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International Combustion (India) Ltd.

BSE: 505737 Sector: Engineering
NSE: N.A. ISIN Code: INE403C01014
BSE 00:00 | 21 Jun 386.15 -0.05
(-0.01%)
OPEN

387.00

HIGH

400.00

LOW

385.10

NSE 05:30 | 01 Jan International Combustion (India) Ltd
OPEN 387.00
PREVIOUS CLOSE 386.20
VOLUME 664
52-Week high 1066.00
52-Week low 370.00
P/E
Mkt Cap.(Rs cr) 92
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 387.00
CLOSE 386.20
VOLUME 664
52-Week high 1066.00
52-Week low 370.00
P/E
Mkt Cap.(Rs cr) 92
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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

Company auditors report

To the Members of International Combustion (India) Limited Report on the StandaloneFinancial Statements

We have audited the accompanying standalone financial statements of InternationalCombustion (India) Limited ("the Company") which comprise the Balance Sheet asat March 31 2017 and the Statement of Profit and Loss and Cash Flow Statement for theyear then ended a summary of significant accounting policies and other notes for the yearended on that date.

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 and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act.

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 of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the financial statements. The procedures selected depend onthe auditors' judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the standalone financial statements.

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

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 2017 and its Profit and its Cash Flows for the year ended on that date.

Report on Other legal and Regulatory Requirements

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 inparagraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books; c) The Balance Sheet the Statement of Profit and Loss andthe Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount; d) In our opinion the Balance Sheet Statement of Profit and loss and Cash FlowStatement comply with the Accounting Standards specified under section 133 of the Act; e)On the basis of the written representations received from the directors as on March 312017 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2017 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" . Our report expresses an unmodified opinion onthe adequacy 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'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: i. Impact of pending litigations (Other than those already recognised in the accounts)on the financial position of the Company have been disclosed in the financial statement asrequired in terms of the accounting standards and provisions of the Companies Act 2013;ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; iii. There has been no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company. iv. The Company has provided requisite disclosures in the financialstatements as to holdings as well as dealings in Specified Bank Notes (Bank notes ofdenominations of five hundred and one thousand rupees existing on November 08 2016)(SBN's) during the period from November 08 2016 to December 30 2016. Based on auditprocedures and relying on the management representation we report that the disclosure arein accordance with books of account maintained by the Company and as produced to us by themanagement. However as stated in note 32.12 to the financial statements and also asrepresented to us by the Management Rs 0.30 lac have been utilized and Rs. 0.15 lac havebeen received from transactions which were not permitted

For Lodha & Co.
Chartered Accountants
Firm's ICAI Registration No.: 301051E
H. K. Verma
Place : Kolkata Partner
Date : 12th May 2017 Membership No.: 055104

"Annexure A" to the Independent Auditors' Report of even date: i) a. TheCompany has maintained proper records showing full particulars including quantitativedetails and situations of fixed assets. b. During the year fixed assets have beenphysically verified by the management according to a regular programme of verificationwhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. As informed no material discrepancies were noticed on suchverifications. c. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company. ii) a. As informed the inventories of theCompany except for materials in transit those lying with third parties have beenphysically verified by the management during the year. In our opinion and according to theinformation and explanations given to us the frequency of such verification isreasonable. b. In our opinion the procedure of physical verification of inventoryfollowed by the management are reasonable and adequate in relation to the size of thecompany and nature of its business. iii) The Company has not granted any loans secured orunsecured to companies firms or parties covered in the register maintained under Section189 of the Act. Accordingly provisions of clause 3 (iii) of the Order is not applicableto the Company. iv) In our opinion and according to the information and explanations givento us the Company has complied with the provisions of section 185 and 186 of the Actwith respect to the loans and investments made. v) The Company has not accepted anydeposits from public covered under Sections 73 to 76 or any other relevant provisions ofthe Act and rules framed thereunder. Accordingly provisions of clause 3 (v) of the Orderis not applicable to the Company. vi) We have broadly reviewed the books of accountmaintained by the company pursuant to the Rules made by the Central Government for themaintenance of cost records under Section 148 (1) of the Act in respect of the Company'sproducts to which the said rules are made applicable and are of the opinion that primafacie the prescribed records have been maintained. We have however not made a detailedexamination of the said records with a view to determine whether they are accurate orcomplete. vii) a. According to the information and explanations given to us during theyear the Company has generally been regular in depositing with appropriate authoritiesundisputed statutory dues including Provident Fund Investor Education Protection fundEmployees' State Insurance Income Tax Sales Tax Wealth Tax Service tax Custom DutyExcise Duty Value Added Tax Cess and other statutory dues as applicable to it. b.According to the information and explanations given to us there were no disputed dues ofsales tax income tax customs duty wealth tax excise duty service tax and Cess ifany as at 31st March2017. viii) In our opinion and on the basis of information andexplanations given to us by the management we are of the opinion that the Company has notdefaulted in repayment of dues to banks. ix) In our opinion and according to theinformation and explanations given to us the Company did not raise any money by way ofinitial public offer or further public offer (including debt instruments) however theterm loans raised during the year have been utilised for the purposes for which they wereraised.

x) During the course of our examination of books of account carried out in accordancewith generally accepted auditing practices in India we have neither come across anyincidence of fraud on or by the Company nor have we been informed of any such cases by themanagement. 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 to the Act . xii) In our opinion and according to theinformation and explanations given to us the Company is not a nidhi company. Accordinglyprovisions of clause 3 (xii) of the Order is not applicable to the Company. xiii)According to the information and explanations given to us and based on our examination ofthe records of the Company transactions with the related parties are in compliance withsections 177 and 188 of the Act where applicable and details of such transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards. xiv)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. Accordingly provisions of clause 3 (xiv) of the Order is not applicable to theCompany. xv) According to the information and explanations given to us and as representedto us by the management and based on our examination of the records of the Company theCompany has not entered into non-cash transactions with directors or persons connectedwith him. Accordingly provisions of clause 3 (xv) of the Order is not applicable to theCompany. xvi)The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934. Accordingly provisions of clause 3 (xvi) of the Order isnot applicable to the Company.

For Lodha & Co.
Chartered Accountants
Firm's ICAI Registration No.: 301051E
H. K. Verma
Place : Kolkata Partner
Date : 12th May 2017 Membership No.: 055104

"Annexure B" to the Independent Auditor's Report

(Referred to in paragraph (f) under 'Report on Other legal and Regulatory Requirements'of our report of even date)

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 ofInternational Combustion (India) Limited ("the Company") as of March 31 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 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 control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone 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 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 (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 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 March 31 2017 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.

For Lodha & Co.
Chartered Accountants
Firm's ICAI Registration No.: 301051E
H. K. Verma
Place : Kolkata Partner
Date : 12th May 2017 Membership No.: 055104