To the Members of M/s O. P. Chains Limited
Report on the Financial Statements
We have audited the accompanying financial statements of M/s O. P. Chains Limited. ("theCompany") which comprise the Balance Sheet as at March 31 2018 and the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in section 133 of theCompanies Act 2013 ("the Act"). This responsibility includes the designimplementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2018;
in the case of the Profit and Loss Account of the profit for the year ended onthat date; and
in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
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 statement on the matters specified in paragraphs 3 and4 of the Order to the extent applicable.
As required by section 143(3) of the Act we report that:
We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit; In our opinion properbooks of account as required by law have been kept by the Company so far as appears fromour examination of those books
In our opinion all the information and explanations with regard to branch which tothe best of our knowledge and belief were necessary for the purpose of our audit have beenobtained by us. There is no other Branch Auditor appointed by the Company.
The Balance Sheet Statement of Profit and Loss Statement of Changes in Equity andCash Flow Statement dealt with by this Report are in agreement with the books of account.
In our opinion the Balance Sheet Statement of Profit and Loss Statement of Changesin Equity and Cash Flow Statement comply with the Accounting Standards referred to insection 133 of the Companies Act 2013; In our opinion there are no observations orcomments on financial transactions or matters which have any adverse effect on thefunctioning of the Company.
On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of sub-section (2) ofsection 164 of the Companies Act 2013.
In our opinion there are no qualifications reservation or adverse remark relating tothe maintenance of accounts and other matters connected therewith.
In our opinion and according to the information and explanations given to us there isgenerally an adequate internal control procedure by the management commensurate with thesize of the company and the nature of its business for the purchase of inventories &fixed assets and payment for expenses & for sale of goods. During the course of ouraudit no major instance of continuing failure to correct any weaknesses in the internalcontrols has been noticed that the Company has appointed Internal Auditor.
| ||For BPN & Company |
| ||Chartered Accountants |
| ||FRN: 013887C |
| ||S/D |
| ||Nikhil Garg |
|Place: Agra ||(Partner ) |
|Date: 25.05.2018 ||Membership No.407004 |
The Annexure referred to in paragraph 1 of Our Report on Other Legal and RegulatoryRequirements. We report that:
|S. No. ||Particulars ||Auditors Remark |
|(i) ||(a) whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets; ||YES |
| ||(b) whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; ||YES |
| ||(c) whether the title deeds of immovable properties are held in the name of the company. If not provide the details thereof; ||YES |
|(ii) ||whether physical verification of inventory has been conducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so whether they have been properly dealt with in the books of account; ||YES |
|(iii) ||(iii) whether the company has granted any loans secured or unsecured to companies firms or other parties covered in the register maintained under section 189 of the Companies Act. If so ||NO |
| ||(a) whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest; ||N.A. |
| ||(b) whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular; ||N.A. |
| ||(c) if the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the principal and interest; ||N.A |
|(iv) ||in respect of loans investments guarantees and security whether provisions of section 185 and 186 of the Companies Act 2013 have been complied with. If not provide the details thereof. ||YES |
|(v) ||in case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under where applicable have been complied with? If not the nature of contraventions should be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? ||N.A. |
|(vi) ||where maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act whether such accounts and records have been made and maintained; ||N.A. |
|(vii) ||(a) whether the company is regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-tax wealth tax service tax duty of customs duty of excise value added tax cess and any other statutory dues with the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated; ||YES |
| ||(b) in case dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not constitute a dispute). ||No such dues |
|(viii) ||whether the company has defaulted in repayment of dues to a financial institution or bank or debenture holders? If yes the period and amount of default to be reported; ||NO |
|(ix) ||whether moneys raised by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised. If not the details together with delays or default and subsequent rectification if any as may be applicable be reported; ||YES |
|(x) ||whether any fraud on or by the company has been noticed or reported during the year; If yes the nature and the amount involved is to be indicated. ||NO |
|(xi) ||whether managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act? If not state the amount involved and steps taken by the company for securing refund of the same; ||YES |
|(xii) ||whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintaining ten per cent unencumbered term deposits as specified in the Nidhi Rules 2014 to meet out the liability; ||N.A. |
|(xiii) ||whether all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards; ||YES |
|(xiv) ||whether the company has made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and if so as to whether the requirement of section 42 of the Companies Act 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised. ||NO |
| ||If not provide the details in respect of the amount involved and nature of non-compliance; || |
|(xv) ||whether the company has entered into any non-cash transactions with directors or persons connected with him and if so whether the provisions of section 192 of Companies Act 2013 have been complied with; ||N.A. |
|(xvi) ||whether the company is required to be registered under section 45-IA of the Reserve Bank of India Act 1934 and if so whether the registration has been obtained. ||N.A. |
| ||For BPN & Company |
| ||Chartered Accountants |
| ||FRN: 013887C |
| ||S/D |
| ||Nikhil Garg |
| ||(Partner ) |
|Place: Agra ||Membership |
|Date: 25.05.2018 ||No.407004 |