The Members of Oriental Veneer Products Limited Report on the Standalone FinancialStatements
We have audited the accompanying standalone financial statements of Oriental VeneerProducts Limited ("the Company") which comprise the Balance Sheet as at March31 2018 the Statement of Profit and Loss Statement including Statement of the OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "Standalone FinancialStatement.").
Management's Responsibility for the Standalone 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 Standalone Financial Statements that give a true and fair view of the FinancialPosition Financial Performance including Other Comprehensive Income Cash Flows and theStatement of Changes in Equity of the company in accordance with accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and
prudent; and the design implementation and maintenance of adequate internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the StandaloneFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Standalone Financial Statementsbased 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 ofthe Standalone Financial Statements in accordance with the Standards on Auditing issuedby the Institute of Chartered Accountants of India as specified under Section 143(10) ofthe Act. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the standalone FinancialStatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Standalone Financial Statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error. In making those riskassessments the
auditor considers internal financial control relevant to the Company's preparation ofthe Standalone Financial Statements that give a true and fair view in order to designaudit 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 Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the Standalone Financial Statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2018 its Profit including Other comprehensive Income its Cash Flows and theStatement of Changes in Equity for the year ended on that date.
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 the 'Annexure-A' a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act we further 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 those books;
c. The standalone Balance Sheet the standalone Profit and Loss Statement and thestandalone Cash Flow Statement dealt with by this Report are in agreement with the booksof account.
d. In our opinion the aforesaid Standalone Financial Statements comply with applicableAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;
e. On the basis of written representations received from the directors as on March 312018 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2018 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in 'Annexure B'. Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
g. In our opinion and to the best of our information and according to the explanationgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements as referred to in Note 37 to standalone financialstatements.
(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.
(iii) There has not been an occasion in case of the company during the year underreport to transfer any sums to the Investor Education and Protection Fund. The question ofdelay in transferring such sums does not arise.
For Amarnath Sharma & Co.
Firm Registration No. 100300W
Amar Nath Sharma
Membership No. 039579
Date:- May 24 2018
ANNEXURE 'A' TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under the heading "Report on other legal andregulatory requirements" of our report of even date.)
i a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b. The Company has a regular programme for physical verification in a phased periodicmanner which in our opinion is reasonable having regards to the size of the Company andthe nature of its assets. No material discrepancies were noticed on such verification.
c. According to information and explanations given by the management the titledeeds/lease deeds of immovable properties included in Property Plant and Equipment areheld in the name of the Company.
ii The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.
iii a. The Company has granted loans to one company covered in the register maintainedunder section 189 of the Companies Act 2013. The terms and conditions of loan which inour opinion and according to the information and explanations given to us the terms andconditions are generally not prejudicial to the Company's interest.
b. As per information and explanation given to us the principal/interest amounts arerepayable on demand and there is no repayment schedule.
c. As per information and explanation given to us the principal/interest amounts arerepayable on demand and hence the amount has not overdue for more than 90 days.
iv In our opinion and according to the information and explanations given to us andconsidering the legal opinion taken by the Company on applicability of section 185 andsection 186 of the Companies Act 2013 and the Company has complied with the provisions ofsection 185 of the Companies Act 2013. Further based on the information and explanationsgiven to us being an infrastructure company provision of section 186 of the CompaniesAct 2013 is not applicable to the Company and hence not commented upon.
v The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3(v) of the Order are not applicable to the Company.
vi We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 prescribed by the central government undersection 148(1)(d) of the Companies Act 2013 and are of the opinion that Prima Facie theprescribed accounts and cost records have been maintained. we have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.
vii a. According to Information and explanation given to us undisputed statutory duesincluding Provident Fund Employees State Insurance Income Tax Sales Tax Wealth TaxService Tax Duty of Customs Duty of Excise Value added Tax Cess and other materialstatutory dues have generally regularly deposited with the appropriate authorities thoughthere has been a slight delay in a few cases.
b. According to the information and explanations provided to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income- Tax ServiceTax Sales-Tax Goods and Services Tax Duty of Custom Duty of Excise Value Added TaxCess and Other Statutory Dues were outstanding at the year end for a period of more thansix months from the date they became payable except as below;
|Name of Statute ||Nature of Dues ||Period to ||Amount (Rs.) ||Remarks If any |
|GST Act 2017 ||GST ||August 2017 to October 2017 ||411172 ||Company has not paid GST under RCM due to non clear of certain notification under GST. |
|Income Tax Act 1961 ||Advance Tax ||June 2017 to September 2017 ||21724091 ||Company has not paid advance tax for the first & second quarter of the F.Y.2017-18 but has paid Rs. 4 Crore in the fourth quarter of the F.Y.2017-18. |
|Income Tax Act 1961 ||DDT ||Financial Year 201617 ||2194676 ||Company has not paid DDT of the F.Y.2016-17 |
c. As per information and explanation provided to us the following are the details ofdisputed Tax liabilities and
the forum in which they are pending [referred in Note 39 to the standalone financialstatement] :
|Financial Year ||Amount (Rs.) ||Type of Liability ||Forum Where Dispute is Pending |
|1997-98 ||1427168 ||Central Excise ||Appeal Filed with Custom Excise and Service Tax Appellate Tribunal Mumbai |
viii In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to banks. The Companydoes not have any loans or borrowings from financial institutions or government and hasnot issued any debentures.
ix Based on the information and explanations given to us by the management the companyhas raised new term loans during the year. The term Loans outstanding at the beginning ofthe year and those raised during the year have been applied for the purposes for whichthey were raised.
x To the best of our knowledge and according to the information and explanations givento us no fraud by the Company and no fraud on the Company by its officers or employeeshas been noticed or reported during the year.
xi In our opinion and according to the information and explanations given to us theCompany has not paid / provided any managerial remuneration during the year and hencereporting under clause 3 (xi) of the Order is not applicable.
xii The Company is not a Nidhi Company and hence reporting under clause 3(xii) of theOrder is not applicable.
xiii In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards.
xiv During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3(xiv) of the Order is not applicable to the Company.
xv In our opinion and according to the information and explanations given to us duringthe year the Company has not entered into any non-cash transactions with its Directors orpersons connected to its Directors and hence provisions of Section 192 of the Act are notapplicable.
xvi The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.
For Amarnath Sharma & Co. Chartered Accountants Firm Registration No. 100300W
Amar Nath Sharma Proprietor
Membership No. 039579 Date:- May 24 2018 Place:-Mumbai
ANNEXURE B' TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ('the Act')
We have audited the internal financial controls over financial reporting of OrientalVeneer Products Limited ("the Company") as of March 31 2018 in conjunction withour audit of the Standalone Financial Statements of the Company for the year ended on thatdate.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (the 'Guidance Note'). 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 Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Standards on Auditing prescribed under Section 143(10) of the Act and theGuidance Note to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with the ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgment including the assessment of the risks ofmaterial misstatement of the 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 systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures 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 authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
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 over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.
For Amarnath Sharma & Co.
Firm Registration No. 100300W
Amar Nath Sharma Proprietor
Membership No. 039579 Date:- May 24 2018 Place:-Mumbai