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GKB Ophthalmics Ltd.

BSE: 533212 Sector: Consumer
NSE: GKB ISIN Code: INE265D01015
BSE 00:00 | 26 Nov 51.70 0






NSE 05:30 | 01 Jan GKB Ophthalmics Ltd
OPEN 48.25
52-Week high 75.00
52-Week low 37.00
Mkt Cap.(Rs cr) 26
Buy Price 47.80
Buy Qty 100.00
Sell Price 51.65
Sell Qty 1.00
OPEN 48.25
CLOSE 51.70
52-Week high 75.00
52-Week low 37.00
Mkt Cap.(Rs cr) 26
Buy Price 47.80
Buy Qty 100.00
Sell Price 51.65
Sell Qty 1.00

GKB Ophthalmics Ltd. (GKB) - Auditors Report

Company auditors report

To The Members of GKB Ophthalmics Limited

Report on the Audit of the Standalonefinancial statements


We have audited the accompanying standalonefinancial statements of GKB Ophthalmics Limited (“the Company”) which comprisethe Balance Sheet as at March 31 2019 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowfor the year then ended and notes to standalone financial statements including a summaryof significant accounting policies and other explanatory information.

In our opinion and to the best of ourinformation and according to the explanations given to us the aforesaid standalonefinancial statements give the information required by the Companies Act 2013 (“theAct”) in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2019 and its loss(financial performance including other comprehensiveincome) changes in equity and its cash flows for the year ended on that date.

Basis of Opinion

We conducted our audit in accordance withthe Standards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of theStandalone financial statements section of our report. We are independentof the Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the ethical requirements that are relevant toour audit of the standalone financial statements under the provisions of the Act and theRules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that inour professional judgment were of most significance in our audit of the standalonefinancial statements of the current period. These matters were addressed in the context ofour audit of the standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters.

Description of Key Audit Matters

The Key Audit Matter

How the matter was addressed in our Audit

1 Revenue Recognition

The Company's revenue is derived from sale of unfinished ophthalmic lenses.

Our audit procedures to assess the recognition of revenue included the following –

The Company recognises revenue when performance obligations as per the underlying sales contracts are satisfied.

a. Evaluating the design implementation and operating effectiveness of internal controls over the existence accuracy and timing of revenue recognition.

b. Identifying the performance obligations under the contract to validate for the sample of transactions selected that the revenue is recognised and recorded in the period in which the performance obligation is satisfied.

The terms set out in the Company's sales contracts are varied which affect the timing of revenue recognition.

c. Performed substantive transactional testing for a sample of transactions and applied analytical procedures to validate the recognition of revenue.

Revenue recognition was identified as a Key Audit Matter because revenue is one of the key performance indicators and is subject to inherent credit risk and risk of misstatement due to management judgement involved in the timing of revenue recognition.

d. Tested journal entries posted to revenue accounts focusing on unusual or irregular terms if any.

e. Obtained balance confirmations form major trade receivables and checked the subsequent realisation for the sample of trade receivables post balance sheet date.

2 Contingent Liabilities

Our audit procedures included –

The Company has disputed demands and penalty relating to excise duty in connection with valuation of products manufactured by the Company sales tax entry tax and income tax. These disputes are currently pending before the Customs Central Excise and Service Tax Appellate Tribunal (CESTAT) / Commissioner of Central Excise and Service Tax Commissioner of Commercial Tax and Commissioner of Income Tax.

a. Holding discussions with the Company's personnel responsible for the Company's defence in these matters to understand their legal views.

b. Verifying the submission made by the management in these cases and their interpretation of the matter.

Given the uncertainty involved in the appeals the ultimate outcome of these matters cannot be predicted with virtual certainty.

c. Verifying the documents related to the matters to understand the findings of the revenue authorities and to assess the representations of management. Verifying the disclosures of disputed demand in the financial statements.

Further whether the Company is successful or not in these matters the ultimate decision of the courts will have a material effect on the financial position results of operations and cash flows.

Management have engaged independent legal counsel on these matters.

The accounting for and disclosure of this contingent liability is complex and is a significant matter in our audit because of the judgements required to determine the level of certainty in the matter.

Information Other than the Standalonefinancial statements and Auditor's Report Thereon

The Company's Board of Directors isresponsible for the other information. The other information comprises the informationincluded in the Directors' Report including Annexures but does not include the standalonefinancial statements and our auditor's report thereon.

Our opinion on the standalone financialstatements does not cover the other information and we do not express any form ofassurance conclusion thereon.

In connection with our audit of thestandalone financial statements our responsibility is to read the other information andin doing so consider whether the other information is materially inconsistent with thestandalone financial statements or our knowledge obtained in the audit or otherwiseappears to be materially misstated. If based on the work we have performed we concludethat there is a material misstatement of this other information we are required to reportthat fact. We have nothing to report in this regard.

Responsibilities of Management and ThoseCharged with Governance for the Standalone financial statements

The Company's Board of Directors isresponsible for the matters stated in section 134(5) of the Act with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the standalone financialstatements the board of directors are responsible for assessing the Company's ability tocontinue as a going concern disclosing as applicable matters related to going concernand using the going concern basis of accounting unless the board of directors eitherintends to liquidate the Company or to cease operations or has no realistic alternativebut to do so. The Board of Directors are also responsible for overseeing the company'sfinancial reporting process.

Auditor's Responsibilities for the Audit ofthe Standalone financial statements

Our objectives are to obtain reasonableassurance about whether the standalone financial statements taken as a whole are freefrom material misstatement whether due to fraud or error and to issue an auditor'sreport that includes our opinion. Reasonable assurance is a high level of assurance butis not a guarantee that an audit conducted in accordance with SAs will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesestandalone financial statements.

We give in “Annexure A” a detaileddescription of Auditor's responsibilities for Audit of the Standalone financialstatements.

Other Matter

The standalone financial statements of theCompany for the year ended March 31 2018 were audited by another auditor whose reportdated May 08 2018 expressed an unmodified opinion on those statements.

Our opinion is not modified in respect ofthese matters.

Report on Other Legal and RegulatoryRequirements

1. As required by the Companies (Auditor'sReport) Order 2016 (“the Order”) issued by the Central Government of India interms of sub-section (11) of section 143 of the Companies Act 2013 we give in the“Annexure B” a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

2. As required by Section 143 (3) of the Actwe report that:

(a) we have sought and obtained all theinformation and explanations which to the best of our knowledge and belief were necessaryfor the purposes of our audit.

(b) In our opinion proper books of accountas required by law have been kept by the Company so far as it appears from our examinationof those books.

(c) The Balance Sheet the Statement ofProfit and Loss (including Other Comprehensive Income) the Statement of Changes in Equityand the Statement of Cash Flow dealt with by this Report are in agreement with the booksof account.

(d) In our opinion the aforesaid standalonefinancial statements comply with the Accounting Standards specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014 and the Companies(Indian Accounting Standards) Rules 2015 as amended.

(e) On the basis of the writtenrepresentations received from the directors as on March 31 2019 taken on record by theBoard of Directors none of the directors is disqualified as on March 31 2019 from beingappointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of theinternal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate report in “Annexure C”.

(g) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us:

i. The Company has disclosed the impact ofpending litigations on its financial position in its standalone financial statements– Refer Note 38 to the standalone financial statements.

ii. The Company did not have any long termcontracts including derivative contracts for which there were material foreseeablelosses.

iii. Unpaid dividend of Rs. 12822/-pertaining to financial year 2010-11 has not been transferred to investor education andprotection fund as on March 31 2019 in accordance with the provisions of the CompaniesAct 2013 and rules made thereunder.

3. In our opinion and according to theinformation and explanations given to us the remuneration paid by the Company to itsdirectors during the year is within the limit prescribed under section 197 of the Act andthe rules thereunder.

For MSKA & Associates

Chartered Accountants

ICAI Firm Registration No. 105047W

Vinayak M Padwal

Place: Mapusa Goa


Date: May 30 2019

Membership No.049639