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Insecticides India Ltd.

BSE: 532851 Sector: Agri and agri inputs
NSE: INSECTICID ISIN Code: INE070I01018
BSE 00:00 | 15 Feb 610.50 -18.95
(-3.01%)
OPEN

621.40

HIGH

623.50

LOW

608.05

NSE 00:00 | 15 Feb 612.30 -18.45
(-2.93%)
OPEN

626.70

HIGH

629.60

LOW

610.55

OPEN 621.40
PREVIOUS CLOSE 629.45
VOLUME 1093
52-Week high 825.60
52-Week low 370.00
P/E 12.43
Mkt Cap.(Rs cr) 1,262
Buy Price 610.50
Buy Qty 267.00
Sell Price 613.00
Sell Qty 8.00
OPEN 621.40
CLOSE 629.45
VOLUME 1093
52-Week high 825.60
52-Week low 370.00
P/E 12.43
Mkt Cap.(Rs cr) 1,262
Buy Price 610.50
Buy Qty 267.00
Sell Price 613.00
Sell Qty 8.00

Insecticides India Ltd. (INSECTICID) - Auditors Report

Company auditors report

ON STANDALONE FINANCIAL STATEMENT

To the Members of Insecticides (India) Limited Report on the Standalone Ind ASFinancial Statements

We have audited the accompanying Standalone Ind AS Financial Statements of Insecticides(India) Limited ("the Company") which comprise the Balance Sheet as at March 312018 the statement of Profit and Loss (including other comprehensive income) Statementof Cash Flow and the Statement of Changes in Equity for the year then ended and a summaryof significant accounting policies and other explanatory information (herein afterreferred 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 including other comprehensive income cash flowsand the Statement of changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under Section 133 of the Act read with relevant rules issued thereunder.

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; the 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 mis-statement 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 the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified Section143 (10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the Standalone IndAS 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 the 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 March 31 2018 and its financial performance including othercomprehensive income its cash flows and the Statement of changes in equity for the yearended on that date.

Other Matter

The comparative financial information for the year ended 31st March 2017 and thetransition date opening balance sheet as at 1st April 2016 prepared in accordance withInd AS included in these standalone financial statements are based on the previouslyissued statutory financial statements for the year ended 31st March 2017 and 31st March2016 respectively prepared in accordance with Accounting Standards prescribed underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 (asamended) which were audited by the predecessor auditor whose reports dated 27th May 2017and 30th May 2016 respectively expressed unmodified opinion on those standalone financialstatements and have been adjusted for the differences in the accounting principlesadopted by the Company on transition to Ind AS which have been audited by us. Our opinionis not modified in respect of this matter.

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 Section 143(11) of the Act we givein the ‘Annexure A' a statement on the matters specified in paragraphs 3 and 4 of theOrder.

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 purpose 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 the Statement of profit and loss including Other ComprehensiveIncome the statement of cash flow and the statement of changes in equity dealt with bythis report are in agreement with the books of accounts;

(d) in our opinion the aforesaid Standalone Ind AS Financial Statements comply withthe Indian Accounting Standards specified under Section 133 of the Act read with relevantrule issued thereunder;

(e) on the basis of written representations received from the directors as on March 312018 taken on record by the Board of Directors none of the directors is disqualified ason March 312018 from being appointed as a director in terms of section 164(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" to this report; and

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

i. the Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS Financial Statements - refer note 38 to the standaloneInd AS Financial Statements.

ii. the Company has made provision as required under the applicable law or AccountingStandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

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

Devesh Parekh Harish Gupta
Proprietor Partner
Membership No: 092160 Membership No: 098336
Place Delhi
Date May 28th 2018

"Annexure A" to the Independent Auditor's Report

The Annexure as referred in paragraph (1) ‘Report on Other Legal and RegulatoryRequirements of our Independent Auditors' Report to the members of Insecticides (India)Limited on the Standalone Ind AS Financial Statements for the year ended March 312018 wereport that:

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant & equipment.

(b) The property plant & equipment have been physically verified by the managementaccording to the programme of periodical verification in phased manner which in ouropinion is reasonable having regard to the size of the Company and the nature of itsProperty Plant & Equipment. According to the information and explanations given tous 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 records of the Company the title deeds of immovable properties are held inthe name of the Company.

ii. We have been explained by the management that the inventory (except stock intransit for which material has been received) has been physically verified at reasonableintervals and the procedures of physical verification of inventory followed by themanagement are reasonable in relation to the size of the company and nature of itsbusiness. According to information and explanations given to us the materialdiscrepancies if any noticed on such physical verification of inventory as compared tobook records were properly dealt within the books of accounts.

iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Accordingly the provisions of paragraph iii (a) to (c) of theOrder are not applicable to the Company.

iv. The Company has not given any loans investments guarantees and security underthe provisions of Section 185 and 186 of the Act. Accordingly the provisions of paragraph(iv) of the Order is not applicable to the Company.

v. The Company has not accepted any deposits from public. Accordingly the provisionsof paragraph (v) of the Order is not applicable to the Company.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by Central Government for the maintenance of the cost records under Section148(1) of the Act in respect to the Company's products to which said rules are madeapplicable and are of the opinion that prima facie the prescribed records have been madeand maintained. We have however not made a detailed examination of the said records with aview to determine whether they are accurate or complete.

vii. (a) According to the information and explanations given to us and on the basis ofexamination of the records of the Company the Company has generally been regular indepositing undisputed statutory dues including provident fund employees' state insurancesales-tax income tax service tax goods and service tax custom duty excise duty valueadded tax entry tax cess and any other material statutory dues with the appropriateauthorities and further there were no undisputed statutory dues payable for a period ofmore than six months from the date they become payable as at March 312018.

(b) According to the records and information and explanations given to us there are nodues in respect of income tax sales tax service tax goods and service tax duty ofexcise duty of custom stamp duty and value added tax that have not been deposited onaccount of any dispute except as given below: (Amount InLacs)

Name of the Statue Nature of the dues Period to which it relates Forum where Dispute Is Pending Gross Liability (A) Amount Deposited under protest (B) Net Amount (A - B)
Gujarat Stamp Act 1958 Stamp Duty 2013-14 Commissioner of Revenue Department Tehsil Vagra District Bharuch 89.60 19.60 70.00
Gujarat Value Added Tax Act 2003 VAT & CST 2011-12 & 2012-13 Joint Commissioner of commercial Tax Baroda 268.27 85.28 182.99
Andhra Pradesh VAT Act 2005 VAT June 2014 to July 2015 Appellate Tribunal Visakhapatnam 122.08 61.04 61.04
MP VAT Act 2002 Central Sales Tax 2012-13 Assistant Commissioner VAT Indore 1.52 0.15 1.37
West Bangal VAT Act 2003 Penalty 2010-11 Appellate Authority VAT West Bengal 5.70 5.70 Nil
Central Excise Act 1944 Excise Duty 2015-16 Central Excise & Service Tax Audit Commissionerate Jaipur 352.10 13.20 338.89

viii. In our opinion and according to the information and explanations provided by themanagement the Company has not defaulted in repayment of loans or borrowing to any bank.

As per information and explanations given to us the Company had not taken any loan orborrowings from government and financial institutions. Further the Company had not issuedany debenture.

ix. According to the information and explanations given to us the company has notraised moneys by way of initial public offer or further public offer (including debtinstruments) during the year. The term loans have been applied for the purpose for whichthey were raised.

x. Based upon the audit procedures performed for the purpose of reporting true and fairview of the Financial Statements and according to the information and explanationsprovided by the management no instance of fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year.

xi. 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 of the Companies Act 2013.

xii. The Company is not a Nidhi Company and hence reporting under paragraph 3(xii) ofthe Order is not applicable to the Company and hence not commented upon.

xiii. According to the information and explanations provided by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the StandaloneInd AS Financial Statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us the Company has notmade any preferential allotment of shares or private placement of shares or fully / partlyconvertible debentures during the year in terms of provisions of Sections 42 of the Actand hence reporting under paragraph 3(xiv) of the Order is not applicable to the Companyand not commented upon.

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 non-cashtransactions with directors or persons connected with him. Accordingly paragraph (xv) ofthe Order is not applicable.

xvi. According to the information and explanation provided to us the provision ofsection 45-IA of the Reserve Bank of India Act 2013 are not applicable to the Company.

For Devesh Parekh & Co. For S. S. Kothari Mehta & Co.
Chartered Accountants Chartered Accountants
Firm's Reg. No. 013338N Firm's Reg. No. 000756N
Devesh Parekh Harish Gupta
Proprietor Partner
Membership No: 092160 Membership No: 098336
Place : Delhi
Date : May 28th 2018

"Annexure B" to the Independent Auditor's Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 2(f) of‘Report on Other Legal and Regulatory Requirements of our Independent Auditors'Report to the members of Insecticides (India) Limited on the Standalone Ind AS FinancialStatements for the year ended March 312018:

We have audited the internal financial controls over financial reporting ofInsecticides (India) Limited ("the Company") as of March 31 2018 in conjunctionwith our audit of the Standalone Ind AS Financial Statements of the Company for the yearended 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'). 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.

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 accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting and the Standards on Auditing issued by ICAIand deemed to be prescribed under Section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 judgement 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 Ind AS Financial Statements for external purposes in accordance withgenerally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations 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 Ind ASFinancial 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 financial reporting to futureperiods are subject to the risk that the internal financial control over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance 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 31 2018 based on theinternal control 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 Devesh Parekh & Co. For S. S. Kothari Mehta & Co.
Chartered Accountants Chartered Accountants
Firm's Reg. No. 013338N Firm's Reg. No. 000756N
Devesh Parekh Harish Gupta
Proprietor Partner
Membership No: 092160 Membership No: 098336
Place : Delhi
Date : May 28th 2018