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India Glycols Ltd.

BSE: 500201 Sector: Industrials
NSE: INDIAGLYCO ISIN Code: INE560A01015
BSE LIVE 15:43 | 18 Oct 319.85 -1.90
(-0.59%)
OPEN

323.95

HIGH

332.00

LOW

318.00

NSE 15:59 | 18 Oct 320.80 -1.75
(-0.54%)
OPEN

322.00

HIGH

331.95

LOW

318.55

OPEN 323.95
PREVIOUS CLOSE 321.75
VOLUME 112315
52-Week high 345.00
52-Week low 108.95
P/E 24.30
Mkt Cap.(Rs cr) 990
Buy Price 319.85
Buy Qty 675.00
Sell Price 0.00
Sell Qty 0.00
OPEN 323.95
CLOSE 321.75
VOLUME 112315
52-Week high 345.00
52-Week low 108.95
P/E 24.30
Mkt Cap.(Rs cr) 990
Buy Price 319.85
Buy Qty 675.00
Sell Price 0.00
Sell Qty 0.00

India Glycols Ltd. (INDIAGLYCO) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

INDIA GLYCOLS LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of IndiaGlycols Limited (‘the Company') which comprise the balance sheet as at 31stMarch 2017 the statement of profit and loss (including other comprehensive income) thestatement of cash flows and the statement of changes in equity for the year then ended anda summary of the significant accounting policies and other explanatory information (hereinafter referred to as "standalone Ind AS financial statements").

Management's Responsibility for the Standalone Ind AS 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 ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity 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 read with relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

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 ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone 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 standalone Ind AS financial statements thatgive a true and 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 standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the Company as at 31st March 2017 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear 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 section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in the paragraph 3 and4 of the 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 the statement of cash flowsand the statement of changes in equity dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with relevant ruleissued thereunder.

(e) On the basis of the written representations received from the directors as on 31stMarch2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164 (2) of the Act.

(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. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - Refer Note No. 38A(i) 40 41& 42(a)(iii) to the standalone Ind AS 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. Refer Note No. 53(B) to the standalone Ind AS financial statements.

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

iv. The Company has provided requisite disclosures in its standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and these are inaccordance with the books of accounts maintained by the Company. Refer Note 60 to thestandalone Ind AS financial statements.

For LODHA & CO.
Chartered Accountants
FRN: 301051E
(N.K. Lodha)
Place: Noida Partner
Date: 16-05-2017 Membership No. 85155

Annexure - A to the Auditor's Report Annexure referred to in paragraph 1 under theheading "Report on other legal and regulatory requirements" of our report ofeven date on the Standalone Ind AS Financial Statements of India Glycols Ltd. for the yearended 31st March 2017

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets except in case of certain locationswhere records are in process of updation/compilation.

(b) As per information & explanation given to us the fixed assets have beenphysically verified by the Management. As explained to us there is regular programme ofphysical verification once in every three years in phased manner which in our opinion isreasonable having regard to the size of the Company and the nature of its fixed assets.The discrepancies noticed on such physical verification were not material.

(c) As per the records and information and explanations given to us title deeds ofimmovable properties (fixed assets) are held in the name of the Company (read withfootnote of note no 2).

2. The inventory of the Company (except stock in transit which have been verified basedon subsequent receipt/reconciliation) has been physically verified by the management atreasonable intervals and the procedures of physical verification of inventory followed bythe Management are reasonable and adequate in relation to the size of the Company andnature of its business. The company is maintaining proper records of inventory. Thediscrepancies noticed on such physical verification of inventory as compared to bookrecords were not material.

3. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Accordingly We are not offering any comment onthe provisions of Clause 3(iii) (a) (b) & (c) of the Order.

4. According to the information explanations and representations provided by themanagement and based upon audit procedures performed we are of the opinion that inrespect of loans investments -guarantees and security the Company has complied with theprovisions of the Section 185 and 186 of the Companies Act 2013. [This is to be read withnote no. 58(iv)j)].

5. I n our opinion and according to the information and explanations given to us theCompany has complied with the directives issued by the Reserve Bank of India and theprovisions of Section 73 to 76 of the Act or any other relevant provisions of the Act andthe rules framed there under (to the extent applicable for carry over unclaimed amount)with regard to deposits accepted from the public. According to the information andexplanation given to us no order has been passed by the Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any Court or other Tribunal in thisregard.

6. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules specified by the Central Government for the maintenance of cost records underSection 148(1) of the Act in respect of the Company's products to which the said rules aremade applicable and are of the opinion that prima facie the prescribed records have beenmade and maintained. We have however not made a detailed examination of the said recordswith a view to determine whether they are accurate or complete.

7. (a) According to the records of the Company the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees' state insurance income tax sales tax service tax duty of custom dutyof excise value added tax cess and other material statutory dues to the appropriateauthorities to the extent applicable and there are no undisputed statutory dues payablefor a period of more than six months from the date they become payable as at 31stMarch 2017.

(b) According to the records and information and explanations given to us there are nomaterial dues in respect of Income Tax or cess that have not been deposited with theappropriate authorities to the extent applicable on account of any dispute and dues inrespect of Duty of Custom Service Tax Duty of Excise VAT & Sales Tax that have notbeen deposited with appropriate authority on account of dispute and the forum where thedispute is pending are given below:- )

Nature of Statue Nature of Dues Amount (In Lacs) Period Forum
Custom Act Custom Duty 11.42 1992-93 U.T High Court
1962 Custom Duty 196.55 2005-06 2009-10 Assistant Commissioner Customs
Custom Duty 763.77 2004-05 2010-11 Commissioner Customs (Appeals)
Duty Drawback 15.86 2006-07 Joint Secretary Department of Revenue
Finance Act Service Tax 172.66 2010-11 to 2015-16 Commissioner LTU - KSP
1994 Service Tax 2.20 2010-11 to 2015-16 Assistant Commissioner LTU - Ahmedabad
Service Tax 8.09 2005-06 to 2008-09 2010-11 Assistant/Deputy Commissioner LTU - GKP
Service Tax 8.98 2012-132015-16 Assistant/Deputy Commissioner LTU - Noida
Central Excise Act 1944 Cenvat Credit 11.75 2007-08 to 2012-13 Commissioner Appeal LTU - KSP
Cenvat Credit 11.07 2011-12 to 2013-14 and 2015-16 Additional Commissioner LTU - KSP
Cenvat Credit 17.42 2010-11 to 2013-14 Additional Commissioner LTU- GKP
Cenvat Credit 24.81 2013-14 2014-15 and 2015-16 Assistant/Deputy Commissioner LTU - GKP
Cenvat Credit 27.55 2010-11 to 2012-13 Commissioner Appeals LTU - GKP
Cenvat Credit 8.97 2012-13 to 2013-14 CESTAT-Allahabad
Cenvat Credit 6.39 2010-11 to 2011-12 Commissioner Appeals Allahabad
Cenvat Credit 10.86 2011-122012-13 Commissioner LTU - GKP
Cenvat Credit 66.97 2006-07 to 2008-09 Commissioner LTU - KSP
Cenvat Credit 0.22 2013-14 Superintendent - LTU- GKP
Cenvat Credit 55.59 2004-05 to 2005-06 Commissioner CCE- Meerut
Excise Duty 89.60 2008-09 to 2013-14 Additional Commissioner LTU - KSP
Excise Duty 852.57 2007-08 to 2011-12 CESTAT
Excise Duty 4183.63 2010 - 2011 Commissioner LTU - KSP
Excise Duty 14.99 2013-14 2014-15 and 2015-16 Joint/Additional Commissioner LTU - KSP
Excise Duty 53.07 2005-06 to 2008-09 Joint Secretary GOI New Delhi
Uttar Pradesh VAT ACT 2008 Sales Tax 8.39 2008-09 2009-10 and 2011-12 Additional Commissioner

8. In our opinion on the basis of audit procedures and according to the informationand explanations given to us the Company has not defaulted in repayment of loans orborrowings to financial institutions banks government (both State and Central). Thecompany did not have any outstanding debentures during the year.

9. On the basis of information and explanations given to us the Company did not raiseany money by way of public offer or further public offer (including through debtinstruments) during the year and term loans raised were applied for the purposes for whichthe loans were obtained.

10. Based on the audit procedure performed and on the basis of information andexplanations provided by the management no material fraud by the Company or on theCompany by its officers or employees has been noticed or reported during the course of theaudit.

11. On the basis of records and information and explanations made available and basedon the examination of the records of the Company managerial remuneration which has beenpaid or provided is in accordance with the requisite approvals mandated by Section 197read with Schedule V to the Act.

12. The Company is not a nidhi Company and therefore the provisions of clause 3 (xii)of the said Order are not applicable to the Company.

13. As per the information and explanations and records made available by themanagement of the Company and audit procedure performed for the related partiestransactions entered during the year the Company has complied with the provisions ofSection 177 and 188 of the Act where applicable. As explained as per records and detailsmade available to us such related parties transactions have been disclosed in the note no.58 of standalone financial statements as required by the applicable Indian AccountingStandards.

14. According to the information and explanations given to us and based on theexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully/partly convertible debentures during theyear in terms of provisions of Section 42 of the Act.

15. On the basis of records made available to us and according to information andexplanations given to us and based on the examination of the records of the Company theCompany has not entered into non-cash transactions with the directors or persons connectedwith him. Accordingly paragraph 3 (xv) of the order is not applicable.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 as the provision of section is not applicable to the Company.

For Lodha & Co.
Chartered Accountants
Firm Registration No. 301051E
(N. K. Lodha)
Place: Noida Partner
Date: 16-05-2017 Membership No. 85155

ANNEXURE ‘B' TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONEIND AS FINANCIAL STATEMENTS OF INDIA GLYCOLS LIMITED

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of IndiaGlycols Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone Ind AS 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 of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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 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 March 312017 based on theinternal control over financial reporting criteria established by the Company (This is tobe read with the note no. 47 of the standalone Ind-AS financial statements regardingbalance confirmation process) considering the essential components of internal controlstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.

For LODHA & CO.
Chartered Accountants
Firm's Registration No. 301051E
(N. K. Lodha)
Place: Noida Partner
Date: 16-05-2017 Membership No. 85155