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Indo Count Industries Ltd.

BSE: 521016 Sector: Industrials
NSE: ICIL ISIN Code: INE483B01026
BSE LIVE 15:40 | 18 Aug 114.60 -1.20
(-1.04%)
OPEN

117.00

HIGH

117.10

LOW

112.65

NSE 15:59 | 18 Aug 114.40 -1.25
(-1.08%)
OPEN

116.85

HIGH

117.30

LOW

112.25

OPEN 117.00
PREVIOUS CLOSE 115.80
VOLUME 122679
52-Week high 209.90
52-Week low 107.35
P/E 11.32
Mkt Cap.(Rs cr) 2,262
Buy Price 0.00
Buy Qty 0.00
Sell Price 114.45
Sell Qty 200.00
OPEN 117.00
CLOSE 115.80
VOLUME 122679
52-Week high 209.90
52-Week low 107.35
P/E 11.32
Mkt Cap.(Rs cr) 2,262
Buy Price 0.00
Buy Qty 0.00
Sell Price 114.45
Sell Qty 200.00

Indo Count Industries Ltd. (ICIL) - Auditors Report

Company auditors report

To

The Members of

Indo Count Industries Limited

1. Report on the Standalone Financial Statements

We have audited the accompanying Statement of Standalone Financial Statements of IndoCount Industries Limited ("the Company") Which comprise the Balance Sheet as at31st March 2016 the Statement of Profit and Loss and the Cash Flow Statementfor the year then ended and a summary of the significant accounting policies and otherexplanatory information.

2. Management’s Responsibility for the Standalone 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 financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

3. Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased 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 financial statements are 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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of 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 standalone financial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows for the year ended onthat date.

5. Report on Other Legal and Regulatory Requirements

I. As required by the Companies (Auditor’s Report) Order 2016 issued by theCentral Government of India in terms of Section 143(11) of the Act (hereinafter referredto as the "Order") and on the basis of such checks of the books and records ofthe Company as we considered appropriate and according to the information and explanationsgiven to us we give in the "Annexure A" a Statement on the matters specified inparagraphs 3 and 4 of the Order.

II. 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as 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".

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 financial statements - Refer Note 21 to the financial statements;

ii. The Company has long-term contracts including derivative contracts but there is noMark to Market Losses as on balance sheet date-Refer Note 31 to the financial statements.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company-Refer Note 9 to the financialstatements.

For B.K Shroff & Co
Chartered Accountants
Firm Registration Number : 302166E
O. P. Shroff
Partner
Mumbai May 7 2016 Membership Number: 6329

Annexure A referred to in Paragraph 5(I) under the heading of "Report on OtherLegal and Regulatory Requirements" of our report of even date to the members of IndoCount Industries Limited on the standalone financial statements for the year ended 31stMarch 2016.

i. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management during the year asper the phased program designed to cover all the fixed assets over a period which in ouropinion is reasonable having regard to the size of the company and nature of its assets.Discrepancies noticed on such verification which are not material have been properlydealt with in the books of accounts.

(c) The title deeds of all immovable properties are in the name of the company.

ii. As explained to us the inventories have been physically verified by the managementduring the year except stocks lying with third parties in respect of whom confirmationshave been obtained and the discrepancies noticed on physical verification as compared tobook record which are not material have been properly dealt with in the books ofaccount. In our opinion the frequency of such verification is reasonable.

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 theAct.

iv. According to the records of the company examined by us and information andexplanations given to us the company has complied with the provisions of Sections 185 and186 of the Act with respect to loans/guarantees given investments made and securitiesprovided.

v. The company has not accepted any deposits from the public within the meaning ofSections 73 to 76 of the Act and the rules framed thereunder to the extent notified.

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 areneither required to carry out nor have carried out detailed examination of such costaccounting records with a view to determine whether they are accurate or complete.

vii. According to the records of the company examined by us and information andexplanations given to us:

a) Undisputed statutory dues including provident fund employees’ state insuranceincome tax sales tax service tax duty of customs duty of excise value added tax cessand others as applicable have generally been regularly deposited with the appropriateauthorities except delay in few cases. There are no undisputed amounts payable in respectof aforesaid dues outstanding as at 31st March 2016 for a period of more thansix months from the date they became payable.

b) There are no disputed dues of income tax or sales tax or service tax or duty ofcustoms or duty of excise or value added tax outstanding as at 31st March 2016except:

Name of No. the statute Nature of the dues Amount (Rs. in lac) Forum where dispute is pending
1. Central Excise Act Cenvat Credit availed on excise duty paid 40.30 Commission of Central Excise (A) Pune
2. Central Excise Act Cenvat Credit availed on excise duty paid 34.24 CESTAT (Tribunal)
3. Central Excise Act Excise Duty 1.40 Commission of Central Excise (A)
4. Central Excise Act Service Tax credit availed on GTA 0.49 Commission of Central Excise (A)
5. Central Excise Act Rebate Claim 13.98 Commission of Central Excise (A)
6. Central Excise Act Service Tax credit availed on Commission 29.15 Commission of Central Excise (A)
7. Bombay Electricity Duty Act1958 Electricity Duty 292.07 Supreme Court

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 loans orborrowings to financial institution bank or government or dues to debenture holders.

ix. According to the information and explanations given to us the Company has notraised any money by way of initial public offer or further public offer (including debtinstruments). Term loans have been applied for the purposes for which they were obtained.

x. Based on the audit procedures performed and according to the information andexplanations given to us we report that no fraud on or by the Company by itsofficers/employees has been noticed or reported during the year.

xi. According to the information and explanations given to us the company haspaid/provided managerial remuneration in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act.

xii. The Company is not a nidhi company.

xiii. According to the records examined by us and information and explanations givento us all transactions with the related parties are in compliance with Sections 188 and177 of the Act and necessary details as required by the accounting standards have beendisclosed in note 32 of the Financial Statements.

xiv. The Company has not made any preferential allotment / private placement of sharesor fully or partly convertible debentures during the year ended 31st March2016.

xv. According to the records of the Company examined by us and the information andexplanation given to us the company has not entered into any non-cash transactions withdirectors or persons connected with him.

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.

For B.K Shroff & Co
Chartered Accountants
Firm Registration Number : 302166E
O. P. Shroff
Partner
Mumbai May 7 2016 Membership Number: 6329

Annexure - B referred to in paragraph 5(II)(f) to the Independent Auditor’s Reportof even date on the Standalone 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 Indo CountIndustries Limited ("the Company") as of 31st March 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear ended 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 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 complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 my /our audit opinion on the Company’s internal financialcontrols system 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 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 31st March 2016based on "the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote issued by the ICAI".

For B.K Shroff & Co.

Chartered Accountants

Firm Registration Number : 302166E

O. P. Shroff

Partner

Membership Number: 6329

Mumbai May 7 2016