To the members of
La Opala RG Limited
Report on the Ind AS Financial Statements
1. We have audited the accompanying Ind
AS financial statements of La Opala RG Limited (the Company) whichcomprise the Balance Sheet as at 31st March 2018 the
Statement of Profit and Loss (including Other
Comprehensive Income) the Cash Flow
Statement and the Statement of Changes in Equity for the year then ended and a summaryof the significant accounting policies and other explanatory information.
Management's Responsibility for the Ind AS Financial Statements
2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (the Act) with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed undersection
133 of the Act read with the Companies
(Indian Accounting Standard) Rules 2015 as amended and other accounting principlesgenerally accepted in India.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
3. Our responsibility is to express an opinion on these Ind AS financial our audit.
In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the
Act and the Rules made thereunder and the order issued under section 143 (11) of theAct. We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under 143(10) of the Act and other applicableauthoritative announcements issued by Institute of Chartered Accountants of India. Those
Standards and pronouncements require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance erences in accountingabout whetherthe
Ind AS financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the Ind AS financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe Ind AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.
5. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.
6. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so requiredbasedon and give a true and fair view in conformity withthe accounting principles generally of the accepted in India of the state of affairs
Company as at 31st March 2018 and its profit total comprehensive income its cashflows and the changes in equity for the year ended on that date.
7. The corresponding financial information of the Company as at and for the year ended
31st March 2017 and the transition date opening balance sheet as at 1st April 2016included in these Ind AS financial statements are based on the previously issuedfinancial statements for the years ended 31st March
2017 and 31st March 2016 prepared in accordance with the Companies (AccountingStandards) Rules 2006 (as amended) which were audited by the predecessor auditor onwhich the auditor expressed an unmodified opinion vide his audit report dated May 09 2017and May 13 2016 respectively. These financial statements have been adjusted for complywith Ind AS and such adjustments on transition to Ind AS which has been approved by theCompany's Board of Directors and have been audited by us.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor's Report) Order 2016 (the Order)issued by the Central Government of India in terms of Section 143(11) of the Act we givein Annexure A a statement on the matters specified in paragraphs 3 and 4 ofthe Order.
9. As required by Section 143(3) of the Act based on our audit we report to theextent applicable that: a. We have sought and obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposesof our audit. b. In our opinion proper books of account as required by law have been keptby the Company so far as it appears from our examination of those books. c. The BalanceSheet the Statement of Profit and
Loss including other comprehensive income the Cash Flow Statement and Statement ofchanges in equity dealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid Ind AS financial statements comply with the Indian
Accounting Standards prescribed under section 133 of the Act. e. On the basis of thewritten representations received from the directors as on 31st March 2018 taken on recordby the Board of Directors none of the directors is disqualified as on 31st March 2018from being appointed as a director in terms of 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. Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting. g. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules 2014 as amended in our opinion and to the best of our informationand according to the explanations given to us: I. The Company has disclosed the impact ofpending litigations on its financial position in its financial statements as stated innote 38 (A) to the financial statement;
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.
IV. The disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from 8th November 2016 to
30th December 2016 have not been made since they do not pertain to the financial yearended 31st March 2018.
For Singhi & Co.
Chartered Accountants Firm's Registration No. 302049E
(Navindra Kumar Surana)
Partner Membership No. 053816
Date: 30th May 2018
(Referred to in paragraph 8 with the heading Report on Other Legal and RegulatoryRequirements' section of our report of even date in respect to statutory audit of La OpalaRG Limited for the year ended
31st March 2018)
We report that: i. In respect of its fixed assets: a. The Company has maintained properrecords showing full particulars including quantitative details and situationof b. Allfixed assets have not been physically verified by the management during the year but thereis a regular programme of verification reasonable having regard to the size of the Companyand the nature of its assets.
No material discrepancies were noticed on such verification. c. According to theinformation and explanations given to us and on the basis of our examination of therecords of the Company the title deeds of immovable properties are held in the name ofthe
Company as shown in note no. 3 of the financial statements except 3 (three) cases ofbuildings with gross value of INR 1237.64 Lakhs (Net carrying amount INR. 1231.19 Lakhs)titles for which is pending registration. ii. As explained to us inventories except goodsin transit were physically verified during the year by the management at reasonableintervals and no material discrepancies were noticed on such verification iii. The Companyhas not granted any loan to parties covered in the register maintained under section 189of the Companies Act 2013. Accordingly paragraph 3(iii) of the Order is not applicable.iv. In our opinion and according to the information and explanations given to us the
Company has not given any loan not made any investment and have not provided anyguarantee in respect of which Section 185 and
186 of the Companies Act 2013 are applicable. Accordingly the paragraph 3(iv) of theOrder is not applicable. v. According to information and explanations given to us theCompany has not accepted any deposits from public during the year. vi. We have broadlyreviewed the books of accounts maintained by Company in respect of product where pursuantto the rule made by the Central Government of which in our opinion is India themaintenance of cost records has been prescribed under section 148 (1) of the
Companies Act 2013 and are of the opinion that prima facie the prescribed recordshave been maintained. We have not however made a detailed examination of the recordswith a view to determine whether they are accurate or complete. vii. According to theinformation and explanations given to us and on the basis of our examination of therecords of the
Company: a. The Company is regular in depositing undisputed statutory dues includingprovident fund employee's state insurance income tax sales tax wealth tax servicetax duty of customs duty of excise value added tax cess Goods and Service tax andother statutory dues with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundemployees' state insurance income tax sales tax service tax duty of customs duty ofexcise value added tax Goods and Service tax cess and other material statutory dueswere in arrears as at
31st March 2018 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 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 31st MARCH 2018 are as under :-
|Name of the statute ||Nature of dues ||Amount INR in ||Year ||Forum where dispute is pending |
| || ||Lakhs || || |
|Jharkhand VAT ||Sales Tax ||91.88 ||2011-12 ||Commissioner of Commercial Tax Ranchi Jharkhand |
|Act 2005 || || || || |
| || ||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 |
|The Central Excise Act 1944 ||Excise duty ||58.60 ||2008-09 ||Customs Excise & Service Tax Appellate Tribunal Kolkata |
| || ||4.28 ||2009-10 ||Customs Excise & Service Tax Appellate Tribunal Kolkata |
viii. The Company has not defaulted in repayment of dues to Financial Institutions orBanks or
Government or Debenture holders. ix. The Company did not raise any money by way ofinitial public offer or further public offer including debt instruments and term loanduring the year. x. According to the information and explanations given to us no materialfraud by the Company or on the Company by its officers or employees has been noticed orreported during the course of our audit. xi. According to the information and explanationsgiven to us and based on our examination of the records of the Company the Company haspaid/provided for managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Act. xii. In ouropinion and according to the information and explanations given to us the Company is nota Nidhi Company. Accordingly paragraph 3(xii) of the Order is not applicable. xiii.According to the information and explanations given to us and based on our examination ofthe records of the Company transactions with the related parties are in compliance withsections 177 and 188 of the Act where applicable and details of such transactions havebeen disclosed in the financial statements as required by the applicable Indian accountingstandards. xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. 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 non-cashtransactions with directors or persons connected with him. Accordingly paragraph
3(xv) of the Order is not applicable. xvi. The Company is not required to be registeredunder section 45-IA of the Reserve Bank of
India Act 1934.
For Singhi & Co.
Chartered Accountants Firm's Registration No. 302049E
(Navindra Kumar Surana)
Place: Kolkata Partner
Date: 30th May 2018 Membership No. 053816
The Annexure referred to in paragraph 2 (f) under the heading Report on OtherLegal and Regulatory Requirements of our Independent Auditors' Report of even datein respect to the internal financial control under clause (i) of sub-section 3 of section143 of the Act of La Opala RG Limited for the year ended 31st March 2018 we reportthat:
1. We have audited the internal financial controls over financial reporting La Opala RGLimited (the Company) as of 31st March 2018 in conjunction with our audit ofthe financial statements of the Company for the year ended on that date.
MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
2. The Company's 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 Reporting issued by the Institute of Chartered Accountants ofIndia (ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the
Companies Act 2013.
3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting (the Guidance Note) and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial
Controls and both issued by the Institute of Chartered Accountants of India. Those
Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
5. 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 systemover financial
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
6. A company's 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 company's internal financial control over financial reporting includes those policiesand procedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit 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 management and directors of the Company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the Company's assets that could have a material effecton the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
7. Because of the inherent limitations of internal financial including the possibilityof collusion or improper management override of controls material misstatements due toerror or fraud may occur and not be detected. Also projections of any evaluation of theinternal financial to future periods are subject to the risk that the internal financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.
8. InouropiniontheCompanyhasinallmaterial respects an adequate internal financialcontrols system over financialreporting and such internal financial reporting wereoperating effectively as at 31st March 2018 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued bycontrols over financial the Institute ofChartered Accountants of
Forcontrols Singhi & Co.over financial
Firm's Registration No. 302049 control over E
(Navindra Kumar Surana)
Membership No. 053816
Date: 30th May 2018