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Industrial & Prudential Investment Company Ltd.

BSE: 501298 Sector: Financials
NSE: N.A. ISIN Code: INE620D01011
BSE 00:00 | 21 Sep 1600.00 38.45
(2.46%)
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1624.00

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NSE 05:30 | 01 Jan Industrial & Prudential Investment Company Ltd
OPEN 1624.00
PREVIOUS CLOSE 1561.55
VOLUME 20
52-Week high 1869.00
52-Week low 802.35
P/E 17.58
Mkt Cap.(Rs cr) 269
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1624.00
CLOSE 1561.55
VOLUME 20
52-Week high 1869.00
52-Week low 802.35
P/E 17.58
Mkt Cap.(Rs cr) 269
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Industrial & Prudential Investment Company Ltd. (INDLPRUDINV) - Auditors Report

Company auditors report

To the Members of INDUSTRIAL AND PRUDENTIAL INVESTMENT COMPANY LIMITED Report on theAudit of StandaloneFinancial Statements Opinion

We have audited the accompanying Standalone financial statements of Industrial andPrudential Investment Company Limited("the Company") which comprise the BalanceSheet as at March 31 2021 the Statement of Profit and Loss (including OtherComprehensive Income) Statement of Cash Flows andStatement of Changes in Equity for theyear then ended and notes to the Standalone financial statements including a summary ofsignificant accounting policies and other explanatory information for the year ended onthat date (hereinafter referred to 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 ("the Act") in the manner so required and give atrue and fair view in conformity with theaccounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2021 and profitandtotalcomprehensive income its Cash Flows and Changes in Equity for the year ended on thatdate.

Basis for Opinion

We conducted our auditof the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the ‘Auditors'Responsibilities 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 bythe Institute of Chartered Accountants of India (‘ICAI') 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 opinion.

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 year.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. Based on the audit procedure performed includingassessment of risk of material misstatement we have not come across any material Key AuditMatters that are required to be communicated in accordance with the standard.

Information Other than the Standalone Financial Statements and Auditors' Report thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport in the annual report for the year ended March 312021 but does not include theStandalone financial statements and our auditors' report thereon. Our opinion on theStandalone financial statements does not cover the other information and we do not expressany form of assurance conclusion thereon.

In connection with our audit of the Standalone financial statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the Standalonefinancial statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact.

We have nothing to report with respect to the above.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

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 state of affairs (financial position) Profit orLoss (financial performance including other comprehensive income) cash flows and changesin Equity of the Company in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards prescribed under Section 133 of theAct. 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 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 gives 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 unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

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

Auditors' Responsibilitiesfor 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 auditors' 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 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; Obtain an understanding ofinternal control relevant to the audit in order to design audit procedures that areappropriate 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 with reference to Standalone financial statement in place andthe operating effectiveness of such controls;

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management; 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 auditors' 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 auditors' report. Howeverfuture events or conditions may cause the Company to cease to continue as a going concern;and 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.

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 de_ciencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships 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 based on our examination give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. Further to our comments in the annexure referred to in the paragraph above asrequired by Section 143(3) of the Act we report that: a) We have sought and obtained allthe information and explanations which to the best of our knowledge and belief werenecessary for the purposes of our audit; b) In our opinion proper books of account asrequired by law have been kept by the Company so far as it appears from our examination ofthose books; c) The Balance Sheet the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Cash Flow Statementdealt with by this Report are in agreement with the books of account; d) In our opinionthe aforesaid Standalone financial statements comply with the Indian Accounting Standardsspecified under Section 133 of the Act; e) On the basis of the written representationsreceived from the directors as on 31st March 2021 taken on record by the Board ofDirectors none of the directors is disqualified as on 31st March 2021 from beingappointed as a director in terms of Section 164 (2) of the Act; and f) With respect to theadequacy of the internal financial controls with reference to Standalone financialstatements of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the internal control with reference toStandalone financial statements of the Company.

3. With respect to the other matters to be included in the Auditors' 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 does not have any pending litigations which would impact its financial position inits financial statements; ii. the Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; and iii. theunclaimed dividend for the year 2012-13 amounting to Rs 988185/- which was nottransferred to the Investor Education and Protection Fund (IEPF) by the Company within itsdue date of i.e. September 22 has since been transferred to IEPF on February 05 2021.

4. With respect to the reporting under section 197(16) of the Act to be included in theAuditor's Report in our opinion and according to the information and explanations givento us no remuneration has been paid by the Company to its Directors during the currentyear except director's sitting fees. The director's sitting fees paidis in accordance withthe provisions of section 197 of the Act and is not in excess of the limit laid downtherein.

For LODHA & CO
Chartered Accountants
Firm Registration Number: 301051E
Boman R Parakh
Kolkata Partner
16th June 2021 Membership Number: 053400
UDIN: 21053400AAAAAR5889

Annexure "A" referred to in our report of even date

(Referred to in paragraph ‘Report on other Legal and Regulatory Requirements' ofour report of even date) i. (a) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The fixed assets of the Company have been physically verified by the Managementduring the year and no material discrepancies have been noticed on such verification. Inour opinion the frequency of verification is reasonable.

(c) As explained to us and on the basis of our examination of the records of theCompany there is no immovable properties held in the name of the Company as disclosed inNote 9A of the financial statements.

ii. The Company is in the business of investing activity and consequently does nothold any inventory. Therefore the provisions of clause 3(ii) of the said Order are notapplicable to the Company.

iii. The Company has not granted any loans secured or unsecured to companies firms orparties covered in the register maintained under Section 189 of the Act. Accordinglyclause 3 (iii) of the Order is not applicable to the Company.

iv. This being Investment Company clause(iv) of the Order is not applicable to theCompany.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73 to 76 of the Act and the Rules framed there under to the extent notified.

vi. The Central Government of India has not specified the maintenance of cost recordsunder sub- section (1) of Section 148 of the Act for the Company. Accordingly provisionof clause 3(vi) of the order are not applicable to the company.

vii. (a) There was delay in transferring the amount of unclaimed dividend to InvestorEducation Protection Fund (IEPF) as stated above in para 3 (iii) of our report. Other thanthisaccording to the information and explanations given to us during the year theCompany has generally been regular in depositingundisputed statutory dues including IncomeTax Cess and other material statutory dues as applicable to it.

(b) According to the records made available to us and the information and explanationsgiven by the management there are no dues of Income Tax Cess and other statutory dueswhich have not been deposited on account of any dispute.

viii. The Company has not taken any loans from any banks or financial institutions andhas not issued any debentures.

ix. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and has not availed any Term Loans.

x. During the course of our examination of the books 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 neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V of the Act.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the Clause 3(xii) of the Order are not applicable to the Company.

xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the Standalone financial statements as required underInd AS 24 Related Party Disclosures specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable to the Company.

xv. The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xvi. The Company is registered under section 45-IA of the Reserve Bank of India Act1934 and the certificate has been obtained.

For LODHA & CO
Chartered Accountants
Firm Registration Number: 301051E
Boman R Parakh
Kolkata Partner
16th June 2021 Membership Number: 053400
UDIN: 21053400AAAAAR5889

"Annexure B" referred to in our report of even date

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

Report on the Internal Financial Controls with reference to Standalone FinancialStatements under Clause (i) of Subsection 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls with reference to Standalone financialstatements of Industrial and Prudential Investment Company Limited ("theCompany") as at March 31 2021in 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 and maintaining internalfinancial controls based on the internal control with reference to Standalone financialstatements 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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the 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 on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the Instituteof Chartered Accountants of India and the Standards on Auditing prescribed under Section143(10) of the Act to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to Standalone financial statements was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to Standalone financial statementsand their operating effectiveness. Our audit of internal financial controls with referenceto Standalone financial statements included obtaining an understanding of internalfinancial controls with reference to Standalone financial statements assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the Standalone 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 systemwith reference to Standalone financial statements.

Meaning of Internal Financial Controls with reference to Standalone FinancialStatements

A company's internal financial control with reference to Standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of Standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial control with reference to Standalone financial statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of Standalone financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the Standalone financial statements.

Inherent Limitations of Internal Financial Controls with reference to StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference toStandalone financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to Standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to Standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem with reference to Standalone financial statementsand such internal financialcontrols with reference to Standalone financial statements were operating effectively asat March 31 2021 based on the internal control with reference to Standalone financialstatements 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.

For LODHA & CO
Chartered Accountants
Firm Registration Number: 301051E
Boman R Parakh
Kolkata Partner
16th June 2021 Membership Number: 053400
UDIN: 21053400AAAAAR5889

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