To the Members of Industrial And Prudential Investment Company LimitedReport on the Standalone Financial Statements
We have audited the accompanying standalone financial statements ofINDUSTRIAL AND PRUDENTIAL INVESTMENT COMPANY LIMITED ("the Company") whichcomprise the Balance Sheet as at March 31 2018 the Statement of Profit and Loss CashFlow Statement for the year then ended and a summary of the significant accountingpolicies and other notes for the year ended on that date.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 (" the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these StandaloneFinancial Statements based on our audit.
We have taken into account the provisions of the Act the Accountingand Auditing Standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditingspecified under section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditors' judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.
In our opinion and to the best of our information and according to theexplanations given to us the standalone 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: a) In the case of the BalanceSheet of the state of affairs of the Company as at March 31 2018; b) In the case of theStatement of Profit and Loss of the Profit of the Company for the year ended on thatdate; c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act and on the basis of such checks of the books and records of thecompany as we consider appropriate and according to the information and explanations givento us we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
As required by Section 143(3) of the Act we report that: a) We havesought 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 appearsfrom our examination of those books; c) The Balance Sheet the Statement of Profit andLoss and the Cash Flow Statement dealt with by this Report are in agreement with the booksof account; d) In our opinion the Balance Sheet Statement of Profit and loss and CashFlow Statement comply with the Accounting Standards specified under section 133 of theAct; read with Rule 7 of the Companies (Accounts) Rules 2014. e) On the basis of thewritten representations received from the directors as on March 31 2018 taken on recordby the Board of Directors none of the directors is disqualified as on March 31 2018from being appointed as a director in terms of section 164 (2) of the Act. f) With respectto the adequacy of the Internal Financial Controls Over Financial Reporting of the Companyand the operating effectiveness of such controls refer to our separate Report in"Annexure B". g) With respect to the other matters to be included in theAuditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us: i. The Company does not have any pending litigations which would impact itsfinancial position as on 31st March 2018. ii. The Company does not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses. iii. There has been no delay in transferring amounts required to be transferredto the Investor Education and Protection Fund by the Company during the year ended on 31stMarch 2018.
For Lodha & Co.
Firm's ICAI Registration No.:301051E
Boman R Parakh
Membership No: 053400
Date: 27th April 2018
"Annexure A" to the Auditor's Report of even date:
(Annexure referred to in paragraph 1 to Report on Other Legal andRegulatory Requirement' Section of our report of even date).
i) a. The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
b. As explained to us Physical Verification of Fixed Asset wasconducted by the management during the year. No material discrepancies were noticed onsuch physical verification. c. As explained to us and on the basis of our examination ofthe records of the Company the title deeds of immovable properties are held in the nameof the Company as disclosed in Note 2.6.
ii) The Company is in the business of investing activity andconsequently does not hold any inventory. Therefore the provisions of clause 3(ii) ofthe said Order are not applicable to the Company.
iii) The Company has not granted any loans secured or unsecuredduring the year to Companies Firms Limited Liability Partnerships or other partiescovered in the registered maintained under Section 189 of the Act. Accordinglysub-clauses (a) (b and (c) are not applicable to the company. iv) Being InvestmentCompany clause(iv) of the Order is not applicable to the Company.
v) The Company has not accepted any deposits from public. Thereforethe question of complying with the directives issued by Reserve Bank Of India and theprovision of Sections 73 to 76 of the Act and rules framed thereunder do not arise.
vi) The Central Government of India has not specified the maintenanceof cost records under sub-section (1) of section 148 of the Act for any of the product andservices of the Company. vii) a. According to the information and explanations given tous during the year the Company has generally been regular in depositing to theappropriate authorities undisputed statutory dues including Income Tax Service Tax GSTCess and other statutory dues as applicable to it. Based on our audit procedures andaccording to the information and explanations given to us there are no arrears ofundisputed statutory dues which remain outstanding as at 31st March 2018 for a period ofmore than six months from the date they became payable.
b. According to the records made available to us and the informationand explanations given by the management
there are no dues of Income Tax Service Tax Cess and other statutorydues which have not been deposited on account of any dispute.
viii) The Company has not taken any loans from any banks or financialinstitutions and has not issued any debentures.
ix) The Company has not raised any money by way of initial public offeror further public offer (including debt instruments) and has not availed any Term Loans
x) During the course of our examination of books of account carried outin accordance with generally accepted auditing practices in India we have neither comeacross any incidence of fraud by the Company or on the Company by its officers oremployees nor have we been informed of any such cases by the management.
xi) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V of the Act.
xii) In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.
xiii) 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 financial statements as requiredby the applicable accounting standards.
xiv) According to the information and explanations given to us andbased on ourexamination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Therefore the compliance of requirements of Section 42A ofthe Act are not applicable.
xv) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered into noncash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.
xvi) The Company is registered under section 45-IA of the Reserve Bankof India Act 1934 and the certificate has been obtained.
For Lodha & Co. Chartered Accountants
Firm's ICAI Registration No.: 301051E
Boman R Parakh Partner Membership No: 053400
Place: Kolkata Date: 27th April 2018
"Annexure B" referred to in our report of even date
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of Industrial And Prudential Investment Company Limited ("theCompany") as at March 31 2018 in conjunction with our audit of the StandaloneFinancial Statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting 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 issued by ICAIand deemed to be prescribed under section 143(10) of the Act to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting 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 financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting 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 control overfinancial 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 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.
For Lodha& Co. Chartered Accountants
Firm's ICAI Registration No.:301051E
Boman R Parakh Partner Membership No: 053400
Place: Kolkata Date: 27th April 2018