You are here » Home » Companies » Company Overview » Indo National Ltd

Indo National Ltd.

BSE: 504058 Sector: Consumer
NSE: NIPPOBATRY ISIN Code: INE567A01010
BSE 00:00 | 20 Nov 526.65 -13.95
(-2.58%)
OPEN

534.75

HIGH

543.00

LOW

515.05

NSE 00:00 | 20 Nov 529.30 -11.70
(-2.16%)
OPEN

540.00

HIGH

541.95

LOW

520.25

OPEN 534.75
PREVIOUS CLOSE 540.60
VOLUME 998
52-Week high 747.30
52-Week low 378.00
P/E 10.30
Mkt Cap.(Rs cr) 197
Buy Price 525.00
Buy Qty 1.00
Sell Price 526.65
Sell Qty 32.00
OPEN 534.75
CLOSE 540.60
VOLUME 998
52-Week high 747.30
52-Week low 378.00
P/E 10.30
Mkt Cap.(Rs cr) 197
Buy Price 525.00
Buy Qty 1.00
Sell Price 526.65
Sell Qty 32.00

Indo National Ltd. (NIPPOBATRY) - Auditors Report

Company auditors report

To the Members of Indo National Limited

Report on the Audit of the Standalone Indian Accounting Standards (IndAS) FinancialStatements Opinion

("the Company") which comprise the balance sheet as at 31stMarch2019 and the statement of Profit and Loss(including other comprehensive income)statement of changes in equity and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

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 a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2019 and total comprehensive income(comprising of profit and other comprehensive income) changes in equity and its cashflows 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 theStandalone Ind AS Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the standalone Ind AS financial statements under the provisions of the Companies Act2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements of the currentperiod. These matters were addressed in the context of our audit of the standalone Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Contingent Liability - M/S Indo National Ltd.

Key audit matter How the matter was addressed in our audit
(Refer Note No.28.1 to the Financial Statements Page No. 96)
The company's contingent liability disclosed in the notes to financial statements mainly comprises of the sum involved in the cartelization of zinc carbon batteries apart from the regular liabilities. Competition Commission of India had imposed a penalty of Rs 4226 lakhs against the company for which the Company had gone on appeal and obtained a stay ofthe penalty by Hon.National Company Law Appellate Tribunal New Delhi (NCLAT) 2018. In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficientand appropriate audit evidence:
1. We tested the effectiveness of key controls around the recording and assessment of the contingent liability.
2. We studied the order passed by the Competition Commission of India in detail along with our own legal experts for interpretation of the order.
This is a key audit matter as the outcome of this litigation is significant to the financial statements and management judgement (based on the legal advice and opinion) is required to support the treatment of this litigation as a contingent liability. 3. We assessed the relevant historical and recent judgements passed by the court authorities.
4. Obtained Management's assessment of the case based on the legal advice/opinion to assess the reasonableness of the contingency.
5. We assessed the independence and competence of the legal advisors.
6. Considered the adequacy of the Company's disclosure made in the financial statements.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Board's Report together with theannexure thereto Report on Corporate Governance but does not include the standalone IndAS financial statements and our auditor's report thereon. Our opinion on the standaloneInd AS financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon. In connection with our audit of the standalone IndAS financial statements our responsibility is to read the other information and in doingso consider whether the other information is materially inconsistent with the standaloneInd AS financial statements or our knowledge obtained in the audit or otherwise appears tobe materially misstated. If based on the work we have performed we conclude that thereis a material misstatement of this other information we are required to report that fact.We have nothing to report in this regard.

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian accounting Standards(Ind AS) specifiedunder section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

In preparing the Standalone Ind AS 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. The Board of Directors are also responsible foroverseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's 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 Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: a) Identify and assess therisks of material misstatement of the financial statements whether due to fraud or errordesign and perform audit procedures responsive to those risks and obtain audit evidencethat is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resultingfrom error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control. b) 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 Companies Act 2013 weare also responsible for expressing our opinion on whether the company has adequateinternal financial controls with reference to financial statements in place and theoperating effectiveness of such controls. c) Evaluate the appropriateness of accountingpolicies used and the reasonableness of accounting estimates and related disclosures madeby management. d) 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 doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern. e) Evaluate the overall presentation structureand content of the financial statements including the disclosures and whether thefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of 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 may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 2013we give in the Annexure 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 have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books c) The Balance Sheet the Statement of Profit andLoss(including other comprehensive income)the statement of changes in Equity and theCash Flow Statement dealt with by this Report are in agreement with the books of account .d) In our opinion the aforesaid standalone Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules2014. e) On the basis of the written representations receivedfrom the directors as on 31stMarch 2019 taken on record by the Board ofDirectors none of the directors is disqualified as on 31stMarch 2019 from beingappointed as a director in terms of Section 164 (2) of the Act. f) With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate Report in"Annexure A". g) With respect to the other matters to be included in theAuditor's 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 has disclosed the impact of pending litigations on itsfinancial position in its financial statements – Refer Note 28.9 to the financialstatements; II. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses.

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

IV. The reporting on disclosures relation to Specified Bank Notes is not applicable tothe company incorporated in India for the year ended March 31 2019.

For G Balu Associates LLP
Chartered Accountants
FRN : 000376S/S200073
Place: Chennai Raja Gopalan. B
Date : 22nd May 2019 Partner (M.No.217187)

Annexure - A to the Auditors' Report

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 IndoNational Limited ("the Company") as of 31 March 2019 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 Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). 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 Companies Act 2013.

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 on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting 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 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 judgment 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 with reference to financial statements.

Meaning of Internal Financial Controls over Financial Reporting with reference tofinancial statements

A company's internal financial control over financial reporting with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial control over financial reporting includes those policies and proceduresthat (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) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting withreference to financial statements Because of the inherent limitations of internalfinancial controls over financial reporting with reference to financial statementsincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting with reference to financial statementsand such internal financial controls over financial reporting were operating effectivelyas at 31 March 2019 based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India.

For G Balu Associates LLP
Chartered Accountants
FRN : 000376S/S200073
Place: Chennai Raja Gopalan. B
Date : 22nd May 2019 Partner (M.No.217187)

ANNEXURE – B TO THE AUDITORS' REPORT

The Annexure referred to in our report to the members of Indo National Limited(‘the Company') on the financial statements for the year ended 31st March2019. We report that: (i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of its fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of 3 years. In accordancewith this programme certain fixed assets have been verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable.

(c) According to the information and explanations given to us and on the basis of theexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The inventory has been physically verified during the year by the management andno material discrepancies were noticed on such verification.

(iii) The Company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnership or other parties covered in the register maintained underSection 189 of the Companies Act 2013.

(iv) According to the information and explanations given to us the Company hascomplied with the provisions of Sec 185 and 186 of the Companies Act2013 with respect tothe Loans and Investments made and guarantees and securities provided by it asapplicable.

(v) The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed thereunder to the extentnotified.

(vi) Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its specified products.

We have broadly reviewed the same and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have not however madea detailed examination of the records with a view to determine whether they are accurateor complete.

(vii) (a) According to the information and explanation given to us and on the basis ofour examination of the records of the Company amount deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Income taxSales Tax Wealth Tax Service Tax Customs Duty and Excise Duty Value added tax Goodsand Service taxcess and any other material statutory dues have been regularly depositedduring the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Income tax Sales Tax Wealth Tax Service TaxCustoms Duty and Excise Duty Value added tax Goods and Service tax cess and othermaterial statutory dues were in arrears as at 31st March 2019 for a period ofmore than six months from the date they became payable.

(b) According to the information and explanations given to us the following statutorydues which have not been deposited on account of dispute.

Nature of the statute Nature of dues Amount(in Lakhs.) Forum where dispute is pending
Income Tax Act 1961 Income Tax 11.51 The Second Appellate Authority
Income Tax Act 1961 Income Tax 11.60 The First Appellate Authority
Sales Tax Central Sales Tax 2.15 First Sales Tax Appellate Authority
Competition The Competition 4426.00 National Company Law
Commission of India Act2002 Appellate Tribunal

(viii) According to the records of the Company examined by us and the information andexplanation given to us the company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government or dues to debenture holders as at theBalance Sheet date.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and any term loans from banks. Accordinglyparagraph 3(ix) of the order is not applicable. (x) According to the information andexplanations given to us no material fraud by the Company or on by its officers oremployees has not been noticed or reported during the year.

(xi) According to the information and explanations given to us the Company has paid orprovided for the managerial remuneration in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V of the Companies Act 2013.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the order is notapplicable.

(xiii) The Company has entered into transactions with related parties in compliancewith the provisions of Section 177 and 188 of the Act. The details of related partytransactions have been disclosed in the standalone Ind AS

financial statements as required under Indian Accounting Standard (Ind AS)24 RelatedParty Disclosures specified under Section 133 of the Act read with Rule 7 of theCompanies(Accounts) Rules 2014.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review. Accordingly the provisions of Clause 3(xiv) of the Order are notapplicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe order not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For G Balu Associates LLP
Chartered Accountants
FRN : 000376S/S200073
Place: Chennai Raja Gopalan. B
Date : 22nd May 2019 Partner (M.No.217187)