You are here » Home » Companies » Company Overview » Oxford Industries Ltd

Oxford Industries Ltd.

BSE: 514414 Sector: Industrials
NSE: N.A. ISIN Code: INE114D01015
BSE 00:00 | 07 Oct Oxford Industries Ltd
NSE 05:30 | 01 Jan Oxford Industries Ltd
OPEN 0.78
PREVIOUS CLOSE 0.78
VOLUME 1
52-Week high 0.78
52-Week low 0.78
P/E
Mkt Cap.(Rs cr) 0
Buy Price 0.78
Buy Qty 49.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.78
CLOSE 0.78
VOLUME 1
52-Week high 0.78
52-Week low 0.78
P/E
Mkt Cap.(Rs cr) 0
Buy Price 0.78
Buy Qty 49.00
Sell Price 0.00
Sell Qty 0.00

Oxford Industries Ltd. (OXFORDINDUSTRIE) - Auditors Report

Company auditors report

To

The Members of

OXFORD INDUSTRIES LIMITED.

Report on the Financial Statements

Opinion

We have audited the accompanying financial statements of M/s. Oxford IndustriesLimited ("the Company") which comprises the Balance Sheet as at March 312019 the Statement of Profit and Loss Statement of Changes In Equity and Statement ofCash Flows for the year then ended and notes to the financial statements including asummary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner 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 31stMarch 2019 and Statement of Profit & Loss and its Cash Flow Statement for the yearended on that date. We express a Qualified Opinion in respect of financial statements ofOxford Industries Limited.

Basis for Qualified opinion

We have conducted our audit in accordance with the Standards on Auditing (SAs)specified under section 143(10) of the Companies Act 2013. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

(a) No interest has been provided on Secured Loan (Bankers/Institutions) in thefinancial statements for the year. This is contrary to Indian Accounting Standard (Ind AS)37 on "Provisions Contingent Liabilities and Contingent Assets" issued by theInstitute of Chartered Accountants of India and the accounting policy being followed bythe Company. Had this accounting policy been followed interest charged to revenue wouldhave been Rs. 1209.89 lacs. This short provision of Interest has resulted in loss for theyear and Secured Liabilities being understated by Rs. 1209.89 lacs.

(b) The Company has a net loss of Rs. 34.02 lacs (without providing interest of Rs.1209.89 lacs as mentioned at para (a) hereinabove during the year ended 31st March 2019and as of that date the Company's current liabilities (including overdue term loansworking capital loan and interest accrued and due thereon) exceeded its current assets byRs 2333.43 lacs and its total liabilities exceeded its total assets by Rs. 2333.43 lacs[without providing for interest of Rs. 6795.20 lacs (Rs. 1209.89 For financial year2018-2019 Rs. 1046.05 For financial year 2017-2018 Rs. 904.90 for financial year2016-2017 Rs. 785.17 for financial year 2015-2016 Rs. 677.95 for financial year2014-2015 Rs. 589.66 for financial year 2013-2014 Rs. 514.73 for financial year2012-2013 Rs. 569.98 lacs for financial year 2011-2012 and Rs. 496.87 lacs for financialyear 2010-11)]. These factors along with other matters as set forth in para (c) raisedoubt whether the Company will be able to continue as a going concern. However theaccounts for the year have been prepared on the concept that Company will continue as agoing concern.

(c) Auction of Manufacturing Facilities of the company under SARFAESI Act 2002 andRecovery case in DRT.

Indian Bank (Lead Bank) auctioned both the facilities of the company i.e. weaving unitand process house at Ankleshwar under The Securitisation and Reconstruction of FinancialAssets and Enforcement of Security Interest Act 2002 (SARFAESI Act) in February2012.Further Indian Bank consortium had filed an application no 24 of 2011 in Debt RecoveryTribunal (DRT) No 2 Mumbai for recovery of dues. This application is still pending forjudgment.

Management's Responsibility for the 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 financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards 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 records inaccordance with the provisions of the Act for safeguarding the 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 internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error. In preparing the financial statements management is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. Those Board of Directors arealso responsible for overseeing the company's financial reporting process

Information Other than the 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 but does notinclude the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is no a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional 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. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality 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 chargedwith governance regarding among other matters the planned scope and timing of the auditand significant audit findings including any significant deficiencies in internal controlthat we identify during our audit.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 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 Company has no branch office and hence the company is not required to conductaudit u/s 143(8) of the Act;

(d) 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 accounts;

(e) We draw attention to clause ‘f' of Note No. 4 to the financial statements. Nointerest has been provided on Secured Loan (Bankers/Institutions) in the financialstatements for the year. This is contrary to Indian Accounting Standard (Ind AS) 37 on"Provisions Contingent Liabilities and Contingent Assets" issued by theInstitute of Chartered Accountants of India and the accounting policy being followed bythe Company. Had this accounting policy been followed interest charged to revenue wouldhave been Rs. 1209.89 lacs. This short provision of Interest has resulted in loss for theyear and Secured Liabilities being understated by Rs. 1209.89 lacs.

(f) We further draw attention to clause ‘c' of Note No.4 in the financialstatements. The Company has a net loss of Rs. 34.02 lacs (without providing interest ofRs. 1209.89 lacs as mentioned at para (e) hereinabove during the year ended 31st March2019 and as of that date the Company's current liabilities (including overdue termloans working capital loan and interest accrued and due thereon) exceeded its currentassets by Rs 2333.43 lacs and its total liabilities exceeded its total assets by Rs.2333.43 lacs [without providing for interest of Rs. 6795.20 lacs (Rs. 1209.89 Forfinancial year 2018-2019 Rs. 1046.05 For financial year 2017-2018 Rs. 904.90 forfinancial year 2016-2017 Rs. 785.17 for financial year 2015-2016 Rs. 677.95 forfinancial year 2014-2015 Rs. 589.66 for financial year 2013-2014 Rs. 514.73 forfinancial year 2012-2013 Rs. 569.98 lacs for financial year 2011-2012 and Rs. 496.87 lacsfor financial year 2010-11)]. These factors along with other matters as set forth in toclause ‘c' of Note No.4 in the financial statements raise doubt whether the Companywill be able to continue as a going concern. However the accounts for the year have beenprepared on the concept that Company will continue as a going concern.

(g) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act except mentionedelsewhere in the report.

(h) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in termsof Section 164 (2) of the Act;

(i) 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 A';

(j) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of Companies (Audit and Auditors) Rules 2014 in our opinion andto the best of our information and according to the explanation given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer to Note 4(b) & 4(c) 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 were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company. The question of delay in transferring suchsums does not arise.

2. 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 ‘B' a statement on the matters specified in theparagraph 3 and 4 of the Order.

For SPARK & ASSOCIATES
Chartered Accountants
Firm Registration No. 005313 C
CA Pankaj Kumar Gupta
Date : 30th May 2019 Partner
Place: Mumbai (Membership. No.: 404644)

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT OF OXFORD INDUSTRIES LIMITED

(Referred to in paragraph 1(i) under ‘Report on Other Legal and RegulatoryRequirements' 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 OxfordIndustries Limited ("the Company") as of 31st March 2019 inconjunction with our audit of the financial statements of the Company for the year endedon that 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 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's Responsibility

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 Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 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 auditor's 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies 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 over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For SPARK & ASSOCIATES
Chartered Accountants
Firm Registration No. 005313 C
CA Pankaj Kumar Gupta
Date : 30th May 2019 Partner
Place: Mumbai (Membership. No.: 404644)

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF OXFORD INDUSTRIES LIMITED

(Refer to in paragraph (2) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date) The Annexure B referred to inIndependent Auditor's Report to the members of the Company on the Financial Statement forthe year ended 31st March 2019 we report that:

i. According to the information and explanation given to us and based on the recordsproduced before us the company was not having any fixed assets during the year. Thusparagraph 3 (i) of the order is not applicable to the company.

ii. According to the information and explanation given to us during the year theCompany was not having any manufacturing facilities & business activity. Accordinglyit does not hold any physical inventories during the year. Thus paragraph 3 (ii) of theOrder is not applicable to the company.

iii. According to the information and explanation given to us the Company has notgranted any secured/unsecured loans to companies firms or other parties listed in theregister maintained under section 189 of the Companies Act 2013.

iv. According to the information and explanation given to us the Company has notgranted any loans made investments or provided guarantees and hence reporting underclause (iv) of CARO 2016 is not applicable.

v. According to the information and explanations given to us the Company has notaccepted any deposit from the public to which the directives issued by the Reserve Bank ofIndia and the provisions of section 73 to 76 or any other relevant provisions of the Actand the Companies (Acceptance of Deposit) Rules 2014 as amended would apply.Accordingly paragraph 3(v) of the Order is not applicable to the Company.

vi. According to the information and explanation given to us during the year theCompany was not having any manufacturing facilities & business activity. Accordinglythe Company is not required to maintain the cost records pursuant to the Companies (CostRecords and Audit) Rules 2014 prescribed by the Central Government under Section 148(1)of the Companies Act 2013.

vii. According to the information and explanations given to us in respect of statutorydues:

(a) The Company has generally been regular in depositing 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 applicable to it to the appropriate authorities. According to theinformation and explanations given to us an amount of Rs. 7.75 lacs is outstanding for aperiod of more than six months from the date of becoming payable towards Income taxliability on regular assessment for A.Y. 2006-07; apart from this there were no undisputedamounts payable in respect of the aforesaid dues outstanding as at March 31 2019 for aperiod of more than six months from the date of becoming payable.

(b) Details of dues of Income Tax Sales Tax Wealth Tax Service Tax duty of CustomsDuty of Excise Value Added Tax Cess which have not been deposited as on March 31 2019on account of disputes are given below:

Name of the Statute

Nature of the dues

Amount (Rs.)

Period

Forum

NIL

NIL

NIL

NIL

NIL

viii. (a) The Company has accumulated losses of Rs. 3510.01 lacs without providing forinterest of Rs. 6795.20 lacs (Rs. 1209.89 for financial year 2018-2019 Rs. 1046.05 forfinancial year 2017-2018 Rs. 904.90 for financial year 2016-2017 Rs. 785.17 forfinancial year 2015-2016 Rs. 677.95 for financial year 2014-2015 Rs. 589.66 forfinancial year 2013-2014 Rs. 514.73 for financial year 2012-2013 Rs. 569.98 lacs forfinancial year 2011-2012 and Rs. 496.87 lacs for financial year 2010-11)] as mentioned atclause (f) of our Audit Report hereinbefore at the end of the current year [Previous yearaccumulated loss Rs. 5585.31 lacs] which is more than its entire net worth. During theyear the Company has reported cash loss of Rs. 34.02 lacs without providing interest ofRs. 1209.89 lacs.

(b) Based on our audit procedures and on the basis of information and explanation givento us by the management and in view of the restructuring proposal sanctioned by the CDRcell and the individual lenders we understand that the Company has defaulted in repaymentof dues to banks and financial institutions and legal action under the Securitisation andReconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (SARFAESIAct 2002) was initiated by the Lead Bank. The Lead Bank has during the financial year2011-12 auctioned the secured assets held in its possession and the Company had made noprovision for interest of Rs. 1209.89 lacs (previous year Rs. 1046.05 lacs) accrued anddue for the year on secured loan.

(c) In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions except counter guarantee given by the Company (as a member of GIDC) toGujarat Industrial Development Corporation in respect of loan sanctioned by financialinstitutions to Bharuch Eco Acqua Infrastructure Limited (now known as Narmada Clean TechLtd.). According to information and explanation provided to us the terms and conditionsare not prima facie pre judicial to the interest of the Company.

ix. According to the information and explanation given to us the Company did not raiseany money by way of initial public offer or further public offer (including debtinstruments) and term loans during the year. Accordingly paragraph 3 (ix) of the Order isnot applicable.

x. During the course of our examination of the books of accounts carried in accordancewith the generally accepted auditing standards in India we have neither come across anyinstance of fraud on or by the company by its officers or employees either noticed orreported during the year nor have we been informed of such case by the management.

xi. In our opinion and according to the information and explanations given to us theCompany has not paid / not provided any managerial remuneration in accordance withprovisions of section 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 as specified in the Nidhi Rules 2014 and hence reportingunder clause (xii) of Paragraph 3 of the Order is not applicable.

xiii. In our opinion and according to the information and explanations given to usthere are no related party transaction during the year as provided in accordance withSection 177 and 188 of the Companies Act 2013.

xiv. According to the information and explanation given to us during the year theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is notapplicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him and hence provisions of section 192 of theCompanies Act 2013 are not applicable. xvi. The Company is not required to be registeredunder section 45-I of the Reserve Bank of India Act 1934.

For SPARK & ASSOCIATES
Chartered Accountants
Firm Registration No. 005313 C
CA Pankaj Kumar Gupta
Date : 30th May 2019 Partner
Place: Mumbai (Membership. No.: 404644)