<dhhead>INDEPENDENT AUDITOR’S REPORT </dhhead>
INDEPENDENT AUDITOR’S REPORT
To, The Members of O.P. CHAINS LTD
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of M/S O.P.
CHAINS LTD. which comprise the Balance Sheet as at 31st March, 2023, the
Statement of Profit and Loss for the year then ended, Statement of cash flows for the year
then ended and notes to the financial statements including a summary of significant
accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the information required
by the Companies Act, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with the accounting principles generally accepted in India, of
the state of affairs of the Company as at 31st March 2023 and its profit and
its cash flows for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the standards on auditing
specified under section 143 (10) of the Act. Our responsibilities under those Standards
are further described in the auditor s responsibilities for the audit of the financial
statements section of our report. We are independent of the Company in accordance with the
code of ethics issued by the Institute of Chartered Accountants of India together with the
ethical requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the rules there under, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the code of ethics.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the financial statements of the current period.
These matters were addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Information other than the financial statements and auditors’
report thereon
The Company s board of directors is responsible for the preparation of
the other information. The other information comprises the information included in the
Board s Report including Annexures to Board s Report, Business Responsibility Report but
does not include the financial statements and our auditor s report thereon. Our opinion on
the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon. In connection with our audit of the financial
statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the standalone financial
statements or our knowledge obtained during the course of our audit or otherwise appears
to be materially misstated. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we are required to report that
fact. We have nothing to report in this regard.
Management’s Responsibility for the Financial Statements
The management and Board of Directors of the Company are responsible
for the matters stated in Section 134(5) of the Act with respect to the preparation of
these financial statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards specified under Section
133 of the Act, read with rule 7 of Companies (Accounts) Rules, 2014. This responsibility
includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding the assets of the Company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and prudent; design, implementation and
maintenance of adequate internal financial controls, that are operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for
assessing the Company s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The board of directors is also responsible for overseeing the Company s
financial reporting process.
Auditor’s Responsibility
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditor s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements. As part of an audit in accordance with
SAs, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement
of the financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate in the circumstances. Under
section 143(3)(i) of the Act, we are also responsible for expressing our opinion on
whether the company has adequate internal financial controls system in place and the
operating effectiveness of such controls ? Evaluate the appropriateness of accounting
policies used and the reasonableness of accounting estimates and related disclosures made
by management.
• Conclude on the appropriateness of management s use of the
going concern basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast significant
doubt on the Company s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor s report to
the related disclosures in the 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 s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
financial statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation. We communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards. From the matters
communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor s report unless
law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication
Report on Other Legal and Regulatory Requirements
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 of the Companies Act, 2013, we give in the
Annexure "A", a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable. 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 best of 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 the Company so far as appears from our examination of those books;
c) the Balance Sheet and Statement of Profit and Loss, dealt with by
this Report are in agreement with the books of account;
d) in our opinion, the aforesaid financial statements comply with the
applicable Accounting Standards specified under Section 133 of the Act, read with Rule 7
of the Companies (Accounts) Rules 2014
e) on the basis of written representations received from the directors
as on March 31, 2023, and taken on record by the Board of Directors, none of the directors
is disqualified as on March 31, 2023, from being appointed as a director in terms of
Section 164(2) of the Act
f) With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of such controls, refer
to our separate report in "Annexure B"; and Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Company s internal financial
controls over financial reporting;
g) With respect to the other matters to be included in the Auditor s
Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in
our opinion and 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 impact
its financial position,
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable losses, and
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the company.
iv. (i) The management has represented that, to the best of it s
knowledge and belief, other than as disclosed in the notes to the accounts, no funds have
been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the company to or in any other person(s) or
entity(ies), including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(ii) The management has represented, that, to the best of it s
knowledge and belief, other than as disclosed in the notes to the accounts, no funds have
been received by the company from any person(s) or entity(ies), including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or
otherwise, that the company shall, whether, directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries; and
(iii) Based on audit procedures which we considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) contain any material
mis-statement.
v. The company has not declared or paid any dividend during the year in
contravention of the provisions of section 123 of the Companies Act, 2013.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for
maintaining books of account using accounting software which has a feature of recording
audit trail (edit log) facility is applicable to the Company with effect from April 1,
2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules,
2014 is not applicable for the financial year ended March 31, 2023.
For M/S A.J. Associates |
Chartered Accountants |
Firm Registration No: 000844C |
Sd/- |
CA Prerit Agarwal |
(Partner) |
Membership no: 409415 |
UDIN: 23409415BGRTJX7101 |
Place: Agra |
Date: 25.05.2023 |
Annexure "A" to the Independent Auditor’s Report*
(Referred to in paragraph 1 under Report on other legal and regulatory
requirements section of our report to the members of M/s O.P. Chains LTD of even
date)
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of our audit, we report
that:
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed assets ;
(b) The Company has a program of verification to cover all the items of
fixed assets in a phased manner over a period of three years, which, in our opinion, is
reasonable having regard to the size of the Company and the nature of its assets. However,
no physical verification has been carried on by the management during the year.
Accordingly, we were unable to comment on whether any material discrepancies were noticed
on such verification and whether they are properly dealt with in the financial statements.
(c) The title deeds of immovable properties are held in the name of the
company.
ii. The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is reasonable.
iii. The company has not granted any loans, secured or unsecured
to/from companies, firms or other parties covered in the register maintained under section
189 of the Act. Accordingly, the provisions of 3(iii) (a) to (c) of the order are not
applicable and hence not commented upon.
iv. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section 185 and I86 of the
Companies Act, 2013 In respect of loans, investments, guarantees, and security.
v. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits and accordingly paragraph 3 (v) of
the order is not applicable.
vi. As per the rules made by the Central Government of India, the
Company is not required to maintain cost records as specified under Section 148(1) of the
Act in respect of its products/activities.
vii. According to the information and explanations given to us and
based on the records of the company examined by us, the company is regular in depositing
the undisputed statutory dues, and other material statutory dues, as applicable, with the
appropriate authorities in India ;
viii. According to the records of the company examined by us and as per
the information and explanations given to us, the company has not defaulted in repayment
of dues to financial institutions or banks and has not issued debentures.
ix. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not raised moneys by way of initial
public 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 the
Company and hence not commented.
x. Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud by the Company or on the
company by its officers or employees has been noticed or reported during the year.
xi. Based upon the audit procedures performed and the information and
explanations given by the management, the managerial remuneration has been paid or
provided in accordance with the requisite approvals mandated by the provisions of section
197 read with Schedule V to the Companies Act;
xii. In our opinion, the Company is not a Nidhi Company. Therefore, the
provisions of clause 4 (xii) of the Order are not applicable to the Company.
xiii. In our opinion, all transactions with the related parties are in
compliance with section 177 and 188 of Companies Act, 2013 and the details have been
disclosed in the Financial Statements as required by the applicable accounting standards.
xiv. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not made any preferential allotment
or private placement of shares or fully or partly convertible debentures during the year
under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not
applicable to the Company and hence not commented upon.
xv. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not entered into any non-cash
transactions with directors or persons connected with him. Accordingly, the provisions of
clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
xvi. In our opinion, the company is not required to be registered under
section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of
clause 3 (xvi) of the Order are not applicable to the Company and hence not commented
upon.
For M/S A.J. Associates |
Chartered Accountants |
Firm Registration No: 000844C |
Sd/- |
CA Prerit Agarwal |
(Partner) |
Membership no: 409415 |
UDIN: 23409415BGRTJX7101 |
Place: Agra |
Date: 25.05.2023 |
Annexure B to the Independent Auditors Report
(Referred to in paragraph 2 (f) under Report on other legal and
regulatory requirements section of our report to the Members of O.P. CHAINS LTD. of
even date).
Report on the Internal Financial Controls Over Financial Reporting
under Clause (i) of Sub- section 3 of Section 143 of the Companies Act, 2013 ("the
Act")
We have audited the internal financial controls over financial
reporting of O.P. CHAINS LTD. ("the Company") as of March 31, 2023 in
conjunction with our audit of the standalone financial statements of the Company for the
year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing
and maintaining internal financial controls based on the internal control over financial
reporting criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, the safeguarding of its assets, the prevention and detection of
frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company s internal
financial controls over financial reporting of the Company based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting (the "Guidance Note") issued by the Institute
of Chartered Accountants of India and the Standards on Auditing prescribed under Section
143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal
financial controls. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls system over financial reporting and their
operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained ,is sufficient and
appropriate to provide a basis for our audit opinion on the Company s internal financial
controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company s internal financial control over financial reporting is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A company s internal financial control over
financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
company s assets that could have a material effect on the financial statements.
Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions,
or that the 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 given to us, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of
India.
For M/S A.J. Associates |
Chartered Accountants |
Firm Registration No: 000844C |
Sd/- |
CA Prerit Agarwal |
(Partner) |
Membership no: 409415 |
UDIN: 23409415BGRTJX7101 |
Place: Agra |
Date: 25.05.2023 |
+91-9892691696
