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La Opala RG Ltd.

BSE: 526947 Sector: Industrials
NSE: LAOPALA ISIN Code: INE059D01020
BSE 00:00 | 03 Jul 191.65 3.40
(1.81%)
OPEN

188.30

HIGH

193.00

LOW

186.30

NSE 00:00 | 03 Jul 191.00 2.60
(1.38%)
OPEN

189.75

HIGH

193.35

LOW

186.05

OPEN 188.30
PREVIOUS CLOSE 188.25
VOLUME 1142
52-Week high 233.00
52-Week low 131.50
P/E 25.25
Mkt Cap.(Rs cr) 2,127
Buy Price 187.00
Buy Qty 1.00
Sell Price 191.65
Sell Qty 496.00
OPEN 188.30
CLOSE 188.25
VOLUME 1142
52-Week high 233.00
52-Week low 131.50
P/E 25.25
Mkt Cap.(Rs cr) 2,127
Buy Price 187.00
Buy Qty 1.00
Sell Price 191.65
Sell Qty 496.00

La Opala RG Ltd. (LAOPALA) - Auditors Report

Company auditors report

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 Ltd. (-theCompany") which comprise the Balance sheet as at March 31 2019 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 and fairview in conformity with the Indian Accounting Standards prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended(-Ind AS") and other accounting principles generally accepted in India of the stateof affairs of the Company as at March 31 2019 its profit including other comprehensiveincome its cash flows and the changes in equity for the year ended on that date.

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 2019. 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
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.12210.31 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.

 

Descriptions of Key Audit Matter How we addressed the matter in our audit
The share are 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. • Re-computation of the values and comparing it with valuer calculations and
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. • 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:
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. We consider key assumptions and estimates to be within the acceptable range and we assessed the classification of investment and the disclosure (Refer Note: 36) to the financial statements being proportionate.
B. Valuation 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 realisable 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 realisable 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 and related provisions by:
• 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 realisable 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-o(s during the year.
• Recomputing provisions recorded to verify that they are in line with the Company policy.
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.23368.88 lakh and represent 38.87% of total assets. Further disclosures on the Investments are included at note 7 to the financial statements. This was an area of focus for our audit and the area where significant audit e(ort was directed. As at March 31 2019 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 2019 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 the financial statements does not cover the other information and we donot express any form of 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 operatinge"ectively for ensuring the accuracy and completeness of the accounting recordsrelevant to the preparation and presentation of the financial statements that give a trueand fair view and 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 order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa 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 e•ect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that 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 with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits 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:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes 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;

(c) The Balance Sheet the Statement of Profit and Loss including the Statement ofOther Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by 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 Companies (Indian AccountingStandards) Rules 2015 as amended from time to time;

(e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164(2) of theAct;

(f) With respect to the adequacy of the internal financial controls with reference tofinancial statement of the Company and the operating effectiveness of such controls referto our separate Report in -Annexure B".

(g) In our opinion the managerial remuneration for the year ended March 31 2019 hasbeen paid/ provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act; and

(h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

I. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Note 38(A) 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's Registration No. 302049E
(Pradeep Kumar Singhi)
Place: Kolkata Partner
Date: 11 May 2019 Membership No. 50773

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 Ltd.of even date) i. Inrespect of the Company's fixed assets: a. The Company has maintained proper recordsshowing full particulars including quantitative details and situation of fixed assets. b.All fixed assets have not been physically verified by the management during the year butthere is a regular programme of verification which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. No material discrepancieswere noticed on such verification. c. According to the information and explanations givento us and on the basis of our examination of the records of the Company the title deedsof immovable properties are held in the name of the Company as shown in note no. 3 of thefinancial statements except

3 (three) cases of buildings with gross value of Rs. 1321.80 lakh (Net carrying amountRs.1295.35 lakh) titles for which is pending registration. ii. The physical verificationof inventory excluding inventories in transit have been conducted at reasonable intervalsby the Management during the year. The discrepancies noted on physical verification ofinventory as compared to book records were not material.

iii. According to the information and explanations given to us the Company has notgranted any loan to parties covered in the register maintained under section 189 of theCompanies Act 2013. Thus paragraph 3(iii) of the Order is not applicable. iv. In ouropinion and according to the information and explanations given to us the Company has notgiven any loan not made any investment and have not provided any guarantee in respect ofwhich Section 185 and 186 of the Companies Act 2013 are applicable. Accordingly theparagraph 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 is required tomaintain cost records as specified under section 148(1) of the Act in respect of itsproduct. We have broadly reviewed such accounts and records and are of the opinion thatprima 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 depositingundisputed statutory dues including Provident Fund Employee's State Insurance IncomeTax Customs Duty Goods and Service tax Cess and other statutory dues with theappropriate authorities.

According to the information and explanations given to us and the records of theCompany examined by us no undisputed statutory dues as above were outstanding as at March31 2019 for a period of more than six months from the date they became payable b.According to the information and explanation given to us the dues of sales tax incometax and duty of excise which have not been deposited on account of any dispute and theforum where the dispute is pending as on March 31 2019 are as under:

Name of the statute Nature of dues Amount INR in Lakhs 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
18.22 2012-13 Commissioner of Income Tax (Appeals) Kolkata
35.70 2013-14 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 officer or furtherpublic officer 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 course of our audit.

xi. In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

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

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements as required by the applicableIndian Accounting Standards.

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. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors and hence provisions of section 192 of theCompanies Act 2013 are not applicable to the Company. xvi. The Company is not required tobe registered under section 45-IA of the Reserve Bank of India Act 1934.Accordingly theprovisions of Clause 3(xvi) of the Order are not applicable to the company.

For Singhi & Co.
Chartered Accountants
Firm's Registration No. 302049E
(Pradeep Kumar Singhi)
Place: Kolkata Partner
Date: 11 May 2019 Membership No. 50773