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Oceanic Foods Ltd.

BSE: 540405 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE711V01010
BSE 09:57 | 05 Dec 37.00 1.45
(4.08%)
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NSE 05:30 | 01 Jan Oceanic Foods Ltd
OPEN 37.00
PREVIOUS CLOSE 35.55
VOLUME 3
52-Week high 81.85
52-Week low 25.05
P/E 16.30
Mkt Cap.(Rs cr) 42
Buy Price 33.85
Buy Qty 200.00
Sell Price 37.00
Sell Qty 3063.00
OPEN 37.00
CLOSE 35.55
VOLUME 3
52-Week high 81.85
52-Week low 25.05
P/E 16.30
Mkt Cap.(Rs cr) 42
Buy Price 33.85
Buy Qty 200.00
Sell Price 37.00
Sell Qty 3063.00

Oceanic Foods Ltd. (OCEANICFOODS) - Auditors Report

Company auditors report

To the Members of Oceanic Foods Limited

Opinion

We have audited the accompanying Ind AS financial statements of OCEANIC FOODSLIMITED (‘the Company’) which comprise the Balance Sheet as at March 312021 the Statement of Profit and Loss which also includes Other Comprehensive Income andCash Flow Statement and the statement of Changes in Equity for the year ended and notesto financial statements including summary of significant accounting policies and otherexplanatory information (hereinafter referred to as Financial Statements’).

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 as amended (‘the Act’) in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2021 its profit includingother comprehensive income its cash flows and the changes in equity for the year ended onthat date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Companies Act 2013 (SAs). Ourresponsibilities under those Standards are further described in the Auditor’sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the ethical requirements that arerelevant to our audit of the financial statements under the provisions of the Act and theRules made there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI’s Code of Ethics. We believe that theaudit evidence obtained by us is sufficient and appropriate to provide a basis for ouraudit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements for the Financial year ended 31stMarch 2021. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. For each matter below our description of how our auditaddressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in the‘Auditor’s responsibilities for the audit of the financial statements’section of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the financial statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying financial statements.

Sr. No. Key Audit Matter Auditor’s Response
1. Valuation of Inventory
As per IND AS-2 Inventories closing inventories are valued at lower of cost and net realizable value (estimated selling price less estimated cost to sell). 1. Obtained an understanding of business model & parameters affecting the valuation of products.
Considering that since the company is in the business of Agro based Dehydrated products the following factors impact the valuation of these inventories: 2. Obtained an understanding of the parameters affecting the net realizable value of products and assessed and tested the reasonableness of the significant judgments applied by the management.
a) Volatility of Agro based market
b) Salability of the product &
c) Qualitative characteristics of the products which are variable in nature. 3. Obtained laboratory testing report of inventory as at 31st March 2021 analyzing various parameters affecting valuation of these products.
Thus there is always volatility factor involved in the valuation of these dehydrated products (mainly Onion & Garlic) lying in stock at the year-end in any form whether Raw Semi- finished or Finished form. Therefore it has been considered as a key audit matter. 4. Obtained costing of semi-finished goods & finished goods from the management of the company and verified the reasonableness of the costing method adopted by the company in view of size and nature of the company.
5. Compared the cost of products derived by the weighted average method & NRV of the products based on the quotations received by the company for supply of products having similar parameters.
6. Compared the cost of finished goods with the estimated net realizable value and checked if the finished goods were recorded at net realizable value where the cost was higher than the net realizable value.
7. Assessed the appropriateness of the disclosure in the financial statements in accordance with the applicable financial reporting framework.

Information Other than the Financial Statements and Auditor’s Report thereon

The Company’s Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in Board’sReport including Annexure to Board’s Report but does not include the financialstatements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

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 preparation andpresentation of these Ind AS financial statement to give a true and fair view of thefinancial position financial performance which includes other comprehensive incomestatement of cash flows and changes in equity of the Company in accordance with accountingprinciples generally accepted in India including Indian Accounting Standards (Ind AS)specified under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules2015 ("Ind AS") as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding 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 control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Ind AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany’s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Boards of Directors are also responsible for overseeing the Company’s financialreporting process.

Auditors’ Responsibility

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements. As part ofan audit in accordance with SAs we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However future events or conditions may cause theCompany to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

• Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in:

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor’s report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors’ Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified 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 bestof 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 theCompany so far as appears from our examination of those books

c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account

d. in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014;

e. On the basis of written representations received from the directors as on March 312021 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2021 from being appointed as a director in terms of Section 164(2) of theAct.

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" and

g. With respect to the other matters to be included in the Auditor’s Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and according to the information and explanations given to us themanagerial remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act read with Schedule V of the Act.The remuneration paid to any director is not in excess of the limit laid down underSection 197 of the Act. The Ministry of Corporate Affairs has not prescribed other detailsunder Section 197(16) which are required to be commented upon by us.

h. 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 explanation given to us;

i. The company has disclosed the impact of pending litigations on its financialposition in its financial statements refer note 28 to the IND AS financial statements.

ii. The company does not have any long-term contracts including derivative contractshence the question of any material foreseeable losses does not arise;

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

For Maharishi & Co.

Chartered Accountants

Firm Reg. No. 124872W

Sd/-

Kapil Sanghvi

Partner

Membership No. 141168

Signed at Jamnagar on 17th June 2021

UDIN: 21141168AAAAGG6239

ANNEXURE A TO INDEPENDENT AUDITORS’ REPORT

[Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements’ in the Independent Auditors’ Report of even date to the members ofOceanic Foods Ltd on the financial statements for the year ended 31st March2021]

(i)(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) The Company has a program of verification to cover all the items of fixed assetswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. Pursuant to the program certain fixed assets were physicallyverified by the management during the year. According to the information and explanationsgiven to us no material discrepancies 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 are inthe name of the company.

(ii) The inventory (excluding stocks in cold storage) has been physically verified bythe management during the year. In respect of inventory lying in cold storage these havesubstantially been confirmed by them. In our opinion the frequency of verification isreasonable. Discrepancies noticed during physical verification were not material and thesame has been dealt with in the books of account.

(iii) According to the information and explanation given to us the company has notgranted any loans secured or unsecured to companies firms Limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013 (‘the Act’) accordingly the provisions stated in paragraph3(iii)(a) 3(iii)(b) and 3(iii)(c) of the Order are not applicable and hence not commentedupon.

(iv) In our opinion and according to the information and explanations given to usthere are no loans guarantees and securities given in respect of which provisions ofsection 185 of the Act are applicable and hence not commented upon. In our opinion andaccording to the information and explanations given to us provision of section 186 of theAct with respect to loan guarantee and investments made have been complied with bycompany.

(v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from the public within the provisions of section 73to 76 of the Act and rules framed there under. Accordingly the provisions of clause 3(v)of the order are not applicable to the company and hence not commented upon.

(vi) The Central Government of India has not prescribed the maintenance of cost recordsfor any of the products of the company under sub-section (1) of section 148 of the Act andrules framed there under.

(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 Employees’State Insurance Income-tax Goods and Services tax duty of Customs Cess and othermaterial statutory dues have generally been regularly deposited during the year by theCompany with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employees’ State Insurance Income-tax Goodsand Services tax duty of Customs Cess and other material statutory dues were in arrearsas at 31 March 2021 for a period of more than six months from the date they becamepayable.

(b) According to the records of the Company the dues outstanding on account of anydispute are as follows:

Name of the statute Nature of dues Amount (Rs.) Period to which the amount relates Forum where dispute is pending
Central Sales Tax Act 1956 Tax + Interest 84553.00 2002-03 Assistant Commissioner of Appeals
Central Sales Tax Act 1956 Tax + Interest 2440.00 2002-03 Assistant Commissioner of Appeals
Gujarat Value Added Tax 2003 Tax + Interest 630250* 2013-14 Assistant Commissioner of Appeals

(viii) The Company has not defaulted in any loan from financial institutions or banksduring the year.

(ix) In our opinion and according to the information and explanation given to us theCompany has not raised money by way of public issue during the year.

(x) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the company noticed or reported during the year nor have webeen informed of such case by the management.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the company the company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion the Company is not a Nidhi company. Accordingly the provisionsof clause (xii) of the order are not applicable to the Company.

(xiii) According to information and explanation given to us and on the basis of booksof accounts and other relevant records of the company all transactions with the relatedparties are in compliance with section 177 and 188 of Companies Act 2013 where applicableand the details have been disclosed in the notes to Financial Statements as required byapplicable accounting standards.

(xiv) Company has not made any private placement or preferential allotment during theyear.

(xv) According to information and explanation given to us the Company has not enteredinto any non-cash transactions with directors or persons connected with him as referred toin section 192 of the Act.

(xvi) According to the information and explanations given by the Management theprovisions of section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company.

For Maharishi & Co.

Chartered Accountants

Firm Reg.No.124872W

Kapil Sanghvi

Partner

Membership No. 141168

Signed at Jamnagar on 17th June 2021

UDIN: 21141168AAAAGG6239

Annexure B to the Auditors’ report

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (‘the act’)

We have audited the internal financial control over financial reporting of OCEANICFOODS LIMITED (‘the company’) as of 31st March 2021 in conjunctionwith our audit of the IND AS financial statement of the company for the year ended on thatdate.

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 (‘ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors andaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

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 on Audit of Internal Financial Controls over Financial Reporting(the ‘Guidance Note’) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors’ judgment including the assessment of the risks of materialmisstatement of the standalone financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company’s internal financial controls systemover financial reporting.

Meaning of Internal Financial Control 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 purpose in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorization of the management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea 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 misstatement due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Other Matters

We have been informed that Internal Audit of the Company for the year ended on March31 2021 is under process. Further Internal Auditor of the Company has informed thatthere are no adverse remarks in the Internal Audit impacting the Financial Statements.However Internal Audit Report is not issued till the date of this report.

Opinion

In our opinion the company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2021based on the internal control over financial reporting criteria established by the companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Maharishi & Co.

Chartered Accountants

Firm Registration No.124872W

Kapil Sanghvi

Partner

Membership No.141168

Signed at Jamnagar on 17th June 2021

UDIN: 21141168AAAAGG6239

.