has not made any Initial Public Offer / Further Public Offer and as such thequestion of their application dues does not arise.
b) In our opinion and according to the information and explanations given to us theterm loans have been applied by the Company during the year for the purpose for which theywere obtained.
To the best of our knowledge and belief and according to the information andexplanations given to us and considering the size and nature of the Company's operationsno fraud of material significance on the Company or no fraud by the Company has beennoticed or reported during the year.
xi) Managerial Remuneration:
According to the information and explanations given to us and based on our examinationof the records of the Company the Company has paid/provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.
xii) Nidhi Company
Since the Company is not a Nidhi Company reporting on the matters specified in clause3 (xii) of the Companies (Auditor's Report) Order 2016 are not applicable to the Company.
xiii) Related Party Transactions
According to the information and explanations given to us and based on our examinationof the records of the Company transactions with the related parties are in compliancewith sections 177 and 188 of the Act where applicable and details of such transactionshave been disclosed in the financial statements as required by the applicable AccountingStandards.
xiv) Preferential Allotment
Since the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under audit hencereporting on the matters specified in clause 3 (xiv) of the Companies (Auditor's Report)Order 2016 are not applicable to the Company.
xv) Non Cash Transactions
Since the Company has not entered into any non-cash transactions with Directors orpersons connected with them reporting on the matters specified in Clause 3 (xv) of theCompanies (Auditor's Report) Order 2016 are not applicable to the Company.
xvi) Registration under section 45-1A
Since there is no requirement for the Company of being registered under section 45 - IAof Reserve Bank of India Act 1934 reporting on the matters specified in clause 3 (xvi)of the Companies (Auditor's Report) Order 2016 is not applicable to the Company.
For C.S. HARIHARAN & CO.
Firm's Registration No: 001086S
Membership number: 216277
Chennai May 222017
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 ("the Act")
We have audited the internal financial controls over financial reporting of OLYMPICCARDS LIMITED ("the Company") as of 31 March 2017 in conjunction with our auditof the standalone 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 company's policies the safeguarding of its assets theprevention 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.
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 both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 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.
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 themaintenance 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.
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 of CharteredAccountants of India.
For C.S. HARIHARAN & CO.
Firm's Registration No: 001086S
Membership number: 216277
Chennai May 222017