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Indo Gulf Industries Ltd.

BSE: 506945 Sector: Industrials
NSE: N.A. ISIN Code: INE684U01011
BSE 05:30 | 01 Jan Indo Gulf Industries Ltd
NSE 05:30 | 01 Jan Indo Gulf Industries Ltd

Indo Gulf Industries Ltd. (INDOGULFINDS) - Auditors Report

Company auditors report

To the Members of Indo Gulf Industries Limited

Report on the Audit of financial statements

Qualified Opinion

We have audited the accompanying standalone financial statements (the “financialstatements") of Indo Gulf Industries Limited (the “Company”) whichcomprise the Balance Sheet as at 31st March 2021 and the Statement ol Profit an LossStatement of changes in Equity and the Statement of Cash Flows for the year then endedand notes to the financial statements including a summary of significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to the explanationgiven to us except for the effects ( the matters) described in the Basis forQualified Opinion section the aforesaid financial statements give informationrequired by the Companies Act 2013 (the “Act”) in the manner so required andgive a true and lair vie* in conformity with the accounting standards specified underSection 133 of the Act read with Rule 7 of Companies(Accounts) Rules 2014 and otheraccounting principles generally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the company as at 31uMarch 2021;

(b) in the case of the Statement of Profit & Loss of the profit for the year endedon that date;

(c) in the case of the Statement of changes in equity of the changes in equity duringthe year ended on that date; and

(d) in the case of the Statement of Cash Flows for the year ended on that date.

Basis for Qualified Opinion

We draw attention to the matters described in uAnnexure A”to this report the effects of misstatements and possib effects of undetectedmisstatements on the financial statements due to inability to obtain sufficient andappropriate audit evidence which are material but not pervasive cither individually or inaggregate.

We conducted our audit of the financial statements in accordance with the Standards onAuditing (the “SAs”) specific under Section 143(10) of the Act. Ourresponsibilities under those standards are further described in the AuditorResponsibilities for the Audit of the Financial Statements section of our report.We are independent of the company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India together with the ethic;requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rul< thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Cot of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor of qualified opinion on the financial statements.

Emphasis of Matter

We draw attention to Note JO of the financial statements wherein thebalance of reserves is negative signifyin accumulated losses which exceed the net worthof the Company. However the Management has prepared the* financial statements on goingconcern basis as it anticipates profit(s) from operations in future years which result ipositive net worth.

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

Information other than the 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 AnnualReport the Board's Report including Annexures to Board's Report but docs not include thefinancial statements and our auditors' report thereon. The above-referred informationexpected to be made available to us after the date of this audit report.

Our opinion on the financial statements does not cover the other information and we donot exp ess any form assurance conclusion thereon. In connection with our audit of thefinancial statements our responsibility s to road h other information identified abovewhen it becomes available and in doing so consider whether the o.hcr n omtat o ismaterially inconsistent with the standalone financial statements or our knowledge obtainedin the audit or otherwu appears to be materially misstated. If based on the work we haveperformed we conclude that there is a materu misstatement of this other information weare required to report that fact.

When we read the other information if wc conclude that there is a materialmisstatement therein wc are required t communicate the matter to those charged withgovernance and take appropriate actions necessitated by th circumstances and theapplicable laws and regulations.

Responsibilities of Management and Those charged with Governance for the FinancialStatements

The Company's Board of Director's is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance changes in equityand cash flows of the Company in accordance with the accounting standards specified underSection 133 of the Act and other accounting principles generally accepted in India. Thisresponsibility also include maintenance of adequate accounting records in accordance withthe provision of the Act for safeguarding the assets o* the company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation an* maintenance of internal financial control that were operatingeffectively for ensuring the accuracy and completeness ( the accounting records relevantto the preparation and presentation of the Financial Statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability t continue as a going concern disclosing as applicablematters related to going concern and using the going conccr basis of accounting unlessBoard of Directors either intends to liquidate the Company or to cease operations or hasn realistic alternative but to do so.

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

Auditor's Responsibilities for the audit of the financial statement

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 SAwill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and ar considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional sccpticisi throughout the audit. We also:

Identify and assess the risks of material misstatement of the Financial Statementswhether due to fraud or erro design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient an appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting froi fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omission misrepresentations or the override of internal control.

. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that at appropriate in the circumstances. Under Section 143(3) (i) of theAct wc arc also responsible for expressing oi

Our opinion on the financial statements does not cover the other information and we donot express any form t assurance conclusion thereon. In connection with our audit of thefinancial statements our responsibility is to the other information identified above whenit becomes available and in doing so consider whether the other in form 10 ismaterially inconsistent with the standalone financial statements or our knowledge obtainedin the audit or otherwise appears to be materially misstated. If based on the work wehave performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact.

When we read the other information if we conclude that there is a materialmisstatement therein we are required t communicate the matter to those charged withgovernance and take appropriate actions necessitated by th circumstances and theapplicable laws and regulations.

Responsibilities of Management and those charged with Governance for the FinancialStatements

The Company's Board of Director's is responsible for the matters stated in Section134(5) of the Act with respect to th preparation of these financial statements that give atrue and fair view of the financial position financial performance changes in equity andcash flows of the Company in accordance with the accounting standards specified underScctio 133 of the Act and other accounting principles generally accepted in India. Thisresponsibility also includi maintenance of adequate accounting records in accordance withthe provision of the Act for safeguarding the assets o* the company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that arc reasonable and prudent; anddesign implementation an* maintenance of internal financial control that were operatingeffectively for ensuring die accuracy and completeness c the accounting records relevantto the preparation and presentation of the Financial Statements that give a true and laview and are free from material misstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability t continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessBoard of Directors either intends to liquidate the Company or to cease operations or hasn realistic alternative but to do so.

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

Auditor's Responsibilities for the audit of the financial statement

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 SAwill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and all considered material if individually or in the aggregate theycould reasonably be expected to influence the common; decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional secpticisi throughout the audit. We also:

Identify and assess the risks of material misstatement of the Financial Statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient an appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting froi fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omission misrepresentations or the override of internal control.

. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that at appropriate in the circumstances. Under Section 143(3) (i) of theAct. wc arc also responsible for expressing

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on if audit evidence obtained whether a material uncertaintyexists related to events or conditions that may ca significant doubt on the Company'sability to continue as a going concern. It we conclude that a material uncertainty existswe arc required to draw attention in our auditor s report to the related disclosures inthe financial statements or if such disclosures arc inadequate to modify our opinion.Our conclusions arc based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause to Company to cease to continue asa going concern.

. Evaluate the overall presentation structure and content of the Financial Statementsincluding the disclosures an . whether the financial statements represent the underlyingtransactions and events in a manner that achieves for presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing i the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that no reasonably be thought to bear on ourindependence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

I. As required by section 143(3) of the Act we report that:

(a) we have sought and obtained except for the matters described in the Basisfor Qualified Opinion section all d information and explanations which to the bestof our knowledge and belief were necessary for the purposes c our audit;

(b) except for the effect of the matters stated in the Basis for QualifiedOpinion section in 01 opinion proper books of account as required by lawhave been kept by the Company so far as appears from ot examination of those books andproper returns adequate for the purposes of our audit;

(c) the Balance Sheet the Statement of Profit and Loss the Statement of Changes inEquity dealt with by the Report are in agreement with the books of account and returns.

(d) subject to the effects of the matters mentioned in the Basis for QualifiedOpinion section in our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Ac read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) on die basis of written representations received from the directors as on 31**March 2021 none of the directors is disqualified as on 31* March 2021 from beingappointed as a director in terms of Section 164(2)of the Act.

(0 with respect to the adequacy of the internal financial controls with reference tofinancial statements of 0 Company and the operating effectiveness of such controls referto our separate report in -Annexure iT.

(g) with respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Company (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialpositions in the financial statements* Refer Mote no 25(4)(iii) to thefinancial statements

ii. The Company docs not have any long term contracts including derivatives contractsfor which there wet any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order. 2016 (the "Order")issued by the India in terms of sub-section (11) of section 143 of the CompaniesAct. 2013 we give in the Annexure C statement on the matters specified inthe paragraphs 3 and 4 of the Order to the extent applicable

Place: Dehradun For HEMANT ARORA & Co. LL Chartered Accountant Firm Reg. No. 002141C/C4000C kamal Nagpal Partner
Date: 06.07.2021

M. No. 408066

UDIN: 2140X066AAAAlil'>5290

Annexure A- in the INDEPENDENT AUDITOR REPORT

1 We draw attention to Note no. 16 of the financial statements whichexplains other current liabilities owed by the Company including statutory liabilities. Inour opinion and to the best of our information and according to the explanations given tous the company has not complied with the provisions of the Employee's Provident Fund andMiscellaneous Provisions Act 1952 Employee's State Insurance Act 1948 and by shortcreating liability in respect of Employer's contribution towards Employee Provident Fundand Employee State Insurance an. discharging thereof thus leading to overstatement ofprofit and understatement of liability. In view of the above we are unable to comment onthe adjustments if any required to the accompanying financial statements in this regard

For HEMANT ARORA & Co. LLP
Chartered Accountant

Firm Reg. No. 002141C/C4000C

Place: Dehradun Kamal Nagpal
Date: 06.07.2021 Partner
UDIN: 21408066AAAAED5290 M No. 408066

Annexure B- to the INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(h). under Report on Other Legal and RegulatoryRequirements section of our report to the Members of Indo Gulf Industries Limited ofeven date of even date)

We have audited the internal financial controls over financial reporting of the Companyas of 31st March 2021 in conjunction with our audit of the financial statements of theCompany 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 over financial reporting criteriaestablished by the Company considering the essential components c 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 an maintenance of internal financial controls with reference tofinancial statements 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 record and the timely preparation of reliablefinancial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting base on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Control Over Financial Reporting(“Guidance Note”) and the SAs issued by Institute of Chartered Accountants ofIndia an. deemed to be prescribed under Section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirement and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial control system and their operating effectiveness. Our audit ofinternal financial controls over financial reporting include obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial 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 i accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:

1. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company ; and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 t 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 full periods arc subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to explanations given tous the Company has in a material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31s' March 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control state in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute ( CharteredAccountants of India.

For HEMANT ARORA & Co. LL>
Chartered Accountan*

Firm Reg. No. 002141C/C4000C

Place: Dehradun V) ' Kamal Nagpal
Date: 06.07.2021 Partner
UDIN: 21408066AAAAED5290

M. No.408066

.