Olympic Cards Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2021
Revised Filing Due to "Unmodified" Opinion
NOTES:
Pursuant to Regulation 30 and 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Board of Directors of Olympic Cards Limited (“Company”), in its meeting held to-day approved the Audited Financial Results of the Company for Quarter/Financial Year ended on 31st March, 2021.
Copy of Audited Financial Results along with Auditor’s Report and declaration regarding the Auditor’s Report with the modified opinion pursuant to the Regulation 33(3)(d) of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI Circular No.CIR/CFD/CMD/56/2016, dated May 27, 2016 is enclosed herewith.
1.The above audited results for the quarter and year ended 31st March, 2021 which have been prepared in accordance with Regulation 33 of SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015 and subjected to review by the Statutory Auditors of the Company were reviewed by the Audit Committee of the Board of Directors at their meeting held on 29th June, 2021. The approved Audited Financial Results along with audit report for the year ended 31st March, 2021 and declaration on the report of auditors with Auditors Qualifications modified opinion are enclosed as Annexure;
2. The Company is mainly in the business of “Paper and Paper Products. Hence there is no separate reportable segment as per Accounting Standard 17 issued by the Institute of Chartered Accountants of India.
3.The Board of Directors has not recommended any Dividend for the year 2020-21.
4.The financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standard) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. The Company for the first time adopted Ind AS for the financial year commencing from April 2017;
5.The Board of Directors decided to conduct the next Annual General Meeting on Wednesday, 22nd September, 2021. The Book-Closure for the purpose of Annual General Meeting will be from 16.09.2021(Thursday) to 22.09.2021(Wednesday); Cut-Off date for e-voting is 15th September, 2021.
6.On March 11, 2020, the World Health Organisation declared COVID-19 outbreak as a Pandemic. Responding to the potentially serious threat that this Pandemic has to public health, the Indian Government has taken a series of measures to contain the outbreak, which included imposing multiple “Lock-downs” from March 22, 2020. The lockdowns and restrictions imposed on various activities due to COVID-19 pandemic have posed challenges to the businesses of the company.
The company’s business has been impacted during the period on account of COVID-19. The Company witnessed softer revenues due to the lockdown imposed during the first six months of the year. With the unlocking of restrictions, the movement of people has been opened up and business is expected to improve gradually.
The audited financial results for the quarter and year ended 31st March, 2021 have been adversely impacted by the outbreak of the COVID-19 Pandemic as explained above and therefore not comparable with the corresponding previous quarter and year ended 31st March, 2020.
7.The Indian Parliament has approved the Code on Social Security, 2020. This has also received the consent of the Hon’ble President of India. The Code when implemented will impact the contribution by the Company towards benefits such as Provident Fund, Gratuity, etc. The effective date(s) f implementation of this Code is yet to be notified and the rules for quantifying the financial impact are yet to be framed. In view of this, any impact due to the change will be assessed and accounted for in the period of notification of the relevant provisions.
8.Figures for the previous periods have been regrouped/rearranged as necessary to conform to the current period’s classification.
9.The meeting commenced at 12.00 Hours and concluded at 15.30 Hours.
10.The Board of Directors approved Board’s Report for the year 2020-2021.
11.The Audit Qualifications and Reply by the Management are given below:
Auditors’ Qualification:
vii.a. of Auditors’ Report: According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees’ State Insurance, Income tax, Sales tax, Service tax, Duty of Customs, Duty of Excise, Goods and Service Tax (‘GST’), Value Added Tax, Cess and any other material statutory dues, to the extent applicable, have generally been regularly deposited with the appropriate authorities during the year. As explained to us, the Company have not paid the following statutory dues which are due as on the balance sheet date not paid till date.
i.Net Goods & service tax was not paid from September 2020 to March 2021 and GST returns were also not filed for this period. Net GST payable as on 31.03.2021 was at 68,07,036/- excluding interest on delay in payment of tax, Late fee and penalty for non-filing of GST returns that may be levied by the GST Department.
Reply by Management
Due to COVID 19 Pandemic and its serious impact on the business of the company the sales has declined drastically and the working capital position was crippled substantially. However this will be regularized at the earliest.
ii.Employees provident fund was not being remitted within the due date prescribed in the Employees provident fund Act. EPF payable as on 31.03.2021 was Rs.14,92,576 (for the period from September 2019 to February 2020 of Rs.7,06,051 and for the period from September 2020 to March 2021 of Rs.7,86,525) excluding penalty and interest that will be levied by the concern authorities.
Reply by Management
Due to COVID 19 Pandemic and its serious impact on the business of the company the sales has declined drastically and the working capital position was crippled substantially. However this will be regularized at the earliest.
iii.Employees State Insurance was not being remitted within the due date prescribed in the Employees state insurance Act and the due amount payable as on 31.03.2020 was at Rs.2,42,117 (for the period from November 2019 of Rs.35,128 and for the period from to February 2020 to March 2021 of Rs.2,06,989) excluding penalty and interest that will be levied by the concern authorities.
Reply by Management
Due to COVID 19 Pandemic and its serious impact on the business of the company the sales has declined drastically and the working capital position was crippled substantially. However this will be regularized at the earliest.
iv.Quarterly ETDS returns for 2 quarters (Q3 & Q4) not filed and the amount due and payable was at Rs.5,34,902/- excluding interest on delay in payment of tax and late fee for delay in filing of ETDS returns.
Reply by Management
Due to COVID 19 Pandemic and its serious impact on the business of thecompany the sales has declined drastically and the working capital position was crippled substantially. However this will be regularized at the earliest.
v.According to the records of the company, there are no dues of income tax, Goods and Service tax, duty of customs, value added tax which have not been Deposited with the appropriate authorities on account of any dispute except an appeal filed before the Deputy Commissioner of GST Appeals -1, Chennai on 30th September 2020. by the company against the 11 orders passed by the Assistant Commissioner (ST), Loan square Assessment Circle, Chennai determining the GST liability of Rs. 8.96 crores (11 months from January 2019 to November 2019) by best judgement Assessment Order u/s 62 of the GST Act for Non filing of GSTR-3B vide Assessment orders dated 18th March 2020. The disputed total tax liability of Rs.8.96 crores consist of GST of Rs.4.26 crores, Interest of Rs.0.45 cores and Penalty of Rs.4.25 crores. The entire tax liability of Rs.4.26 crores was paid by way of input tax credit and cash payment by filing GSTR-3B returns for the above said 11 months and filed appeal against the said orders before the GST Appellate Authorities for waiver of interest and penalty. No provision for this liability had been made in the books of accounts for the year under report. Since the appeals are pending for adjudication.
Reply by Management
Due to COVID 19 Pandemic and its serious impact on the business of the company the sales has declined drastically the working capital position was crippled substantially. Appeals are pending for adjudication.
vii.According to the information and explanations given to us, the Company has taken loans from financial institutions, banks and not defaulted the repayment of loans or borrowings from banks and financial institutions except payment of one instalment for the month of March 2021 of Rs. 7,46,127/- payable to Religare Finvest Ltd. Which is still not paid by the company
Reply by Management
Due to COVID 19 Pandemic and its serious impact on the business of the company the sales has declined drastically and the working capital position was crippled substantially. The company has applied for moratorium as announced by Government of India and this will be regularized at the earliest.
The meeting of the Board of Directors of the Company commenced at 12 hours and concluded at 15.30 Hours.
We request you to please take the above on record.