Auditor Confirms Financial Statements of Omkar Speciality Chemicals Ltd; Highlights Resolution Plan Implementation

Auditor Confirms Financial Statements of Omkar Speciality Chemicals Ltd; Highlights Resolution Plan Implementation​

The independent audit report for Omkar Speciality Chemicals Limited (OSCL) covering the financial year ended March 31, 2026, confirms that the company's financial statements provide a true and fair view of its state of affairs. The audit specifically draws attention to the implementation of the Resolution Plan, approved by the NCLT on July 31, 2025, and the continued basis of operations despite recent challenges.

Financial Audit Opinion​

The auditors stated that the financial statements, which include the Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement, and the Statement of Changes in Equity, give the required information as a true and fair view in conformity with generally accepted accounting principles. The audit also verified the company's ability to continue operations on a going concern basis.

A significant aspect highlighted by the auditors is the implementation of the Resolution Plan. This process led to substantial restatements of various liabilities, trade payables, provisions, and other financial commitments. These changes resulted in corresponding impacts recorded in Other Equity. The execution of this plan required considerable management judgment regarding the accounting treatment adopted, including the reissuance of equity shares and the recognition of funds infused by the Resolution Applicant.

Key Audit Matters and Operational Integrity​

The audit focused on several key areas related to the company's financial resilience post-restructuring. Among these matters was verifying the funds provided by the Resolution Applicant against bank statements and supporting documentation.

In reviewing other aspects of operations, the auditors confirmed that:

• Immovable property titles disclosed in the Financial Statements are held in the name of the Company. It was noted that certain properties remain in the process of being released from a mortgage previously created for erstwhile lenders following the Resolution Plan implementation.
• The company has not undertaken any investments or granted loans to parties covered under Section 189 of the Act, and similarly, it has not provided guarantees or security to parties covered under Section 185 and 186 of the Act.
• The company is currently facing cash losses in both the audited financial year and the preceding year.

Assessment of Internal Financial Controls​

In addition to the statement audit, the auditors issued an opinion on the Company’s internal financial controls (IFC). They confirmed that the company possesses an adequate IFC system, and these controls were operating effectively as at March 31, 2026. The assessment covered the processes designed to ensure the orderly and efficient conduct of business, safeguarding assets, and preventing or detecting fraud and errors.

The auditors noted that the previous statutory auditor, Satya Prakash Natani & Co., resigned during the year, with R. R. Tibrewala & Co. being appointed as the new statutory auditors. The report also covered the management's responsibility for financial statements, which includes maintaining adequate accounting records and implementing effective internal financial controls.