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Investment & Precision Castings Ltd.

BSE: 504786 Sector: Engineering
NSE: N.A. ISIN Code: INE155E01016
BSE 00:00 | 22 Feb 287.00 -4.60
(-1.58%)
OPEN

290.00

HIGH

290.00

LOW

283.00

NSE 05:30 | 01 Jan Investment & Precision Castings Ltd
OPEN 290.00
PREVIOUS CLOSE 291.60
VOLUME 531
52-Week high 474.00
52-Week low 275.00
P/E 13.99
Mkt Cap.(Rs cr) 144
Buy Price 280.40
Buy Qty 10.00
Sell Price 287.00
Sell Qty 38.00
OPEN 290.00
CLOSE 291.60
VOLUME 531
52-Week high 474.00
52-Week low 275.00
P/E 13.99
Mkt Cap.(Rs cr) 144
Buy Price 280.40
Buy Qty 10.00
Sell Price 287.00
Sell Qty 38.00

Investment & Precision Castings Ltd. (INVPRECCAST) - Auditors Report

Company auditors report

To

The Members of

INVESTMENT & PRECISION CASTINGS LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of Investment& Precision Castings Limited ("the Company") which comprise the BalanceSheet as at 31st March 2018 the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.

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 to give a true and fair view of the financialposition financial performance (including other comprehensive income) cash flows andchanges in the equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards specified in theCompanies (Indian Accounting Standards) Rules 2015 under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS 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 standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act and the rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunderand the Order issued under section 143(11) of the Act.

We conducted our audit in 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 whetherthese 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 auditors' 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 auditors consider internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of 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 state of affairs of theCompany as at 31st March 2018 and of the profit (including other comprehensiveincome) its cash flows and changes in equity for the year ended on that date.

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 terms of sub-section (11) of section 143 of theAct we give in the Annexure – A a statement on the matters specified in clause 3and 4 of the Order to the extent possible.

2. 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 purpose of our audit; b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c) The Balance Sheet the Statement of Profit and Loss(including other comprehensive income) the Cash Flow Statement and the Statement ofChanges in Equity dealt with by this Report are in agreement with the books of account; d)In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under section 133 of the Act; e) On the basis ofwritten representations received from the directors as on 31st March 2018 andtaken on record by the Board of Directors none of the directors is disqualified as on 31stMarch 2018 from being appointed as a director in terms section 164(2) of the Act; f) Withrespect to the adequacy of internal financial controls over financial reporting of theCompany and operating effectiveness of such controls our separate report in annexure– B may be referred; g) With respect to the other matters to be included in theAuditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationgiven to us: i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements under note no. 31; ii.The Company did not have any long-term contracts including derivatives contracts for whichthere were any material foreseeable losses; iii. There has been no delay in transferringthe amounts required to be transferred to the Investor Education and Protection Fund bythe Company.

For P A R K & COMPANY
Chartered Accountants
FRN: 116825W
ASHISH DAVE
Bhavnagar Partner
24th May 2018 Membership No. 170275

ANNEXURE – A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date) On the basis of such checks as weconsidered appropriate and in terms of information and explanations given to us we statethat:

1 In respect of fixed assets: a. The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets. b. The fixedassets were physically verified by the management at reasonable intervals in a phasedmanner in accordance with a programme of physical verification. No material discrepancieswere noticed on such verification. c. The title deeds of immovable properties are held inthe name of the Company.

2 The inventories were physically verified by the management at reasonable intervalsduring the year. No material discrepancies were noticed on such physical verificationcarried out by the Company.

3 The Company has granted unsecured loans to the wholly-owned subsidiary companycovered in the register maintained under section 189 of the Companies Act 2013. The termsand conditions of grant of such loans are not prima-facie prejudicial to the interest ofthe Company. The repayment of such loans is not overdue.

4 The Company has complied with provisions of Section 185 and 186 of the Act in respectof loans investments guarantees and security to the extent applicable.

5 The Company has not accepted any deposits within the meaning of the provisions ofsection 73 to 76 or any other relevant provisions of the Act and the rules framedthereunder with regard to the deposits accepted from the public. No order has been passedby the Company Law Board or National Company Law Tribunal or Reserve Bank of India or anycourt or any other tribunal.

6 We have broadly reviewed the cost records maintained by the Company pursuant toSection 148(1) of the Companies Act 2013 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 and other dues: a. The Company has generally been regular indepositing undisputed statutory dues including Provident Fund Employees State InsuranceIncome Tax Sales Tax Service Tax Custom Duty Excise Duty Value Added Tax Cess GSTand other statutory dues to the extent applicable with the appropriate authoritiesduring the year. There are no undisputed statutory dues outstanding for a period of morethan six months from the date they became payable. b. There are no statutory dues whichhave not been deposited on account of dispute except for the followings:

Nature of Dues Rs Financial Year Forum where dispute is pending
Income Tax 312000 2002-2003 Income Tax Appellate Tribunal
Value Added Tax 894939 2002-2003 The Commissioner of Gujarat Commercial Tax

8 The Company has not defaulted in repayment of loans or borrowing to banks. TheCompany has not obtained any borrowings from any financial institutions or government orby way of debentures.

9 Terms loans obtained by the Company have been applied for the purpose for which theywere obtained. The Company has not raised any money during the year by way of publicoffer (including debt instruments).

10 To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company or on the Company by its officersor employees was noticed or reported during the year.

11 Managerial remuneration paid or provided by the Company during the year is inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

12 Since the Company is not a Nidhi Company the provisions of clause 3 (xii) of theOrder are not applicable to the Company.

13 All transactions with the related parties are in compliance with Section 177 and 188of the Act and the details have been disclosed in the financial statements as required bythe applicable accounting standards.

14 The Company has not made any preferential allotment or private placement of equityshares or fully or partly convertible debentures during the year under the review.

15 The Company has not entered into any non-cash transactions during the year withdirectors or persons concerned with him.

16 The Company is not required to be registered under Section 45-IA of the Reserve Bankof India Act 1934.

For P A R K & COMPANY
Chartered Accountants
FRN: 116825W
ASHISH DAVE
Bhavnagar Partner
24th May 2018 Membership No. 170275

ANNEXURE – B TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 (g) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

We have audited the internal financial controls over financial reporting of Investmentand Precision Castings Limited ("the Company") as of 31st March2018 in conjunction with our audit of the standalone Ind AS financial statements of theCompany 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. 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.

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 auditors' 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 31st March 2018based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For P A R K & COMPANY
Chartered Accountants
FRN: 116825W
ASHISH DAVE
Bhavnagar Partner
24th May 2018 Membership No. 170275