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OK Play India Ltd.

BSE: 526415 Sector: Industrials
NSE: N.A. ISIN Code: INE870B01016
BSE 00:00 | 25 May 32.15 -0.65
(-1.98%)
OPEN

33.90

HIGH

33.90

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32.00

NSE 05:30 | 01 Jan OK Play India Ltd
OPEN 33.90
PREVIOUS CLOSE 32.80
VOLUME 3789
52-Week high 51.25
52-Week low 18.75
P/E
Mkt Cap.(Rs cr) 62
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 33.90
CLOSE 32.80
VOLUME 3789
52-Week high 51.25
52-Week low 18.75
P/E
Mkt Cap.(Rs cr) 62
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

OK Play India Ltd. (OKPLAYINDIA) - Auditors Report

Company auditors report

To the Members of

OK PLAY INDIA LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the Standalone financial statements of OK PLAY INDIA LIMITED ("theCompany") which comprise the Balance Sheet as at March 31 2020 the Statement ofProfit and Loss (including Other Comprehensive Income) the Cash Flow Statement and theStatement of Changes in Equity for the year then ended and notes to the StandaloneFinancial Statements including a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "Ind AS Standalone FinancialStatements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS Standalone financial statements give the informationrequired by the Companies Act 2013 in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2020 its profit/(loss) totalcomprehensive income/loss its cash flows and the changes in equity for the year ended onthat date.

Basis of Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the "Auditor's Responsibilities for the Audit ofthe Standalone Financial Statements" section of our report. We are independent of theCompany in accordance with the "Code of Ethics" issued by the Institute ofChartered Accountants of India (ICAI) together with ethical requirements that are relevantto our audit of the Standalone Financial Statements under the provisions of the Act andthe Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with the requirements and the ICAI's Code of Ethics. We believe that the auditevidence obtained by us is sufficient and appropriate to provide a basis for our auditopinion on the Standalone Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matter described below to be thekey audit matter to be communicated in our report.

Key Audit Matter How the matter addressed in our audit
Valuation of Inventories
Refer to financial statement's Accounting Policies on Inventories in Note #1 related disclosure in Note # 5. To address the risk of material error on inventories our audit procedures included amongst other :
At the balance sheet date the value of inventory amount to Rs. 50.25 crore representing 23% of total assets and 85% of total equity. • Challenging the management with regard to the calculation methodology and the process with respect to inventory valuation.
Inventories were considered a key audit matter due to the size of the balance and due to the inventory valuation involves management judgement. According to the financial statement's accounting policies raw material and related accessories are measured at cost and finished goods and WIP inventories are measured at the lower of cost or net realizable value. • Assessing the adequacy of and movement in inventory by checking a sample items to ensure appropriate basis of valuation
The Company has significant levels of inventories and significant management judgments are taken with regard to categorization of inventories into obsolete and/or slow moving and which should be therefore be considered for provision. Estimates are then involved in arriving at provisions against cost in respect of slow moving and obsolete inventories to arrive at valuation based on lower of cost and net realizable value. Given the level of significant management judgments and estimates involved this is considered to be a key audit matter. • Evaluating on a sample basis whether inventories were stated at lower of cost or net realizable value at the reporting date by comparing with the sale prices of same kind of goods.
• Evaluating the appropriateness of the assumptions used based on our knowledge and information of the client and the industry
Recoverability assessment of Receivable
The Company has a receivable of Rs. 30.23 crore as at the balance sheet date which includes trade and other receivable. We have performed the following procedures in relation to the recoverability of receivables:
Trade receivables of the company mainly in relation to sales of goods in the ordinary course of business. • Tested the accuracy of aging of trade receivables at year end on a sample basis;
The increasing challenges over the economy and operating environment in the industry have increased the risks of default on receivables from the customers. In particular in the event of insolvency of customers the Company is exposed to potential risk of financial loss. • Obtained a list of outstanding receivables and identified any debtors with financial difficulty through discussion with management
The recoverable amount was estimated by management based on their specific recoverability assessment on individual debtor with reference to the aging profile historical payment pattern and the past record of default of the customer. Management would make specific provision against individual balances with reference to the recoverable amount. • Assessed the recoverability of the unsettled receivables on a sample basis through our evaluation of management's assessment of the credit profile of the customers historical payment pattern of customers and latest correspondence with customers and to consider if any additional provision should be made; and
For the purpose of impairment assessment significant judgments and assumptions including the credit risks of customers the timing and amount of realization of these receivables are required for the identification of impairment events and the determination of the Impairment charge. • Tested subsequent settlement of trade receivables after the balance sheet date on a sample basis.
We found the key judgments and assumptions used by management in the recoverability assessment of receivables to be majorly supportable based on the available evidence.

Information Other than the Standalone 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 standalone financial statements and our auditor's report thereon.

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

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Ind AS Financial Statements

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 Standalone financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with Companies (Indian Accounting Standards) Rules2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls and ensuring their operating effectiveness and the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters relating to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for the Audit of Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

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

Identify and assess the risks of material misstatement of the standalone 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 financial controls 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 the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materially 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 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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when 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 "Annexure A" a statement on the matters specified inparagraphs 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 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 other comprehensiveincome the

Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are inagreement with the relevant books of account maintained for the purpose of preparation ofthe Standalone Financial Statements;

d. In our opinion the aforesaid Standalone financial statements comply with the Ind ASspecified under Section 133 of the Act read with Rule 7 of the Companies (IndianAccounting Standards) Rules 2015 as amended;

e. On the basis of written representations received from the directors as on March 312020 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 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 tothe financial statement of the Company and the operating effectiveness of such controlswe give our separate Report in "Annexure B".

g. With respect to the other matters to be included in the Auditor's report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provision of section 197 of the Act.

(3) 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 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its

Standalone financial statements as referred to in Note 28(1) to the Standalonefinancial statements.

ii. The Company did not have any material foreseeable losses on long term contractsincluding derivative contracts;

iii. There were no amounts which were required to be transferred to the InvestorEducation and

Protection Fund by the Company.

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

With reference to the Annexure A referred to in the Independent Auditors' Report to themembers of the Company on the standalone financial statements for the year ended 31 March2020 we report the following:

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

(b) The fixed assets are physically verified by the management according to a phasedprogramme designed to cover all items over a period which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. Pursuant to theprogramme a portion of the fixed assets has been physically verified by the managementduring the year and no material discrepancies have been noticed on such verification.

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.

(ii) The inventories have been physically verified during the year by the management.In our opinion the frequency of verification is reasonable. In our opinion and accordingto the information and explanations given to us the Company has maintained proper recordsof its inventories and no material discrepancies were noticed on physical verification.

(iii) According to the information and explanations given to us the Company has notgranted during the year secured or unsecured loans to Companies firms or other partiescovered in the register maintained under section 189 of the Companies Act 2013.Accordingly clause (iii) (a) (b) and (c) of the order are not applicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public. Therefore the provisions of clause(v) are not applicable to the company.

(vi) According to the information and explanations given to us the Central Governmenthas prescribed maintenance of cost records under section 148(1) of the Companies Act 2013in respect of manufacturing activities of the company. We have broadly reviewed theaccounts and records of the company in this connection and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever carried out a detailed examination of the same.

(vii) a) According to the records of the Company the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees state insurance income tax goods and service tax duty of customs cessand other material statutory dues applicable to it except for the following :

Nature of Statutory Due Period Total Liability Due Date Date of Deposit
Provident Fund Contribution Aug-19 773867 15-Sep-19 18-Dec-19
Sep-19 759413 15-Oct-19 18-Dec-19
Oct-19 736875 15-Nov-19 20-Dec-19
Nov-19 703115 15-Dec-19 20-Dec-19
Feb-20 707286 15-May-20 Pending
Mar-20 766384 15-May-20 Pending
Employee State Insurance Aug-19 44747 15-Sep-19 17-Dec-19
Sep-19 44684 15-Oct-19 17-Dec-19
Oct-19 42980 15-Nov-19 17-Dec-19
Nov-19 38590 15-Dec-19 17-Dec-19
Mar-20 38413 15-May-20 15-Jul-20
Labour Welfare Fund Contribution Year 2019 119718 30-Jun-20 16-Jul-20
TDS Deposit Jun-19 552300 7-Jul-19 7-Aug-19
Jul-19 5189 7-Aug-19 7-Sep-19
Aug-19 210 7-Sep-19 16-Sep-19
Aug-19 3590808 7-Sep-19 31-Oct-19
Sep-19 127002 7-Oct-19 1-Nov-19
Jun-19 22092 7-Jul-19 23-Nov-19
Oct-19 27419 7-Nov-19 7-Dec-19

b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income Tax Goods and Service Tax Customs Duty Cess and other materialstatutory dues in arrears as at March 31 2020 for a period of more than six months fromthe date they became payable.

c) According to the information and explanations given to us there are no materialdues of income tax service tax duty of customs duty of excise value added tax goodsand service tax and cess which have not been deposited with the appropriate authoritieson account of any dispute.

(viii) According to the information and explanations given to us the Company has notdefaulted in the repayment of dues to financial institutions and banks.

(ix) According to the information and explanations given to us the Company has raisednew term loans during the year but has not raised any money by way of initial public offeror further public offer (including debt instruments). The term loans outstanding at thebeginning of the year and those raised during the year have been applied for the purposefor which the loans were raised.

(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) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Ind AS financial statements etc. as required bythe applicable accounting standards.

(xiv) According to the information and explanations given 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. Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(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) ofthe Order is not applicable.

(xvi) In our opinion and according to the information and explanations provided to usthe Company is not required to be registered under Section 45-IA of the Reserve Bank ofIndia Act 1934.

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls with reference to standalone financialstatements of OK India Limited (‘the Company') as of 31 March 2020 in conjunctionwith our audit of the Standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to the financial statementcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (‘ICAI'). 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 the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to the financial statement based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the ‘Guidance Note') and the Standards on Auditing issued byICAI and deemed to be prescribed under Section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls with reference to the financial statements wereestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to the financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tothe financial statements included obtaining an understanding of internal financialcontrols with reference to the financial statements assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS 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 the financial statements.

Meaning of Internal Financial Controls with reference to these Standalone FinancialStatements

A company's internal financial control with reference to these Standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial control with reference to the financial statements includes those policies andprocedures that:

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of the Management and directors of the Company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to the FinancialStatements

Because of the inherent limitations of internal financial controls with reference tothe financial statements 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 the financial statements to future periods are subject to the risk that theinternal financial control with reference to the financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures 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 the financial statements and such internal financial controlswith reference to the financial statements were operating effectively as at 31 March 2020based on the internal financial controls with reference to the financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note issued by the Institute of Chartered Accountants ofIndia.

For D. S. CHADHA & ASSOCIATES
Chartered Accountants
Firm Registration No.: 026723-N
Sd/-
Place : New Delhi POOJA GARG
Dated: 07th August 2020 Partner
UDIN: 20404676AAAAAD8196 Membership Number : 404676

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