INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF ORIENTAL TRIMEX LIMITED
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of ORIENTAL TRIMEX LIMITED whichcomprise the Balance Sheet as at 31st March 2017 the statement of Profit and Loss andthe Cash Flow statement for the year ended on that date and a summary of significantaccounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company's Management is responsible for the matters stated in Section 134(5) of theCompanies Act 2013 ("the Act") with respect to preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibilityincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgements and estimates that are reasonable and prudent and design implementation andmaintenance of adequate financial internal 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 be included 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 the 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers the internal financial control relevant to the Company's preparation andfair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the Company's internal financial controls system. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the management as well as evaluating the overallpresentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the standalone financial statements.
BASIS FOR QUALIFIED OPINION
a) The Company has not made adequate provision for Doubtful Receivables becauseAllowance for Doubtful Receivables has been made at full value of doubtful receivables incase of certain parties and at nil value in case of other parties according to managementperception. (Refer Note 9.3)
b) The Company has not made adequate provision for Doubtful Advances becauseAllowance for Doubtful Advances has been made at full value of doubtful receivables incase of certain parties and at nil value in case of other parties according to managementperception. (Refer Note 11.2)
c) The Company has not determined the remaining useful life of assets existing as at31st March 2014 as required under Note 7 of Part C to Schedule II of the Act and insteadhas charged depreciation on the opening carrying amounts of the assets at the ratescalculated on the basis of useful life of assets as specified in Schedule II.Consequential impact on revenue and assets remains indeterminate.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph the aforesaid financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017
(b) in the case of the Statement of Profit and Loss of the profit of the Company forthe year ended on that date and
(c) in the case of the Cash Flow Statement of cash flows of the Company for the yearended on that 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 statement on the matters specified in paragraphs 3 and4 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 appears from our examination of the books;
c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with in this report are in agreement with the books of account;
d) In our opinion the aforesaid financial statements comply with the accountingstandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 to the extent applicable.
e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164(2) of the Act.
f) On the basis of the information and explanations of the Company provided to us inour opinion the Company has adequate internal financial controls systems in place and itsoperating effectiveness.
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 has disclosed the impact of pending litigations on its financialposition in its financial statements-Refer Note 22 (II) (A).
(ii) The Company has not entered into any long term contracts including derivativecontracts requiring provision under the applicable law or accounting standards formaterial foreseeable losses.
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
1 a) The Company is in the process of updating it's records showing full particulars
including quantitative details and situation of its fixed assets.
b) We are informed that physical verification of the assets was conducted by themanagement at reasonable intervals in a phased manner and no material discrepancies werenoticed on such verification.
c) According to the information and explanations given to us the title deeds ofimmovable properties of the Company are held in the name of the Company.
2 a) We are informed that stocks of finished goods stores spare parts and rawmaterial
have been physically verified by the management at reasonable intervals. b) In ouropinion and according to the information and explanations given to us the discrepanciesnoticed on physical verification of stocks as compared to book records were not materialand the same have been adequately dealt with in the books of account.
3 a) Except for certain advances the company has not granted any loans secured or
unsecured to companies firms or other parties covered in the register maintained undersection 189 of the Companies Act.
b) The advances are receivable on demand. Therefore there is no question of receipt ofprincipal and interest.
c) There is no overdue amount.
4 In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.
5. In our opinion and according to the information and explanations given to us theCompany has complied with the directives issued by the Reserve Bank of India and theprovisions of sections 73 to 76 or any other relevant provisions of the Companies Act andthe rules framed thereunder with regard to the deposits accepted from the public.
6. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148 (1) of the Companies Act 2013 and are of the opinion that prima facie the specifiedaccounts and records have been made maintained. We have not however made a detailedexamination of the same.
7. a) According to the records of the Company the Company is generally not regular in
depositing undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax wealth tax service tax duty of customs duty ofexcise value added tax cess and any other statutory dues whichever are applicable withthe appropriate authorities.
The extent of the arrears of undisputed outstanding statutory dues as at the last dayof the financial year
concerned for a period of more than six months from the date they became payable
|Nature of Statutory Dues ||Amount (Rs.) ||Amount (Rs.) |
| ||Year Ended 31.03.2017 ||Year Ended 31.03.2016 |
|Provident Fund ||1531806 ||1825917 |
|Employee State Insurance ||204792 ||58264 |
|Income Tax ||11447409 ||12009340 |
|Sales Tax ||19723405 ||19103672 |
|Other Dues ||11278774 ||15865223 |
| ||44186186 ||48862416 |
b) According to the records of the Company the dues outstanding of income tax salestax wealth tax service tax custom duty excise duty and cess on account of any disputeare as follows:
|Particulars Amount (Rs.) || ||Forum where pending ||Deposit |
|Sales Tax (Tax/Penalty/Interest) ||54248 ||Appeal to be filed || |
| ||129250 ||Commissionerate ||28100 |
| ||152984 ||Commissionerate || |
| ||709946 ||Commissionerate ||142000 |
| ||225356 ||Commissionerate ||225356 |
| ||927376 ||Commissionerate || |
| ||2336036 ||Commissionerate || |
| ||2643330 ||Commissionerate || |
| ||100000 ||Commissionerate || |
| ||20000 ||Commissionerate ||20000 |
| ||7298526 || ||415456 |
|Income Tax (Penalty for late deposit of TDS) ||1625411 ||Tribunal || |
|Income Tax (Short Deduction/ Interest/Penalty for late deposit of TDS) ||373360 ||Under Rectification || |
| ||1998771 || || |
|Custom Duty (Tax/Penalty/ Interest) ||642000 ||High Court ||378495 |
| ||642000 || || |
8 The company has defaulted in repayment of dues to banks and financial institutions asdetailed hereunder:
Period and amount of continuing default as on the balance sheet date in repayment ofloans and interest.
|SECURED LONG-TERM BORROWINGS ||31.03.17 ||31.03.16 |
|a) Term Loans ||(Rs. In lacs) ||(Rs. In lacs) |
|From Arcil (Settlement) || ||240.00 |
|Period of Default || ||30 to 120 Days |
|SECURED SHORT-TERM BORROWINGS || || |
|(a) Loans Repayable on Demand From Banks (The Jammu and Kashmir Bank Ltd. ||2800.93 ||398.00 |
|Period of Default ||12 m ||30 to 180 Days |
|Current Maturities of Long-Term Debt ||390.00 || |
|Period of Default ||3m to 12 m || |
9 During the year there were no moneys raised by way of initial public offer orfurther public offer and term loans.
10 Based on audit procedures performed and according to the information andexplanations given to us no fraud on or by the Company was noticed or reported during theyear.
11 In our opinion the managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Companies Act 2013.
12 In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) are not applicable to the Company.
13 During the year the company has entered into transactions of purchases and supplyof goods with related parties exceeding 10% of total turnover of the company. However thecompany has not taken prior approval of the company by a special resolution as requiredunder Rule 15 of the Companies (Meetings of Board and Its Powers) Rules 2014 read withSection 188 and 177 of the Companies Act 2013.
In the absence of the board resolution and the special resolution and since the saidtransactions have not been approved by the Audit Committee we are unable to commentwhether such transactions have been carried out at arm's length price considering thequality time of delivery and other parameters of the goods.
14 According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review and therefore the provisions of clause 3 (xiv) ofthe Companies (Auditors' Report) Order 2016 are not applicable to the Company.
15 In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith the Directors.
16 In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-1A of the Reserve Bank of IndiaAct 1934.
| ||For RAVISH AGRAWAL & ASSOCIATES |
| ||Chartered Accountants |
| ||FRN 014924N |
| ||Sd/- |
|NEW DELHI ||RAVISH AGRAWAL F.C.A. (Proprietor) |
|MAY 29 2017 ||CP No. 094700 |