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OCL India Ltd.

BSE: 502165 Sector: Industrials
NSE: OCL ISIN Code: INE290B01025
BSE LIVE 15:40 | 17 Oct 1290.30 -7.45
(-0.57%)
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HIGH

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NSE 15:31 | 17 Oct 1295.40 -9.30
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HIGH

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OPEN 1293.95
PREVIOUS CLOSE 1297.75
VOLUME 523
52-Week high 1335.00
52-Week low 650.00
P/E 18.57
Mkt Cap.(Rs cr) 7,342
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1293.95
CLOSE 1297.75
VOLUME 523
52-Week high 1335.00
52-Week low 650.00
P/E 18.57
Mkt Cap.(Rs cr) 7,342
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

OCL India Ltd. (OCL) - Auditors Report

Company auditors report

To the members of

OCL INDIA LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of OCL INDIA LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2016 theStatement of Profit & Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (the "Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theAccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting principles used and the reasonableness ofthe accounting estimates made by the company’s Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit 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 2016 ("theOrder") issued by the Government of India in terms of sub-section (11) of section 143of the Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in "Annexure A" a statement on the matters specified in the paragraphs 3and 4 of the said Order.

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 bestof 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 theCompany 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 statementdealt with by this report are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on 31st March2016 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2016 from being appointed as a director in terms of section 164(2) ofthe Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting.

g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and information and according to the explanations givento us and such checks as we considered necessary:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 28.1 to the financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company

For V. Sankar Aiyar & Co.
Chartered Accountants
(Firm Regn. No.: 109208W)
(M.S. BALACHANDRAN)
Place: New Delhi Partner
Dated: 17-May-2016 (M. No:024282)

Annexure-A referred to in the Auditors’ report to the Members of OCL India Limitedon the standalone accounts for the year ended 31st March 2016.

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) We are informed that the Company has engaged an outside agency to carry outphysical verification of the fixed assets and that the Agency has completed physicalverification of certain locations and in respect of other locations the exercise is inprogress. We are informed that once the whole exercise is complete reconciliation of suchphysical verification with fixed assets register will be carried out. The question ofdiscrepancies whether material or not can be addressed only after the completion of suchreconciliation. In our opinion the frequency of verification is reasonable in relation tothe size of the Company.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deed/ transfer deed/ conveyancedeed etc. provided to us we report that the title deeds of immovable properties are heldin the name of the Company. The title deeds relating to certain immovable propertiesincluding land have been pledged as security with banks and financial institution forloans guarantees etc. are held in the name of the Company based on the confirmationsfrom the respective banks/ financial institutions.

(ii) The stock of finished goods stores spare parts and raw materials except thoseheld by consignees and stored in customer premises have been physically verified by themanagement at reasonable intervals during the year. No material discrepancies were noticedon physical verification.

(iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Therefore the provisions of clause 3(iii)(a)(b)&(c) of the Order are not applicable.

(iv) The Company has not given any loan or provided any guarantees or security toparties covered under section 185 of the Companies Act 2013. In respect of loansinvestments guarantees and security the Company has complied with the provisions ofsection 186 of the Companies Act 2013.

(v) The Company has not accepted deposits during the year from the public within theprovisions of section 73 to 76 or any other provisions of the Companies Act 2013 and theRules framed thereunder.

(vi) We have broadly reviewed the books of accounts maintained by the Company pursuantto rules made under sub-section (1) of section 148 of the Act and are of the opinion thatprima facie the prescribed accounts and records have been maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate and complete.

(vii) (a) According to the records of the Company the Company has been generallyregular in depositing undisputed statutory dues including provident fund employees’state insurance income-tax sales-tax service tax duty of customs duty of excisevalue added tax cess and any other statutory dues with the appropriate authorities. Therewere no arrears of undisputed statutory dues as at 31st March 2016 which wereoutstanding for a period of more than six months from the date they became payable exceptpayment of advance income tax instalments estimated by the Company at Rs.353.79 lakhs.

(b) The disputed dues of different years relating to income-tax service-taxsales-tax or duty of customs or duty of excise or value added tax which have remainedunpaid as on 31st March 2016 for which appeals are pending as under:

Name of the Statute Nature of the Dues Amount (Rs. lacs) Period to which the amount relates Forum where dispute is pending
Orissa Sales Tax Act Orissa sales tax/ VAT 440.12 1995-96 and 1997-98 to 2000-01 & 2005-06 Orissa Sales Tax Tribunal
Central Sales Tax Act 1956 Central Sales Tax 0.11 2006-07 Orissa Sales Tax Tribunal
Central Sales Tax Act 1956 Central Sales Tax 370.09 2010-11 to 2012-13 Addl. Commissioner of Sales Tax
Orissa Sales Tax Act Orissa VAT 15.86 2005-06 Commissioner of Sales Tax
West Bengal Sales Tax Act West Bengal Sales Tax 39.91 1996-97 and 1999-00 West Bengal Commercial Taxes Appellate & Revisional Board
West Bengal Sales Tax Act West Bengal Sales Tax 3.71 2014-15 CTO Malda Zone
Central Excise Act 1944 Cenvat Credit/ Excise and Service Tax 4506.73 July 2005 to Dec 2009 CESTAT Kolkata; CCE BBSR
Central Excise Act 1944 Cenvat Credit/ Excise and Service Tax 27.45 2009-10 and 2012-13 to 2013-14 CCE BBSR
Central Excise Act 1944 Penalty on GTA Service Tax Demand 14.43 Nov 2009 to Mar 2011 Addl. Commissioner of Central Excise Rourkela
Customs Act 1962 Custom Duty 86.79 2015-16 Customs- Commissioner Appeals
Income Tax Act 1961 Income Tax 57.28 AY: 2007-08 to AY: 2009- 10 & 2014-15 CIT(A) Delhi

(viii) On the basis of the verification of records and information and explanationsgiven to us the Company has not defaulted in repayment of loans or borrowings fromfinancial institutions or banks. In the case of debentures no repayment has fallen due.

(ix) In our opinion and according to the information and explanations given to us termloans taken during the year were applied for the purpose for which the loans wereobtained. The Company has not raised moneys by way of public offer (including debtinstruments).

(x) Based on the audit procedures performed and representation obtained from themanagement we report that no case of material fraud by the Company or on the Company byits officers or employees has been noticed or reported during the year.

(xi) The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

(xii) The Company is not a Nidhi Company. Therefore the provisions of clause 3(xii) ofthe Order are not applicable.

(xiii) In our opinion and according to the information and explanations given to usall the transactions with the related parties are in compliance with section 177 and 188of the Companies Act 2013 to the extent applicable and the details have been disclosed inthe Financial Statements as required by the applicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures. Therefore the provisionsof clause 3(xiv) of the Order are not applicable.

(xv) According to the information and explanations given to us and the representationobtained from the management the Company has not entered into any non-cash transactionswith directors or persons connected with them. Therefore the provisions of clause 3(xv)of the Order are not applicable.

(xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-I of the Reserve Bank of IndiaAct 1934.

For V. Sankar Aiyar & Co.
Chartered Accountants
(Firm Regn. No.: 109208W)
(M.S. BALACHANDRAN)
Place: New Delhi Partner
Dated: 17-May-2016 (M. No:024282)

Annexure-B referred to in the Auditors’ report to the Members of OCL India Limitedon the standalone accounts for the year ended 31st March 2016.

We have audited the internal financial controls over financial reporting of the Companyas of March 31 2016 in conjunction with our audit of the financial statements of theCompany for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin 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 ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand issued by ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany’s 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For V. Sankar Aiyar & Co.
Chartered Accountants
(Firm Regn. No.: 109208W)
(M.S. BALACHANDRAN)
Place: New Delhi Partner
Dated: 17-May-2016 (M. No:024282)