Opal Luxury Time Products Ltd.
|BSE: 500504||Sector: Others|
|NSE: OPAL||ISIN Code: INE520N01012|
|BSE 05:30 | 01 Jan||Opal Luxury Time Products Ltd|
|NSE 05:30 | 01 Jan||Opal Luxury Time Products Ltd|
Opal Luxury Time Products Ltd. (OPAL) - Auditors Report
Company auditors report
To the Members of
OPAL LUXURY TIME PRODUCTS LIMITED
Report on the Financial Statements
We have audited the accompanying Standalone financial statements of OPALLUXURY TIME PRODUCTS LIMITED ("the Company") which comprise the BalanceSheet as at March 31 2018 the Statement of Profit and Loss Cash FlowStatement for the year then ended and a summary of significant accounting policies andother explanatory information being submitted by the company pursuant to the requirementof Regulation 33 of SEBI (Listing Obligation and Disclosure requirements) Regulations2015.
Management's Responsibility for the Standalone FinancialStatements
The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these (Standalone) financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records 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 Standalonefinancial statements based on our audit.
We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. 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 aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of the accounting estimates made by the Company's Directorsas well as evaluating the overall presentation of the financial statements. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the Standalone financial statements
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:
a. In case of Balance Sheet of the state of affairs of the Company ason 31st March 2018;
b. in case of the Statement of Profit and Loss of the loss for theyear ended on that date; and
c. In case of the Cash Flow Statement of the cash flows for the yearended on that date.
Emphasis of Matters
We draw attention to the company's policy pertaining to the following:
Non-provision of slow and non-moving stock in excess of 365 daysoutstanding as on date due to the reasons as mentioned.
Non-provision of long standing trade receivables despite beingoutstanding for more than one year under the pretext that the same are recoverable in thenormal course of business and ascertained to be recoverable from the customers
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016("the Order") as amended issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Act we give in the "Annexure A"a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act we report that: a. wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b. in our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;
c. the Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this
Report are in agreement with the books of account;
d. in our opinion the aforesaid Standalone financial statements complywith the Accounting
Standards specified under section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014;
e. On the basis of written representations received from the directorsas on March 31 2018 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2018 from being appointed as a director in terms of Section164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls overfinancial reporting of the
Company and the operating effectiveness of such controls refer to ourseparate Report in
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 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impactits financial position.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to theInvestor Education and
Protection Fund by the Company.
"Annexure A" to the Independent Auditors' Report
Referred to in paragraph 1 under the heading Report on OtherLegal & Regulatory Requirement' of our report of even date to the financial statementsof the Company for the year ended March 31 2018:
1) (a) The Company is in the process of updating the fixed assetregister to show full particulars including quantitative details and situation of fixedassets at vendor places during the year the company has carried out an independent reviewof moulds situated at factory and vendor places.
(b) The Fixed Assets have been physically verified by the management ina phased manner designed to cover all the items over a period of three years which inour opinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name of thecompany.
2) a) The management has conducted the physical verification ofinventory at reasonable intervals.
b) The Procedures of physical verification of inventory followed by themanagement are reasonable and adequate in relation to size of the Company and nature ofits business.
c) As explained to us the company has been maintaining completerecords of inventories as per the Statutory Rules. As informed Management has physicallyverified all major items and the discrepancies noticed on verifications were appropriatelydealt with. However looking at the size of operation of the company in above opinion thecompany needs to maintain more detailed stock records in order to have better idea as tothe utilization and maintenance of stocks.
3) The Company has not granted any loans secured or unsecured tocompanies firms Limited Liability partnerships or other parties covered in the Registermaintained 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 explanationsgiven to us the company has complied with the provisions of section 185 and 186 of theCompanies Act 2013 In respect of loans investments guarantees and security.
5) The Company has not accepted any deposits from the public and hencethe directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76or 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) We have broadly reviewed the books of accounts maintained by theCompany in respect of products where pursuant to the rules made by the Central Governmentof India the maintenance of cost records has been prescribed under specified undersection 148(1) of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. We however have not made a detailedexamination of the records with a view to determine whether they are accurate or complete.
7) a) According to information and explanations given to us and on thebasis of our examination of the books of account and records the Company has beenirregular in depositing undisputed statutory dues including Provident Fund EmployeesState Insurance Income-Tax Sales tax Service Tax Duty of Customs Duty of ExciseValue added Tax Cess and any other statutory dues with the appropriate authoritieshowever at the year end the following statutory dues for a period of more than sixmonths are outstanding from the date on when they become payable:
b) According to the information and explanation given to us there areno dues of income tax sales tax service tax duty of customs duty of excise valueadded tax outstanding on account of any dispute.
c) There were no amount which was required to be transferred to theInvestor Education and Protection Fund by the Company in accordance with the relevantprovisions of the Companies Act and rules made there under.
8) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in the repayment of dues to banks. However ason March 31 2018 Letter of Credit (LC) aggregating Rs. 482.20 lakhs were lying devolveddue to delay in payment by the company. The Company has not issued any debentures.
9) Based upon the audit procedures performed and the information andexplanations given by the management the company has not raised moneys by way of initialpublic 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 theCompany and hence not commented upon.
10) Based upon the audit procedures performed and the information andexplanations given by the management we report that no fraud by the Company or on thecompany by its officers or employees has been noticed or reported during the year.
11) Based upon the audit procedures performed and the information andexplanations given by the management the managerial remuneration has been paid orprovided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Companies Act;
12) In our opinion the Company is not a Nidhi Company. Therefore theprovisions of clause 4 (xii) of the Order are not applicable to the Company.
13) In our opinion all transactions with the related parties are incompliance with section 177 and 188 of Companies Act 2013 and the details have beendisclosed in the Financial Statements as required by the applicable accounting standards.
14) Based upon the audit procedures performed and the information andexplanations given by the management the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly the provisions of clause 3 (xiv) of the Order are notapplicable to the Company and hence not commented upon.
15) Based upon the audit procedures performed and the information andexplanations given by the management the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly the provisions ofclause 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 undersection 45 IA of the Reserve Bank of India Act 1934 and accordingly the provisions ofclause 3 (xvi) of the Order are not applicable to the Company and hence not commentedupon.
"Annexure B" to the Independent Auditor's Report of even dateon the Standalone Financial Statements of Opal Luxury Time Products Limited"
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of Opal Luxury Time Products Limited ("the Company") as of March 312018 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.
The Company's management is responsible for establishing andmaintaining internal financial controls 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 overFinancial Reporting issued by the Institute of Chartered Accountants of India. 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 company's policies the safeguarding ofits 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.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance 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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
According to the information and explanations given to us and based ouraudit the following material weaknesses have been identified in the operatingeffectiveness of the holding Company's internal financial controls over financialreporting as at March 31 2018
- The Company did not have an appropriate internal control system forinventory valuation and verification commensurate with its size of operation.
A material weakness' is a deficiency or a combination ofdeficiencies in internal financial control over financial reporting such that there is areasonable possibility that a material misstatement of the company's annual or interimfinancial statements will not be prevented or detected on a timely basis.
We have considered the material weaknesses identified and reportedabove in determining the nature timing and extent of audit tests applied in our audit ofthe March 31 2018 financial statements of the Company and these material weakness haveaffected our opinion on the financial statements of the Company we have issued a qualifiedopinion on the financial statements. For and on behalf of
Bharat J Rughani & Co
Firm's registration number: 101220W
CA Akash Rughani
Membership number: 139664 Place: Pune Date: 29th May 2018