Oriental Trimex Ltd Auditors Report.
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 which comprise the Balance Sheet as at 31st March, 2019, the statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow statement and the Statement of Changes in Equity for the year accounting policies and endedonthatdate, and a summary of significant other explanatory information (hereinafter referred to as "Ind AS Financial Statements)
MANAGEMENTS RESPONSIBILITY FOR THE STANDALONE IND AS 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 preparation of these Ind AS financial statements that give a true and fair view of the stateprofit(financial performance affairs position), including other comprehensive income), cash flows and changes in equity 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, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 financial internal controls and ensuring their operating effectiveness and 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.
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal financial control relevant to the Companys preparation of the Ind AS financial that give a true and fair view in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companys Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is appropriate to provide a basis for our qualified audit opinion on the Ind AS financial statements.
BASIS FOR QUALIFIED OPINION
The Company has not made adequate provision for Doubtful Receivables and Advances since the provision has been made at full value of doubtful receivables in case of certain parties and at nil value in case of other parties, according to management perception. (Refer Note 6.2 & 9.1)
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018, its profit(financial performance including in equity for the othercomprehensive income), its cash flows year ended on that date
The comparative financial information of the Company for the year ended 31st March, 2017 and the transition date opening balance sheet as at 1st April, 2016 included in these Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by another auditor, whose reports for the years ended 31st March, 2017 and 2016 expressed an unmodified opinion on thosefinancialstatements,asadjustedforthedifferencesin the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
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 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 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 the books;
c) The Balance Sheet, the Statement of Profit and Loss, Cash Statement AND Statement of Changes in Equity dealt with in this report are in agreement with the books of account;
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 to the extent applicable.
e) On the basis of the written representations received from the directors as on 31st March, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2019 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to adequacy of the internal financial controls over financial reporting of the Company and the operating effectivenesss of such controls, we give 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 has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements - Refer Note 22(I) (A).
(ii) The Company has not entered into any long term contracts including derivative contracts, requiring provision under the applicable law or accounting standards, for material foreseeable losses.
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
|For MEHRA WADHWA & CO.|
|(FRN : 004749N)|
|NEW DELHI||ROHIT WADHWA, F.C.A.,|
|MAY 30, 2019||(Partner)|
|Mem. No.: 083100|
ANNEXURE - A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in Paragraph 1 under Report on Other Legal and Regulatory Requirements section of our report of even date)
1 a) The Company is in the process of updating its records showing full particulars including quantitative details and situation of its fixed assets. sufficientand
b) We are informed that physical verification of the assets was conducted by the management at reasonable intervals in a phased manner and no material discrepancies were noticed on such verification. c) According to the information and explanations given to us, the title deeds of immovable properties of the Company are held in the name of the Company.
2 a) We are informed that stocks of finished goods, stores, spare parts and raw material have been physically verified by the management at reasonable intervals.
b) In our opinion and according to the information and explanations given to us, the discrepancies noticed on physical verification of stocks as compared to book records were not material and the same have been adequately dealt with in the books of account.
3 a) Except for certain advances, the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act.
b) The advances are interest free and receivable on demand. Therefore, there is no question of receipt of principal and interest.
c) There is no overdue amount.
4. In our opinion and according to the information and explanations 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. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed thereunder.
6. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148 (1) of the Companies Act, 2013 and are of the opinion that prima facie, the specified accounts and records have been made maintained. We have not, however, made a detailed examination of the same.
7 a) According to the records of the Company, the Company is generally irregular in depositing undisputed statutory dues including provident fund, employees state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax cess and any other statutory dues, whichever are applicable, with the appropriate authorities.
The extent of the arrears of undisputed outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable
|Nature of Statutory Dues||Year Ended 31.03.2019||Year Ended 31.03.2018|
|(Rs. in Lacs)||(Rs. in Lacs)|
|Employee State Insurance||3.55||2.16|
b) According to the records of the Company, the dues outstanding of income tax, sales tax, wealth tax, service tax, custom duty, excise duty and cess on account of any dispute, are as follows:
|Particulars||Amount (Rs. in Lacs)||Forum where pending||Deposit (Rs. in Lacs)|
|Sales Tax (Tax/ Penalty/Interest) TDS (Short Deduction/ Interest/ Penalty for late deposit of TDS)||214.72||Commissionerate/AO/ Tribunal||4.15|
|Custom Duty (Tax/ Penalty/Interest)||22.30||Tribunal||-|
8 The company has defaulted in repayment of dues to banks and financial institutions as detailed hereunder. Period and amount of continuing default as on the balance sheet date in repayment of loans and interest is stated below.
|SECURED SHORT-TERM BORROWINGS||2018-19||2017-18|
|Loans Repayable on Demand|
|- From other than banks (ARCIL) (Rs. in Lacs)||532.05||532.05|
|- Period of Default (months)||21 to 26||9 to 15|
9 During the year, there were no moneys raised by way of initial public offer or further public offer and term loans.
10 Based on audit procedures performed and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.
11 In our opinion, 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, 2013.
12 In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) are not applicable to the Company. 13 According to the information and explanations given to us and based on our examination of the records of the Company, transactions entered into by the Company with the related parties are in compliance with Section 177 of the Act.
During the year, the company has entered into transactions of purchases, sales of goods and advances from/to related parties exceeding rupees one crore. The purchase, sale and advance given is in the normal course of business of the Company. We are unable to comment whether such transactions have been carried out at arms length price, considering the quality, time of delivery and other parameters of the goods, being a technical matter. However, the management has certified that all the purchases and sales from/to related parties are at arms length price.
All the details have been disclosed in the financial statements as required by the applicable accounting standards.
14 During the year, the Company has made a preferential allotment of equity shares through conversion of warrants during the year. In our opinion and to the best of our information and according to the explanations given to us by the management, the requirements of section 42 of the Companies Act, 2013 have been complied with and the amounts raised have been used for the purpose for which the funds were raised.
15 In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with the Directors.
16 In our opinion and according to the information and explanations given to us, the Company is not required to be registered under section 45-1A of the Reserve Bank of India Act, 1934.
|For MEHRA WADHWA & CO.|
|(FRN : 004749N)|
|NEW DELHI||ROHIT WADHWA, F.C.A.,|
|MAY 30, 2019||(Partner)|
|Mem. No.: 083100|