THE MEMBERS OF
ORIENTAL TRIMEX LIMITED
REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS
We have audited the accompanying Ind AS financial statements of ORIENTAL TRIMEX LIMITEDwhich comprise 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 ofChanges in Equity for the year ended on that date and a summary of significant accountingpolicies and other explanatory information (hereinafter referred to as "Ind ASFinancial Statements)
MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE 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 preparation ofthese Ind AS financial statements that give a true and fair view of the state of affairs(financial position) profit (financial performance including other comprehensive income)cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding 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 financial internal controlsand ensuring their operating effectiveness and the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with the ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. 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. In making those riskassessments the auditor considers the internal financial control relevant to theCompany's preparation of the Ind AS financial 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 accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the Ind AS financial statements.
BASIS FOR QUALIFIED OPINION
a) The Company has not made adequate provision for Doubtful Receivables since theprovision has been made at full value of doubtful receivables in case of certain partiesand at nil value in case of other parties according to management perception. (Refer Note6.2)
b) The Company has not made adequate provision for Doubtful Advances since theprovision has been made at full value of doubtful receivables in case of certain partiesand at nil value in case of other parties according to management perception. (Refer Note9.1)
In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph the aforesaid Ind AS 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 including the Ind AS of the state ofaffairs (financial position) of the Company as at 31 st March 2018 it's profit(financial performance including other comprehensive income) it's cash flows and changesin equity for the year ended on that date
The comparative financial information of the Company for the year ended 31st March2017 and the transition date opening balance sheet as at 1 st April 2016 included inthese Ind AS financial statements are based on the previously issued statutory financialstatements prepared in accordance with the Companies (Accounting Standards) Rules 2006audited by another auditor whose reports for the years ended 31st March 2017 and 2016expressed an unmodified opinion on those financial statements as adjusted for thedifferences in the accounting principles adopted by the Company on transition to the IndAS which have been audited by us.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1) As required bythe 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 in paragraphs 3 and4 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 purpose of our audit;
b) In our opinion proper books of account as required by law have been kept by thecompany so far as appears from our examination of the books;
c) The Balance Sheet the Statement of Profit and Loss Cash Flow Statement ANDStatement of Changes in Equity dealt with in this report are in agreement with the booksof account;
d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 to the extent applicable.
e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record bythe Board of Directors none of the directors isdisqualified as on 31 st March 2018 from being appointed as a director in terms ofSection 164(2) of the Act.
f) With respect to adequacy of the internal financial controls over financial reportingof the Company and the operating effectivenesss of such controls we give our separatereport in Annexure - B.
g) 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 Ind AS financial statements - Refer Note 22 (I) (A).
(ii) The Company has not entered into any long term contracts including derivativecontracts requiring provision under the applicable law or accounting standards formaterial foreseeable losses.
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund bythe Company.
For MEHRA WADHWA & CO.
(FRN : 004749N)
ROHIT WADHWA F.C.A.
MAY 30 2018
ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in Paragraph 1 underReport on Other Legal and RegulatoryRequirements'section of our report of even date)
1 a) The Company is in the process of updating it's records showing full particularsincluding quantitative details and situation of its fixed assets.
b) We are informed that physical verification of the assets was conducted by themanagement at reasonable intervals in a phased manner and no material discrepancies werenoticed on such verification.
c) According to the information and explanations given to us the title deeds ofimmovable properties of the Company are held in the name of the Company.
2 a) We are informed that stocks of finished goods stores spare parts and rawmaterial have been physically verified bythe management at reasonable intervals b) In ouropinion and according to the information and explanations given to us the discrepanciesnoticed on physical verification of stocks as compared to book records were not materialand the same have been adequately dealt with in the books of account.
3 a) Except for certain advances the company has not granted any loans secured orunsecured to companies firms or other parties covered in the register maintained undersection 189 of the Companies Act.
b) The advances are interest free and receivable on demand. Therefore there is noquestion of receipt of principal and interest.
c) There is no overdue amount.
4. 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 Companies Act 2013in respect of loans investments guarantees and security.
5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the provisions of sections 73to 76 or any other relevant provisions of the Companies Act and the rules framedthereunder.
6. We have broadly reviewed the books of account maintained bythe Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148 (1) of the Companies Act 2013 and are of the opinion that prima facie the specifiedaccounts and records have been made maintained. We have not however made a detailedexamination of the same.
7 a) According to the records of the Company the Company is generally not regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax wealth tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues whichever are applicable with theappropriate authorities.
The extent of the arrears of undisputed outstanding statutory dues as at the last dayof the financial year concerned for a period of more than six months from the date theybecame payable
|Nature of Statutory Dues ||Year Ended 31.03.2018 ||Year Ended 31.03.2017 |
| ||(Rs. in Lacs) ||(Rs. in Lacs) |
|Provident Fund ||17.01 ||15.32 |
|Employee State Insurance ||2.16 ||2.05 |
|Income Tax ||110.72 ||114.47 |
|Sales Tax ||152.11 ||197.23 |
|Other Dues ||6.48 ||112.79 |
| ||288.48 ||441.86 |
b) According to the records of the Company the dues outstanding of income tax salestax wealth tax service tax custom duty excise duty and cess on account of any disputeare as follows:
|Particulars ||Amount ||Forum where pending ||Deposit |
| ||(Rs. in Lacs) || ||(Rs. in Lacs) |
|Sales Tax (Tax/Penalty/Interest) || || || |
|FY: 2006-07 ||1.29 ||Commissionerate ||0.28 |
|FY: 2009-10 ||7.10 ||Commissionerate ||1.42 |
|Chennai Concor ||2.25 ||Commissionerate ||2.25 |
|FY: 2010-11 ||9.27 ||Commissionerate || |
|FY: 2011-12 ||23.36 ||Commissionerate || |
|FY: 2011-12 ||26.43 ||Commissionerate || |
|FY: 2014-15 ||1.00 ||Commissionerate || |
|Rairangpur ||0.20 ||Commissionerate ||0.20 |
| ||70.90 || ||4.15 |
|TDS (Short Deduction/ Interest/ Penalty for late deposit of TDS) FY: 2010-11 ||20.08 ||CIT(A) || |
|Custom Duty (Tax/ Penalty/ Interest) ||6.42 ||Calcutta High Court ||3.78 |
8 The company has defaulted in repayment of dues to banks and financial institutions asdetailed hereunder. Period and amount of continuing default as on the balance sheet datein repayment of loans and interest is stated below.
|SECURED SHORT-TERM BORROWINGS ||2017-18 ||2016-17 |
|Loans Repayable on Demand || || |
|From other than banks (ARCH) (Rs. in Lacs) ||590.00 ||390.00 |
|Period of Default (months) ||9 to 15 ||3 to 12 |
9 During the year there were no moneys raised by way of initial public offer orfurther public offer and term loans.
10 Based on audit procedures performed and according to the information andexplanations given to us no fraud on or by the Company was noticed or reported during theyear.
11 In our opinion the managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Companies Act 2013.
12 In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) are not applicable to the Company.
13 According to the information and explanations given to us and based on ourexamination of the records of the Company transactions entered into by the Company withthe related parties are in compliance with Section 177 of the Act.
During the year the company has entered into transactions of purchases and sales ofgoods from/to related parties exceeding 10% of total turnover of the company. The purchaseand sale is in the normal course of business of the Company. However we are unable tocomment whether such transactions have been carried out at arm's length price consideringthe quality time of delivery and other parameters of the goods being a technical matter.However the management has certified that all the purchases and sales from/to relatedparties are at arms length price.
All the details have been disclosed in the financial statements as required by theapplicable accounting standards.
14 During the year the Company has made a preferential allotment of euity sharesthrough conversion of warrants during the year. In our opinion and to the best of ourinformation and according to the explanations given to us by the management therequirements of section 42 of the Companies Act 2013 have been complied with and theamounts raised have been used for the purpose for which the funds were raised.
15 In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith the Directors.
16 In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-1A of the Reserve Bank of IndiaAct 1934.
For MEHRA WADHWA & CO.
(FRN : 004749N)
ROHIT WADHWA F.C.A.
MAY 30 2018