You are here » Home » Companies » Company Overview » Indian Card Clothing Company Ltd

Indian Card Clothing Company Ltd.

BSE: 509692 Sector: Industrials
NSE: INDIANCARD ISIN Code: INE061A01014
BSE 00:00 | 21 Aug 140.00 -1.90
(-1.34%)
OPEN

140.00

HIGH

140.00

LOW

140.00

NSE 00:00 | 21 Aug 140.20 -0.15
(-0.11%)
OPEN

139.00

HIGH

144.95

LOW

139.00

OPEN 140.00
PREVIOUS CLOSE 141.90
VOLUME 49
52-Week high 223.20
52-Week low 133.25
P/E
Mkt Cap.(Rs cr) 64
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 140.00
CLOSE 141.90
VOLUME 49
52-Week high 223.20
52-Week low 133.25
P/E
Mkt Cap.(Rs cr) 64
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Indian Card Clothing Company Ltd. (INDIANCARD) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

THE INDIAN CARD CLOTHING COMPANY LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of The IndianCard Clothing Company Limited ("the Company") which comprise the Balance Sheetas at 31st March 2018 and the Statement of Proft 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 signifcant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS fnancial statements that give a true and fair view of the fnancialposition fnancial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (IndAS) prescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal fnancialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS fnancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS fnancialstatements based on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder and the Orderissued under section 143(11) of the Act.

We conducted our audit of the standalone Ind AS fnancial statements in accordance withthe Standards on Auditing specifed under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS fnancial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS fnancial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS fnancial statements whether due to fraud or error.In making those risk assessments the auditor considers internal fnancial control relevantto the Company's preparation of the standalone Ind AS fnancial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfnancial statements.

We believe that the audit evidence we have obtained is suffcient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS fnancial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS fnancial 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 including the Ind AS of thestate of affairs of the Company as at 31st March 2018 and its loss (includingother comprehensive income) its cash flows and the changes in equity for the year endedon that date.

Other Matters

The comparative fnancial information of the Company for the year ended 31st March 2017and the transition date opening balance sheet as at 1st April 2016 included in thesestandalone Ind AS fnancial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 which were audited by predecessor auditor whose reports for the year ended 31stMarch 2017 dated 26th May 2017 and report for the year ended 31stMarch 2016 dated 19th May 2016 expressed an unmodifed opinion on thosefnancial statements. The balances as on 31st March 2017 which have not beenaudited by us are adjusted for the differences in the accounting principles adopted bythe Company on transition to the Ind AS and have been considered as opening balances forthe purpose of these fnancial statements which have been audited by us.

Our opinion is not modifed in respect of the above matter.

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 specifed in paragraphs 3 and 4 of theOrder.

2. As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Proft and Loss (including other comprehensiveincome) the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid standalone Ind AS fnancial statements comply with theIndian Accounting Standards prescribed under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the Directors isdisqualifed as on 31st March 2018 from being appointed as a Director in termsof Section164(2) of the Act.

f) With respect to the adequacy of the internal fnancial controls over fnancialstatements of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its fnancial positionin its standalone Ind AS fnancial statements - Refer Note 33 of the standalone Ind ASfnancial statements.

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

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

For M/s P. G. BHAGWAT

Chartered Accountants

Firm's Registration No.: 101118W

Sandeep Rao

Partner

Membership No.: 47235 Pune

29th May 2018

Annexure A

Referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report on even date:

I. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets which is under reconciliation thoughnot having material differences.

(b) The fxed assets are been physically verifed by the management at regular intervalsbased on the programme of verifcation which in our opinion is reasonable. As informed tous all the major fxed assets have been verifed by the management in the current year anddiscrepancies noticed on such physical verifcation were not material and the same havebeen properly dealt with in the books of account.

(c) The title deeds of immovable properties are held in the name of the company.

ii. According to the information and explanations given by the management physicalverifcation of inventory has been conducted during the current year. In our opinion theinterval of such verifcation is reasonable. Discrepancies noticed on physical verifcationwere not material and the same have been properly dealt with in the books of account.

iii. The company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013. Therefore clause (iii) a b and c of the Orderare not applicable to the Company.

iv. According to the information and explanations provided to us in respect of loansinvestments guarantees and security; provisions of Section 185 and 186 of the CompaniesAct 2013 have been complied with wherever applicable.

v. According to information and explanation provided to us the Company has notaccepted deposits hence the directives issued by the Reserve Bank of India and theprovisions of Sections 73 to 76 or any other relevant provisions of the Companies Act andthe rules framed there under are not applicable to the Company. According to informationand explanation provided to us no order has been passed by Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any court or any other tribunal.

vi. As per information and explanation given to us the Central Government has notspecifed the maintenance of cost records under Section 148(1) of the Companies Act 2013for the products of the company. Accordingly provisions of clause (vi) of the order is notapplicable

vii. (a) The company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax service taxduty of customs duty of excise value added tax good and service tax cess and any otherstatutory dues with the appropriate authorities. According to the information andexplanation provided to us no undisputed amounts payable in respect of statutory dueswere in arrears as at 31st March 2018 for a period more than six months fromthe date they became payable.

(b) According to the information and explanation provided to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise value added taxgoods and service tax or cess which have not been deposited on account of any disputeexcept those mentioned below:

Name of Statute Nature of Dues Amount in Lakh (Rs) Period to which amount relates Forum where dispute is pending
Sales Tax Laws Sales Tax Assessment Dues A. Y 10-11 543.13 F. Y. 2009-10 CST Appeals - Joint Commissioner
Sales Tax Assessment Dues A. Y 12-13 34.53 F. Y 2011-12 CST Appeals - Joint Commissioner
Sales Tax Assessment Dues A. Y 13-14 50.53 F. Y. 2012-13 CST Appeals - Joint Commissioner
Entry Tax Octroi Audit Due Payable 0.18 F. Y. 1996-97 Octroi Department
Income Tax TDS disputes appearing on Income tax portal 35.64 Various Years Compliance under process.

viii. Based on our audit procedures and according to the information and explanationprovided to us the Company has not defaulted in repayment of dues to a financialinstitution bank or government. The Company does not have any debenture holders.

ix. According to information and explanation provided to us the Company has not raisedmoneys by way of initial public offer or further public offer (including debtinstruments). The Company has raised the term loan from bank during the year and appliedfor the purpose for which the loan is raised.

x. According to the information and explanations provided to us and based on our auditprocedures there is no fraud in the Company. However as informed to us by the managementthere was a financial irregularity in it's employees provident fund trust accounting whichhas resulted into additional contribution to the trust by the Company over last few yearsfor meeting the deficit in the provident fund trust accounts. We were further informedthat the company is in the process of assessing the amount involved but there will not beany pending adverse impact of the same on the Company.

xi. According to the information and explanation provided to us the managerialremuneration has been paid and provided in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Companies Act.

xii. The Company is not a Nidhi Company and accordingly Clause (xii) of the Order isnot applicable to the Company.

xiii. According to the information and explanation provided to us all transactionswith the related parties are in compliance with Sections 177 and 188 of the Companies Act2013 wherever applicable and the details have been disclosed in the standalone Ind ASfinancial statements as required by the applicable Indian Accounting Standards.

xiv. According to the information and explanation provided to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under audit.

xv. According to the information and explanation provided to us the Company has notentered into any non-cash transactions with directors or persons connected with them.

xvi. According to the information and explanation provided to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For M/s P. G. BHAGWAT

Chartered Accountants

Firm's Registration No.: 101118W

Sandeeo Rao

Partner

Membership No.: 47235 Pune

29th May 2018

Annexure B to the Independent Auditors' Report of even date on the standalone Ind ASfinancial statements of The Indian Card Clothing Company Limited

Report on the Internal Financial Controls

Under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financial statements of The IndianCard Clothing Company Limited ("the Company") as of 31st March 2018in conjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets 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 Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial statements based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing to the extentapplicable to an audit of internal financial controls both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial statements 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 statements and their operatingeffectiveness. Our audit of internal financial controls over financial statements includedobtaining an understanding of internal financial controls over financial statementsassessing 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 statements.

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.

Opinion

Though the Company has maintained in all material respects internal financialcontrols system over financial statements and such internal financial controls overfinancial statements were operating effectively as of 31st March 2018 basedon the internal control 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 we are of the opinion that formal documentation tosubstantiate controls needs to be strengthened.

We have considered the opinion expressed above in determining the nature timing andextent of audit test applied in our audit of Ind AS financial statements of the companyand the same does not affect our opinion on the Ind AS financial statements of theCompany.

For M/s P. G. BHAGWAT

Chartered Accountants

Firm's Registration No.: 101118W

Sandeep Rao

Partner

Membership No.: 47235

Pune

29th May 2018