OTCO International Ltd.
|BSE: 523151||Sector: IT|
|NSE: N.A.||ISIN Code: INE910B01010|
|BSE LIVE 15:15 | 11 Aug||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 523151||Sector: IT|
|NSE: N.A.||ISIN Code: INE910B01010|
|BSE LIVE 15:15 | 11 Aug||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
TO THE MEMBERS OF M/s OTCO INTERNATIONAL LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M/s Otco International Limited("the Company") which comprise the Balance Sheet as at 31stMarch2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.
Managements Responsibility for the Financial Statements
The Company's Board of directors is responsible for the matters stated in Section134(5) of the Companies Act2013 ("the Act") with respect to the preparation andpresentation of these financial statement that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principle generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatements whether due to fraud or error.
Our responsibility is to express an opinion on these financial statement based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to the 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 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 statement whether due to fraud or error. In making those risk assessment theauditor considers 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. 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner 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 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 cash flow statement of the cash flows for the year ended on thatdate. Report on Other Legal and Regulatory Requirements
1. 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 the paragraph 3 and 4 ofthe 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 explanation which to the best ofour knowledge and belief were necessary for the purposes of our audit.
b. In our opinion proper books of accounts as required by law have been kept by theCompany 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 Statementdealt with by this Report are in agreement with 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.
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 termsof Section 164(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; and
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 explanation given to
i. The Company does not have any pending litigation 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 has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in its financial statements as toholding as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with thebooks of account maintained by the Company.
Annexure A to the Auditors Report
The Annexure referred to in our Independent Auditor's Report to the members of M/s OtcoInternational Limited for the year ended on 31.03.2017. We report that:
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) These fixed assets have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such verification and the samehave been properly dealt with in the books of account.
c) According to the information and explanation given to us the Company does not haveany immovable property.
ii. The Company is a service Company. Accordingly it does not hold any physicalinventories. Thus paragraph 3(ii) of the Order is not applicable.
iii. The Company has not granted any loans secured or unsecured to Companies firmsLimited Liability Partnership or other parties covered in the register maintained underSection 189 of the Companies Act.
iv. The Company has not granted any loans nor made any investment as per theprovisions of Section 185 and 186 of the Act. Thus paragraph 3(iv) of the Order is notapplicable to the Company.
v. The Company has not accepted any deposits from the public.
vi. The Central Government has not prescribed the maintainance of cost records underSection 148(1) of Act. for any of the services rendered by the Company.
vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records the Company there was no delay by the Company indepositing undisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax Cessand any other statutory dues with the appropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of the above were in arrears as at 31st March 2017 for aperiod of more than six months from the date they became payable.
(b) According to the information and explanations given to us there are no dues ofincome tax or sales tax or service tax or duty of customs duty of excise value addedtax Cess which had not been deposited on account of any dispute.
viii. The Company has not defaulted in repayment of dues to financial institutions orbanks and Government during the year. There have been no outstanding dues to debentureholders.
ix. During the year Company has not raised any money through Initial Public Offer orfurther Public Offer. The Company has not availed any term loan.
x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with schedule V to the Act.
xii. In our opinion and according to the information and explanations given to usCompany is not aNidhi Company. Accordingly paragraph 3(xii) of the order is notapplicable.
xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Section 177 and 188 of Companies Act 2013 where applicable and thedetails of such transactions have been disclosed in the financial statements etc. asrequired by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares during the year to promoter & non promoter asper requirement under Section 42 of the Act.
xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransActions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe order is not applicable.
xvi. The Company is not required to be registered under Section 45-1 of the ReserveBank of India Act 1934.
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 M/s. OTCOInternational Limited (the Company) as of 31st March 2017 inconjunction with our audit of the financial statements of the Company for the year endedas on that date.
Managements Responsibility for Internal Financial Controls
The Companys 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 (TCAF). 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 Companys policies the safeguarding of itsassets die prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys 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 die Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143(10) of die 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 were 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 die assessed risk. The proceduresselected depends on the auditors judgement 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 Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A
Companys internal financial control over financial reporting includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect die transActions and dispositions of the assets ofthe Company; (2) provide reasonable assurance that transActions are recorded as necessaryto permit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorizations of the Management and directors of the Company; and(3) provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the Companys assets that could have a materialeffect 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 to the best of our information and explanation given to us the Companyhas 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 2017 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 Institute of Chartered Accountants ofIndia.