Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
ORGANIC COATINGS LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility forthe Standalone Financial Statements
The Company's 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 and
cash flows 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 the
Companies (Accounts) Rules, 2014. 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
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 ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. 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. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances but not forthe purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial control system overfinancial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as
at 31st March, 2015, and its loss and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("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
statement on the matters specified in paragraphs 3 and 4 of the Orderto
the extent applicable.
2. As required by Section 143 (3) of the Act, we reportthat:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary forthe
purposes of ouraudit.
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, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) 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.
iii. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
The Annexure referred to in Para 1 - Report on Other Legal and
Regulatory Requirements of our Independent Auditor's Report to the
members of the Company on the standalone financial statements for the
year ended 31st March 2015, we report that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets;
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals during the year, which in our
opinion is reasonable having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
verification;
(ii) (a) As explained to us, inventories have been physically verified
by the management at regular intervals during the year;
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of Inventories
followed by the Management are reasonable and adequate in relation to
the size of the Company and nature of its business;
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventories
The discrepancies noticed on verification between the physical stocks
and book records were not material and the same have been properly
dealt with in the books of accounts;
(iii) There are no Companies, firms or other parties covered in the
register maintained under Section 189 of the Companies Act,2015 to whom
the Company has granted any loans;
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in the internal controls;
(v) The Company has not accepted deposits from the public within the
meaning of the sections 73 to76 of the Act and the rules framed there
under;
(vi) The Central Government has not prescribed the maintenance of cost
records undersection 148 (1) of the Act, for any of the products
manufactured by the Company;
(vii) (a) According to the information and explanation 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, Employee's State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty
of excise, Value added Tax, Cess and other material statutory dues have
been regularly deposited during the year by the Company with the
appropriate authorities.
According to the information and explanation given to us, no undisputed
amounts payable in respect of Provident Fund, Employee's State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of
Customs,Duty of Excise, Value added Tax, Cess and other material
statutory dues were in arrears as at 31st March, 2015 for a period more
than six months from the date they became payable; (b) According to the
information and explanations given to us, there are no disputed amounts
of the statutory dues which have not been deposited with the concerned
authorities;
(c) There are no amounts required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
thereunder;
(viii) The Company's accumulated loss at the end of the financial year
is more than fifty percent of net worth of the Company. The Company has
not incurred cash losses during the financial year covered by our by
our audit and in the immediately preceding financial year;
(ix) In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
bank. The Company has not obtained any borrowing from any financial
institutions or by way of debentures;
(x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions;
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised;
(xii) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the course of our audit.
For Soman Uday & Co.
Chartered Accountants
Firm Registration No: 110352W
Uday Soman
Proprietor Vadodara Gujarat
Membership No.38870 May 16,2015 |