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Oasis Tradelink Ltd.

BSE: 538547 Sector: Others
NSE: N.A. ISIN Code: INE189Q01019
BSE 00:00 | 30 Jan Oasis Tradelink Ltd
NSE 05:30 | 01 Jan Oasis Tradelink Ltd
OPEN 0.92
PREVIOUS CLOSE 0.92
VOLUME 36
52-Week high 0.92
52-Week low 0.00
P/E 30.67
Mkt Cap.(Rs cr) 1
Buy Price 0.92
Buy Qty 69.00
Sell Price 0.93
Sell Qty 12307.00
OPEN 0.92
CLOSE 0.92
VOLUME 36
52-Week high 0.92
52-Week low 0.00
P/E 30.67
Mkt Cap.(Rs cr) 1
Buy Price 0.92
Buy Qty 69.00
Sell Price 0.93
Sell Qty 12307.00

Oasis Tradelink Ltd. (OASISTRADELINK) - Auditors Report

Company auditors report

Independent Auditor's Report on Consolidated Financial Statements

Report on the Audit of the Financial Statements

Qualified Opinion

We have audited the financial statements of Oasis Tradelink Limited(in CIRP) (the Company) which comprise the balance sheet as at 31st March 2019 and the statement of profit and loss for the year then ended and notes to the financial statements including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us except for the possible effects of matter described in the Basis of Qualified Opinion paragraph the aforesaid financial statements give the information required by the Companies Act 2013 in the manner so required and give a true and fair view in conformity with the Ind AS and accounting principles generally accepted in India of the state of affairs of the Company as at March 31 2019 and its Loss and its cash flows for the year ended on that date.

Basis for Qualified Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act 2013 and the Rules there under and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics.

We draw attention to:

a. The board has not given the reasonable justifications regarding the fixed assets they have written off. Moreover in case of sale of Fixed Assets the determination of fair value on the date of sale is not determined. The effects in both cases are not in compliance of Ind AS and accordingly we are not able to comment on the consequential effect if any on the Financial Statements.

b. Regarding commencement of Corporate Insolvency Resolution Process (CIRP) and various claims submitted by operational creditors and determination of final obligation during CIRP the company has not provided interest on borrowings amounting to Rs 36.19 crores for the current FY and Rs 26.18 crores (including the Bank interest) for the previous FY. Hence they are not in confirmation with IND AS Borrowing Costs. c. There is no reasonable justification obtained regarding the writing off the inventories at the year end and they are not in conformity of IND AS. Accordingly we are not able to comment on the consequential effect if any on the Financial Statements.

Material Uncertainty regarding Going Concern:

The company is in the business of manufacturing refined oil however the whole of factory shed plants and equipments and other manufacturing assets are either sold to the creditors or written off. Moreover other fixed assets are also written off. The inventories lying at the company's unit are also written off. As on date there is no stock or fixed assets with the company which are essential for a manufacturing business to continue its operations. The current liabilities of the company exceed its current assets. It seems from the examination of books and explanations given by the management that the company is not able to liquidate the debtors. The company also has booked the losses of Rs 56.04 crores in this financial year and by far has negative networth.

These events raise significant doubts on the ability of the company to continue as a Going Concern. These events or conditions along with other matters indicate that material uncertainity exists that may cast significant doubt on Company's ability to continue as Going Concern

Other Information

The Company's Board of Directors is responsible for the other information. The other information comprises the information included in the Director's report but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Pursuant to order dated 26-02-2019 of the Hon'ble National Company Law Tribunal - Ahmedabad Bench at Ahmedabad (NCLT Order) Corporate Insolvency Resolution Process (CIR Process) has been initiated for the Company in accordance with the provisions of the Insolvency and Bankruptcy Code 2016 (Code) and related rules and regulations issued there under with effect from 26-02-2019 (Corporate Insolvency Resolution Process Commencement Date). Shri Mr. Pinakin Shah was appointed as Interim Resolution Professional (IRP). The members of the CoC have in their first meeting appointed Mr. Ramchandra Dallaram Choudhary by replacing the IRP. The Hon'ble NCLT has appointed Mr. Ramchandra Dallaram Choudhary as Resolution Professional vide order dated 13-06-2019 which was confirmed by the Board (IBBI) on 26-07-2019.

The powers of Board of Directors of the Company stand suspended effective from the CIR Process commencement date and such powers along with the management of affairs of the Company are vested with the Resolution professional (RP).The RP has relied on the certifications representations and statements made by the erstwhile management for such period and is signing the Financial Statements solely for the purpose of discharging the powers of the Board of directors which have been conferred upon him by virtue of section 17 of the Code Under the CIR Process a resolution plan is to be prepared and approved by the COC. Further the resolution plan approved by the COC will also need NCLT approval.

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (the Act) with respect to the preparation of these financial statements that give a true and fair view of the financial position financial performance (changes in equity) and cash flows of the Company in accordance with the accounting principles generally accepted in India including the accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so. Thus Board of Directors is also responsible for overseeing 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 financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

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

 Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the 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's report. However future events or conditions may cause the Company to cease to continue as a going concern.

 Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards. From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be 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 of the Companies Act 2013 we give in the Annexure-A a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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 best of our knowledge and belief were necessary for the purposes of our audit. However we doubt on the reasonability of justifications provided by the management.

(b) Except for the possible effects of matters described in the Basis of Qualified opinion paragraph above in our opinion proper books of account as required by the law have been kept by the company so far as it appears form our examination of the books.

(d) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(e) In our opinion the aforesaid financial statements except for the matters described in Basis of qualified opinion paragraph comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(f) On the basis of the written representations received from the directors as on 31st March 2019 taken on record by the Board of Directors none of the directors is disqualified as on 31st March 2019 from being appointed as a director in terms of Section 164(2) of the Act. (g) With respect of adequacy of Internal Financial controls refer to our separate Report in Annexure B.

(h) The matters described under basis of qualified opinion and Material Uncertainty Related to Going Concern paragraph above in our opinion may have adverse effect on functioning of the company and on amount disclosed in Financial Statements of the Company.

(i) 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 in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has not disclosed pending litigations which would impact its financial position

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred to the

Investor Education and Protection Fund by the Company

FOR PARTH SHAH AND ASSOCIATES

CHARTERED ACCOUNTANTS

Sd/-

CA PARTH SHAH

(PROPRIETOR)

M. No. 173468

FIRM REG.NO 0144251W

UDIN: 19173468AAAALH5563

PLACE: AHMEDABAD

DATE: 31.10.2019

Annexure A to the Independent Auditors' Report

Referred to in paragraph 1 under the heading `Report on Other Legal & Regulatory Requirement' of our report of even date to the financial statements of the Company for the year ended March 31 2019:

1) (a) The Company has maintained proper records showing full particulars of Fixed Assets.

(b) The Fixed Assets cannot be physically verified as they all are sold or written off during the year.

(c) The title deeds of immovable properties are held in the name of the company.

2) The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification during the year.

3) The Company has not granted any loans secured or unsecured to companies firms Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to the Company and hence not commented upon.

4) In our opinion and according to the information and explanations given to us the company has complied with the provisions of section 185 and I86 of the Companies Act 2013 In respect of loans investments guarantees and security.

5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 with regard to the deposits accepted from the public are not applicable.

6) As informed to us we have broadly reviewed the maintenance of Cost Records specified by the Central Government under sub-section (1) of Section 148 of the Act in respect of the activities carried on by the company. However we have not made a detailed examination of the same.

7) (a) According to information and explanations given to us and on the basis of our examination of the books of account and records the Company has been generally delayed in depositing undisputed statutory dues with the appropriate authorities. The quantification of the same cannot be made due to lack of information.

(b) The quantification of the dues of income tax sales tax service tax duty of customs duty of excise value added tax outstanding on account of any dispute cannot be made due to lack of information provided.

8) In our opinion and according to the information and explanations given to us the Company has defaulted in repayment of following dues :

NameAmount in crores
Bharat Finlease Ltd1.55
Centrum Financial Services Ltd5.77
Ghanshyam Vanar0.02
Jain Sons Finlease Ltd1.54
Pushpa Rajya Guru0.03
Veeram Ornaments Ltd0.10
PNB OD27.91

9) The company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.

10) Based upon the audit procedures performed and the information and explanations given by the management we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.

11) Based upon the audit procedures performed and the information and explanations given by the management the 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;

12) In our opinion the Company is not a nidhi Company. Therefore the provisions of clause 3 (xii) of the Order are not applicable to the Company.

13) In our opinion all transactions with the related parties are in compliance with section 177 and 188 of Companies Act 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.

14) Based upon the audit procedures performed and the information and explanations given by the management the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.

15) Based upon the audit procedures performed and the information and explanations given by the management the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.

16) In our opinion the company is not required to be registered under section 45 IA of the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.

FOR PARTH SHAH AND ASSOCIATES

CHARTERED ACCOUNTANTS

Sd/-

CA PARTH SHAH

(PROPRIETOR)

M. No. 173468

FIRM REG.NO 0144251W

UDIN: 19173468AAAALH5563

PLACE: AHMEDABAD

DATE: 31.10.2019

Annexure B to the Independent Auditor's Report of even date on the Standalone Financial Statements of Oasis Tradelink Limited (in CIRP)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (the Act)

We have audited the internal financial controls over financial reporting of OASIS TRADELINK LIMITED (in CIRP) (the Company) as of March 31 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls:

The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India [ICAI]. These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility:

Our responsibility is to express an opinion on the Company's internal financial controls 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 the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to the extent applicable to an audit of internal financial controls 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 and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.

The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting:

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting:

Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion:

According to the information and explanations given to us and based on our audit following material weakness have been identified in operating effectiveness of the company's internal financial controls over financial reporting as at March 31 2019 :

a. Balances of trade receivable trade payable other liabilities certain bank balances and loan & advances are subject to confirmation.

b. Statutory dues (Goods and Service Tax/VAT/Tax deducted at source) accounts are in process and there are delays in filing of certain statutory returns with the respective authorities. Company needs to strengthen internal control system in this regards.

c. The company internal process needs also need to strengthen in respect of closure of outstanding entries in Bank Reconciliation Statements.

d. The company internal process needs also need to strengthen in respect of inventories and its cost valuations.

e. There are large scale cash transactions accounted in the books which seems to be unreasonable. The company needs to curb these acquaintances to strengthen the internal management.

A material weakness is a deficiency or combination of deficiencies in internal financial controls over financial reporting such that there is a reasonable possibility that a material misstatement of Company's annual or interim financial statements will not be prevented or detected on timely basis.

In our opinion except for the possible effects / effects of material weakness described above under Qualified Opinion paragraph on the achievement of objectives company in all respects has an adequate internal financial controls.

We have considered material weakness identified and reported above in determination of the nature time and extent of audit tests applied in our audit of March 312019 financial statements.

FOR PARTH SHAH AND ASSOCIATES

CHARTERED ACCOUNTANTS

Sd/-

CA PARTH SHAH

(PROPRIETOR)

M. No. 173468

FIRM REG.NO 0144251W

UDIN: 19173468AAAALH5563

PLACE: AHMEDABAD

DATE: 31.10.2019

   

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