To,
The Members of
OLYMPIC OIL INDUSTRIES LIMITED Report on the standalone Financial Statements Qualified
Opinion
We have audited the financial statements of OLYMPIC OIL INDUSTRIES LIMITED
("the Company"), which comprise the balance sheet as at March 31, 2023, and
the statement of profit and loss (including other comprehensive income), statement of
changes in equity and 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 (Collectively referred to as ‘standalone financial
statements).
In our opinion and to the best of our information and according to the explanations
given to us, except for the possible effects of the matters described in the Basis for
Qualified Opinion paragraph, the aforesaid standalone financial statements give the
information required by the Companies Act, 2013 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 (financial position) of the Company as at March 31, 2023, and its LOSS
(financial performance including other comprehensive income), changes in equity and
its cash flows for the year ended on that date. a. In the case of the balance sheet, of
the state of affairs of the company as at 31st March 2023, and b. In the case of the
statement of profit and loss, of the LOSS (financial performance including other
comprehensive income), changes in equity and c. In the case of the cash flow statement, of
the cash flow statement for the year ended on that date.
Basis for Qualified Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. 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 auditor 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 Companies Act, 2013 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. As stated in Note no. 6 to the financial
statement the sundry debtors as at the end of the year of Rs. 316.52 crore includes over
dues receivable due to credit impaired of Rs. 316.52 crore and as per Note no. 3 &
Note no. 8 in respect of non-current investment & loan to related parties of Rs. 4.10
crore & Rs. 40.62 crore respectively being considered doubtful and recoverable by the
management for which no provision has been made.
In the absence of confirmation and liquidity constraints facing by the parties due to
which these may not be able to realize. In the absence of sufficient appropriate audit
evidence, we are unable to comment upon the carrying value of non current investment,
loans to related parties and trade receivable and recoverability of the aforesaid dues and
consequential impact, if any on the accompanying financial statement.
Key Audit Matter
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
informing our opinion thereon.
We have determined that there are no key audit matters to communicate in our report.
Emphasis of Matter
We draw attention to:
Note no. 13 regarding credit facilities from banks became Non-Performance account
during the previous year and forensic audit has been carried for the working of the
company and interest has not been provided since August 2018 being NPA. Pending the
ultimate outcome of this matter which is presently unascertainable hence no adjustment has
been made.
Note no. 35 regarding net worth of the company has been fully eroded and no business
operation accounts since FY 2019-20, but accounts are prepared on going concern basis.
Further the Company has defaulted in repayment of principal and interest payable to
Bankers in respect of working capital facilities which indicate existence of liquidity
stress and material uncertainty that may cast significant doubt on the Companys ability
to continue as a going concern. However, the management is hopeful to meet the Companys
financial obligation and continuing business operations. Having regards to this, financial
statements have been prepared on the basis of going concern. Hence no adjustments have
been made to the carrying value of Assets and Liabilities of the Company.
Other Information
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the annual report, but does not include
the financial statements and our auditors 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 financial statements or our knowledge obtained in the
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.
Responsibility of Management for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these standalone 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) specified
under section 133 of the Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of 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 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, 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. Boards of Directors are also responsible for
overseeing the companys financial reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
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 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 financial statements.
As part of an audit in accordance with Standards on Auditing (‘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) 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 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 am required to draw attention in our auditors 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 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 financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order"),
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, to the extent applicable.
2. 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 purposes 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, the Statement of Profit and Loss, the
Statement of Changes In Equity and the Cash Flow Statement dealt with by this Report are
in agreement with the books of accounts; d. In our opinion, the aforesaid standalone
financial statements comply with the Indian Accounting Standards prescribed under Section
133 of the Act read with Companies (Indian Accounting Standard), Rules 2016. e. On the
basis of the written representations received from the directors as on 31 March 2023,
taken on record by the Board of Directors, none of the directors is disqualified as on 31
March 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". g. 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 contract
including derivative contract; as such the question of commenting on any material
foreseeable losses thereon does not arise; iii) There has not been any occasion in case of
the Company during the year under report to transfer any sums to the investor education
and protection fund. The question of delay in transferring such sums does not arise. 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 knowledge and belief and according to the information and explanations given
to us: i. The Company does not have any pending litigation which would impact its
financial position in its standalone financial statements. ii. The Company did not have
any long-term contracts including derivative contracts for which there were any material
foreseeable losses. iii. There was no amount which were required to be transferred to
Investor Education and Protection Fund by the company. iv. The management has represented
that, to the best of its knowledge and belief, 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 Holding Company or its subsidiary companies incorporated in India to or in
any other persons or entities, including foreign entities ("Intermediaries"),
with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall: i. directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Holding
Company or its subsidiary companies incorporated in India or ii. Provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.
The Management has represented, that, to the best of its knowledge and belief, no funds
have been received by the Holding Company or its subsidiary companies incorporated in
India from any persons or entities, including foreign entities ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the
Holding Company or its subsidiary companies incorporated in India shall: a) directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever
("Ultimate Beneficiaries") by or on behalf of the funding parties or b) Provide
any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
Based on such audit procedures as 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 (d)(i) and d(ii) contain any material mis-statement.
FOR BHATTER & ASSOCIATES CHARTERED ACCOUNTANTS FRN - 131411W
GOPAL BHATTER DATE : 30th May 2023 (PARTNER)
PLACE : MUMBAI M. NO. 411226
UDIN: 23411226BGXQQD8761
ANNEXURE ‘A TO AUDITORS REPORT
1. a) The company has maintained proper records showing full particulars including
quantitative details and situation of Property, Plant and Equipment.
The company has not capitalized any intangible assets in the books of the Company and
accordingly, the requirement to report on clause 3(i)(a)(B) of the order is not applicable
to the Company.The Company has maintained proper records showing full particulars of
intangibles assets. b) Property, Plant and Equipment have not been physically verified by
the management during the year and discrepancies if any will be adjusted as and when
physical verification is carried out. c) There is no immovable property held by the
company and accordingly the requirement to report on clause 3 (i)(c) of the Order is not
applicable to the Company. d) The company has not revalued its Property, Plant and
Equipment or intangible assets during the year ended 31.03.2023. e) There are no
proceedings initiated or are pending against the company for holding any benami property
under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
2. The company has no inventory as there is no business, hence the requirement to
report on clause 3 (ii)(a) and 3 (ii)(b) of the Order is not applicable to the Company.
3. a) As informed to us, the Company has not granted any loans, secured or unsecured
and made any investment to companies, firms, limited liability partnerships or other
parties covered in the register maintained under section 189 of the Companies Act, 2013
during the year. However, there is an outstanding of Rs. 46.04 Crores at the end of the
year, as stated in Note No.
3 & 8 of the financial statement. b) In absence of specific return documents
regarding terms and conditions of such loans and advances, investment made, we are unable
to comment whether these are prejudicial to the interest of the company. However, interest
as well as principal are not realized during the year. c) In absence of specific
stipulation regarding repayment of loans and advances made, we are unable to comment
whether these are overdue or not, however it is said that these are overdue as well as
interest and principal. d) As informed to us, the loans and advances amounting to Rs.
41.94 Crores are overdue for more than 1 year. It is said that the company is trying to
recover the same for which no provision has been made. e) As informed to us, no loans have
been renewed or extended during the year. f) Loans and advances outstanding of Rs. 41.94
crores as stated in para 3(d) above and in our opinion, these are considered doubtful for
which no provision has been made and amount is unascertained.
4. According to information and explanation given to us, the company has complied with
the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans,
investments, guarantees and security.
5. The company has neither accepted any deposits from the public nor accepted any
amounts which are deemed to be deposits within the meaning of sections 73 to 76 of the
Companies Act, 2013 and the rules framed thereunder, to the extent applicable.
Accordingly, the requirement to report on clause 3(v) of the order is not applicable to
the company.
6. The company is not in the business of sale of any goods or provision of such
services as prescribed under sub section (1) of Section 148 of the Companies Act, 2013.
Accordingly, the requirement to report on clause 3(vi) of the order is not applicable to
the company.
7. a) The company is regular in depositing with appropriate authorities undisputed
statutory dues including Goods and Service Tax, provident fund, employees state
insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value
added tax, cess and any other statutory dues applicable to it. According to the
information and explanations given to us and based on audit procedures performed by us, no
undisputed amounts payable in respect of these statutory dues were outstanding, at the
year end, for a period of more than six months from the date they become payable. b) There
are no dues of Goods and Service Tax, provident fund, employees state insurance,
income-tax, sales-tax, service tax, customs duty, excise duty, value added tax, cess and
any other statutory dues which have not been deposited on account of any dispute.
8. The company has not surrendered or disclosed any transaction, previously unrecorded
in the books of account, in the tax assessments under the Income Tax Act, 1961 as income
during the year. Accordingly, the requirement to report on clause 3(viii) of the order is
not applicable to the company.
9. a) The company has defaulted in repayment of loans/borrowings as well as interest
thereon to Indian overseas bank and Oriental bank of commerce of Rs. 68.75 Crores as
stated in note no. 13 of the financial statements. b) The company has been declared
willful defaulter by Indian overseas bank and Oriental bank of commerce during the last
year. c) The company has not obtained any loans/borrowings during the year. However, these
loans have become NPA since FY
2018-2019. The company has been declared willful defaulter on the basis of forensic
audit conducted for the period FY 2012-2013 to FY 2017-2018. As informed to us the matter
is subjudice hence we are unable to comment thereon.
d) The company did not raise any funds during the year hence, the requirement to report
on clause 3(ix)(d) of the order is not applicable to the company. e) On overall
examination of the financial statements of the company, the company do not have any
subsidiaries, associates or joint ventures hence, the requirement to report on clause
3(ix)(e) of the order is not applicable to the company. f) On overall examination of the
financial statements of the company, the company do not have any subsidiaries, associates
or joint ventures hence, the requirement to report on clause 3(ix)(f) of the order is not
applicable to the company.
10. a) The company has not raised any money during the year by way of initial public
offer/further public offer (including debt instruments) hence, the requirement to report
on clause 3(x)(a) of the order is not applicable to the company. b) The company has not
made any preferential allotment or private placement of the shares fully or partially or
optionally convertible debentures during the year under the audit hence, the requirement
to report on clause 3(x)(a) of the order is not applicable to the company.
11. a) No fraud/material fraud by the company or no fraud/ material fraud on the
company has been noticed or reported during the year. b) During the year, no report under
sub-Section (12) of Section 143 of the Companies Act has been filed by the (Cost auditor/
secretarial auditor or by us) in Form ADT-4 as prescribed under Rule 13 of Companies
(Audit and Auditors) Rules 2014 with the Central Government. c) As represented by the
management, there are no whistle blower complaints received by the company during the
year. 12. The company is not a Nidhi company as per the provisions of the Companies Act,
2013. Therefore, the requirement to report on clause 3(xii)(a) to (c) of the order is not
applicable to the company.
13. Transactions with the related parties are in compliance with sections 177 and 188
of Companies Act, 2013 where applicable and the details have been disclosed in the
Financial Statements, as required by the applicable accounting standards.
14. The company has not implemented internal audit system as there is no business since
FY 2019-2020.
15. The company has not entered into any non-cash transactions with its directors or
persons connected with its directors and hence requirement to report on clause 3(xv) of
the order is not applicable to the company.
16. a) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of
1934) are not applicable to the company.
Accordingly, the requirement to report on clause 3(xvi)(a) of the order is not
applicable to the company.
b) The company has not conducted any Non-Banking Financial or Housing Finance
activities without obtaining a valid Certificate of Registration (CoR) from the Reserve
Bank of India as per the Reserve Bank of India Act, 1934. c) The company is not a Core
Investment company as defined in the regulations made by Reserve Bank of India.
Accordingly, the requirement to report on clause 3(xvi)(c) of the order is not applicable
to the company. d) There is no other Core Investment company part of the group. Hence, the
requirement to report on clause 3(xvi)(d) of the order is not applicable to the company.
17. The company has incurred cash losses of Rs. 46.89 lacs in the current financial
year, since there was no business during the year.
18. There has been no resignation of the statutory auditors during the year and
accordingly the requirement to report on clause 3(xviii) of the order is not applicable to
the company.
19. On the basis of the financial ratios, ageing and expected dates of realization 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, and based on our examinations of the evidence supporting the assumptions, we
believe that there is a material uncertainty exists as on the date of the audit report
that company is not capable of meeting its liabilities existing at the date of balance
sheet and there is no assurance as of the future viability of the Company. We further
state that our reporting is based on the facts up to the date of the audit report.
20. As there is no business operation and the company has eroded its networth fully,
hence the compliance of provisions of second proviso to sub section (5) & (6) of
Section 135 of the companies act, 2013 regarding corporate social responsibility is not
applicable to the company.
FOR BHATTER & ASSOCIATES
CHARTERED ACCOUNTANTS FRN - 131411W
GOPAL BHATTER DATE : 30th May 2023 (PARTNER)
PLACE : MUMBAI M. NO. 411226
UDIN: 23411226BGXQQD8761
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 of even date) 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 Olympic Oil
Industries Limited ("the Company") as of 31st March 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 Companys management 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 (‘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 Companies Act, 2013.
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, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, 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 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 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 31st March 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 BHATTER & ASSOCIATES CHARTERED ACCOUNTANTS FRN - 131411W
GOPAL BHATTER
DATE : 30th May 2023 (PARTNER)
PLACE : MUMBAI M. NO. 411226
UDIN: 23411226BGXQQD8761
+91-9892691696
