TO 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
LIMITED (‘the company), which comprise the Balance Sheet as at March 31, 2023,
the Statement of Profit and Loss including the statement of other comprehensive income,
the Cash flow statement and the Statement of change in Equity for the year then ended, and
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 Ind AS 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 /(loss)
(including Other Comprehensive Income), its changes in equity 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 (SAs) specified
under section 143(10) of the Act. Our responsibilities under those Standards are further
described in the Auditors 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 Ind AS financial statements under the
provisions of the Act and the Rules thereunder, 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.
Responsibilities of Management and Those Charged with Governance for the Standalone
Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Act with respect to the preparation of these Ind AS financial statements
that give a true and fair view of the financial position, financial performance including
other comprehensive income, changes in equity and cash flows of the Company in accordance
with the accounting principles generally accepted in India, including the Indian
Accounting Standards ("Ind AS") notified under Section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time.
This responsibility also 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; and design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the Ind AS
financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the Ind AS financial statements, the Board of Directors is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
the Board of Directors either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors 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 Standalone 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 Standalone
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 Companies Act, 2013, 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 managements 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
Companys ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors report to the
related disclosures in the Standalone 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 auditors 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
Standalone financial statements, including the disclosures, and whether the Standalone
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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the
Order"), as amended, issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the "ANNEXURE A" a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. Further to our comments in Annexure A, 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 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 it appears from our examination of those books; c. the Balance Sheet and the
Statement of Profit and Loss including other comprehensive income, the Cash Flow statement
and the statement of changes in equity dealt with by this Report are in agreement with the
books of account; d. in our opinion, the aforesaid Ind AS financial statements comply with
the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014, Companies (Indian Accounting Standards) Rules, 2015, as
amended from time to time; e. On the basis of written representations received from the
directors as on March 31, 2023 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 adequacy of the internal financial
control over the financial reporting of the company and the operating effectiveness of
such controls, refer to our separate report in "Annexure B" g. The provision of
section 197 read with Schedule V to the Act, regarding managerial remuneration have been
complied by the company ; and h. With respect to the other matters to be included in the
Auditors 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; iii. There were
no amounts which were required to be transferred to the Investor Education and Protection
Fund by the Company.
For S. Agarwal & Co.
Chartered Accountants FRN: 000808N
B.S. Choudhary, F.C.A
(Partner)
Place: New Delhi
M. No. : 406200 Date: 27.05.2023
UDIN:23406200BGZFWJ7921
"Annexure A" to the Independent Auditors Report
(Referred to in paragraph 1 under the heading ‘Report on Other Legal &
Regulatory Requirement of our report of even date to the financial statements of the
Company for the year ended March 31, 2023) Annexure - A to the Auditors Report
The Annexure A referred to in Independent Auditors Report to the members of the
Company on the standalone financial statements for the year ended 31 March 2023, we report
that:
1) (a) (i) As explain to us, the fixed assets have been verified by the
management, the company is maintaining proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment; (ii) The company does
not have any intangible assets; (b) As explained to us, the Property, Plant and Equipment
have been physically verified by the management at reasonable intervals; no material
discrepancies were noticed on such verification.
(c) The title deeds of all the immovable properties (other than properties where the
company is the lessee and the lease agreements are duly executed in favour of the lessee)
disclosed in the financial statements are held in the name of the company.
(d) The company has not revalued its Property, Plant and Equipment or intangible assets
or both during the year.
(e) Having regards to the representation made by the management, we have to state that
no proceedings have been initiated or are pending against the company for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.
2) (a) According to information and explanations given to us, the physical
verification of inventory has been conducted at reasonable intervals by the management and
the coverage and procedure of such verification by the management is appropriate; no
discrepancies of 10% or more in the aggregate for each class of inventory were noticed.
(b) The company has not been sanctioned any working capital limits during the year from
any bank or financial institution. In view of it, the reporting under clause 3(ii)(b) is
not applicable on the company.
3) In our opinion and according to information and explanations given to us, the
company has not made any investments in, nor provided any guarantee or security or granted
any loans or advances in the nature of loans, secured or unsecured, to any companies,
firms, Limited Liability Partnerships or any other parties during the year.
4) According to information and explanations given to us, the company has not
advanced any loans, investments, guarantees, and security, therefore provisions of
sections 185 and 186 of the Companies Act are not applicable
5) As per the provisions of Section 73 and 76 the company does not already have
nor has accepted any deposit during the year.
6) The maintenance of cost records as specified by the Central Government under
subsection (1) of section 148 of the Companies Act is not applicable on the Company.
7) a) According to information and explanations given to us and on the basis of our
examination of the books of account, and records, the Company has been generally regular
in depositing undisputed statutory dues including, Income-Tax, Goods and Service Tax, Duty
of Customs, Cess and any other statutory dues with the appropriate authorities and
according to the information and explanations given to us, no undisputed amounts payable
in respect of the above were in arrears as at March 31, 2023 for a period of more than six
months from the date they become payable except statuary dues as per detail given below-:
Nature of Statutory Dues |
Year Ended 31.03.2023 |
Year Ended 31.03.2022 |
|
(Rs. in Lacs) |
(Rs. in Lacs) |
Provident Fund |
42.70 |
42.75 |
Employee State Insurance |
3.71 |
3.24 |
Income Tax / TDS |
74.41 |
103.52 |
Sales Tax |
57.96 |
83.43 |
Other dues |
128.63 |
122.39 |
Total |
307.41 |
355.53 |
(b) The disputed statutory dues aggregating to Rs. 145.56 lakhs, that have not been
deposited on account of matters pending in appeals before appropriate authorities are as
under:
Name of the statute |
Nature of dues |
Period to which the amount relates |
Amount (Rs. in lacs) |
Forum where dispute is pending |
Sales Tax |
Tax demands, C Form, F Form I form etc. |
2006 to 2017 |
32.50 |
Commissioner Appeals, |
TDS/Income Tax |
De-monetisation demand U/s143(3) |
2017-2018 |
92.76 |
Director, Income Tax Laxmi Nagar. |
Custom Duty Refunds |
Rejection by Customs |
2010 to 2013 |
20.30 |
CESTATE Appeal Allahabad. |
8) There are no transactions not recorded in the books of account that have been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961).
(9) (a) According to the Information and explanation given to us and on the basis of
examination of the record of the company, the company has borrowed funds Rs
23.27 Cr. from Edelweiss ARC in year 2019 and payment of interest has been in default
since March 2020, but management has explained us that arrangement of OTS with lender is
going on.
(b) The company has not been declared wilful defaulter by any bank or financial
institution or other lender; (c) According to the Information and explanation given to us,
the company has not borrowed funds during the year therefore the clause relating to
diversion of borrowed funds is not applicable on it.
(d) According to the Information and explanation given to us, the company has no
borrowed funds during the year therefore the clause relating to Term of use of borrowed
funds is not applicable on it.
(e) According to the Information and explanation given to us, the company has not taken
any funds from any entity or person on account of or to meet the obligations of its
subsidiaries, associates or joint ventures.
(f) According to the Information and explanation given to us, the company has not
raised any loans during the year on the pledge of securities held in its Subsidiaries,
joint ventures or associate companies.
10) (a) According to the Information and explanation given to us and on the basis of
examination of the record of the company, the Company has not raised any money by way of
initial public offer or further public offer (including debt instruments) therefore clause
relating to diversion of said funds is not applicable.
(b) According to the Information and explanation given to us and on the basis of
examination of the record of the company, the company has not made any preferential
allotment or private placement of shares or convertible debentures (fully, partially or
optionally convertible) during the year.
11) (a) Based on examination of books and records of the company, and according to
information and explanation given to us and basis of audit conducted by us, no fraud by
the company or fraud on the company has been noticed or reported during the year.
(b) Based on examination of books and records of the company, no report under
subsection (12) of section 143 of the Companies Act has been filed by the auditors in Form
ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the
Central Government; (c) In accordance with representation received from Management of the
company, no whistle-blower complaints, have been, received during the year by the company;
12) According to the Information and explanation given to us and on the basis of
examination of the record of the company, we report that Company is not a Nidhi Company
defined under section 406 of Companies Act 2013 13) 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.
14) a) According to the Information and explanation given to us and on the basis of
examination of the records of the company, we report that the company has an internal
audit system commensurate with the size and nature of its business; b) The reports of the
Internal Auditors for the period under audit were considered by us.
15) According to the Information and explanation given to us and on the basis of
examination of the record of the company, the company has not entered into any non-cash
transactions with directors or persons connected with him.
16) (a) According to the Information and explanation given to us and on the basis of
examination of the records of the company, the company is not required to be registered
under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) 17) The company has
incurred cash losses Rs 378.21 lac in the financial year and the company has incurred cash
losses Rs 390.51 lac of preceding financial year.
18) There has been no resignation of the statutory auditors during the year there we
are not required to report in that respect.
19) On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, the auditors knowledge of the Board of Directors and management
plans, we are of the opinion that no material uncertainty exists as on the date of the
audit report that company is capable of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a period of one year from the balance sheet
date;. 20) Provisions of section 135 of the Companies Act 2013 relating to CSR activities
regarding are not applicable on the Company 21) Reporting on any qualifications or adverse
remarks by the respective auditors in the Companies (Auditors Report) Order (CARO)
reports of the companies included in the consolidated financial statements is not
applicable in case of standalone financial statements.
For S. Agarwal & Co.
Chartered Accountants FRN: 000808N
B.S. Choudhary, F.C.A
(Partner)
Place: New Delhi
M. No. : 406200
Date: 27.05.2023
UDIN:23406200BGZFWJ7921
"Annexure B" to the Independent Auditors Report
(Referred to in paragraph 2(f) of the independent auditors report of even date on the
financial statements of the company for the year ended March 31, 2023.)
Report on the Internal Financial Controls 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 ORIENTAL
TRIMEX LIMITED ("the Company") as of March 31, 2023 in conjunction with our
audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Board of Directors of the Company are 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" (the "Guidance Note") issued by the Institute of
Chartered Accountants of India ("ICAI"). 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,
including adherence to companys policies, 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 Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting 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) and the Standards on Auditing, to the extent applicable to an
audit of internal financial controls, both issued by the Institute of Chartered
Accountants of India and deemed to be prescribed under section 143(10) of the Act to the
extent applicable to an audit of internal financial controls both applicable to an audit
of Internal Financial Controls and, both issued by the Institute of Chartered Accountants
of India. 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 auditors judgments, 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 Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys 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 companys 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
Companys 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 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, 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 S. Agarwal & Co.
Chartered Accountants
FRN: 000808N
B.S. Choudhary, F.C.A
(Partner)
Place: New Delhi
M. No. : 406200
Date: 27.05.2023
UDIN:23406200BGZFWJ7921
+91-9892691696
