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Ion Exchange (India) Ltd.

BSE: 500214 Sector: Engineering
NSE: IONEXCHANG ISIN Code: INE570A01014
BSE LIVE 15:28 | 11 Dec 462.50 22.00
(4.99%)
OPEN

461.70

HIGH

462.50

LOW

450.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 461.70
PREVIOUS CLOSE 440.50
VOLUME 5735
52-Week high 638.00
52-Week low 276.00
P/E 14.26
Mkt Cap.(Rs cr) 678
Buy Price 462.50
Buy Qty 18334.00
Sell Price 0.00
Sell Qty 0.00
OPEN 461.70
CLOSE 440.50
VOLUME 5735
52-Week high 638.00
52-Week low 276.00
P/E 14.26
Mkt Cap.(Rs cr) 678
Buy Price 462.50
Buy Qty 18334.00
Sell Price 0.00
Sell Qty 0.00

Ion Exchange (India) Ltd. (IONEXCHANG) - Auditors Report

Company auditors report

To

The Members of

Ion Exchange (India) Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Ion Exchange(India) Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss and the Cash Flow Statement for the yearended on that date and a summary of the significant accounting policies and otherexplanatory information in which are incorporated the return for the year ended on thatdate audited by the branch auditor of the Company's branch at Bengaluru.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in sub-section 5of Section 134 of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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 ('the Rules"). This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement 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 undersub-section 10 of Section 143 of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls 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 presentationof 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.

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 31 March 2016 and its profit and its cash flows for the year ended on that date.

Other Matter

We did not audit the financial statements/information of one branch included in thestandalone financial statements of the Company whose financial statements / financialinformation reflect total assets of Rs. 440804498 as at 31st March 2016 and totalrevenues of Rs. 867066666 for the year ended on that date as considered in thestandalone financial statements. The financial statements/information of this branch havebeen audited by the branch auditor whose reports have been furnished to us and ouropinion in so far as it relates to the amounts and disclosures included in respect of thisbranch is based solely on the report of such branch auditor.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in exercise of powers conferred by sub-section 11 ofsection 143 of the Act we enclose in 'Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by sub-section 3 of Section 143 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 reports on the accounts of the branch office of the Company audited underSection 143 (8) of the Act by the branch auditor have been sent to us and have beenproperly dealt with by us in preparing this report.

(d) 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.

(e) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theRules.

(f) On the basis of the written representations received from the Directors as on 31stMarch 2016 and taken on record by the Board of Directors none of the Directors aredisqualified as on 31st March 2016 from being appointed as a Director in terms ofsub-section 2 of Section 164 of the Act.

(g) 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

(h) 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 41 to the financial statements;

(ii) . The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses; and

(iii) . There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protecti on Fund by the Company.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/ W - 100022
Bhavesh Dhupelia
Place : Mumbai Partner
Date : 24th May 2016 Membership No: 042070

Annexure A to the Independent Auditor's Report - 31st March 2016

(Referred to in our report of even date)

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme a portion of the fixed assets has been physically verifiedby the management during the year and no material discrepancies have been noticed on suchverification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets.

(c) According to the information and explanations given to us the title deeds ofimmovable properties as disclosed in Note 12 to the standalone financial statements areheld in the name of the Company except for the following:

(Amount in Rupees)

Particulars Freehold Land Buildings
Gross block as at 31st March 2016 1844060 76882
Net block as at 31st March 2016 1844060 Nil

(ii) The inventory except goods-in-transit and stock lying with third parties hasbeen physically verified by the management at reasonable intervals during the year. In ouropinion the frequency of such verification is reasonable. In respect of inventory lyingwith third parties these have substantially been confirmed by them. The discrepanciesnoticed on verification between the physical stocks and the book records were notmaterial.

(iii) The Company has granted unsecured loans to eleven companies covered in theregister maintained under Section 189 of the Companies Act 2013 ('the Act').

(a) In our opinion the rate of interest and other terms and conditions on which theloans had been granted to the companies listed in the register maintained under Section189 of the Act were not prima facie prejudicial to the interest of the Company.

(b) The loans granted are repayable on demand. We are informed that the Company has notdemanded repayment of such loan from five such companies during the year and othercompanies has paid the loan as per demand and thus there has been no default on the partof the companies covered in the register maintained under section 189 of the Act. Thepayment of interest has not been regular incase of five subsidiaries.

(c) There are no overdue amounts in respect of the loan granted to a companies listedin the register maintained under section 189 of the Act.

(iv) In our opinion and according to the information and explanations given to us inrespect of investments loans guarantee and security the Company has complied with theprovisions of Section 185 and 186 of the Act.

(v) In our opinion and according to the information and explanations given to usduring the year the Company has not accepted any new deposits. The Company has compliedwith the provisions of Section 73 to 76 of the Act or other relevant provisions of the Actand the rules framed thereunder/the directives issued by the Reserve Bank of India (asapplicable) with regard to deposits accepted from the public. No order has been passed bythe Company Law Board or National Company Law Tribunal (as applicable) or Reserve Bank ofIndia or any Court or any other Tribunal.

(vi) We have broadly reviewed the records maintained by the Company pursuant to therules prescribed by Central Government for maintenance of cost records under sub section 1of Section 148 of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. However we have not made a detailedexamination of the records.

(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingthe undisputed statutory dues including provident fund employees state insurance incometax sales tax service tax duty of customs duty of excise value added tax cessprofessional tax and other material statutory dues as applicable with the appropriateauthorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance income tax sales taxservice tax duty of customs duty of excise value added tax cess professional tax andother material statutory dues were in arrears as at 31 March 2016 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofIncome tax Sales tax Value added tax Service tax duty of customs duty of excise whichhave not been deposited with the appropriate authorities on account of any dispute otherthan those mentioned in Annexure I to this report.

(viii) According to the information and explanations given to us the Company has notdefaulted in repayments of loans or borrowings to financial institutions or banks. TheCompany neither have any loans or borrowings from any Government nor has it issued anydebentures as at the balance sheet date.

(ix) According to the information and explanations given to us the term loans havebeen applied by the Company for the purpose for which they were obtained. The Company didnot raise money by way of initial public offer or further public offer (including debtinstruments) during the year.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexaminations of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Accounting Standard (AS) 18 Related Party Disclosures specified under Section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) According to the information and explanations give to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

(xv) According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/ W - 100022
Bhavesh Dhupelia
Place : Mumbai Partner
Date : 24th May 2016 Membership No: 042070

Annexure B to the Independent Auditor's Report- 31st March 2016

(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 Act

We have audited the internal financial controls over financial reporting of IonExchange (India) Limited ("the Company") as of 31 March 2016 in conjunctionwith our audit of the standalone 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 controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ("ICAI").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 ("theAct").

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 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 controls based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material 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 control systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial controls 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 controls 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 controlsover 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 control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by ICAI.

Other Matters

We did not audit the internal financial controls over financial reporting of a branchof the Company's branch at Bengaluru. The internal financial control over financialreporting of this branch have been audited by the branch auditors whose report have beenfurnished to us and our opinion in so far as it relates to such internal financialcontrols over financial reporting included in respect of this branch is based solely onthe report of such branch auditor.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/ W - 100022
Bhavesh Dhupelia
Place : Mumbai Partner
Date : 24th May 2016 Membership No: 042070

Annexure I to the Independent Auditors' Report - 31st March 2016

(Referred to in our report of even date)

Name of the Statute Nature of the dues Demand including interest in Rupees Amount paid under protest in Rupees Period to which the amount relates Forum where dispute is pending
Central Excise Act 1944 Excise duty and penalty 1678600 2004-2005 Customs Excise and Service Tax Appellate Tribunal
Sales Tax/CST/ VAT Act for Maharashtra Gujarat Uttar Disallowance on account of nonsubmission of required forms 26589145 9600000 1993-1994 1995-1996 1999- 2000 2000- 2001 Joint Commissioner Appeals
Pradesh Andhra Pradesh Delhi 11918367 574619 2006-2010 2011-2014 Assistant Commissioner Appeals
and Goa states 12378969 - 2009-2010 Deputy Commissioner Appeals
6248241 - 2010-2011 Commercial tax Appeals
12057171 60000 2010-2011 Objection Hearing Authority
5651270 - 2008-2012 Deputy Commissioner Of Commercial Taxes
13172276 503485 2009-2012 Deputy Commissioner Of Sales Tax Appeals
420427 - 2008-2009 Additional Commissioner Of Commercial Taxes
2694309 800000 2006-2007 2009-2010 Joint Commissioner Of Sales Tax Appeals
4622242 - 2010-2011 Objection Hearing Authority-Appeal
5134472 - 2004-2005 2007-2008 Senior Joint Commissioner Of Commercial Tax Appeal
Finance Act 1994 - Service Tax Disallowance of service tax taken on input services 1218443 506673 2009- 2010 2010- 2011 2011-2012 Assistant Commissioner of Central Excise
719979 340482 2006- 2007 2007- 2008 2008- 2009 Additional Commissioner of Central Excise
The Customs Act1962 Liability on account of additional duty interest and difference in valuation (to the extent ascertainable) 2258117

2003-2004

Joint Director General of Foreign Trade
Income Tax act 1961 Income Tax Demand 891856 -

2006-2007

Commissioner of Income Tax (Appeal)
Income Tax act 1961 Income Tax Demand 2260330 -

2007-2008

Commissioner of Income Tax (Appeal)
Income Tax act 1961 Income Tax Demand 10831992 -

2008-2009

Deputy Commissioner of Income Tax (Appeal)
Income Tax act 1961 Income Tax Demand 16382926 -

2009-2010

Commissioner of Income Tax (Appeal)
Income Tax act 1961 Income Tax Demand 15275313 -

2010-2011

Commissioner of Income Tax (Appeal)
Income Tax act 1961 Income Tax Demand 9537137 -

2011-2012

Commissioner of Income Tax (Appeal)