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Omkar Speciality Chemicals Ltd.

BSE: 533317 Sector: Industrials
NSE: OMKARCHEM ISIN Code: INE474L01016
BSE 00:00 | 22 Oct 4.40 -0.22
(-4.76%)
OPEN

4.40

HIGH

4.40

LOW

4.40

NSE 00:00 | 22 Oct 4.15 -0.20
(-4.60%)
OPEN

4.15

HIGH

4.55

LOW

4.15

OPEN 4.40
PREVIOUS CLOSE 4.62
VOLUME 1490
52-Week high 29.90
52-Week low 4.40
P/E
Mkt Cap.(Rs cr) 9
Buy Price 4.40
Buy Qty 40.00
Sell Price 4.40
Sell Qty 1140.00
OPEN 4.40
CLOSE 4.62
VOLUME 1490
52-Week high 29.90
52-Week low 4.40
P/E
Mkt Cap.(Rs cr) 9
Buy Price 4.40
Buy Qty 40.00
Sell Price 4.40
Sell Qty 1140.00

Omkar Speciality Chemicals Ltd. (OMKARCHEM) - Auditors Report

Company auditors report

To the Members of Omkar Speciality Chemicals Limited Report onthe Audit of the Ind As Financial statements

We have audited the accompanying Ind AS financial statements ofomkar speciality Chemicals Limited ("the Company") which comprise the BalanceSheet as at March 31 2018 the Statement of Profit and Loss the Statement of Changes inEquity and the Statement of Cash Flows for the year then ended and summary of thesignificant accounting policies and other explanatory information.

Management's responsibility for the Ind As Financial statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Ind AS financial statements that give a true and fair view of thestate of affairs financial performance including other comprehensive income changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act.

This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Ind AS financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind ASfinancial statements based on our audit.

We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the Ind AS financial statements inaccordance 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 theaudit to obtain reasonable assurance about whether the Ind AS financial statements arefree from material misstatement.

An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the Ind AS financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Ind AS financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Ind AS financialstatements.

We are also responsible to conclude on the appropriateness ofmanagement's use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the entity's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in theauditor's report to the related disclosures in the financial statements or if suchdisclosures are inadequate to modify the opinion. Our conclusions are based on the auditevidence obtained up to the date of the auditor's report. However future events orconditions may cause an entity to cease to continue as a going concern.

We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Ind AS financialstatements.

Basis for Qualified Opinion:

i. The Company has negative net worth as at March 31 2018. Inour opinion negative net worth along with other matters indicate the existence ofmaterial uncertainty that may cast doubt about the Company's ability to continue as goingconcern. The financial results have been prepared assuming that the company will continueas a going concern. Also the financial statements do not include any adjustments thatmight result from the outcome of qualifications as per the succeeding paragraphs.

ii. The existing software used for inventory records is notsatisfactory.

iii. The Company has not furnished the confirmations of certaintrade payables and trade receivables. In view of the same we are unable to comment on theconsequential impact if any.

iv The Internal Financial Control over Financial Reporting (IFCR)in the Company requires to be strengthen significantly. Adequate IFCR policies proceduresshould be laid down and overall internal controls and operating effectiveness needs to bestrengthened.

Qualified Opinion

In our opinion and to the best of our information and accordingto the explanations given to us except for the possible effects of the matter describedin Basis of Qualified Opinion paragraph above the aforesaid Ind AS financial statementsgive the information required by the Act in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2018 its loss (including othercomprehensive income) changes in equity and its cash flows for the year ended on thatdate.

Emphasis of Matter

Without qualifying our opinion we draw attention to thefollowing matters;

1. The Company has not spent the provision made on account ofCorporate Social Responsibility (CSR). The unspent amounts are as under:

sn. Year to which pertain Rs (in lakhs)
1. Provision for CSR FY 2016-17 51.08
2. Provision For CSR F.Y.15-16 46.45
3. Provision For CSR FY 2014-15 42.06

2. The Company has not made appointment of Chief FinancialOfficer as required by Section 203 of the Companies Act 2013 read with the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014.

Our opinion is not modified in respect of this matter.

Other Matters

1. The comparative financial information of the Company for theyear ended March 31 2017 and the transition date opening balance sheet as at April 12016 included in these Ind AS financial statements are based on the previously issuedstatutory financial statements prepared in accordance with the Companies (AccountingStandards) Rules 2006 audited by the predecessor auditor whose report for the year endedMarch 31 2017 and March 31 2016 dated May 20 2017 and May 23 2016 respectivelyexpressed an unmodified opinion on those financial statements as adjusted for thedifferences in the accounting principles adopted by the Company on transition to the IndAS.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:

a) We have sought and except for the matters described in Basisof Qualified Opinion paragraph obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion except for the matters described in Basis ofQualified Opinion paragraph proper books of account as required by law have been kept bythe Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss the CashFlow Statement and the Statement of Changes in Equity dealt with by this Report are inagreement with the books of account.

d) In our opinion the aforesaid Ind AS financial statementscomply with the Indian Accounting Standards prescribed under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on March 31 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2018 from being appointed as a director in termsof

Section 164(2) of the Act.

f) With respect to the adequacy of the internal financialcontrols with reference to financial statements of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B" inwhich we have expressed a qualified opinion;

g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us:

i. The Company has disclosed the impact of pending litigations onits financial position in its Ind AS financial statements- Refer Note 33A iv v 33B i toiii and 33Bb to the Ind AS financial statements.

ii. The Company does not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

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

iv. The disclosures in the financial statements regardingholdings as well as dealings in specified bank notes during the period from November 82016 to December 30 2016 have not been made since they do not pertain to the financialyear ended March 31 2018.

For Desai Saksena & Associates

Chartered Accountants

Firm's registration number: 102358W

Sd/-

Dr S.N.Desai Partner

Membership number: 32546 Mumbai 30th May 2018