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International Combustion (India) Ltd.

BSE: 505737 Sector: Engineering
NSE: N.A. ISIN Code: INE403C01014
BSE 00:00 | 15 Feb 221.45 -0.85
(-0.38%)
OPEN

225.00

HIGH

232.00

LOW

220.50

NSE 05:30 | 01 Jan International Combustion (India) Ltd
OPEN 225.00
PREVIOUS CLOSE 222.30
VOLUME 217
52-Week high 540.00
52-Week low 210.25
P/E 15.21
Mkt Cap.(Rs cr) 53
Buy Price 225.00
Buy Qty 16.00
Sell Price 231.90
Sell Qty 5.00
OPEN 225.00
CLOSE 222.30
VOLUME 217
52-Week high 540.00
52-Week low 210.25
P/E 15.21
Mkt Cap.(Rs cr) 53
Buy Price 225.00
Buy Qty 16.00
Sell Price 231.90
Sell Qty 5.00

International Combustion (India) Ltd. (INTLCOMBUSTION) - Auditors Report

Company auditors report

To

The Members

International Combustion (India) Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of InternationalCombustion (India) Limited ("the Company") which comprise the Balance Sheet asat 31st March 2018 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Cash Flows and the Statement of Changes in Equity for the yearthen ended and a summary of the signifi cant accounting policies and other explanatoryinformation (herein after referred to as "financial statements").

Management's Responsibility for the Standalone 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 financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specifi ed undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularitiesselection and application of appropriate accounting policies making judgments andestimates that are reasonable and prudent and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

Auditors' 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 ofthe standalone financial statements in accordance with the Standards on Auditing specified under Section 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 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 auditors' judgement 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 a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone financial statements.

We believe that the audit evidence we have obtained is suffi cient 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 31st March 2018 and its loss total comprehensive income the changes in equity andits cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein "Annexure A" a statement on the matters specifi ed 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 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 statement of changes in equity and the Statement of Cash Flows dealt with by thisReport are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors is disqualified as on 31st March 2018 from being appointed as a director in terms of Section 164(2) ofthe 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" and

g) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 read with theCompanies (Audit and Auditors) Amendment Rules 2017 in our opinion and to the best ofour information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations against the Company onits financial position in its standalone financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts that are required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Ray & Ray
Chartered Accountants
Firm's Registration No.301072E
Abhijit Neogi
Place : Kolkata Partner
Date: 23rd May 2018 Membership No. 61380

Annexure A to Auditors' report

The Annexure referred to in paragraph 1 under the heading ‘Report on other Legaland Regulatory

Requirements' of our report at even date

i. (a) The Company maintains its fi xed assets register showing full particularsincluding quantitative details and situation of fi xed assets.

(b) The Fixed Assets of the Company have been physically verifi ed by the management inaccordance with a regular programme of verifi cation which in our opinion provides forphysical verifi cation of all the fi xed assets at reasonable intervals. According to theinformation and explanation given to us any material discrepancy noticed on such verification between book records and the physical records has been properly dealt with in thebooks of account.

(c) According to the information and explanation given to us the Company is presentlynot in possession of any immovable property.

ii. Inventories have been physically verifi ed by the Management during the year atreasonable intervals. The discrepancies noticed on verifi cation between the physicalrecords and book records were not material and have been properly dealt with in the booksof account.

iii. The Company has not granted any loans secured or unsecured to companies fi rmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013. Therefore clauses 3(iii) (a) (b) and (c) of theaforesaid Order are not applicable.

iv. In our opinion and according to the information and explanations given to us theCompany has not violated the provisions of Section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.

v. The Company has not accepted any deposits from the public. Accordingly paragraph3(v) of the Order is not applicable to the Company.

vi. The Central Government has not prescribed maintenance of cost records under Section148(1) of the Companies Act 2013 for the Company. Accordingly paragraph 3(vi) of theOrder is not applicable to the Company.

vii. (a) According to the records of the Company the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including ProvidentFund Employees' State Insurance income-tax sales-tax service tax custom duty exciseduty goods and service tax value added tax cess and other statutory dues applicable toit.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance sales tax value addedtax custom duty excise duty goods and service tax income tax service tax and Cesswere outstanding as at 31st March 2018 for a period of more than six months from thedate they became payable.

(b) According to the information and explanations given to us there are no dues ofincome tax sales tax / value added tax service tax custom duty excise duty and goodsand service tax which have not been deposited as at 31st March 2018 on account of anydispute.

viii. The Company has taken loan from banks and is regular in repayment. The Companyhas not issued any debentures during the year.

ix. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments). The Company has not taken any term loan during theyear.

x. During the course of our examination of the books of account carried out inaccordance with Generally Accepted Auditing Practices we have neither come across anyinstance of fraud on or by the Company nor have we been informed of any such case by theManagement.

xi. The Company has complied with the requirement of Section 197 of the Companies Act2013 read with Schedule V to the Companies Act 2013.

xii. The Company is not a Nidhi Company. Accordingly paragraph 3 (xii) of the Order isnot applicable

xiii. In our opinion and according to the information and explanations given to us thetransactions with the related parties are in compliance with section 188 of Companies Act2013 where applicable and the details of such transactions have been disclosed in theFinancial Statements as required by the applicable accounting standards.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year.

xv. In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith him. Accordingly paragraph 3(xv) of the Order is not applicable.

xvi. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45 IA of the Reserve Bank of IndiaAct 1934.

For Ray & Ray
Chartered Accountants
Firm's Registration No.301072E
Abhijit Neogi
Place : Kolkata Partner
Date: 23rd May 2018 Membership No. 61380

"Annexure B" to Auditors' Report of International Combustion (India) Limited

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 internalfinancial controls over financial reporting of International Combustion (India) Limited("the Company") as at 31st March 2018 in conjunction with our audit of thestandalone 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and effi cientconduct 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 ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 auditors' judgement including the assessment of the risks ofmaterial misstatement of the Ind-AS financial statements whether due to fraud or error.We believe that the audit evidence we have obtained is suffi cient 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 authorisations ofmanagement and directors of the company; and (3) 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 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 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 31 March 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 Ray & Ray
Chartered Accountants
Firm's Registration No.301072E
Abhijit Neogi
Place : Kolkata Partner
Date: 23rd May 2018 Membership No. 61380