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Oscar Investments Ltd.

BSE: 501179 Sector: Financials
NSE: N.A. ISIN Code: INE221D01018
BSE 00:00 | 22 Feb 16.85 -0.30
(-1.75%)
OPEN

16.85

HIGH

16.85

LOW

16.85

NSE 05:30 | 01 Jan Oscar Investments Ltd
OPEN 16.85
PREVIOUS CLOSE 17.15
VOLUME 850
52-Week high 176.95
52-Week low 16.85
P/E
Mkt Cap.(Rs cr) 29
Buy Price 28.50
Buy Qty 1.00
Sell Price 17.15
Sell Qty 100.00
OPEN 16.85
CLOSE 17.15
VOLUME 850
52-Week high 176.95
52-Week low 16.85
P/E
Mkt Cap.(Rs cr) 29
Buy Price 28.50
Buy Qty 1.00
Sell Price 17.15
Sell Qty 100.00

Oscar Investments Ltd. (OSCARINVESTMENT) - Auditors Report

Company auditors report

To the Members of

Oscar Investments Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of OscarInvestments Limited ('the Company') which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

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 in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the 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.

Basis for Qualified Opinion

As mentioned in Note 31(e) to the financial statements the Company has not madeprovision for interest amounting to Rs 2783.34 lakhs on short term borrowings fromrelated parties and other bodies corporate. Had the company provided for the same thefinance cost would have been increased by Rs 2783.34 lakhs and loss for the year andshareholders funds would have been reduced by Rs 2783.34 lakhs.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of matters described in the paragraph underthe Basis for Qualified Opinion the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India;

a) In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2018.

b) In the case of the Statement of Profit & Loss of the loss for the year ended onthat date; and

c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Emphasis of Matters

1. We draw attention to Note 31 (d) in the financial statements regarding the nonprovision of interest income on loans classified as non - performing assets in view of thePrudential norms prescribed by RBI. The amount of such loans outstanding at the year endaggregate to Rs 112621.41 lakhs and the interest income not accounted aggregates to Rs15352.49 lakhs.

2. The Company Secretary has resigned during the year and the Company is in the processof appointing a Company Secretary as required under the provisions of the Companies Act2013.

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 and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the Annexure A a statement on the matters specified in the paragraph 3 and 4 ofthe Order.

2. As required by Section 143 (3) of the Act we report that:

(a) we have sought and except for the matters described in the 'Basis of QualifiedOpinion' paragraph obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit;

(b) except for the possible effects of paragraph on matters described in the 'Basisfor Qualified Opinion' above in our opinion proper books of account as required bylaw have been kept by the Company so far as it appears from our examination of thosebooks;

(c) the balance sheet the statement of profit and loss and the cash flow statementdealt with by this Report are in agreement with the books of account;

(d) except for the possible effects of paragraph on matters described in the 'Basisfor Qualified Opinion' in our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014;

(e) the matters described in the Basis for Qualified Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the Company;

(f) on the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act;

(g) the qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified Opinion paragraph above;

(h) 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"; and

(i) 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 financial statements - (Refer Note 31(b) 31(c) and 31(f) to the financialstatements);

ii) the Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii) there was no amounts required to be transferred to the Investor Education andProtection Fund by the Company.

For M. S. Sekhon & Co.
Chartered Accountants
ICAI Registration No. 003671N
Sd/-
(Rajiv Tandon)
Place : New Delhi Partner
Dated : 6th June 2018 Membership No. 087343

Annexure - A to the Auditors' Report

(Referred to in Paragraph (1) under the heading "Report on the Legal andRegulatory Requirement" 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 of physical verification of its fixed assets bywhich fixed assets are verified at reasonable interval. In accordance with this programmecertain fixed assets were verified during the year and no discrepancies were noticed onsuch verification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets.

c) 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 Company being Non Banking Finance Company (NBFC) does not have any inventoryand thus clause 3(ii) of the Companies (Auditors' Report) Order 2016 is not applicable tothe Company.

(iii) The Company has granted loans to bodies corporate covered in the registermaintained under section 189 of the Companies Act 2013 ('the Act').

According to the information and explanation given to us we are of the opinion thatthe terms and conditions of unsecured loans given by the Company to two Companies coveredin the register maintained under section 189 of the Companies Act 2013 are prejudicial tothe interest of the Company as the Company has not charged interest on the aforesaid loanswhich have been classified as non - performing assets. The outstanding amount of suchloans as on 31st March 2018 is Rs 7143.21 lakhs.

In the case of the loans given by the company these are repayable on demand andtherefore the question of overdue amount does not arise.

(iv) In our opinion according to the information and explanations given to us theCompany has not given any loan guarantee or security to or on behalf of any of theDirectors as stipulated under section 185 of the Act and the Company has complied withprovisions of section 186 of the Companies Act 2013 in respect of the loans andinvestments made.

(v) Based on our scrutiny of the Company's records and according to the information andexplanations given to us in our opinion the Company has not accepted deposits from thepublic in terms of the provisions of the section 73 to 76 or any other relevant provisionsof the Act and the rules framed there under.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income-taxsales tax and other statutory dues as applicable have been generally regularly depositedduring the year by the Company with the appropriate authorities. As explained to us theCompany did not have any dues on account of employees' state insurance custom dutyexcise duty and cess.

b) As at 31st March 2018 the following are the particulars of statutory dues that havenot been deposited on account of any dispute;

Name of Statute Nature of Dues Forum where the dispute is pending Period to which the amount relates (Financial Year) Amount involved (Rs in lakhs)
Service Tax Service Tax on legal services # 2012 -13 0.19
Service Tax Service Tax on legal services # 2013-14 3.89
Service Tax Service Tax on legal services # 2014-15 12.61
Service Tax Service Tax on legal services # 2015-16 0.75
Service Tax Service Tax on legal services # 2016-17 242.26
Service Tax Service Tax on legal services # 2017-18 201.74

# Stay order by Hon'ble High Court of Delhi against the levy of service tax on legalservices and hence not deposited by the company.

(viii) The Company has defaulted in repayment of Rs 56500.00 lakhs (Principalamount) in respect of loan availed from Yes Bank Ltd. The default occurred on 20th July2017 being the date on which the credit facility granted to the Company was recalled bythe Bank and this was not settled till 31st March 2018 and accordingly the period ofdefault is 7 months.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the order is not applicable.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid managerial remuneration inaccordance with the provisions of 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 have beengenerally entered into by the Company in its ordinary course of business on an arm'slength basis except for transactions relating to loans given to six related parties duringthe year on which no interest has been charged. The outstanding amount of such loans onwhich interest has not been charged as at the end of the year aggregate to Rs 112603.70lakhs.

The detail of related party transactions has been disclosed in the financial statementsas required by the applicable accounting standard.

(xiv) According to the information and explanations give 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.

(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) According to the information and explanation given to us and based on ourexamination of the records of the Company the Company being a NBFC is required to beregistered under section 45-IA of the Reserve Bank of India Act 1934. The registration asrequired has been duly obtained and the registration number issued to Company isB-14.01958 dated 7th September 2000. However the Company is not in compliance with theminimum Net Owned Fund requirement as stipulated by RBI for NBFC Companies.

For M. S. Sekhon & Co.
Chartered Accountants
ICAI Registration No. 003671N
Sd/-
(Rajiv Tandon)
Place : New Delhi Partner
Dated : 6th June 2018 Membership No. 087343