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IP Rings Ltd.

BSE: 523638 Sector: Auto
NSE: IPRINGLTD ISIN Code: INE558A01019
BSE 00:00 | 15 Feb 95.25 -1.00
(-1.04%)
OPEN

96.25

HIGH

96.25

LOW

95.15

NSE 05:30 | 01 Jan IP Rings Ltd
OPEN 96.25
PREVIOUS CLOSE 96.25
VOLUME 1088
52-Week high 202.80
52-Week low 95.15
P/E 15.69
Mkt Cap.(Rs cr) 121
Buy Price 95.00
Buy Qty 50.00
Sell Price 101.90
Sell Qty 40.00
OPEN 96.25
CLOSE 96.25
VOLUME 1088
52-Week high 202.80
52-Week low 95.15
P/E 15.69
Mkt Cap.(Rs cr) 121
Buy Price 95.00
Buy Qty 50.00
Sell Price 101.90
Sell Qty 40.00

IP Rings Ltd. (IPRINGLTD) - Auditors Report

Company auditors report

TO THE MEMBERS OF IP RINGS LIMITED

Report on the IND AS Financial Statements

We have audited the accompanying IND AS financial statements of IP Rings Limited ( theCompany ) which comprise the Balance Sheet as at 31st March 2017 the Statement of Profitand Loss (including Other Comprehensive Income) the Cash Flow Statement and the Statementof Changes in Equity for the year then ended and a summary of the significant accountingpolicies and other explanatory information.

Management s Responsibility for the 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 of these INDAS financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including Indian Accounting Standards specified under Section 133 of the Act readwith relevant Rules issued there under. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting 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 IND AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditor s Responsibility

Our responsibility is to express an opinion on these IND AS financial statements basedon 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 there under.

We conducted our audit of IND AS financial statements in accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the IND AS financial statements is free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in IND AS financial statements. The procedures selected depend on theauditor s judgment including the assessment of the risks of material misstatement of theIND AS 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 IND AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company s Directors as well as evaluating theoverall presentation of the IND AS financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid IND AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the financial position of theCompany as at 31st March 2017 and its financial performance including other comprehensiveincome and 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 bythe Central Government in terms of Section 143(11) of the Act we give in Annexure A astatement on the matters specified in paragraphs 3 and 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 purposes 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 Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid IND AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant Rulesissued there under.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (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 .

(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 IND AS financial statements. Refer Note 28 (2) of the IND AS financialstatements.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

(iv) The Company had provided requisite disclosures in Note 28 (17) of the IND ASfinancial statements as to holdings as well as dealings in Specified Bank Notes during theperiod from 8th November 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by the Company.

Annexure A referred to in paragraph 1 under Report on other legal and RegulatoryRequirements section of our report of even date to the members of IP Rings Limited.

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a policy of physically verifying its fixed assets once in two yearswhich in our opinion is reasonable having regard to the size of the Company and itsbusiness. During the year 2016-17 fixed assets have been physically verified by themanagement. According to the information and explanation given to us and based on ourexamination of records no material discrepancies were noticed on such verification.

(c) We have verified the title deeds of immovable properties held by the Company andthe immovable properties are held in the name of the Company. Refer Note 28 (1) to thenotes on Accounts.

(ii) Physical verification of inventory has been conducted at reasonable intervals bythe Management. The discrepancies noticed on physical verification were not material ascompared to book records and have been properly dealt with in 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 Companies Act 2013.

(iv) The provisions of Section 185 and 186 of the Act are not applicable since theCompany has not granted any loans to Directors nor has granted any loan or guarantee orsecurity to any Company body corporate or to any person.

The investment made by the Company is in compliance with Section 185 and 186 of theAct.

(v) The Company has not accepted any deposits and the provisions of Section 73 to 76 orany other relevant provisions of the Companies Act 2013 and the rules framed there underare not applicable to the Company.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant toThe Companies (Cost Records and Audit) Rules 2014 prescribed by the Central Governmentunder section 148 (1) of Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been maintained. We have however not made the detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.

(vii) (a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues to theappropriate authorities. There are no arrears of outstanding undisputed statutory dues ason the last day of the financial year for a period of more than six months from the datethey became payable.

(b) There are no dues of income tax or sales tax or service tax or duty of customs orduty of excise or value added tax those have not been deposited on account of disputeexcept:

Applicable Statute Assessment Year Amount Involved (Rs in Lakhs) Forum where dispute is pending
Income Tax Act 1961 1999-2000 38.00 High Court of Madras
Income Tax Act 1961 2000-2001 11.36 High Court of Madras
Income Tax Act 1961 2001-2002 4.75 High Court of Madras
Income Tax Act 1961 2002-2003 6.61 High Court of Madras
Income Tax Act 1961 2003-2004 6.05 High Court of Madras
Income Tax Act 1961 2004-2005 41.98 High Court of Madras
Income Tax Act 1961 2005-2006 3.73 High Court of Madras
Income Tax Act 1961 2006-2007 5.03 CIT Appeals
Income Tax Act 1961 2008-2009 18.32 High Court of Madras
Income Tax Act 1961 2009-2010 32.81 ITAT Chennai
Income Tax Act 1961 2010-2011 116.18 CIT Appeals
Income Tax Act 1961 2011-2012 128.84 CIT Appeals
Total 413.66

(viii) The Company has not defaulted in repayment of loans or borrowing to anyfinancial institutions banks or Government. The Company has not issued any debentures.

(ix) Term loans were applied for the purposes for which such loans were obtained. TheCompany has not raised any moneys by way of initial public offer. The money raised byfurther public offer (through rights issue of equity shares) during the year was utilizedfor the purposes for which it was raised.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given to us we have neither observed anyinstance of fraud by the Company or any fraud on the Company by its officers or employeesof the Company nor have we been informed of such case by the Management during the year.

(xi) Managerial remuneration has been paid in accordance with the requisite approvalmandated by the provisions of Section 197 read with Schedule V to the Companies Act 2013.

(xii) The Company is not a Nidhi Company and Nidhi Rules 2014 are not applicable tothe Company.

(xiii) In our opinion and as per the information and explanations given to ustransactions with the related parties are in compliance with Section 177 and 188 ofCompanies Act 2013 and the details have been disclosed in the IND AS Financial Statementsas required by the applicable Accounting Standards.

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

(xv) According to the information and explanation provided to us and based on ourexamination of records the Company has not entered into any non-cash transactions withdirectors or persons connected with him and hence Clause 3(xv) is not applicable.

(xvi) The Company is not required to get registered under Section 45-IA of the ReserveBank of India Act 1934 and hence clause (xvi) is not applicable.

Annexure-B referred to in Clause (f) of Paragraph 2 of Report on Other Legal andRegulatory Requirements of our report of even date on the Accounts of the Company for theyear ended 31st March 2017.

We have audited the internal financial controls over financial reporting of IP RingsLimited ( the Company ) as of March 31 2017 in conjunction with our audit of the IND ASfinancial 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. 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 Reportingand the Standards of Auditing to the extent applicable to an audit of internal financialcontrols both issued by the Institute of Chartered Accountants of India. Those Standardsand 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor s judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company s internal financial controls system over financialreporting.

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

According to the information and explanations given to us and based on our audit theCompany has in all material respects an adequate internal financial control overfinancial reporting and such internal financial control over financial reporting wereoperating effectively as at March 31 2017 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India.

For R G N Price & Co.
Chartered Accountants
Firm Regn No. 002785S
Mahesh Krishnan
Chennai Partner
May 25 2017 Membership No. 206520