You are here » Home » Companies » Company Overview » Indsil Hydro Power & Manganese Ltd

Indsil Hydro Power & Manganese Ltd.

BSE: 522165 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE867D01018
BSE 16:01 | 14 Oct 29.00 2.00
(7.41%)
OPEN

27.00

HIGH

29.00

LOW

25.55

NSE 05:30 | 01 Jan Indsil Hydro Power & Manganese Ltd
OPEN 27.00
PREVIOUS CLOSE 27.00
VOLUME 6733
52-Week high 95.85
52-Week low 22.00
P/E
Mkt Cap.(Rs cr) 81
Buy Price 26.00
Buy Qty 20.00
Sell Price 29.25
Sell Qty 300.00
OPEN 27.00
CLOSE 27.00
VOLUME 6733
52-Week high 95.85
52-Week low 22.00
P/E
Mkt Cap.(Rs cr) 81
Buy Price 26.00
Buy Qty 20.00
Sell Price 29.25
Sell Qty 300.00

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

Company auditors report

TO THE MEMBERS OF M/S.INDSIL HYDRO POWER AND MANGANESE LIMITED

REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS

We have audited the accompanying standalone Ind AS financial statements of INDSIL HYDROPOWER AND MANGANESE LIMITED("the Company") which comprise the Balance Sheet asat 31st March2018the statement of profit and loss (including other comprehensiveincome) cash flow statement and statement of changes in equity for the year then endedand a summary of the significant accounting policies and other explanatory information(herein referred to as "Standalone Ind AS financial statements").

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 and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with The Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.

We conducted our auditin accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the financial position ofthe Company as at 31st March 2018 and its financial performance including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the 'Annexure- A' a statement on the matters specified in paragraphs 3and 4 of the Order.

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

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement in Changes in Equity dealtwith 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 relevant rulesthereunder.

e) On the basis of the written representations received from the directors as on 31 stMarch 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate Report in 'Annexure - B'. Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended 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 financial statements - Refer Note 7 of Annexure to the IndependentAuditors Report.

ii) The Company does have long term contracts including derivative contracts for whichthere are no material foreseeable losses. Refer Note no 2.45 to the Financial Statements

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

ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in Independent Auditor's report to the members of M/s INDSILHYDRO POWER AND MANGANESE

LIMITED for the year ended 31st March 2018. We report that:

1. 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 yearwhich in our opinion is reasonable having regard to the size of the company and thenature of its assets. No material discrepancies were noticed on such verification.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of all the immovable propertiesof the company shown under the Fixed Assets Schedule are held in the name of the company.

2. The inventories have been physically verified by the management during the year. Inour opinion the frequency of the verification is reasonable and no discrepancies werenoticed at the time of verification.

3. The Company has not granted loans secured or unsecured to Companies firms LLPsor other partiescovered in the register maintained U/s. 189 of the Act during the yearunder consideration. The total amount of the loan granted to Subsidiary company during theprevious financial years which is overdue for a period exceeding 90 days as at 31stMarch 2018 is '248311570/-.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respect tothe loans and investments made. The Company has not given any loans/investments/guaranteesto which the provisions of section 185 and 186 of the Act apply.

5. The Company has not accepted any deposits during the year and does not have anyunclaimed deposits as at 31st March 2018 and therefore provisions of the clause 3 (v) ofthe Order are not applicable to the Company.

6. We have broadly reviewed the books of accounts maintained by the company pursuant tothe Rules made by the Central Government for the maintenance of cost records under Section148 of The Companies Act 2013 and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.

7. a) According to information and explanations given to us and on the basis of ourexamination of the records the Company has been generally regular in depositingundisputed statutory dues including Provident Fund Employees State Insurance Income-TaxSales tax Goods and Service Tax Service Tax Customs duty Excise duty Value added taxCess GST and any other statutory dues with the appropriate authorities. However in caseof GST & Employees State Insurance there have been slight delays in few cases

b) According to the information and explanations given to us in our opinion there isno disputed statutory dues inc luding Wealth tax Excise duty Sales Tax Service tax andCess payable at the last day of the Financial year concerned for a period more than sixmonths from the date they became payable.

Details of dues of Customs duty and Income tax as on

31st March 2018 on account of disputes are given below

Name of the Statute Nature of Dues Forum Where The Dispute Is Pending Period To Which The Amount Relates Amount Involved
Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals) Coimbatore 2013-14 Rs. 49600/-
Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals) Coimbatore 2014-14 Rs. 2697330/-

8. Based on our audit procedures we are of the opinion that the company has notdefaulted in repayment of dues to its banks financial institutions and the company hasnot issued any debentures.

9. The Company has not raised any moneys by way of Initial Public Offer / FurtherPublic Offer during the Year. In our opinion the moneys raised by way of Term Loansduring the year were applied for the purposes for which those are raised. Accordinglyclause 3 (ix) of the Order is not applicable.

10.Based upon the audit procedures performed and the information and explanations givenby the management we report that no fraud by the Company and no fraud on the company byits officers or employees has been noticed or reported during the course of our audit.

11 Based on the information and explanations given by the management the managerialremuneration has been paid or provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act.

12. The Company is not a Nidhi company and therefore clause 3(xii) of the Order is notapplicable to the Company.

13. According to the information and explanations given to us and based on ourexamination of the records transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details of such transactions have beendisclosed in the standalone Ind AS Financial Statements as required by the applicableaccounting standards.

14. Based upon the information and explanations given by the management the companyhas not made any preferential allotment or private placement of shares during the year andtherefore clause 3 (xiv) of the Order are not applicable to the Company.

15.The company has not entered into any non-cash transactions with directors or personsconnected with him as stipulated under Section 192 of the Act. Accordingly the provisionsof clause 3 (xv) of the Order are not applicable to the Company.

16. In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company.

ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of IndsilHydro Power and Manganese Limited ("the Company") as of 31 st March 2018 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor 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 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 standalone Ind AS financial statements whether due to fraudor 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 financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 st March

2018 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For RAJA & RAMAN
Chartered Accountants
(Firm's Registration No. 003382S)
Sd/-
E.R.RAJARAM FCA
Place: Coimbatore Partner
Date: 29th May 2018 (Membership No: 18755)