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Indian Acrylics Ltd.

BSE: 514165 Sector: Industrials
NSE: INDIANACRY ISIN Code: INE862B01013
BSE 00:00 | 20 Feb 9.78 -0.07
(-0.71%)
OPEN

9.21

HIGH

9.97

LOW

9.21

NSE 05:30 | 01 Jan Indian Acrylics Ltd
OPEN 9.21
PREVIOUS CLOSE 9.85
VOLUME 79405
52-Week high 15.45
52-Week low 7.20
P/E 10.99
Mkt Cap.(Rs cr) 132
Buy Price 9.75
Buy Qty 100.00
Sell Price 9.78
Sell Qty 44.00
OPEN 9.21
CLOSE 9.85
VOLUME 79405
52-Week high 15.45
52-Week low 7.20
P/E 10.99
Mkt Cap.(Rs cr) 132
Buy Price 9.75
Buy Qty 100.00
Sell Price 9.78
Sell Qty 44.00

Indian Acrylics Ltd. (INDIANACRY) - Auditors Report

Company auditors report

To the Members of

Indian Acrylics Limited

Report on the Standalone Ind AS Financial Statements

1. We have audited the accompanying Standalone Ind AS Financial Statements of INDIANACRYLICS LIMITED ("the Company") which comprise the Balance Sheet as at 31March 2019 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Ind AS Financial Statements

2. 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 Ind AS Financial Statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS)specifiedunder Section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act; safeguarding the assetsof the Company; preventing and detecting frauds and other irregularities selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent 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 Standalone Ind AS Financial Statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these Standalone Ind AS FinancialStatements based on our audit.

4. 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 there under.

5. 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 Standalone Ind AS Financial Statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the Standalone Ind AS Financial Statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS Financial Statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlsrelevant to the Company's preparation of the Standalone Ind AS Financial Statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. 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 Standalone Ind AS Financial Statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Ind AS Financial Statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS Financial Statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2019 its profit total comprehensive profit its cash flowsand the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder.

10. As required by Section143(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 purpose 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 Standalone Ind AS Financial Statements dealt with by this report are inagreement with the books of account;

d. in our opinion the aforesaid Standalone Ind AS Financial Statements comply with theIndian Accounting Standards specified under Section 133 of the Act.;

e. on the basis of the written representations received from the directors as on 31March 2019 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2019 from being appointed as a director in terms ofSection164(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 does not have any pending litigations which would impact its financialposition;

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

For AKR & Associates
Chartered Accountants
FRN : 021179N
Kailash Kumar
Place : Chandigarh Partner
Date : 30 th April 2019 M. No.: 505972

Annexure A to the Independent Auditor's Report of even date to the members of INDIANACRYLICS LIMITED on the standalone IND AS financial statements for the year ended 31 stMarch 2019

Based on the audit procedures performed for the purpose of reporting a true and fairview on the Standalone IND AS financial statements of the Company and taking intoconsideration the information and explanations given to us and the books of account andother records examined by us in the normal course of audit we report that:

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

(b) All fixed assets were physically verified by the management in the previous year inaccordance with a planned programme of verifying them once in three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) Based on our audit procedures performed for the purpose of reporting the true andfair view of the Standalone IND AS financial statements and according to information andexplanations given by the management the title deeds of immovable properties included inproperty plant and equipment/ fixed assets are held in the name of the company.

(ii) The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly the provisions of clause 3(iii)(a) (b) and (c) of theOrder are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to usthere are no loans investments guarantees and securities granted in respect of whichprovisions of section 185 and section 186 of the Companies Act 2013 are applicable andhence commented upon.

(v) The Company has not accepted any deposits within the meaning of Section 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3(v) of the said Order are not applicable to the company.

(vi) We have broadly reviewed the books of accounts maintained by the company pursuantto the Rules made by the Central Government for the maintenance of cost records under subsection (1) of section 148 of the Act in respect of Company's products and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with theview to determine whether they are accurate and complete.

(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax service tax customs duty excise duty value added tax cess and othermaterial statutory dues applicable to it.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax service taxsales-tax duty of custom duty of excise value added tax cess and other materialstatutory dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable. c) According to the records of the Company the duesoutstanding of income tax sales tax service tax duty of custom duty of excise valueadded tax and cess on account of any dispute are as follows :-

Name of the statute Nature of dues Amount (Rs. in Lakhs) Amount Paid Under Protest (Rs.in Lakhs) Period to which the amount relates Forum where dispute is pending
Sales Tax Sales Tax (Surcharge on exempted Tax) 78.68 62.34 2002-03 Supreme Court
Excise Dept. Excise Duty 4.30 - Various Years from 2006-07 Commissioner (Appeals)
Excise Dept. Excise Duty 0.33 - 2012-13 Commissioner (Appeals)
Excise Dept. Excise Duty 9.80 - 2002-03 2009-10 Asstt/ Dy Commissioner (Excise)
Excise Dept. Excise Duty 16.64 - Various Years from 2005-06 to 2009-10 & Oct 12 to March 2013 CESTAT
Excise Dept. Excise Duty 94.51 - 2001-02 2002-03 & 2005-08 Additional Commissioner (Excise)
Custom Dept. Custom Duty 29.37 - Various Years from 2000-01 to 2003-04 Additional Commissioner (customs)

(viii) Based on our audit procedures performed for the purpose of reporting the trueand fair view of the Standalone IND AS financial statements and according to informationand explanations given by the management we are of the opinion that the Company has notdefaulted in repayment of dues to a financial institution bank or debenture holders orgovernment or debenture holders.

(ix) Based on our audit procedures performed for the purpose of reporting the true andfair view of the Standalone IND AS financial statements and according to the informationand explanations given by the management the Company has not raised any money by way ofinitial public offer / further public offer /debt instruments. Monies raised by way ofterm loans were applied for the purposes for which those are raised. (x) Based upon theaudit procedures performed for the purpose of reporting the true and fair view of theStandalone IND AS financial statements and according to the information and explanationsgiven by the management we report that no fraud /material fraud by the company or on thecompany by the officers and employees of the Company has been noticed or reported duringthe year.

(xi) Based on our audit procedures performed for the purpose of reporting the true andfair view of the Standalone IND AS financial statements and according to the informationand explanations given by the management we report that the managerial remuneration hasbeen paid / provided in accordance with the requisite approvals mandated by the provisionsof section 197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii)of the order are not applicable to the Company and hence not commented upon.

(xiii) Based on our audit procedures performed for the purpose of reporting the trueand fair view of the Standalone IND AS financial statements and according to theinformation and explanations given by the management transactions with the relatedparties are in compliance with section 177 and 188 of Companies Act 2013 where applicableand the details have been disclosed in the notes to the Standalone financial statementsas required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe company and not commented upon. (xv) Based on our audit procedures performed for thepurpose of reporting the true and fair view of the Standalone IND AS financial statementsand according to the information and explanations given by the management the Company hasnot

Annexure B to Independent Auditor's Report

Referred to in paragraph 10 (f) of the Independent Auditor's Report of even date to themembers of Indian Acrylics Limited on the Standalone Ind AS Financial Statements for theyear ended

31 st March 2019

Report on the Internal Financial Controls under Clause (i) of subsection 3 of Section143 of the Act

1. We have audited the internal financial controls over financial reporting of INDIANACRYLICS LIMITED ("the Company") as of 31 st March 2019 inconjunction with our audit of the Ind AS Financial Statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

2. 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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including 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 act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the company's internal financialcontrol over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on audit of internal financial control over financial reporting(the"Guidance Notes") and the standards on auditing deemed to be prescribed undersection 143(10) of the act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of internal financial controls and both issued bythe ICAI. Those standards and the guidance notes require that we comply with ethicalrequirements and planned and performed the audit to obtain reasonable assurance aboutwhether adequate internal financial control over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls system over financial reportingincluded obtaining an understanding of internal financial controls system over financialreporting assessing the risks that material weakness exists and testing and evaluatingthe design and operating effectiveness of the internal control based on the assessed risk.The procedure selected depend on the auditor's judgement including the assessment of therisks of material misstatements of the Ind AS Financial Statements whether due to fraudor error.

5. We believe that the audit evidence we have obtained in our audits is sufficient andappropriate to provide a basis for our audit opinion on the company's internal financialcontrols system over financial reporting.

Entered into any non-cash transactions with directors or persons connected with him.

(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For AKR & Associates
Chartered Accountants
ICAI FRN: 021179N
CA Kailash Kumar
Place : Chandigarh Partner
Date : 30 th April 2019 M.No: 505972

Meaning of Internal financial controls over financial reporting

6. A company's internal financial controls over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of Ind AS Financial Statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlsover financial reporting includes those policies and procedures that (1.) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company (2.) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditure of the company are being made only in accordance withauthorization of management and directors of the company; and (3.) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASFinancial Statements.

Inherent Limitation of Internal financial controls over financial reporting

7. Because of the Inherent limitation of internal financial controls over financialreporting including the possibility of collusion or improper management over-ride ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projection of any evaluations 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

8. In our opinion the company has in all material respects an adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 st March 2019 based on theinternal financial controls over financial reporting criteria established by the companyconsidering the essential components of internal control stated in the guidance note onaudit of internal financial controls over financial reporting issued by the Institute ofChartered Accountants of India.

Explanatory paragraph

9. We also have audited in accordance with the Standards on auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10) of theAct the Standalone Ind. AS Financial Statements of Indian Acrylics Limited whichcomprise the Balance Sheet as at March 31 st 2019 and the related statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information and our report dated 30th April 2019 expressed an unqualified opinion.

For AKR & Associates
Chartered Accountants
FRN : 021179N
Kailash Kumar
Place : Chandigarh Partner
Date : 30 th April 2019 M.No.: 505972