You are here » Home » Companies » Company Overview » Organic Coatings Ltd

Organic Coatings Ltd.

BSE: 531157 Sector: Industrials
NSE: N.A. ISIN Code: INE412E01011
BSE LIVE 12:17 | 24 Oct 20.76 1.88
(9.96%)
OPEN

20.73

HIGH

20.76

LOW

20.73

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 20.73
PREVIOUS CLOSE 18.88
VOLUME 2586
52-Week high 25.50
52-Week low 8.50
P/E 16.09
Mkt Cap.(Rs cr) 16
Buy Price 20.76
Buy Qty 16981.00
Sell Price 0.00
Sell Qty 0.00
OPEN 20.73
CLOSE 18.88
VOLUME 2586
52-Week high 25.50
52-Week low 8.50
P/E 16.09
Mkt Cap.(Rs cr) 16
Buy Price 20.76
Buy Qty 16981.00
Sell Price 0.00
Sell Qty 0.00

Organic Coatings Ltd. (ORGANICCOATINGS) - Auditors Report

Company auditors report

To

The Members

Organic Coatings Limited

Mumbai

Report on the Standalone Financial Statements

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

Management's Responsibility for the Standalone 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 ('the Rules'). This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand 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 statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 standalone 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 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 2016 ('The Order') issuedby the Central Government of India in terms of sub-section (11) of section 143 of the Actwe give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 ofthe 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 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 the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act

(f) With respect to the adequacy of internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in 'Annexure B'; and

(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 information and according to the explanations given to us:-

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 35 - Contingent Liabilities andcommitments of Notes forming part of the financial statements for the year ended 31stMarch 2016.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Soman Uday & Co.

Chartered Accountants

Firm Registration Number 110352W

Uday Soman

Proprietor

Membership No. 038870

Mumbai

May 21 2016

The Annexure A referred to in Para 1 Report on Other Legal Regulatory Requirements ofIndependent Auditor's Report to the members of the Company on the standalone financialstatements for the year ended 31 March 2016.

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) As explained to us the fixed assets have been physically verified by themanagement at reasonable intervals during the year which in our opinion is reasonablehaving regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such verification;

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the company;

(ii) As explained to us physical verification of inventories has been conducted atreasonable intervals by the management during the year and the discrepancies noticed onverification between the physical stocks and book records were not material and the samehave been properly dealt with in the books of accounts;

(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;

(iv) The Company has not granted loans or made investments or given guarantees andnot provided security in terms of provisions of section 185 and 186 of The Companies Act2013.

(v) The Company has not accepted deposits and hence the directives issued by theReserve Bank of India and the provisions of the sections 73 to 76 or any other relevantprovisions of the Act and the rules framed there under are not required to be compliedwith by the Company.

(vi) The Maintenance of cost records has not been specified by the Central Governmentunder sub-section 1 of the section 148 of the Act for any of the products manufactured bythe Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employee's stateinsurance income tax sales tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues have been regularly deposited during the yearby the Company with the appropriate authorities and no undisputed amounts payable were inarrears as at 31 March 2016 for a period of more than six months from the date they becamepayable.

(b) According to the information and explanations given to us the dues outstanding ofincome tax sales tax service tax duty of customs duty of excise or value added tax onaccount of dispute are as follows:

Nature of the Statute Nature of dues Amount Amount Paid Under Protest Period to which amount relates Forum where dispute is pending
Rs. Rs.
Central Sales Tax Act 1956 Non Submission of C Forms F Forms and mismatch of supplier wise VAT purchases and interest thereon. 3404588 Nil F.Y. 2011-12 Joint Commissioner of Sales Tax Mumbai

(viii) In our opinion and according to the information and explanation given to us theCompany has not defaulted in repayment of loans or borrowings to a bank. The Company hasnot obtained any borrowing from any financial institutions Government or by way of issueof debentures;

(ix) The Company has not raised any money by way of initial public offer furtherpublic offer (including debt instrument) during the year. The company has raised monies inprevious years by way of term loans from bank and the same were applied for the purposesfor which they were raised.

(x) In our opinion and according to the information and explanations given to us nofraud by the Company or on the Company by its officers or employees has been noticed orreported during the year.

(xi) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the Company has paid/providedmanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us thecompany is not a Nidhi company. Accordingly paragraph 3(xii) is not applicable.

(xiii) In our opinion and according to the information and explanations given to usand based on our examination of the records of the Company all transactions with therelated parties are in compliance with sections 177 and 188 of the Act where applicableand the details of the same have been disclosed in the financial statements as required bythe applicable accounting standards;

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv) ofthe order is not applicable.

(xvi) The Company is not required to be registered under section 45-1A of the ReserveBank of India 1934.

Accordingly paragraph 3(xvi) of the order is not applicable.

For Soman Uday & Co.

Chartered Accountants

Firm Registration Number 110352W

Uday Soman

Proprietor

Membership No. 038870

Mumbai

May 21 2016

The Annexure B referred to in Para 2(f) - Report on other Regulatory requirements ofIndependent Auditor's Report to the Members of the Company on the Internal FinancialControls under clause (i) of sub-section 3 of section 143 of the Companies Act 2013(“the act”) for the year ended 31st March 2016

We have audited the internal financial controls over financial reporting of OrganicCoatings Limited (“the company”) as of 31st March 2016 in conjunction with ouraudit of the financial statements of the company 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 Reportingissued by the Institute of Chartered Accountants of India.” These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the company's internal financialcontrols over financial reporting based on our audit in accordance with the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting (the “GuidanceNote”) and the Standards on Auditing issued by ICAI and deemed to be prescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial Control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions assets of the company; (2) provide reasonable assurance that transactions arerecorded as necessary to permit preparation of financial statements in accordance withgenerally accepted accounting principles. And that receipts and expenditures of thecompany are being made only in accordance with authorities of management and directors ofthe company; and (3) provide reasonable assurance regarding prevention or timely detectionof unauthorized acquisition use or disposition of the company's assets that could have amaterial 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 overrides 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 procedure 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 on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Soman Uday & Co.

Chartered Accountants

Firm Registration Number 110352W

Uday Soman

Proprietor

Membership No. 038870

Mumbai

May 21 2016