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Indo National Ltd.

BSE: 504058 Sector: Consumer
NSE: NIPPOBATRY ISIN Code: INE567A01010
BSE 15:40 | 19 Feb 888.20 -47.00
(-5.03%)
OPEN

922.60

HIGH

945.00

LOW

879.10

NSE 15:31 | 19 Feb 885.10 -47.10
(-5.05%)
OPEN

935.00

HIGH

937.95

LOW

880.00

OPEN 922.60
PREVIOUS CLOSE 935.20
VOLUME 1074
52-Week high 1148.00
52-Week low 800.05
P/E 19.73
Mkt Cap.(Rs cr) 333
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 922.60
CLOSE 935.20
VOLUME 1074
52-Week high 1148.00
52-Week low 800.05
P/E 19.73
Mkt Cap.(Rs cr) 333
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Indo National Ltd. (NIPPOBATRY) - Auditors Report

Company auditors report

to the Members of M/s. INDO NATIONAL LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying (Standalone) financial statements of INDO NATIONALLIMITED ( the Company ) which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

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 of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 (Standalone) financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit 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 financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on the auditors 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company s Directors as well asevaluating the overall 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 (Standalone) the financial statements.

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 March 31 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 ) asamended issued by the Central Government of India in terms of subsection (11) of section143 of the Act we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by section 143 (3) of the Act we report that: a. we have soughtand obtained 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 and theCash Flow Statement dealt with by this Report are in agreement with the books of accountd. 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 written representations received fromthe directors as on March 31 2017 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2017 from being appointed as a director in termsof Section 164 (2) of the Act. f. With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate Report in Annexure B . g. With respect to the othermatters to be included in the Auditor 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 andaccording to the explanations given to us: i. The Company has disclosed the impact ofpending litigations on its financial position in its financial statements-refer to NoteNo.35 to the financial statements. ii. The Company did not have any long-term contractsincluding derivative contracts for which there were any material foreseeable losses. iii.There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company. iv. The Company has providedrequisite disclosures in the financial statements as to holdings as well as dealings inSpecified Bank Notes during the period from 8th November 2016 to 30th December 2016. Onthe basis of audit procedures and relying on the management representation we report thatthe disclosures are in accordance with books of account maintained by the Company and asproduced to us by the

Management-Refer Note No37 to the financial statements.

For and on behalf of

P. SRINIVASAN & CO.

Chartered Accountants

Firm s Registration Number: 004054S

P. Srinivasan
Place: Chennai Partner
Date: 26.05.2017 Membership number: 02090

Annexure to Independent Auditors Report of even date i) a) The Company has maintainedproper records showing full particulars including quantitative details and situation offixed assets. b) The fixed assets have been physically verified during the year by theManagement in accordance with a programme of verification which in our opinion providesfor physical verification of all the fixed assets at reasonable intervals having regard tothe size of the Company and the nature of its assets. According to the information andexplanations given to us no material discrepancies were noticed on such verification. c)According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties are heldin the name of the company. ii) (a) As explained to us inventories held by the Companywere physically verified during the year at reasonable intervals by the management.

(b) In our opinion and according to the information and explanations given to us nomaterial discrepancies were noticed on such physical verification and the same have beenproperly dealt with in the books of account. iii) On the basis of records maintained bythe company and in our opinion the company has not granted any loans secured orunsecured to companies firms limited liability partnerships or other parties covered inthe register maintained u/s 189 of the Act.

iv) In our opinion and according to the information and explanations given to us thereare no loans and securities granted in respect of which the provisions of Sections 185 and186 of the Companies Act 2013 are applicable. The company during the year has investedRs.665 Lakhs in 8% compulsory convertible debentures in its wholly owned subsidiarycompany. The terms and conditions original as well as revised relating to the investmentsin the said compulsory convertible debentures and guarantee given by the company on a loanavailed by its subsidiary company are not prejudicial to the interests of the company. v)The Company has not accepted any deposits from the public during the year to which thedirectives issued by the Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Act and the Rules framed thereunder are applicable.vi) According to the records produced and the information and explanations given to usthe cost records prescribed by the Central Government under sub-section 1 of Section 148of the Companies Act are being prima facie made and maintained by the Company. We havebroadly reviewed the cost records maintained by the company. vii) (a) According to therecords of the Company the Company is regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance Income Tax Wealth Tax Service Taxduty of Customs duty of Excise Value added tax Cess and any other statutory duesapplicable to it with the appropriate authorities during the year. According to theinformation and explanations given to us no undisputed amounts payable in respect of theabove were in arrears as at March 31 2017 for a period of more than six months from thedate on which they became payable.

(b) According to the records of the company there are no dues of income tax wealthtax duty of customs service tax duty of excise and cess which have not been depositedon account of any dispute except: i) Sales Tax of Rs.2.15 Lacs disputed and pending beforethe First Sales Tax Appellate Authority and ii) Income Tax of Rs.23.11 lakhs disputed andpending before the Income Tax Authorities as under:

1. The First Appellate Authority - Rs.11.60 lakhs.

2. The Second Appellate Authority- Rs.11.51 lakhs. viii) In our opinion andaccording to the information and explanations given to us the company has not defaultedin the repayment of dues to banks.

The Company has not taken any loan either from financial institutions or from thegovernment. The company has during the year has made further investment Rs.665 lakhs in 8%compulsory convertible debentures of its wholly owned subsidiary. In our opinion and onthe basis of information and explanations given to us the terms and conditions originaland revised relating to the said debentures are not prejudicial to the interests of thecompany. ix) The company has not raised any money by way of initial public offer orfurther offer (including debt instruments) and the company hasavailed term loans duringthe year and has not defaulted in repayment of the term loans. x) On the basis of theaudit procedures carried out by us and information and explanations given by themanagement we state that no fraud on or by the Company by its officers or employees hasbeen noticed or reported during the course of our audit. xi) On the basis of the auditprocedures carried out by us and information and explanations given by the management thecompany has paid or provided for the managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013. xii) In our opinion the Company is not a Nidhi company. Thereforethe provisions of this clause of the Order are not applicable to the Company. xiii)According to the information and explanations given to us and based on our examinationthe transactions with the related parties are in compliance with sections 177 and 188 ofthe Companies Act 2013 and where applicable the details of such transactions have beendisclosed in the financial statements as required by the applicable accounting standards.

xiv) The company has not made any preferential allotment or private placement of sharesduring the year. xv) On the basis of the audit procedures performed and information andexplanations given by the management the company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly the provisions ofclause 3(xv) of the Order are not applicable to the Company. xvi) In our opinion theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For and on behalf of

P. SRINIVASAN & CO.

Chartered Accountants

Firm s Registration Number: 004054S

P. Srinivasan
Place: Chennai Partner
Date: 26.05.2017 Membership number: 02090

Annexure B to the Independent Auditor s Report of even date on the Standalone FinancialStatements of Indo National Limited Report on the Internal Financial Controls under Clause(i) of Subsection 3 of Section 143 of the Companies Act 2013 ( the Act )

We have audited the internal financial controls over financial reporting ofIndoNational Limited ( the Company ) as of March 31 2017 in conjunction with our audit of thestandalone financial statements of the Company for the year 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 Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company s policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

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 ) and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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.

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 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For and on behalf of

P. SRINIVASAN & CO.

Chartered Accountants

P. Srinivasan
Place: Chennai Partner
Date: 26.05.2017 Membership number: 02090