You are here » Home » Companies » Company Overview » India Glycols Ltd

India Glycols Ltd.

BSE: 500201 Sector: Industrials
NSE: INDIAGLYCO ISIN Code: INE560A01015
BSE 00:00 | 03 Dec 875.25 16.15
(1.88%)
OPEN

860.55

HIGH

895.00

LOW

854.05

NSE 00:00 | 03 Dec 874.70 15.95
(1.86%)
OPEN

864.50

HIGH

891.75

LOW

861.35

OPEN 860.55
PREVIOUS CLOSE 859.10
VOLUME 9084
52-Week high 1028.20
52-Week low 268.30
P/E 19.82
Mkt Cap.(Rs cr) 2,710
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 860.55
CLOSE 859.10
VOLUME 9084
52-Week high 1028.20
52-Week low 268.30
P/E 19.82
Mkt Cap.(Rs cr) 2,710
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

India Glycols Ltd. (INDIAGLYCO) - Auditors Report

Company auditors report

TO THE MEMBERS OF INDIA GLYCOLS LIMITED I. Report on the Audit of StandaloneFinancial Statements for the year ended 31st March 2020 1. Opinion

A. We have audited the Standalone Financial Statements of India Glycols Limited("the

Company") which comprise the Balance Sheet as at March 31 2020 and theStatement of Profit and

Loss (including Other Comprehensive Income)

Statement of Changes in Equity and Statement of Cash Flows for the year then ended andnotes to financial statements including a summary of the significant accounting policiesand other explanatory information (hereinafter referred to as

"the Standalone Financial Statements").

B. 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 ("the Act") in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2020 and its Profit other comprehensive incomechanges in equity and its cash flows for the year ended on that date.

2. Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the independence requirements that are relevant to our audit of the financialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Standalone FinancialStatements.

3. Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements of the current period.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined that there are no key audit mattersto be communicated in our report.

4. Information Other than the Standalone Financial Statements and Auditor'sReport thereon

A. The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and

Analysis Board's Report including Annexures to Board's Report Business ResponsibilityReport Corporate Governance and Shareholder's Information but does not include theStandalone Financial Statements and our auditor's report thereon. Our opinion on thestandalone financial statements does not cover the other information and we do not expressany form of assurance conclusion thereon. B. In connection with our audit of the financialstatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the Standalone FinancialStatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated. If based on the work we have performed we conclude thatthere is a material misstatement of this other information we are required to report thatfact. We have nothing to report in this regard.

5. Responsibilities of Management and Those Charged with Governance for theStandalone Financial Statements

A. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including Indian AccountingStandards (Ind AS) specified under section 133 of company Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error. B. Inpreparing the Standalone Financial Statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are responsible for overseeing theCompany's financial reporting process.

6. Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

A. 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.

B. As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: i) Identify and assess therisks of material misstatement of the standalone financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control. ii) Obtain an understanding ofinternal financial controls relevant to the audit in order to design audit procedures thatare appropriate in the circumstances. Under section 143(3)(i) of the Act we are alsoresponsible for expressing our opinion on whether the Company has adequate internalfinancial controls system in place and the operating effectiveness of such controls. iii)Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management. iv) Conclude on theappropriateness of management's use of the going concern basis of accounting and based onthe audit evidence obtained whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company's ability to continue as a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in our auditor's report to the related disclosures in the Standalone FinancialStatements or if such disclosures are inadequate to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor's report. Howeverfuture events or conditions may cause the Company to cease to continue as a going concern.v) Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

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

D. 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.

E. From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

II. 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 in terms of Section 143(11) of the Act we give in "Annexure A"a statement on the matters specified in paragraph 3 and 4 of the Order to the extentapplicable:

2. (A)As required by Section 143(3) of the Act based on our audit we report that; a.We have sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit; b. In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books; c. The Balance Sheet the Statement of Profitand

Loss including Other Comprehensive Income

Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Reportare in agreement with the relevant books of account; d. In our opinion the aforesaidstandalone financial statements comply with the Ind AS specified under Section 133 of theAct; e. On the basis of the written representations received from the directors as onMarch 31 2020 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020 from being appointed as a director in terms of Section164 (2) of the Act f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in

"Annexure B".

(B)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) TheCompany has disclosed the impact of pending litigations on its financial position in itsStandalone Financial Statements; Refer note 37(A)(i) 39 and 40 to the standalonefinancial statements; ii) The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts; Refer note 50 (B) to the standalone financialstatements; iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

(C) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act: In our opinion and to thebest of our information and according to the explanations given to us the remunerationpaid by the Company to its directors during the year is in accordance with the provisionsof section 197 of the Act.

For K.N. Gutgutia & Co.
Chartered Accountants
(Firm's Registration No. 304153E)
(B.R. GOYAL)
Place : Noida Partner
Date : 24th June 2020 (Membership No.12172)
(UDIN :20012172AAAANX2507)

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph II point 1 under "Report on Other

Legal and Regulatory Requirements" section of our report to the members of IndiaGlycols Limited of even date)

(i) In respect of the Company's fixed assets:

(a) The Company has maintained proper records showing full particulars includingsituation of its fixed assets.

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of the fixed assets at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification however the same has been properly adjusted in the books of accounts. (c) Asper the record and information and explanations given to us we report that the titledeeds for all the immovable properties of the company are held in the name of the Companyas at the balance sheet date (read with footnote of note no. 2 to the financialstatements).

(ii) As explained to us the inventories (except stock in transit which have beenverified based on subsequent receipt /reconciliation) were physically verified during theyear by the Management at reasonable intervals and the procedures of physicalverification of inventory followed by the management are reasonable and adequate nomaterial discrepancies were noticed on physical verification of inventories.

(iii) According to the information and explanations given to us the Company has notgranted loans secured or unsecured to companies firms Limited Liability

Partnerships or other parties covered in the Register maintained under Section 189 ofthe Companies Act 2013. Accordingly we are not offering any comment on the provision ofClause (iii) (a) (b) & (c) of the order. (iv) In our opinion and according to theinformation and explanations given to us the Company has complied with the provisions ofSections 185 and 186 of the Companies Act 2013 in respect of grant of loans makinginvestments and providing guarantees and securities as applicable.[This is to be readwith note no. 54(iv)i]

(v) According to the information and explanations given to us In our opinion theCompany has complied with the directives issued by Reserve Bank of India and the provisionof Sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and theCompanies (Acceptance of Deposits) Rules 2014 as amended (to the extent applicable forcarrying unclaimed amount) with regard to deposit accepted from the public. According tothe information and explanations given to us no order has been passed by the Company LawBoard or National Company Law Tribunal or Reserve Bank of India or any Court or otherTribunal in this regard. (vi) The maintenance of cost records has been specified by theCentral Government under section 148(1) of the Companies Act 2013. We have broadlyreviewed the cost records maintained by the Company pursuant to the Companies (CostRecords and Audit) Rules 2014 as amended prescribed by the Central Government undersub-section (1) of Section 148 of the Companies Act 2013 and are of the opinion thatprima facie the prescribed cost records have been made and maintained We have howevernot made a detailed examination of the cost records with a view to determine whether theyare accurate or complete. (vii) According to the information and explanations given to usin respect of statutory dues: (a) The Company has been generally regular in depositingundisputed statutory dues including Provident Fund Employees' State InsuranceIncome-tax Sales Tax Goods and Service Tax Customs Duty Excise Duty Value Added Taxcess and other material statutory dues applicable to it to the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income-tax Sales tax Service Tax Goods and Service Tax Customs DutyExcise Duty Value Added Tax Cess and other material statutory dues in arrears as atMarch 31 2020 for a period of more than six months from the date they became payable.Details of dues of Custom duty Service Tax Sales tax and Excise Duty which have not beendeposited as at March 31 2020 on account of disputes are given below:

Name of Statute Nature of Dues Forum where Dispute is Pending Period to which the Amount Relates (Financial Year) Amount In- volved (Rs. In Lacs)
Custom Duty Uttarakhand High court 1992-93 11.42
Custom Act1962 Custom Duty Assistant Commissioner Customs 2004- 052009-10 and 2015- 16 196.55
Custom Duty Commissioner ustoms (Appeal) 2004- 052010-11 763.77
Service Tax Assistant Commissioner LTU-Ahmed- abad 2010-11 to 2015-16 2.2
Finance Act1994 Service Tax Assistant/ Deputy Com- missioner LTU-GKP 2005-06 to 2008- 092016-17 5.75
Service Tax Assistant/ Deputy Com- missioner LTU-Noida 2010- 112012- 132015-16 8.33
Cenvat Credit Additional Commissioner LTU-KSP 2011-12 to 2013-14 and 2015- 16 11.07
Central Excise Act1994 Cenvat Credit Commissioner LTU-GKP 2011- 122012-13 10.86
Cenvat Credit Superinten- dent-LTU- GKP 2016-17 1.24
Central Excise Act1994 Excise Duty High court Nainital 2005-06 to 2008-09 46.2
Excise Duty Principal Sec- retary Excise Lucknow 2018-19 102.24
Excise Duty Allahabad High Court 2007-2008 to 2011-12 852.57
Excise Duty CESTAT - DELHI 2010-11 961.38

(viii)In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to financialinstitutions banks government (both State and Central). The Company has not issued anydebentures.

(ix) In our opinion and according to the information and explanations given to usmoney raised by way of term loans have been applied by the Company during the year for thepurposes for which they were raised.

The Company has not raised moneys by way of initial public offer (including debtinstruments) during the year.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company by its officersor employees has been noticed or reported during the year.

(xi)In our opinion and according to the information and explanations given to us theCompany has paid/ provided managerial remuneration in accordance with the requisiteapprovals mandated vide provisions of section 197 read with Schedule V to the CompaniesAct 2013.

(xii)The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

(xiii)In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the note no. 54 of the standalone financial statementsas required by the applicable Ind AS.

(xiv)During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of CARO 2016 is not applicable to the Company.

(xv)In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or directors of its holding subsidiary or associate company or personsconnected with them and hence provisions of section 192 of the Companies Act 2013 are notapplicable.

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

For K.N. Gutgutia & Co.
Chartered Accountants
(Firm's Registration No. 304153E)
(B.R. GOYAL)
Place: Noida Partner
Date: 24th June 2020 (Membership No. 12172)

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph II point 2 under "Report on Other

Legal and Regulatory Requirements" section of our report to the members of IndiaGlycols Limited of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") Opinion

We have audited the internal financial controls over financial reporting of IndiaGlycols Limited ("the

Company") as of March 31 2020 in conjunction with our audit of the financialstatements of the Company for the year ended on that date. In our opinion to the best ofour information and according to the explanations given to us the Company has in allmaterial respects an adequate internal financial controls system over financial reportingand such internal financial controls over financial reporting were operating effectivelyas at March 31 2020 based on the criteria for internal financial control over financialreporting established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Control over FinancialReporting issued by the Institute of Chartered Accountants of India.

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 (the "Guidance Note").

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.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note and the Standards on Auditing prescribed underSection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. 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 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.

For K.N. Gutgutia & Co.
Chartered Accountants
(Firm's Registration No. 304153E)
(B.R. GOYAL)
Place: Noida Partner
Date: 24th June 2020 (Membership No. 12172)

.