You are here » Home » Companies » Company Overview » Igarashi Motors India Ltd

Igarashi Motors India Ltd.

BSE: 517380 Sector: Engineering
NSE: IGARASHI ISIN Code: INE188B01013
BSE LIVE 09:30 | 26 Sep 915.00 -0.20
(-0.02%)
OPEN

929.45

HIGH

929.45

LOW

915.00

NSE 15:49 | 25 Sep 917.55 -27.20
(-2.88%)
OPEN

935.00

HIGH

944.00

LOW

902.10

OPEN 929.45
PREVIOUS CLOSE 915.20
VOLUME 40
52-Week high 1125.00
52-Week low 650.00
P/E 37.87
Mkt Cap.(Rs cr) 2,801
Buy Price 911.50
Buy Qty 13.00
Sell Price 916.40
Sell Qty 13.00
OPEN 929.45
CLOSE 915.20
VOLUME 40
52-Week high 1125.00
52-Week low 650.00
P/E 37.87
Mkt Cap.(Rs cr) 2,801
Buy Price 911.50
Buy Qty 13.00
Sell Price 916.40
Sell Qty 13.00

Igarashi Motors India Ltd. (IGARASHI) - Auditors Report

Company auditors report

TO THE MEMBERS OF IGARASHI MOTORS INDIA LIMITED

REPORTON THE FINANCIAL STATEMENTS financial We have audited the accompanyingstatements of Igarashi Motors India Limited ("the Company") which comprise theBalance Sheet as at 31 March 2017 the Statement of Profit and Loss the Cash FlowStatement for the year then ended and a summary of the significant accounting policiesand other explanatory information.

MANAGEMENT'S RESPONSIBILITYFOR 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 the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions 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 ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare 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 financial statements.

OPINION

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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 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 by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in Annexure ‘A' to this Report a statement on the matters specifiedin para 3 and 4 of the said Order.

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 Profit and Loss and the Cash Flow Statementdealt with by this

Report are in agreement with the books of account;

(d) in our opinion the aforesaid financial statements comply with the AccountingStandards specified 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 31March 2017 taken on record by the Board of Directors none of the directors disqualifiedas on 31 March 2017 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 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. theCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements Refer Note 17 (a) (i) and (ii) accompanying the financial statements;ii. the Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

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

iv. the Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 08 November2016 to 30 December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with the books of accountmaintained by the Company and as produced to us by the management.

for SHARP & TANNAN
Chartered Accountants
(Firm's Registration No.003792S)
V.Viswanathan
Place: Chennai Partner
Date : May 11 2017 Membership No. 215565

ANNEXURE ‘A' TO THE INDEPENDENT AUDITOR'S REPORT

With reference to Annexure ‘A' referred to in paragraph 1 under the heading"Report on Other Legal and Regulatory Requirements" of the Independent Auditor'sreport to the members of Igarashi Motors India Limited on the financial statements for theyear ended 31 March 2017 we report that:

(i). (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) We are informed that the Company has formulated a programme for physicalverification of all the fixed assets over a period of three years which in our opinion isreasonable considering the size of the Company and the nature of its assets. Accordinglythe fixed assets have been physically verified by the management during the year and nomaterial discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and the records of theCompany examined by us the title deeds of immovable properties are held in the name ofthe Company.

(ii) As explained to us inventories were physically verified during the year by theManagement at reasonable intervals and no material discrepancies were noted on physicalverification.

(iii) According to the information and explanations 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. Accordingly reporting on clause (iii) (a) (b) and (c) of the Orderdoes not arise.

(iv) According to the information and explanations given to us the Company has notadvanced any loan given any guarantee or provided any security to the parties coveredunder Section 185 of the Companies Act 2013.

According to the information and explanations given to us and the records of theCompany examined by us the provisions of Section 186 of the Companies Act 2013 have beencomplied with in respect of the investment made by the Company.

(v) According to the information and explanations given to us the Company has notaccepted any deposits within the meaning of Sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed thereunder. Accordinglyreporting under clause 3 (v) of the Order does not arise.

(vi) We have broadly reviewed the books of account and records maintained by theCompany pursuant to the rules prescribed by the Central Government for the maintenance ofcost records under sub-section (1) of Section 148 of the Companies Act 2013 and are ofthe opinion that prima facie the prescribed accounts and records have been made andmaintained. However the contents of these records have not been examined by us. (vii) (a)According to the information and explanations given to us and on the basis of ourexamination of the books of account in our opinion the Company is generally regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome-tax sales tax service tax duty of customs duty of excise value added tax andother statutory dues applicable to it during the year with appropriateauthorities.According to the information and explanations given to us there were noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax sales tax service tax duty of customs duty of excise value added tax andother material statutory dues outstanding as at 31 March 2017 for a period of more thansix months from the date they became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us dues in respect of income-tax as at 31 March 2017 which has notbeen deposited on account of disputes pending is as under:

(Rs)

Name of the statute Nature of disputed dues Total demand Amount deposited Amount not deposited Period to which the dispute relates Forum where disputes are pending
Income- tax Act 1961 Disallowance under Section 14A (Read with Rule 8D) addition under Section 2(24)(x) read with Section 36(1)(va) and TDS credit mismatch 1661180 1000000 661180 Assessment Year 2012-13 (Financial Year 2011-12) Assessment Year 2013-14 Commissioner of Income Tax (Appeals)
Disallowance under Section 14A (Read with Rule 8D) Section 40(a)(ii) TDS credit mismatch and set off of losses. 1218030 -- 1218030 (Financial Year 2012-13)
Total 2879210 1000000 1879210

According to the information and explanations given to us and the records of theCompany examined by us there are no dues in respect of sales tax service tax duty ofcustoms duty of excise or value added tax as at

31 March 2017 which have not been deposited on account of any dispute.

(viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of dues to afinancial institution or bank during the year. The Company has not issued any debenturesduring the year.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. In our opinion and according tothe information and explanations given to us on an overall basis the term loans havebeen applied for the purposes for which they were obtained.

(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 anyinstances of fraud by the Company or any instances of frauds on the

Company by its officers or employees noticed or reported during the year nor we havebeen informed of such cases by the management.

(xi) According to the information and explanations given to us and the records of theCompany examined by us in our opinion managerial remuneration has been paid / providedfor in accordance with the requisite approvals mandated by the provisions of Section 197read with Schedule V to the Companies Act 2013.

(xii) According to the information and explanations given to us the Company is not aNidhi Company. Accordingly reporting under clause 3(xii) of the Order does not arise.

(xiii) According to the information and explanations given to us and the records of theCompany examined by us in our opinion all transactions with the related parties are incompliance with Sections 177 and 188 of the Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. Accordingly reporting under clause 3(xiv) of the Order does not arise.

(xv) According to the information and explanations given to us the Company has notentered into non-cash transactions with directors or persons connected with the directorsduring the year. Accordingly reporting under clause 3 (xv) of the Order does not arise.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly reporting under clause 3 (xvi) of the Order does not arise.

for SHARP & TANNAN
Chartered Accountants
(Firm's Registration No.003792S)
V.Viswanathan
Place: Chennai Partner
Date : May 11 2017 Membership No. 215565

ANNEXURE ‘B' TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 2(f) of our Report of even date]

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013

We have audited the internal financial controls over financial reporting of IgarashiMotors India 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 RESPONSIBILITYFOR 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 Reporting("the Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013("the Act").

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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI.

Those Standards and the Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material 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. 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 system overfinancial 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 financial reporting includes those policiesand procedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the Company's assets that could have a material effecton the financial statements.

NHERENT I 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 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 procedures 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 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

for SHARP & TANNAN
Chartered Accountants
(Firm's Registration No.003792S)
V.Viswanathan
Place: Chennai Partner
Date : May 11 2017 Membership No. 215565