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Indo Count Industries Ltd.

BSE: 521016 Sector: Industrials
NSE: ICIL ISIN Code: INE483B01026
BSE 00:00 | 06 Oct 138.60 0.95
(0.69%)
OPEN

140.15

HIGH

141.90

LOW

137.70

NSE 00:00 | 06 Oct 138.45 0.80
(0.58%)
OPEN

138.40

HIGH

141.90

LOW

137.70

OPEN 140.15
PREVIOUS CLOSE 137.65
VOLUME 67373
52-Week high 314.80
52-Week low 119.70
P/E 8.24
Mkt Cap.(Rs cr) 2,736
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 140.15
CLOSE 137.65
VOLUME 67373
52-Week high 314.80
52-Week low 119.70
P/E 8.24
Mkt Cap.(Rs cr) 2,736
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Indo Count Industries Ltd. (ICIL) - Auditors Report

Company auditors report

To the Members of Indo Count Industries Limited

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

Opinion

We have audited the standalone financial statements ofIndo Count Industries Limited("the Company") which comprise the balance sheet as at March 31 2021 and thestatement of Profit and Loss (including other statement of changes in equity and statementof cash flows for the year then ended and notes to the financial statements including asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "standalone financial statements"). In our opinion and to thebest of our information and according to the explanations given to us the aforesaidstandalone financial statements give the information required by 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 2021 and profit judgement to determine equity andits cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to Note 55 to the standalone financial statements which describesthe uncertainties and the impact of Covid-19 pandemic on the Company's operations andresults as assessed by the management. Our opinion is not modified in respect of thismatter

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. 1.The Company operates internationally and portion of the business is transacted in severalcurrencies and consequently the Company is exposed to foreign exchange risk. Foreigncurrency exchange rate exposure through its sales are partly balanced by purchasing ofgoods commodities and services in the respective currencies. The balance foreign currencyexchange rate exposure is hedged income) through derivative like foreign exchange forwardcontracts. (Refer Note No. 52 to the standalone financial statements). We assessed theforeign exchange risk management policies adopted by the Company. The Company manages riskthrough a treasury department which formulates risk management objectives and policieswhich are reviewed by the senior management Audit Committee and Board of Directors. Ouraudit approach was a combination of test of internal controls and substantive proceduresto evaluate chances of minimizing the risk involved.

2. The Company has material matters under dispute the which involves significantpossible outcome of these disputes (Refer Note No. 42 to the standalone financialstatements). We obtained the details of the disputes with their present status anddocuments. We made an in-depth analysis of the dispute. We also considered legalprocedures and other rulings in evaluating managements position on these disputes toevaluate whether any change was required to management's position on these disputes.

3. As on March 31 2021 current tax assets and other current assets includes amountsrecoverable from government department for which efforts for recovery are being made(refer Note No. 19 and 20 to the standalone financial statements). Our audit proceduresconsisted of evaluating whether any change was required to management's position on theseuncertainties and the likelihood of recoverability.

INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITOR'S 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 ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon. Our opinionon the standalone financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information we are required to report that fact. We have nothing to reportin this regard.

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 Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards Act. 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 statement that give a true and fair view and are free frommaterial misstatement whether due to fraud or error. doubt on the Company's In preparingthe financial statements management is responsible for assessing the Company's ability tocontinue as a going concern disclosing as applicable matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso. Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements. As part of an audit in accordance with SAs weexercise professional judgment and maintain professional skepticism throughout the audit.We also: Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances. undersection133ofthe Under section143(3) (i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls. Evaluate the appropriateness of accountingpolicies used and the reasonableness of accounting estimates and related disclosures madeby management. Conclude on the appropriateness of management's use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant to continueas a going concern. If we conclude that a material uncertainty exists we are required todraw attention in our auditor's report to the related disclosures in the 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.Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation. Materiality is themagnitude of misstatements in the standalone financial statements that individually or inaggregate makes it probable that the economic decisions of a reasonably knowledgeableuser of the financial statements may be influenced. We consider quantitative materialityand qualitative factors in (i) planning the scope of our audit work and in evaluating theresults of our work; and (ii) to evaluate the effect of any identified misstatements inthe 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 weidentify any significant during our audit. We also provide those charged with governancewith a statement that we have complied with relevant ethical requirements regardingindependence and to communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence and where applicable relatedsafeguards. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror 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.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

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 Companies Act 2013 we give in the "Annexure A" statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable. As required bySection 143(3) of the Act we report that: a) We have sought and obtained all theinformation and explanations which to the best of our knowledge and belief were necessaryfor the purposes of our audit. b) In our opinion proper books of account as required bylaw have been kept by the Company so far as it appears from our examination of thosebooks. c) The Balance Sheet the Statement of Profit and Loss (including othercomprehensive income) Statement of Changes in Equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account. d) In our opinion theaforesaid standalone financial statements comply with the Accounting Standards specifiedunder Section 133 of the the Companies (Accounts) Rules 2014. e) On the basis of thewritten representations received from the directors as on 31st March 2021 taken on recordby the Board of Directors none of the directors is disqualified as on 31st March 2021from 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". Our report expresses an unmodified opinion on the effectiveness ofthe Company's internal financial controls over financial reporting. g) With respect to theother matters to be included in the Auditor's Report in accordance with the requirementsof section 197(16) of the Act as amended: In our opinion and to the best of ourinformation and according to the explanations given to us the remuneration paid by theCompany to its directors during the year is in accordance with the provisions of section197 of the Act. h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous: i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Financial Statements - Refer Note No. 42 to the financialstatements. ii. The Company has made provision as required under the applicable law oraccounting standards for material foreseeable losses if any in respect of long termcontracts including derivative contracts - Refer Note No. 52 to the financial statements.iii. There were no amounts which were required to be transferred to the Investor Educationand Protection Fund by the Company.

For Suresh Kumar Mittal & Co.
Chartered Accountants
Firm Registration No.: 500063N
Ankur Bagla
Partner
Place: New Delhi Membership No.: 521915
Date: 17th May 2021 UDIN: 21521915AAAACD3381

ANNEXURE A REFERRED TO IN PARAGRAPH (I) UNDER THE HEADING OF "REPORT ON OTHERLEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF INDOCOUNT INDUSTRIES LIMITED ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH31 2021.

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

(b) The fixed assets have been physically verified by the management during the year asper the phased program designed to cover all the fixed assets over a period which in ouropinion is reasonable having regard to the size of the Company and nature of its assets.Discrepancies noticed on such verification which are not material have been properlydealt with in the books of accounts.

(c) The title deeds of immovable properties are held in the name of the Company. (ii)As explained to us the inventories have been physically verified by the management duringthe year except stocks lying with third parties in respect of whom confirmations have beenobtained and the discrepancies noticed on which physical verification are not material andhave been properly dealt with in the books of account. In our opinion the frequency ofsuch verification is reasonable.

(iii) As explained to us the Company has not granted any loans secured or unsecuredto companies firms limited liability partnerships or other parties covered in theregister maintained under section 189 of the Companies Act 2013 and as such clauses (iii)(a) (b) and (c) of the order are not applicable to the Company. (iv) In our opinion andaccording to the information and explanations given to us the Company has complied withthe provisions of sections 185 and 186 of the Act in respect to grant of loans makinginvestments and providing guarantees and securities.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public within the meaning of sections 737475 and 76 ofthe Act and the rules framed thereunder and hence reporting under clause (v) of the Orderis not applicable to the Company.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the order made by the Central Government for the maintenance of cost records undersection 148(1) of the Act and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. However we are neither required tocarry out nor have carried out detailed examination of such cost accounting records with aview to determine whether they are accurate or complete. (vii) According to the records ofthe Company examined by us and information and explanations given to us: (a) The Companyis generally regular in depositing with the appropriate authorities undisputed statutorydues including provident fund employees' state insurance income tax sales tax servicetax duty of customs duty of excise value added tax goods & service tax cess andothers as applicable. There are no undisputed amounts payable in respect of aforesaid duesoutstanding as at March 31 2021 for a period of more than six months from the date theybecame payable.

(b) There are no disputed dues of income tax or sales tax or service tax or duty ofcustoms or duty of excise or value added tax or goods and service tax outstanding as atMarch 31 2021 except:

Sl. Name No. of the statute Nature of the dues Amount (Rs in lakhs) Period to which the amount relates Forum where dispute is pending
1. Central Excise Act Cenvat Credit availed on excise duty paid 40.30 2012- 2013 Commissioner of Central Excise (A) Pune
2. Central Excise Act Cenvat Credit availed on excise duty paid 34.24 2011- 2012 CESTAT (Tribunal)
3. Central Excise Act Excise Duty 1.40 2007- 2008 Commissioner of Central Excise (A)
4. Central Excise Act Rebate Claim 13.98 2012- 2013 Commissioner of Central Excise (A)
5. Bombay Electricity Duty Act1958 Electricity Duty 292.07 2000- 2006 Supreme Court
6. Central Excise Act Service tax on commission on Sales 23.54 2010- 2013 Commissioner Appeal Pune
7. MVAT VAT Input Credit 93.89 2012- 2013 Maharashtra Sales Tax Tribunal Pune

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to financialinstitution banks and Government and dues to debenture holders.

(ix) In our opinion and according to the information and explanations given to usduring the year the Company has not raised any moneys by way of initial public offer orfurther public offer (including debt instruments). Further the Term loans have beenapplied by the Company for the purposes for which they were raised.

(x) Based on the audit procedures performed and according to the information andexplanations given to us no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year. (xi) In our opinion and accordingto the information and explanations given to us the Company has paid/ provided managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) The Company is not a nidhi Company and hence provisions of clause (xii) of theOrder are not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to usthe Company's transactions with its related parties are in compliance with sections 177and 188 of the Act where applicable and details of related party transactions have beendisclosed in the standalone financial statements as required by the accounting standardsin notes to the financial statements. (xiv) During the year the Company has not made anypreferential allotment or private placement of shares or fully or partly paid convertibledebentures and hence reporting under clause (xiv) of the order is not applicable to theCompany.

(xv) In our opinion and according to the information and explanation given to usduring the year the Company has not entered into any non-cash transactions with directorsor persons connected with him.

(xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For Suresh Kumar Mittal & Co.
Chartered Accountants
Firm Registration No.: 500063N
Ankur Bagla
Partner
Place: New Delhi Membership No.: 521915
Date: 17th May 2021 UDIN: 21521915AAAACD3381

ANNEXURE B REFERRED TO IN PARAGRAPH (II)(F) UNDER THE HEADING OF "REPORT ON OTHERLEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF INDOCOUNT INDUSTRIES LIMITED ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH31 2021.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Indo CountIndustries Limited ("the Company") as of March 31 2021 in conjunction with ouraudit of the Standalone Financial Statements of the Company for the year ended on thatdate.

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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI)". These responsibilities include reporting includes those the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient including adherence to Company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. 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 financialpolicies and procedures that: a) pertain to the maintenance of records that in reasonableof its business detail accurately and fairly reflect the transactions and dispositionsof the assets of the Company; b) provide reasonable assurance that transactions arerecorded as necessary to permit preparation of financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of theCompany are being made only in accordance with authorizations of management and directorsof the Company; and c) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assets thatcould 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

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2021 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by the ICAI".

For Suresh Kumar Mittal & Co.
Chartered Accountants
Firm Registration No.: 500063N
Ankur Bagla
Partner
Place: New Delhi Membership No.: 521915
Date: 17th May 2021 UDIN: 21521915AAAACD3381

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