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ICDS Ltd.

BSE: 511194 Sector: Financials
NSE: ICDSLTD ISIN Code: INE613B01010
BSE 00:00 | 07 Dec 47.80 2.25
(4.94%)
OPEN

46.90

HIGH

47.80

LOW

43.55

NSE 00:00 | 07 Dec 47.20 2.05
(4.54%)
OPEN

45.15

HIGH

47.40

LOW

45.10

OPEN 46.90
PREVIOUS CLOSE 45.55
VOLUME 1314
52-Week high 143.90
52-Week low 16.45
P/E 956.00
Mkt Cap.(Rs cr) 62
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 46.90
CLOSE 45.55
VOLUME 1314
52-Week high 143.90
52-Week low 16.45
P/E 956.00
Mkt Cap.(Rs cr) 62
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

ICDS Ltd. (ICDSLTD) - Auditors Report

Company auditors report

TO THE MEMBERS OF ICDS LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of ICDS LIMITED ("theCompany") which comprise the Standalone Balance Sheet as at March 31 2021 and theStandalone Statement of Profit and Loss (including other comprehensive income) theStandalone Statement of Changes in Equity and the Standalone Statement of Cash Flows forthe year then ended and notes to the Standalone Financial Statements including a summaryof significant accounting policies and other explanatory information (hereinafter referredto as "the standalone financial statements").

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 Companies Act 2013 as amended (‘the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2021 its loss includingother comprehensive income the changes in equity and its cash flows for the year ended onthat date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing (SAs) as specified under Section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the ‘Auditor'sResponsibilities for the Audit of the Standalone Financial Statements' section of ourreport. We are independent of the Company in accordance with the ‘Code of Ethics'issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Standalone Financial Statements.

Emphasis of Matter

We draw attention to Note No. 41 of the standalone financial statements as regards tothe management evaluation of COVID-19 impact on the future performance of the Company. Ouropinion is not modified in respect of this matter.

Key Audit Matters

We have determined that there are no key audit matters to communicate in our report.

Information other than the Standalone Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Board's Report including Annexuresto Board's Report but does not include the Standalone financial statements and ourauditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone financial statements our responsibilityis to read the other information identified above and in doing so consider whether theother information is materially inconsistent with the Standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.

The Board's Report including Annexures to Board's Report is not made available to us asat the date of this auditor's report. We have nothing to report in this regard.

Responsibilities of Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation and presentation of these StandaloneFinancial Statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards ("Ind AS") specified under Section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the StandaloneFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the ‘Annexure A' a statement on the matters specified in theparagraph 3 and 4 of the Order.

2. The Non-Banking Financial Companies Auditor's Report (Reserve Bank) Directions 2016issued by the Reserve Bank of India (RBI) is not reported in view of the cancellation ofCertificate of Registration of Non-Banking Financial Company by the Reserve Bank of Indiaon October 9 2002.

3. 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 including Other ComprehensiveIncome the Statement of Changes in Equity the Statement of Cash Flows dealt with by thisReport 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 Companies (IndianAccounting Standards) Rules 2015 as amended;

e. The matters described in the Emphasis of Matter paragraph above in our opinion mayhave an adverse effect on the functioning of the Company.

f. On the basis of the written representations received from the directors as on March312021 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2021 from being appointed as a director in terms of Section164(2) of the Act;

g. With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate report in ‘Annexure B'; and

h. In our opinion and according to the information and explanations given to us theCompany has not paid any remuneration to its Directors during the year and accordinglyfurther reporting in accordance with the requirements of Section 197(16) of the Act is notrequired;

i. 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - Refer note no. 37 to the standalonefinancial statements.

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

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTSOF ICDS LIMITED

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on Companies (Auditor's Report) Order 2016 (‘the Order') issued by theCentral Government in terms of Section 143(11) of the Companies Act 2013 (‘the Act')

i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment (PPE).

b) According to the information and explanation given to us the property plant andequipment and investment properties have not been physically verified by the Managementduring the year due to limitations imposed by the COVID-19 Pandemic.

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 areheld in the name of the Company.

ii) The Company does not carry any inventories at any time during the year.Accordingly clause 3(ii) of the Order is not applicable.

iii) In our opinion and according to the information and explanation given to us theCompany during the year has not granted any loans secured or unsecured to companiesfirms LLP's or other parties listed in the register maintained under Section 189 of theAct. Consequently requirements of clauses 3(iii) (a) (b) and (c) of the Order are notapplicable to the Company.

iv) In our opinion and according to the information and explanation given to us theCompany during the year has not granted any loan made investment and provided guaranteesand securities to the parties covered under Section 185 and Section 186 of the Act.Accordingly clause 3(iv) of the Order is not applicable.

v) In our opinion and according to the information and explanation given to us theCompany has not accepted any deposits from public after the enactment of this Act. Hencethe directives issued by the Reserve Bank of India and the provisions of Section 73 to 76or any other relevant provisions of the Act and the rules framed there under is notapplicable to the Company. We are also informed by the management of the Company thatthere are no other orders by Company Law Board or National Company Law Tribunal or ReserveBank of India or any Court or any other Tribunal.

vi) The Central Government has not prescribed maintenance of cost records undersub-section (1) of Section 148 of the Act for the Company.

vii) a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including employee's state insuranceGoods and Services Tax cess and other material statutory dues on general have beenregularly deposited during the year by the Company with the appropriate authorities thoughdelays were noticed in payment of Income Tax and Provident fund. As explained to us theCompany did not have any dues on account of duty of customs and duty of excise.

In our opinion and according to the information and explanations given to us there areno undisputed statutory dues which were outstanding as on the last day of the financialyear concerned for a period of more than six months from the date they became payable.

b) In our opinion and according to the information and explanation given to us andrecords of the Company there are no dues of income tax goods and service tax sales taxservice tax value added tax or cess or other material statutory dues which have not beendeposited on account of any dispute.

viii) Based on our audit procedures and on the information and explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofloans to banks. The Company did not take any loans from financial institution/government.

ix) In our opinion and according to the information and explanation given to us andrecords of the Company the Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.Accordingly Clause 3(ix) of the Order is not applicable.

x) During the course of examination of Books of Account and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have not come across withany material fraud on or by the Company noticed or reported during the year nor havebeen informed of such case by the Management.

xi) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the Company has not paid/providedfor any managerial remuneration in accordance with the provisions of Section 197 read withSchedule V to the Act. Accordingly Clause 3(xi) of the Order is not applicable.

xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly Clause 3(xii) of the Order is not applicable.

xiii) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.

xiv) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the Company during the year hasnot made any preferential allotment or private placement of shares or fully or partlyconvertible debentures. Accordingly Clause 3(xiv) of the Order is not applicable.

xv) In our opinion and 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 to its directors and henceprovisions of Section 192 of the Companies Act 2013 are not applicable to the Company.

xvi) The Company was registered as Non-Banking Financial Company (NBFC) under theprovisions of the Reserve Bank of India (RBI) Act 1934 and the certificate ofregistration had been cancelled by the RBI vide its Order dated October 9 2002.

ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTSOF ICDS LIMITED

Report on the Internal Financial Controls with reference to the aforesaid standalonefinancial statements under Clause (i) of sub-section 3 of Section 143 of the CompaniesAct 2013

We have audited the internal financial controls with reference to standalone financialstatements of ICDS Limited ("the Company") as of March 31 2021 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 Board of Directors of the Company are responsible for establishing and maintaininginternal financial controls based on the internal financial controls with reference tofinancial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting ("Guidance Note") issued by the Institute ofChartered Accountants of India ("ICAI"). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating 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 Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to standalone financial statements. 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 with reference to standalone financial statements were established andmaintained and whether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to standalone financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of such internal financialcontrols assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the standalone financial statements whether due tofraud 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 withreference to standalone financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements include those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion and to the best of our information and explanation given to us theCompany has in all material respects maintained adequate internal financial controlswith reference to standalone financial statements and such internal financial controlswith reference to financial statements were operating effectively as of March 312021based on the internal control with reference to financial statements criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For Pathak H. D. & Associates LLP
Chartered Accountants
Firm Registration Number : 107783W/W100593
Sd/-
Sudhir Prabhu K.
Partner
Membership Number: 209589
UDIN: 21209589AAAAAP6582
Place : Bengaluru
Date : June 30 2021

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