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Organic Coatings Ltd.

BSE: 531157 Sector: Industrials
NSE: N.A. ISIN Code: INE412E01011
BSE 00:00 | 20 Jul 14.65 0.68
(4.87%)
OPEN

14.65

HIGH

14.65

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14.65

NSE 05:30 | 01 Jan Organic Coatings Ltd
OPEN 14.65
PREVIOUS CLOSE 13.97
VOLUME 1
52-Week high 22.83
52-Week low 10.56
P/E 366.25
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 14.65
CLOSE 13.97
VOLUME 1
52-Week high 22.83
52-Week low 10.56
P/E 366.25
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
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 Financial Statements

We have audited the accompanying standalone financial statements of ORGANIC COATINGSLIMITED ('the Company') which comprise the Balance Sheet as at 31 March 2017 theStatement of Pro t and Loss the Statement of Cash Flow 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.This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of 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 financial statements that give a true and fair view and are free frommaterial 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 2017 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 ('The Order') issued bythe Central Government of India in terms of sub-section (11) of section 143 of the Act wegive in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder 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 Pro t and Loss and the Statement of Cash Flowdealt 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

speci ed 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 31stMarch 2017 taken on record by the Board of Directors none of the directors is disqualied as on 31st March 2017 from being appointed as a director in terms of Section 164 (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 our separate report in 'AnnexureB' 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 does not have any pending litigations which would impact its financialposition.

(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.

(iv) The Company has provided requisite disclosures in its financial statements as toholdings as well as

dealings in Speci ed Bank Notes during the period 8 November 2016 to 30 December 2016and

these are in accordance with the books of accounts maintained by the Company.

For Soman Uday & Co. Chartered Accountants

ICAI Firm Registration Number 110352W

Uday Soman Proprietor

Membership No. 038870

Mumbai May 8 2017

The Annexure A referred to in Para 1 Report on Other Legal Regulatory Requirements ofour Independent Auditor's Report to the members of the Company on the standalone financialstatements for the year ended 31 March 2017 we report that:

(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 veri ed by the managementat reasonable intervals during the year which in our opinion is reasonable having regardto the size of the Company and nature of its assets. No material discrepancies werenoticed on such veri cation;

(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 held in the name ofthe company

(ii) As explained to us physical veri cation of inventories has been conducted atreasonable intervals by the management during the year and the discrepancies noticed onveri cation 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 rmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013;

(iv) The Company has not given loans or made investments or given guarantees andprovided security

in terms of provisions of section 185 and 186 of The Companies Act 2013.

(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 by the 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 year by the Company with the appropriateauthorities and no undisputed amounts payable were in arrears as at 31 March 2017 for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no duesoutstanding of income tax sales tax service tax duty of customs duty of excise orvalue added tax on account of dispute which have not been deposited with the concernedauthorities

(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 ofdebentures;

(ix) The company has raised monies by way of term loans from bank and the same wereapplied for the

purposes for 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 or reported during theyear.

(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.

For Soman Uday & Co.

Chartered Accountants

ICAI Firm Registration Number 110352W

Uday Soman

Proprietor

Membership No. 038870

Mumbai

May 8 2017

INDEPENDENT AUDITOR'S REPORT

The Annexure B referred to in Para 2(f) - Report on other Regulatory requirements ofour Independent

Auditor's Report to the Members of the Company on the Internal Financial Controls underclause (i) of sub-section 3 of section 143 of the Companies Act 2013 (“theact”) for the year ended 31 March 2017

We have audited the internal financial controls over financial reporting of OrganicCoatings Limited (“the company”) as of 31 March 2017 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 assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 materials 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 2017 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

ICAI Firm Registration Number 110352W

Uday Soman

Proprietor

Membership No. 038870

Mumbai

May 8 2017