You are here » Home » Companies » Company Overview » La Opala RG Ltd

La Opala RG Ltd.

BSE: 526947 Sector: Industrials
NSE: LAOPALA ISIN Code: INE059D01020
BSE 00:00 | 14 Jun 279.55 -2.10
(-0.75%)
OPEN

277.30

HIGH

283.95

LOW

273.60

NSE 00:00 | 14 Jun 279.45 -1.90
(-0.68%)
OPEN

281.40

HIGH

284.15

LOW

274.00

OPEN 277.30
PREVIOUS CLOSE 281.65
VOLUME 17472
52-Week high 296.10
52-Week low 160.30
P/E 62.54
Mkt Cap.(Rs cr) 3,103
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 277.30
CLOSE 281.65
VOLUME 17472
52-Week high 296.10
52-Week low 160.30
P/E 62.54
Mkt Cap.(Rs cr) 3,103
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

La Opala RG Ltd. (LAOPALA) - Auditors Report

Company auditors report

as at 31st March 2020

To the Members of

La Opala RG Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of La Opala RG Limited ("theCompany") which comprise the Balance sheet as at March 31 2020 the Statement ofProfit and Loss (including the Statement of Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.(hereinafter referred to as "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 theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of a airs of the Company as at March 31 2020 its profit including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements' section of our report. We are independent of the Company inaccordance with the ‘Code of Ethics' issued by the Institute of Chartered Accountants(ICAI) of India together with the ethical requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules there under and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements for the financial year ended March31 2020. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. For each matter below our description of how our auditaddressed the matter is provided in that context.

Descriptions of Key Audit Matter How we addressed the matter in our audit
A. Non Current Investment in Listed Company
Refer to note 8 to the financial statements. The company hold listed investments which are carried at fair value through other comprehensive income (not to be recycled) and classified as level 2 financial instruments in the fair value hierarchy. The listed investments are included in "Investments "valued at Rs. 8146.28 lakh in the financial statements. Our procedures in respect of the valuation of listed investments included among others using our internal valuation specialists as part of our audit team to test the valuation inputs and assumptions for this significant listed investments in respect of:
• We benchmarked inputs used for valuations to current market best practices in assessing the appropriateness of the methodologies applied.
• Re-computation of the values and comparing it with valuer calculations and
The share is listed at Calcutta stock exchange but no trading is being done accordingly no active market rate is available at which the investment is being valued. Consequently this listed investment is to be valued by using other available valuation technique as determined by the Independent Valuer. Net asset values method has been used for valuation of the captioned investment. The valuation of listed investments requires the exercise of judgement and the use of subjective assumptions made for valuation by the Management or Valuer. Given the significance of the judgements involved in the valuation and classification of listed investments this was considered a key audit matter in our audit of the financial statements. • Our procedures in respect of the classification of investments for accounting purposes included assessing if the company was able to exercise significant influence in respect of these investments by applying the criteria for recognition of an associate set out in IND 28 Investment in Associates. The criteria included amongst others assessing whether or not there was representation on the board of the investees participation in policymaking and material transactions etc.
Our Observation:
We consider key assumptions and estimates to be within the acceptable range and we assessed the classification of investment and the disclosure (Refer Note: 38) to the financial statements being proportionate.
B. Valuation and existence of inventories
Refer to note 12 to the financial statements. As described in the accounting policies in note 1.2.F to the financial statements inventories are carried at the lower of cost and net realizable value. As a result the management applies judgment in determining the appropriate provisions for obsolete stock based upon a detailed analysis of old inventory net realizable value below cost based upon future plans for sale of inventory. We obtained assurance over the appropriateness of the management's assumptions applied in calculating the value of the inventories related provisions and appropriate audit evidence to corroborate the management's assertions regarding existence and ownership by:
Further obtaining sufficient appropriate audit evidence to corroborate the management's assertions regarding existence and ownership.
• Completed a walkthrough of the inventory valuation process and assessed the design and implementation of the key controls addressing the risk.
• Verifying the effectiveness of key inventory controls operating over inventories; including sample based physical verification.
• Verifying for a sample of individual products that costs have been correctly recorded.
• Comparing the net realizable value to the cost price of inventories to check for completeness of the associated provision.
• Reviewing the historical accuracy of inventory provisioning and the level of inventory write- offs during the year.
• Recomputing provisions recorded to verify that they are in line with the Company policy.
• Reviewing the physical verification documents related to inventories conducted during the years.
 

• Conducting physical verification of inventories on test basis and verifying quantity reconciliation of stock including review of consumption ratio of raw materials.

Our Observation:
Based on the audit procedures performed we are satisfied that the valuation of inventory is appropriate.
C. Valuation and existence of current investments
Valuation and existence of current investments designated at fair value through profit or loss Investments designated at fair value through profit or loss (the Investments) are valued at Rs. 25879.87 lakh and represent 42.35% of total assets. Further disclosures on the Investments are included at note 8 to the financial statements. This was an area of focus for our audit and the area where significant audit effort was directed. As at March 31 2020 all Investments are in mutual funds and are actively traded with readily available quoted market prices. Our audit procedures included updating our understanding of the business processes employed by the Company for accounting for and valuing their investment portfolio. We obtained accounts confirmation from the mutual funds and verified that the company was the recorded owner of all current investments. Our audit procedures over the valuation of the Investments included agreeing the fair valuation of all Investments held at March 31 2020 to the Net Assets Value provided by the respective Mutual funds.
Our Observation:
Based on the audit procedures performed we are satisfied with valuation and existence of current investment.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon. Our opinion on thefinancial statements does not cover the other information and we do not express any formof assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe have performed we conclude that there is a material misstatement of this otherinformation; we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring 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.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those charged with governance are also responsible foroverseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements. We communicate with those chargedwith governance regarding among other matters the planned scope and timing of the auditand significant audit findings including any significant deficiencies in internal controlthat we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

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 inparagraphs 3 and 4 of the Order.

2. As required by section 143 (3) of the Act we report that:

  1. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
  2. 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;
  3. The Balance Sheet the Statement of Profit and Loss including the Statement of Other Comprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
  4. In our opinion the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015 as amended from time to time;
  5. On the basis of the written representations received from the directors as on March 31 2020 taken on record by the Board of Directors none of the directors are disqualified as on March 31 2020 from being appointed as a director in terms of Section 164(2) of the Act;
  6. With respect to the adequacy of the internal financial controls with reference to financial statement of the Company and the operating effectiveness of such controls refer to our separate Report in "Annexure B".
  7. In our opinion the managerial remuneration for the year ended March 31 2020 has been paid/ provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act; and
  8. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended in our opinion and to the best of our information and according to the explanations given to us:
    1. The Company has disclosed the impact of pending litigations on its financial position in its financial statements – Note 40 to the financial statements;

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 tothe Investor Education and Protection Fund by the Company.

For Singhi & Co.
Chartered Accountants
Firm Registration Number: 302049E
(Navindra Kumar Surana)
Partner
Place: Kolkata Membership Number: 053816
Date: June 30 2020 UDIN:20053816AAAABI2100

ANNEXURE ‘A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of La Opala RG Limited of even date)

i. In respect of the Company's fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. All fixed assets have not been physically verified by the management during the yearbut there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. Persuant to theprogramme a portion of the fixed assets has been physically verified by the managementduring the year and 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 as shown in note no. 3 & 4 of the financial statementsexcept 3 (three) cases of buildings with gross value of Rs. 1321.80 lakh (Net carryingamount Rs.1274.43 lakh) titles for which registration is pending.

ii. The physical verification of inventory excluding inventories in transit has beenconducted at reasonable intervals by the Management during the year. The discrepanciesnoted on physical verification of inventory as compared to book records were not material.

iii. The Company has not granted any loan to parties covered in the register maintainedunder section 189 of the Companies Act 2013. Thus paragraph 3(iii) of the Order is notapplicable.

iv. The Company has not given any loan not made any investment and have not providedany guarantee in respect of which Section 185 and 186 of the Companies Act 2013 areapplicable. Accordingly the paragraph 3(iv) of the Order is not applicable.

v. The Company has not accepted deposits from public within the meaning of section7374 7576 of the Act and the Rules framed there under to the extent notified

vi. Pursuant to the rules made by the Central Government of India the company isrequired to maintain cost records as specified under section 148(1) of the Act in respectof its product. We have broadly reviewed such accounts and records and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained but nodetailed examination of such records and accounts have been carried out by us.

vii. According to the information and explanations given to us and on the basis of ourexamination of the books of account:

a. The Company is generally regular in depositing undisputed statutory dues includingProvident Fund Employee's State Insurance Income Tax Customs Duty Goods and Servicetax Cess and other statutory dues with the appropriate authorities. According to theinformation and explanations given to us and the records of the Company examined by us noundisputed statutory dues as above were outstanding as at March 31 2020 for a period ofmore than six months from the date they became payable

b. According to the information and explanation given to us the dues of sales taxincome tax and duty of excise which have not been deposited on account of any dispute andthe forum where the dispute is pending as on March 31 2020 are as under:

Name of the statute Nature of dues Amount (Rs. in Lakh) Year Forum where dispute is pending
Jharkhand VAT Act 2005 Sales Tax 5.12 2007-08 Commissioner of Commercial Tax Ranchi Jharkhand
Income Tax Act 1961 Income Tax 23.84 2011-12 Commissioner of Income Tax (Appeals) Kolkata
14.72 2012-13 Commissioner of Income Tax (Appeals) Kolkata
35.70 2013-14 Commissioner of Income Tax (Appeals) Kolkata
124.20 2015-16 Commissioner of Income Tax (Appeals) Kolkata
The Central Excise Act 1944 Duty of Excise 4.28 2009-10 Customs Excise & Service Tax Appellate Tribunal Kolkata

viii. According to the records of the Company examined by us and the information andexplanation given to us the company has not defaulted in repayment of loans or borrowingto any financial institution or bank as at the Balance sheet date. The Company does nothave any loans or borrowings from Government as at Balance sheet date.

ix. The company did not raise any money by way of initial public offer or furtherpublic offer including debt instruments and term loan during the year.

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 year.

xi. The Company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct.

xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.

xiii. The Company has entered into trasactions with related parties in compliance withthe provisions of Section 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the standalone financial statements as required underIndian Accounting Standards (Ind AS) 24 related parties disclosers specified underSection 133 of the Act.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.

xv. The Company has not entered into any non-cash transactions with its Directors orpersons connected with them to which section 192 of the Act applies. Accordingly theprovisions of clause 3 (xv) of the order are not applicable to the Company.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the company.

For Singhi & Co.
Chartered Accountants
Firm Registration Number: 302049E
(Navindra Kumar Surana)
Partner
Place: Kolkata Membership Number: 053816
Date: June 30 2020 UDIN:20053816AAAABI2100

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 (f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of La Opala RG Ltd. of even date)

Report on the Internal Financial Controls with reference to financial statement underClause (i) of Subsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls with reference to financial statementof La Opala RG Limited ("the Company") as of March 31 2020 in conjunction withour audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the company is responsible for establishing and maintaininginternal financial controls based on the internal control with reference to financialstatement criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls withreference to financial statement 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols with reference to financial statement was established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem with reference to financial statement and their operating effectiveness. Our auditof internal financial controls with reference to financial statement included obtaining anunderstanding of internal financial controls with reference to financial statementassessing 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 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 Company's internal financial controls systemwith reference to financial statement.

Meaning of Internal Financial Controls with reference to financial statement

A company's internal financial control with reference to financial statement is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statement includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions 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.

Limitations of Internal Financial Controls with reference to financial statement

Because of the inherent limitations of internal financial controls with reference tofinancial statement including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statement to future periods are subject to the risk that theinternal financial control with reference to financial statement may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem with reference to financial statement and such internal financial controls withreference to financial statement were operating effectively as at March 31 2020 based onthe internal control with reference to financial statement criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For Singhi & Co.
Chartered Accountants
Firm Registration Number: 302049E
(Navindra Kumar Surana)
Partner
Place: Kolkata Membership Number: 053816
Date: June 30 2020 UDIN:20053816AAAABI2100

.