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Indus Fila Ltd.

BSE: 532821 Sector: Industrials
NSE: INDUSFILA ISIN Code: INE025I01012
BSE LIVE 15:29 | 30 Nov Stock Is Not Traded.
NSE 15:07 | 05 Mar Stock Is Not Traded.
OPEN 1.28
PREVIOUS CLOSE 1.33
VOLUME 4158
52-Week high 1.28
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.27
Sell Qty 18998.00
OPEN 1.28
CLOSE 1.33
VOLUME 4158
52-Week high 1.28
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.27
Sell Qty 18998.00

Indus Fila Ltd. (INDUSFILA) - Auditors Report

Company auditors report

TO THE MEMBERS OF INDUS FILA LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of M/s Indus FilaLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Lossthe Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

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 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.

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 performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on the auditor’s judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company’s preparation of the financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the financialstatements.

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.

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 loss and its cash flows for the year ended onthat date.

Emphasis of Matter

We draw attention to the following notes

a) Note (1) of the Notes to financial statements. The Company’s operating resultshas been materially affected due to various factors as at 31st March 2016 theCompany’s accumulated losses has fully eroded the net worth of the company. Theappropriateness of the going concern assumption is dependent on the company’s abilityto establish consistent profitable operations as well as raising adequate finance to meetits short term and long term obligations. The management has taken various measures tocontinue the operations for the foreseeable future and believes that the going concernassumption 42 of 74 is appropriate and no adjustments need to be made in the financialstatements for the year ended 31st March 2016 and our opinion is not qualified in respectof this matter.

b) Note 25(o) of the financial statement regarding impairment in accordance with therequirement of Accounting Standard-28-mpairment of Assets" in respect of all itsunits that are not in operation and the consequential impact if any on the statement ofprofit and loss for the year 2015-16 and our opinion is not qualified in respect of thismatter.

c) Note 25(p) of the financial statements regarding Bank Reconciliation Statements dueto non-availability of bank statement or bank confirmation and the consequential impactif any in the financial statements for the year 2015-16 is not quantifiable and ouropinion is not qualified in respect of this matter.

d) Note 25(q) of the financial statements regarding computation of interest on the termloans and cash credit accounts based on the rates of terms of sanction due tonon-availability of loan statement or confirmation and consequential impact if any onthe statement of profit and loss and the financial statements for the year 2015-16 is notquantifiable and our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. 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 Act we give in the Annexure Aa statement on the matters specified inparagraph 3 and 4 of the said Order to the extent applicable.

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 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 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’.

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 the financial statements- Refer Note 25(d)to thestandalonefinancialstatements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Companyexcept for Rs.24339/- which ispending to be transferred.

For Suri & Co.
Chartered Accountants
Firm Registration No. 004283S
Sd/-
G. Rangarajan
Place : Bangalore Partner
Date : 30/05/2016 Membership No.024107

Annexure A to the Auditors’ report

(Referred to in our report of even date)

The Annexure referred to in Independent Auditors’ Report to the members of thecompany on the standalone financial statements for the year ended 31st March2016 we report that:

i) a) The Company is maintaining proper records showing full particularsincludingquantitative details and situation of fixed assets. b) The company has regular programmefor verification of fixed assets to cover all assets at reasonable intervals which in ouropinion is reasonable having regard to the size of the company and nature of its assets.No material discrepancies were noticed on such verification. c) In our opinion andaccording to the information and explanations given to us the title deeds of immovableproperty are held in the name of company.

ii) According to the information and explanation provided to us the company does nothold any physical inventories. Thus paragraph 3(ii) of the Order is not applicable to thecompany.

iii) 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. Thus paragraph 3(iii) (a) and (b) of the Order isnot applicable.

iv) In our opinion and according to the information and explanation given to us theprovision of section 185 and 186 of the Companies Act2013 in respect of loans andinvestments have been complied with.

v) The Company has not accepted any deposits from the public within the meaning ofSections 73 to 76 or any other relevant provisions of the Companies Act and the rulesframed thereunder.

vi) The Central Government has not prescribed the maintenance of cost records undersubsection (1) of Section 148 of the Companies Act 2013. Thus paragraph 3(vi) of theOrder is not applicable to the company.

vii) a) The Company is not regular in depositing undisputed statutory dues includingprovident fund employees’ state insurance income tax sales-tax wealth taxservice tax duty of customs duty of excise value added tax cess and other statutorydues with the appropriate authorities . There are no undisputed statutory dues payable inrespect of above which were outstanding as at 31st March 2016 for a period of more thansix months from the date they became payable except for the following.

Nature of Dues Amount outstanding Period of Outstanding
Dividend Distribution Tax Rs 1646404/- A.Y 2008-09
Provident Fund Contribution Rs. 719169/- F.Y 2011-12
Provident Fund Contribution Rs. 2498449/- F.Y 2012-13
Provident Fund Contribution Rs. 1426911/- F.Y 2013-14
Employees State Insurance Corporation Rs. 4354947/- F.Y 2012-13
Employees State Insurance Corporation Rs. 10347317/- F.Y 2013-14
Tax Deducted at Source Rs.5211725/- A.Y 2011-12
Tax Deducted at Source Rs. 1370438/- A.Y 2012-13
Tax Deducted at Source Rs. 3331127/- A.Y 2013-14
Tax Deducted at Source Rs. 1085097/- A.Y 2014-15
Tax Deducted at Source Rs. 40843/- A.Y 2015-16
Tax Deducted at Source Rs. 72240/- A.Y 2016-17
Service Tax on reverse Charge Rs. 3215768/- Before FY 2014-15
Service Tax on reverse Charge Rs. 57934/- FY 2015-16
Tax collected at source Rs. 11290/- Before FY 2013-14
Profession Tax Rs. 874200/- Before FY 2013-14

b) According to the information and explanations furnished to us the details ofdisputed statutory dues are as under:

Name of the Statute Nature of dues Amount disputed (Rs.) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax Rs.1670 Lakhs FY 2009-10 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax Rs.503.5 Lakhs FY 2006-07 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax Rs.705.3 Lakhs FY 2007-08 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax Rs.1769.47 Lakhs FY 2011-12 Commissioner of Income Tax (Appeals)
Karnataka Tax on Entry of Goods Act Entry Tax interest and penalty Rs.0.47 Lakhs FY 2009-10 Joint Commissioner of Commercial Tax
Karnataka Value Added Tax Act 2003 KVAT interest and penalty Rs.45.21 Lakhs FY 2009-10 Joint Commissioner of Commercial Tax
CST Act 1956 CST interest and penalty Rs.1.02 Lakhs FY 2009-10 Joint Commissioner of Commercial Tax
CST Act 1956 CST interest and penalty Rs. 1.01 Lakhs FY 2006-07 Joint Commissioner of Commercial Tax
Karnataka Tax on Entry of Goods Act Entry Tax Interest and penalty Rs.11.82 Lakhs FY 2006-07 Joint Commissioner of Commercial Tax
Karnataka Tax on Entry of Goods Act Entry Tax Interest and penalty Rs.200.55 Lakhs FY 2007-08 Joint Commissioner of Commercial Tax

viii) In our opinion and according to the information and explanations given to us theCompany has defaulted in repayment of dues to banks. The details of default are givenbelow.The Company did not have any outstanding debentures during the year.

Particulars Amount of default as at the balance sheet date Period of default
(i) Name of the Lenders Rs.415.80 crores (including interest) From FY 2010-11

ix) The Company did not raise any moneyby way of Initial Public Offer or further publicoffer (including debt instruments) or term loans during the year.

x) During the course of examination of the books and records and according to theinformation and explanations given to us no fraud on or by the company has been noticedor reported during the year.

xi) According to the information and explanations given to us and based on ourexamination of the records of the company the Company has not paid managerialremuneration during the year. Thus paragraph 3(xi) of the Order is not applicable to thecompany.

xii) The Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the order isnot applicable.

xiii)According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails of such transactions have been disclosed in the Financial Statements as requiredby the applicable accounting standards.

xiv)According to the information and explanations given to us and based on ourexamination of the records of the company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review. xv) According to the information and explanations given to us andbased on our examination of the records of the company the Company has not entered intoany non-cash transactions with directors or persons connected with them. Accordinglyparagraph 3(xv) of the order is not applicable.

xvi)The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Suri & Co.
Chartered Accountants
Firm Registration No. 004283S
Sd/-
(G.Rangarajan)
Place : Bangalore Partner
Date : 30/05/2016 Membership No.024107

Annexure B to the Auditors’ report

(Referred to in 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 ("the Act")

We have audited the internal financial controls over financial reporting of Indus FilaLimited ("the Company") as of March 31 2016 in conjunction with our audit ofthe standalone 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 theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the 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 deemed to be prescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting were established and maintained and if such controlsoperated 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 judgment 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 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 2016 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 Suri & Co.
Chartered Accountants
Firm Registration No. 004283S
Sd/-
(G. Rangarajan)
Place : Bangalore Partner
Date : 30/05/2016 Membership No.024107