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Insecticides India Ltd.

BSE: 532851 Sector: Agri and agri inputs
NSE: INSECTICID ISIN Code: INE070I01018
BSE 00:00 | 17 Aug 684.90 5.75
(0.85%)
OPEN

683.00

HIGH

689.50

LOW

676.85

NSE 00:00 | 17 Aug 685.20 9.55
(1.41%)
OPEN

674.00

HIGH

690.00

LOW

674.00

OPEN 683.00
PREVIOUS CLOSE 679.15
VOLUME 2683
52-Week high 965.60
52-Week low 644.05
P/E 16.18
Mkt Cap.(Rs cr) 1,416
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 683.00
CLOSE 679.15
VOLUME 2683
52-Week high 965.60
52-Week low 644.05
P/E 16.18
Mkt Cap.(Rs cr) 1,416
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Insecticides India Ltd. (INSECTICID) - Auditors Report

Company auditors report

To

The Members of INSECTICIDES (INDIA) LTD.

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Insecticides(India) Limited ("the company")which comprise the Balance Sheet as at March312017 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory informationfor the year then ended.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes the maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards and pronouncements require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the standalone financial statements.

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

Opinion

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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India; of the state of affairs of the Companyas at March 312017; and its Profits and its Cash Flows for the year ended on that date.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order2016 ("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 inthe paragraph 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 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 appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason March 312017 from being appointed as a director in terms of Section 164(2) of theAct.

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".

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) Rules2014 in our opinionand to the best of our information and according to the explanations given to us :

i. The Company is subject to Legal proceedings and claims which has arisen in theordinary course of business. The Company's management does not reasonably expect thatthese legal actions when ultimately concluded and determined will have a material andadverse effect on the company's results of operations or financial condition (Refer NoteNo-45).

ii. The Company has made provision as at March 31 2017 as required under theapplicable law or accounting standards for material foreseeable losses if any on longterm contracts including derivative contracts;

iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund during the year by the company.

iv. The Company has provided requisite disclosures in the standalone financialstatement as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and these are inaccordance with the books of accounts maintained by the Company. (Refer Note-54)

FOR MOHIT PAREKH & CO.
Chartered Accountants
Firm Reg. No. 0002067N
(ADITI GUPTA)
Place : Delhi Partner
Dated : May 27 2017 Membership No. 523498

ANNEXURE A TO INDEPENDENT AUDITOR'S REPORT

(Referred to in point 1 under the heading "Report on Other Legal & RegulatoryRequirements" of our report of even date)

1. In respect of its Fixed Assets:

a. The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b. As explained to us the Fixed Assets have been physically verified by the managementin a phased periodical manner which in our opinion is reasonable having regard to thesize of the Company and nature of its assets. No material discrepancies were noticed onsuch physical 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 immovable properties asdisclosed in Note 12 on fixed assets to the standalone financial statements are held inthe name of the company.

2. In respect of its Inventories:

As explained to us the inventories have been physically verified by the management atregular intervals during the year and in our opinion the frequency of verification isreasonable. Also there was no material discrepancies noticed on physical verification ofinventory as compared to the book records.

3. The Company has not granted any loans secured or unsecured to the Companies Firm(s) Limited liability partnerships or other parties covered in the register maintainedu/s 189 of the Companies Act 2013. Accordingly the provisions of clause 3(iii) of theCompanies (Auditor's Report) Order 2016 (as amended) (the order) is not applicable to thecompany and hence not commented upon.

4. The company has not given any loans investments guarantees and security under theprovisions of section 185 and 186 of the Companies Act 2013. Accordingly the provisionsof clause 3(iv) of the Companies (Auditor's Report) Order 2016 (as amended) (the order)is not applicable to the company and hence not commented upon.

5. According to the information and explanations given to us the Company has notaccepted any deposits from its members or from the public during the year under auditwithin the meaning of section 73 to section 76 or any other relevant provisions of theCompanies Act 2013 & the rules framed there under to the extent notified. Thereforethe provisions of clause (v) of paragraph 3 of the Order are not applicable to theCompany.

6. We have broadly reviewed the cost records maintained by the Company pursuant to thecompanies (Cost Accounting Records) Rules 2011 prescribed by the Central Government undersection 148(1) of the Companies Act and are of the opinion that prima facie theprescribed cost records have been maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.

7. In respect of Statutory Dues:

a. According to the records of the Company apart from certain instances of delay indepositing the undisputed statutory dues the company has been regular in depositingundisputed statutory dues including Provident Fund Employees State Insurance Income TaxSales Tax Wealth Tax Service Tax Custom Duty Excise Duty Cess and other statutorydues with the appropriate authorities during the year. According to the information andexplanations given to us no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at 31st March 2017 for a period of more than six months from the dateof becoming payable.

b. According to the records of the Company the disputed statutory dues aggregating toRs.45155512/- that have not been deposited on account of disputed matter pending beforeAppropriate Authorities are as under:

S.No. Name of the Statute Nature of Dues Period to which it relates Forum where Dispute is Pending Amount (Rs.)
1. VAT Act VAT 2011-12 Joint Commissioner of Commercial Tax Baroda 5738441
2. VAT Act VAT 2012-13 Joint Commissioner of Commercial Tax Baroda 15981600
3. CST Act CST 2012-13 Joint Commissioner of Commercial Tax Baroda 5106740
4. Revenue Department Stamp duty - Commissioner of Revenue Department Tehsil Vagra District B haruch 8960000
5. VAT Act Penalty 2010-11 Appellate Authority VAT West Bengal 570000
6. VAT Act Central sales tax 2012-13 Assisstant Commissioner VAT Indore 152441
7. VAT Act VAT June 2014 to July 2015 Commercial Tax Officer Vijaywada 9766290

8. Based on our audit procedures and according to the information and explanation givento us we are of the opinion that the Company has not defaulted in repayment ofloans/borrowings to any financial institutions banks or government. Further the companydoes not have any debentures issued/outstanding any time during the year.

9. Based on our audit procedures and according to the information and explanation givento us the term loans availed by the company were prima facie applied for the purposes forwhich they were raised. No money was raised by way of initial public offer or furtherpublic offer (including debt instruments).

10. According to the information and explanations given to us no material fraud by thecompany or on the Company by its officers or employees has been noticed or reported duringthe year. Accordingly the provisions of clause 3(x) of the Companies (Auditor's Report)Order 2016 (as amended) (the order) is not applicable to the company and hence notcommented upon.

11. According to the information and explanations given to us and based on ourexamination of the records of the company the company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act.

12. In our opinion and according to the information and explanation given to us theCompany is not a Nidhi Company. Accordingly the provisions of clause 3(xii) of theCompanies (Auditor's Report) Order 2016 (as amended) (the order) is not applicable to thecompany and hence not commented upon.

13. According to the information and explanations given to us and based on ourexamination of the records of the company all transactions with the related parties arein compliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in Note 35 of the Standalone Financial Statements as requiredby the applicable accounting standard.

14. 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.

15. According to the information and explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly the provisions of clause 3(xv) of the Companies (Auditor's Report) Order2016 (as amended) (the order) is not applicable to the company and hence not commentedupon.

16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of clause 3(xvi) of the Companies(Auditor's Report) Order 2016 (as amended) (the order) is not applicable to the companyand hence not commented upon.

FOR MOHIT PAREKH & CO.
Chartered Accountants
Firm Reg. No. 0002067N
(ADITI GUPTA)
Place : Delhi Partner
Dated : May 27 2017 Membership No. 523498

ANNEXURE B TO INDEPENDENT AUDITOR'S REPORT

(Referred to in point 2(f) under the heading "Report on Other Legal &Regulatory Requirements" of our report of even date)

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 INSECTICIDES(INDIA) LIMITED (" the Company'') as of March 312017 in conjunction with ouraudit of standalone financial statements of the Company 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 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.

Auditor's 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 deemed to be prescribedunder section 143 (10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India . 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 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 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.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial controls 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 in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with the authorizations of management and directors of the company; and(3) provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton 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 to be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312017 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants Of India.

FOR MOHIT PAREKH & CO.
Chartered Accountants
Firm Reg. No. 0002067N
(ADITI GUPTA)
Place : Delhi Partner
Dated : May 27 2017 Membership No. 523498