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Indsil Hydro Power & Manganese Ltd.

BSE: 522165 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE867D01018
BSE 00:00 | 23 Sep 49.80 -1.20
(-2.35%)
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53.80

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NSE 05:30 | 01 Jan Indsil Hydro Power & Manganese Ltd
OPEN 53.80
PREVIOUS CLOSE 51.00
VOLUME 35221
52-Week high 118.00
52-Week low 21.00
P/E 4.34
Mkt Cap.(Rs cr) 138
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 53.80
CLOSE 51.00
VOLUME 35221
52-Week high 118.00
52-Week low 21.00
P/E 4.34
Mkt Cap.(Rs cr) 138
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Indsil Hydro Power & Manganese Ltd. (INDSILHYDRO) - Auditors Report

Company auditors report

TO THE MEMBERS OF INDSIL HYDRO POWER AND MANGANESE LIMITED

Report on the audit of the standalone financial statements Opinion

We have audited the standalone financial statements of INDSIL HYDROPOWER AND MANGANESE LIMITED ("the Company") which comprise the standalonebalance sheet as at March 312021 the standalone Statement of Profit and Loss (includingother comprehensive income) the standalone statement of changes in equity and standalonestatement of cash flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information(hereinafter referred to as the "SFS").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the mannerso required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312021and total comprehensive income (comprising of profit and other comprehensive income)changes in equity and cash flows for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with the standards on auditing(SA's) specified under section 143 (10) of the Act. Our responsibilities under those SA'sare further described in the auditor's responsibilities for the audit of the standalonefinancial 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 thestandalone financial statements under the provisions of the Act and the rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the code of ethics.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Information other than the financial statements and auditors' reportthereon

The Company's board of directors is responsible for other information.The other information comprises the information included in the Director's Report to theshareholders but does not include the standalone financial statements and our auditor'sreport thereon. The director's report to the shareholder is expected to be made availableto us after the date of this Auditor's Report.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. When we read the Director's Reportto the shareholders if based on the work we have performed we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance.

Responsibilities of Management and those charges with governance forthe standalone financial statements

The Company's board of directors are responsible for the matters statedin section 134 (5) of the Act with respect to the pre paration of these standalonefinancial statements that give a true and fair view of the State of Affairs Profit andOther Comprehensive Income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements the Board ofDirectors is responsible for assessing the Company's ability t o continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so. The board ofdirectors are also responsible for overseeing the Company's financial reporting process.

Auditor's responsibilities for the audit of the standalone financialstatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the goingconcern basis 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 standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation. We communicate with those charged with governance regardingamong other matters the planned scope and timing of the audit and significant auditfindings including any significant deficiencies in internal control that we identifyduring our audit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards. From the matterscommunicated with those charged with governance we determine those matters that were ofmost significance in the audit of the standalone financial statements of the currentperiod and are therefore the key audit matters. We describe these matters in our auditor'sreport unless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

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 subsection(11) of section 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books andproper returns adequate for the purpose of our audit of the branches have been received.

(c) The standalone balance sheet the standalone statement of profitand loss (including other comprehensive income) the standalone statement of changes inequity and the standalone statement of cash flow dealt with by this report are inagreement with the books of account;

(d) In our opinion the aforesaid standalone financial statementscomply with the Indian accounting standards specified under section 133 of the Act readwith rule 7 of the Companies (Accounts) Rules 2014;

(e) On the basis of the written representations received from thedirectors as on March 312021 taken on record by the board of directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B".

(g) 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;

a. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements- Refer Note 7 of Annexure A tothe Independent Auditor's report.

b. The Company does have long-term contracts including derivativecontracts for which there were no material foreseeable losses; and

c. There were no amount which were required to be transferred to theInvestor Education and Protection Fund by the Company.

In our opinion and according to the information and explanations givento us the remuneration paid by the company to its directors during the current year is inaccordance with the provisions of section 197 of the act. The remuneration paid is not inexcess of the limit laid down under section 197 of the act.

ANNEXURE- A TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in Independent Auditor's report to the Membersof M/s INDSIL HYDRO POWER AND MANGANESE LIMITED for the year ended 31st March 2021.We report that

1. (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the Management duringthe year which in our opinion is reasonable having regard to the size of the company andthe nature of its assets. No material discrepancies as compared to the book records werenoticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the company the title deeds of are held inthe name of the Company.

2. The inventory has been physically verified by the management duringthe year. In our opinion the frequency of such verification is reasonable thediscrepancies noticed on rectification between the physical stock and the book stocks werenot material and have been properly dealt within the books of accounts.

3. According to information and explanation given to us the companyhas not granted any loan secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013.

Accordingly the provision of clause (iii) (a) (b) and (c) ofparagraph 3 of the order are not applicable.

4. In our opinion and according to information and explanation given tous the Company has complied with the provisions of sections 185 and section 186 of theAct in respect of loans investments guarantees and security as applicable.

5. In our opinion and according to the information and explanationsgiven to us the company has not accepted any deposits from the public. Therefore theprovisions of clause (v) of the para 3 of the order are not applicable to the company.

6. We have broadly reviewed the books of accounts maintained by thecompany pursuant to the Rules made by the Central

Government for the maintenance of Cost records under Section 148 of theCompanies Act 2013 and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. We have however not made a detailed examinationof the cost records with a view to determine whether they are accurate or complete.

7. (a) According to the information and explanations given to us and onthe basis of our examination of the records of the Company in our opinion the company isgenerally regular in depositing the undisputed statutory dues including provident fundemployees' state insurance income-tax goods and service tax duty of customs and othermaterial statutory dues as applicable with the appropriate authorities.

According to the information and explanations given to us undisputedamounts payable in respect of provident fund employees' state insurance goods andservice tax and other material statutory dues were in arrears as at March 31 2021.

(b) Details of Statutory Dues as on 31st March 2021 on account of disputes are givenbelow:

Name of the Statute Nature of dues Forum where the dispute is pending Period to which the amount relates Amount Involved
Income Tax Act1961 Income Tax Commissioner of Income Tax (appeals) Coimbatore 2005-06 40572
Income Tax Act1961 Income Tax Commissioner of Income Tax (appeals) Coimbatore 2007-08 22460
Income Tax Act1961 Income Tax Commissioner of Income Tax (appeals) Coimbatore 2014-15 62730
Income Tax Act1961 Income Tax Commissioner of Income Tax (appeals) Coimbatore 2017-18 1136680
Income Tax Act1961 Income Tax Commissioner of Income Tax (appeals) Coimbatore 2018-19 1049570
Income Tax Act1961 Income Tax Commissioner of Income Tax (appeals) Coimbatore 2019-20 768410
The Central Excise Act 1944 Service Tax Deputy Commissioner 2015-16 2352590
The Central Excise Act 1944 Service Tax Deputy Commissioner 2017-18 529900

(b) Details of undisputed Statutory dues as on 31st March 2021 are asfollows:

Undisputed dues relating to VAT are due for the years 2009-10 2012-132013-14 2014-15. The company has obtained stay in respect these dues before the highcourt of Kerala.

8. In our opinion and according to the information and explanationsgiven to us the company has no outstanding dues to any financial institutions or banks orany government or any debenture holders during the year. Accordingly paragraph 3 (viii)of the order is not applicable. The company has availed the moratorium issued by the RBIon account of the ongoing COVID situation in respect of the dues payable to banks.

9. The Company has not raised any money by way of initial public offeror further public offer (including debt instruments) and has not taken any term loansduring the year. Accordingly paragraph 3 (ix) of the order is not applicable.

10. During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Management.

11. The Company has paid/ provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

12. The Company is not a Nidhi Company and accordingly paragraph 3(xii) of the order is not applicable to the Company.

13. According to the information and explanations given to us and basedon our examination of the records of the company transactions with the related partiesare in compliance with section 177 and 188 of the Act. Where applicable the details ofsuch transactions have been disclosed in the standalone financial statements as requiredby the applicable accounting standards.

14. According to the information and explanations given to us and basedon our examination of the records of the company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly paragraph 3(xiv) of the order is not applicable.

15. According to the information and explanations given to us and basedon our examination of the records of the company the company has not entered intonon-cash transactions with directors or persons connected with them. Accordinglyparagraph 3(xv) of the order is not applicable.

16. The company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934.

ANNEXURE - B TO THE INDEPENDENT AUDITORS' REPORT

Report on the Internal Financial Controls over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting INDSIL HYDRO POWER AND MANGANESE LIMITED ("the Company") as of31st March 2021 in conjunction with our audit of the standalone Ind AS financialstatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The board of directors of the Company's Management is responsible forestablishing and maintaining internal financial controls based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including the adherence to the 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 Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by the Institute of Chartered Accountants of India and deemed to beprescribed under Section 143 (10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both issued by ICAI. Those standards and theguidance note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement in the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrol system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (i) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (ii) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (iii) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls our FinancialStatements Reporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper management ofoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial control system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2021 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For RAJA & RAMAN
Chartered Accountants
(Firm Registration No: 003382S)
K.R.RAMAN FCA
Partner
Place : Coimbatore (Membership No : 019715
Date : 28/06/2021 UDIN : 21019715AAAADE1448

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