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Indo Count Industries Ltd.

BSE: 521016 Sector: Industrials
NSE: ICIL ISIN Code: INE483B01026
BSE LIVE 09:16 | 20 Nov 128.00 0.25
(0.20%)
OPEN

129.95

HIGH

129.95

LOW

128.00

NSE 15:59 | 17 Nov 127.80 4.15
(3.36%)
OPEN

125.00

HIGH

129.85

LOW

123.10

OPEN 129.95
PREVIOUS CLOSE 127.75
VOLUME 4267
52-Week high 209.90
52-Week low 95.00
P/E 14.61
Mkt Cap.(Rs cr) 2,527
Buy Price 128.00
Buy Qty 16.00
Sell Price 128.10
Sell Qty 278.00
OPEN 129.95
CLOSE 127.75
VOLUME 4267
52-Week high 209.90
52-Week low 95.00
P/E 14.61
Mkt Cap.(Rs cr) 2,527
Buy Price 128.00
Buy Qty 16.00
Sell Price 128.10
Sell Qty 278.00

Indo Count Industries Ltd. (ICIL) - Auditors Report

Company auditors report

To

The Members of

Indo Count Industries Limited

Report on the Standalone Financial Statements

We have audited the accompanying financial statements of Indo Count IndustriesLimited (“the

Company”) which comprise the Balance Sheet as at 31st March2017 the Statement ofProfit and Loss (including other comprehensive income) Cash Flow Statement and thestatement of changes in equity for the year then ended and a summary of significantaccounting policies and other explanatory information.

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 and cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards specified in the Companies (Indian AccountingStandards) Rules 2015 (as amended) under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement 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 and the rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder. We conducted our audit of the standalone Ind AS Financial Statements inaccordance 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 theaudit to obtain reasonable assurance about whether the standalone Ind AS financialstatements are free from material misstatement. An audit involves performing procedures toobtain audit evidence about the amounts and the disclosures in the standalone Ind ASFinancial Statements. The procedures selected depend on the auditor’s judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 presentation of the standalone Ind ASFinancial Statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the standalone Ind ASFinancial 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 of the state of affairs of theCompany as at 31st March 2017 and its Loss (including other comprehensive income) itscash flows and the changes in equity for the period ended on that date.

Other Matters

The financial information of the Company for the year ended March 31 2016 and thetransition date opening balance sheet as at April 1 2015 included in these standalone IndAS financial statements are based on the previously issued statutory financial statementsfor the years ended March 31 2016 and March 31 2015 prepared in accordance with theCompanies (Accounting Standards) Rules 2006 (as amended) which were audited by us onwhich we expressed an unmodified opinion dated May 2 2016 and May 9 2015 respectively.The adjustments to those financial statements for the differences in accounting principlesadopted by the Company on transition to the Ind AS have been audited by us on which wehave expressed an unmodified opinion vide our report dated May 152017

Our opinionisnotqualifiedin . respect of this matter

Report on Other Legal and Regulatory requirements

As required by the Companies (Auditor’s Report) Order 2016 (“theOrder”) issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Companies Act 2013 we give in the Annexure ‘A’ a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

1. As required by section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c) The Balance Sheet the Statement of Profit and Loss(including other comprehensive income) the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account. d) In ouropinion the aforesaid standalone Ind AS 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 thedirectors as on 31st March 2017 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2017 from being appointed as a director interms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of

Company and the operating effectiveness of such controls refer to our separate Reportin “Annexure-B. g) With respect to the other matters to be included in theAuditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us: i. The Company has disclosed the impact of pending litigationson its financial position in its standalone Ind AS Financial Statements- Refer Note Nos 29and 38. ii. The Company has made provisions as required under the applicable laws oraccounting standards for material foreseeable losses on long term contracts Refer Noteno 47 to the standalone Ind AS financial statements. Further the Company did not have anymaterial foreseeable losses on derivative contracts. iii. There has been no delay intransferring amounts required to be transferred to the

Investor Education and Protection Fund by the Company Refer Note No. 25 to thefinancial statements. iv. The company has provided requisite disclosures in the standaloneInd AS Financial Statements as regards its holdings and dealings in Specified Bank Notesas defined in the Notification S.O. 3407(E) dated the November 8 2016 of the

Ministry of Finance during the period from

8th November 2016 to 30th December 2016.

Based on audit procedures performed and the representations provided to us by themanagement we report that the disclosures are in accordance with books of accountmaintained by the company and as produced to us by the management Refer Note No. 43.

For B. K. Shroff & Co.
Chartered Accountants
Firm Reg. No. : 302166E
O. P. Shroff
Partner
Mumbai May 15 2017 Membership No.: 6329

Annexure "A" to the Independent Auditors’ Report

Referred to in paragraph (1) under the heading of "Report on Other Legal andRegulatory Requirements" section of our report of even date to the members of IndoCount Industries Limited on the Standalone Ind AS Financial Statements for the year ended31st March 2017.

i. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) The fixed assets have beenphysically verified by the management during the year as per the phased program designedto cover all the fixed assets over a period which in our opinion is reasonable havingregard to the size of the company and nature of its assets. Discrepancies noticed on suchverification which are not material have been properly dealt with in the books ofaccounts.

(c) The title deeds of all immovable properties are in the name of the company. ii. Asexplained to us the inventories have been physically verified during the year by themanagement at reasonable intervals except stocks lying with third parties in respect ofwhom confirmations have been obtained and the discrepancies noticed on physicalverification as compared to book record which are not material have been properly dealtwith in the books of account. In our opinion the frequency of such verification isreasonable. iii. The company has not granted any loans secured or unsecured to companiesfirms Limited Liability Partnerships or other parties covered in the Register maintainedunder Section 189 of the Act. iv. In our opinion and according to the information andexplanations given to us the Company has complied with the provisions of Sections 185 and186 of the Act in respect to grant of loans making investments and providing guaranteesand securities as applicable. v. According to the information and explanations given tous the Company has not accepted any deposits from the public within the meaning ofSections 737475 and 76 of the Act and the rules framed thereunder to the extentnotified.

vi. We have broadly reviewed the cost accounting records maintained by the companyprescribed by the Central Government under Section 148(1) of the Act and are of theopinion that prima facie the prescribed records have been maintained.

However we are neither required to carry out nor have carried out detailed examinationof such cost accounting records with a view to determine whether they are accurate orcomplete. vii. We have broadly reviewed the cost accounting records maintained by thecompany prescribed by the Central Government under Section 148(1) of the Act and are ofthe opinion that prima facie the prescribed records have been maintained.

However we are neither required to carry out nor have carried out detailed examinationof such cost accounting records with a view to determine whether they are accurate orcomplete. viii. According to the records of the company examined by us and informationand explanations given to us: a) Undisputed statutory dues including provident fundemployees’ state insurance income tax sales tax service tax duty of customs dutyof excise value added tax cess and others as applicable have generally been regularlydeposited with the appropriate authorities except delay in few cases. There are noundisputed amounts payable in respect of aforesaid dues outstanding as at 31 March 2017for a period of more than six months from the date they became payable. b) There are nodisputed dues of income tax or sales tax or service tax or duty of customs or duty ofexcise or value added tax outstanding as at 31st March 2017 except:

Sl. No. Name of the statute Nature of the dues Amount Period to which the amount relates Forum where dispute is pending
(Rs in lac)
1. Central Excise Act Cenvat Credit availed on excise duty paid 40.30 2012-2013 Commission of
Central Excise (A)
Pune
2. Central Excise Act Cenvat Credit availed on excise duty paid 34.24 2011-2012 CESTAT (Tribunal)
3. Central Excise Act Excise Duty 1.40 2007-2008 Commission of
Central Excise (A)
4. Central Excise Act Rebate Claim 13.98 2012-2013 Commission of
Central Excise (A)
5. Bombay Electricity Electricity Duty 292.07 2000-2006 Supreme Court
Duty Act1958
6. Central Excise Act Service tax paid on Foreign Services 19.54 2009-2014 Commissioner
Appeal Kolhapur
7. Central Excise Act Service tax on commission on Sales 23.54 2010-2013 Commissioner
Appeal Pune
8. DGFT Export benefit under SHIS License 856.18 2012-2013 DGFT

ix. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of loans or borrowings to financial institutionbanks and Government and dues to debenture holders. x. In our opinion and according to theinformation and explanations given to us the Company has not raised any moneys by way ofinitial public offer or further public offer (including debt instruments). Further theTerm loans have been applied by the

Company for the purposes for which they were raised. xi. Based on the audit proceduresperformed and according to the information and explanations given to us no fraud by theCompany or no material fraud on the Company by its officers or employees has been noticedor reported during the year. xii. In our opinion and according to the information andexplanations given to us the company has paid/ provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act. xiii. The Company is not a nidhi Company and hencereporting under clause (xii) pf Paragraph 3 of the CARO 2016 is not applicable. xiv. Inour opinion and according to the information and explanations given to us theCompany’s transactions with its related parties are in compliance with Sections 177and 188 of the Act where applicable and details of related party transactions have beendisclosed in the Standalone Ind AS financial statements etc as required by the applicableaccounting standards in Note No. 39 of the Financial Statements. xv. During the year theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures and hence reporting under clause (xv) of Paragraph 3 of theCARO 2016 is not applicable to the Company. xvi. In our opinion and according to theinformation and explanation given to us during the year the company has not entered intoany non-cash transactions with directors or persons connected with him and hence reportingunder clause (xvi) of Paragraph 3 of the CARO 2016 is not applicable to the Company. xvii.In our opinion and according to the information and explanations given to us the Companyis not required to be registered under section 45-IA of the Reserve Bank of India Act1934.

For B.K Shroff & Co
Chartered Accountants
Firm Registration Number: 302166E
O. P. Shroff
Partner
Mumbai May 15 2017 Membership No.: 6329

Annexure "B" to the Independent Auditor’s Report

Referred to in paragraph 5(ii)(f) to the Independent Auditor’s Report of even dateon the Standalone Ind AS Financial Statements of Indo Count Industries Limited.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of IndoCount Industries Limited (“the Company”) as of March 31 2017 in conjunctionwith our audit of the Standalone Ind AS Financial Statements of the Company for the yearended 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 Reporting (the“Guidance Note”) issued by the Institute of Chartered Accountants of India(ICAI)”. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under 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 on Audit of Internal Financial Controls Over Financial Reporting(the “Guidance Note”) issued by the Institute of Chartered Accountants of Indiaand Standards on Auditing prescribed under section 143(10) of the Companies Act2013 tothe extent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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.

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 controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that:

a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the

Company;

b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorisations of management and directors of the Company; and

c) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company’s assets that could havea 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2017 based on “the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by theInstitute of Chartered Accountants of India.

For B. K. Shroff & Co.
Chartered Accountants
Firm Reg. No. : 302166E
O.P. Shroff
Partner
Mumbai May 15 2017 Membership No.: 6329