TO THE MEMBERS OF OCEANAA BIOTEK INDUSTRIES LIMITED REPORT ON THE STANDALONE FINANCIAL
STATEMENTS
We have audited the accompanying standalone Ind AS financial statements of Oceanaa
Biotek Industries Limited ("the Company”), which comprise the Balance Sheet as
at March 31, 2020, the Statement of Profit and Loss (including Other Comprehensive
Income), the Cash Flow Statement and the Statement of change in Equity for the year then
ended, and a summary of significant accounting policies and other explanatory information
(hereinafter referred to as the “standalone financial statements”).
MANAGEMENTS RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial performance, including
other comprehensive income, changes in equity and cash flows of the Company in accordance
with the Ind AS and other accounting principles generally accepted in India. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the standalone financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Companys financial reporting
process.
AUDITORS RESPONSIBILITY FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
Our responsibility is to express an opinion on these standalone financial statements
based on our audit. We conducted our audit of the standalone financial statements in
accordance 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 the
audit to obtain reasonable assurance about whether the standalone fiancial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the standalone financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the
standalone financial statements, whether due to fraud or error. In making those risk
assessments; the auditor considers internal control relevant to the Companys preparation
and fair presentation of the standalone financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Companys internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well as evaluating the
overall presentation of the standalone financial statements. We conducted online audit of
the company due to COVID-19 pandemic and complete lockdown in Chennai city. Therefore, no
physical verification of books and records was done while conducting our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the standalone financial statement.
OPINION
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of affairs of the Company
as at 31st March, 2020 and its profit and loss, total comprehensive income, its
cash flows and the changes in equity for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by Section 143(3) of the Act, we report to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best
of 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 the
Company so far as appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including other Comprehensive
Income,the Cash Flow Statement and Statement of changes in Equity dealt with by this
Report are in agreement
• with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Indian
Accounting Standards prescribed undersection 133 of the Act.
e) On the basis of the written representations received from the directors as on March
31, 2020, taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2020, from being appointed as a director in terms of Section 164(2) of the
Act.
I) With respect to the adequacy of the internal financial controls over financial
reporting of the company and the operating effectiveness of such controls, refer to our
separate report in "Annexure A”. Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
g) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended: In our opinion
and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with
the provisions of section 197 of the Act.
h) With respect to the other matters included in the Auditors Report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rule, 2014, as amended, in our opinion
and to the best of our information and according to the explanation given to us:
i. The Company does not have any pending litigations which would impact its financial
position.
ii. The Company did not have any long-term contracts including derivatives contracts
for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the investors
Education and Protection fund by the company.
iv. The Company has not deposited the Income Tax for AY 2016 - 17, AY 2017 - 18 and AY
2018 - 19. The Company has provided for the said statutory dues duly in the books hence
there is no impact on profit and loss; however part remittance has been made to the
concerned authorities. (Refer Note.7 (c) to Annexure B to the Independent Auditors
Report).
2. As required by the Companies (Auditors Report) Order, 2016 (“the Order”)
issued by the Central Government of India in terms of Section 143(3) of the Act, we give
in the “Annexure B" a statement on the matters specified in paragraphs 3 and 4
of the Order.
|
For ABHAY JAIN & Co. |
|
Chartered Accountants |
|
(FRN. 000008S) |
|
(A K JAIN) |
|
Partner |
| Place: Chennai |
MNo.070224 |
| Date: 27th June 2020 |
UDIN: 20070224AAAABD4948 |
Annexure “A” to the Independent Auditors Report
(Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory
Requirements section of our report to the Members of Oceanaa Biotek Industries Limited of
even date)
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of M/s.
Oceanaa Biotek Industries Limited (“the Company”) as of 31st March
2020 in conjunction with our audit of the standalone financial statements of the Company
for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (TCAF). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting of the Company based on our audit. We conducted our
audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting (the “Guidance Note”) issued by the ICA1 and the Standards
on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether adequate internal financial controls over
financial reporting was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the standalone financial statements, whether due to fraud or
error. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the Companys internal financial controls
system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of standalone financial statements for external purposes in accordance with
generally accepted accounting principles. A companys internal financial control over
financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of standalone
financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or
disposition of the companys assets that could have a material effect on the standalone
financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31st March 2020, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial‘Reporting issued by the Institute of
Chartered Accountants of India.
|
For ABHAY JAIN & Co., |
|
Chartered Accountants |
|
(FRN. 000008S) |
|
(A K JAIN) |
|
Partner |
| Place: Chennai |
M No.070224 |
| Date: 27th June 2020 |
UDIN: 20070224AAAABD4948 |
Annexure - B to the Independent Auditors Report
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory
Requirements section of our report to the Members of Oceanaa Biotek Industries Limited of
even date)
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that:
i. (a) The company has maintained proper records showing full particulars including
quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by the management at
reasonable intervals; no material discrepancies were noticed on such verification. In our
opinion the frequency of verification is reasonable.
(c) The title deeds of immovable properties are held in the name of the Company.
ii. (a) As explained to us, inventories have been physically verified during the year
by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us, the
procedures of physical verification of inventories followed by the management are
reasonable and adequate in relation to the size of the company and the nature of its
business. The Company is generally maintaining proper records of its inventories. No
material discrepancy was noticed on physical verification of stocks by the management as
compared to book and records.
iii. According to the information and explanations given to us and on the basis of our
examination of the books of account, the Company has not granted any loans, secured or
unsecured, to companies, firms or other parties listed in the register maintained under
Section 189 of the Companies Act, 2013. Therefore the provision of clause 3(3a), (3b) and
(3c) of the said order are not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, the
company has . complied with the provisions of Sections 185 and 186 of the Companies Act,
2013 in respect of grant of loans, making investments and providing guarantees and
securities, as applicable.
v. The Company has not accepted deposits during the year and does not have any
unclaimed deposits as at March 31, 2020 and therefore, the provisions of the clause 3 (v)
of the Order are not applicable to the Company.
vi. In our opinion and according to the information and explanations given to us, the
requirement for maintenance of cost records pursuant to the Companies (Cost Records and
Audit) Rules, 2014 specified by the Central Government of India under section 148 of the
Companies Act, 2013 are not applicable to the Company for the year under audit.
vii. (a) According to the information and explanations given to us and the records of
the Company examined by us, in our opinion, there has been a delay in depositing the
undisputed statutory dues, including Provident Fund, Professional Tax and TDS provided in
the books of accounts during the year.
(b) According to the information and explanation given to us, there were no undisputed
amounts in respect of Goods and Service Tax, Customs Duty, Cess and other Material
Statutory dues which were in arrears as at March 31, 2020 for a period of more than six
months from the day they became payable.
(c) Details of the undisputed statutory dues of Income Tax which have not been
deposited as at March31, 2020 as given below;
| Nature of Statute |
Nature of Dues |
Period to which the amount relates |
Amount in Rs. |
| The Income Tax Act, 1961 |
Income Tax |
Ay. 2016-17 |
75,00,000/- |
| The Income Tax Act, 1961 |
Income Tax |
Ay. 2017-18 |
1,90,64,758/- |
| The Income Tax Act, 1961 |
Income Tax |
Ay. 2018-19 |
7,79,86,430/- |
viii. According to the records of the Company examined by us and the information and
explanation given to us, the Company has not defaulted in repayment of loans or borrowings
to any financial institution or bank or government as of the balance sheet date.
ix. The Company has not raised moneys by way of initial public offer or further public
offer (including debt instruments) or term loans and hence reporting under clause 3 (ix)
of the Order is not applicable to the Company.
x. To the best of our knowledge and according to the information and explanations given
to us, no fraud by the Company or no material fraud on the Company by its officers or
employees has been noticed or reported during the year.
xi. The Company has paid/ provided for managerial remuneration in accordance with the
requisite approvals mandated by the provisions of Section 197 read with Schedule V to the
Act.
xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the
Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us, the
company is in compliance with Section 177 and 188 of the Companies Act, 2013, where
applicable, for all transactions with the related parties and the details of related party
transactions have been disclosed in the standalone financial statements etc. as required
by the applicable accounting standards.
xiv. During the year, the Company has not made any preferential allotment or private
placement of shares or fully or partly paid convertible debentures and hence reporting
under clause 3 (xiv) of the Order is not applicable to the Company.
xv. The Company has not entered into any non-cash transactions with its directors or
persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are
not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not
applicable to the Company.
|
For ABHAY JAIN & Co., |
|
Chartered Accountants |
|
(FRN. 000008S) |
|
(A K JAlN) |
|
Partner |
| Place: Chennai |
M No.070224 |
| Date: 27th June 2020 |
UDIN: 20070224AAAABD4948 |
+91-9892691696
