Mar 31, 2023
Indo Count Industries Limited
Report on the Audit of the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Indo Count Industries Limited ("the Company"), which comprise the Standalone Balance Sheet as at March 31,2023, and the Standalone Statement of Profit and Loss (including Other Comprehensive loss), the Standalone Statement of Changes in Equity and the Standalone Cash Flow Statement for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, and total comprehensive income (comprising of profit and other comprehensive loss), changes in equity and its cash flows for the year then ended.
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of
the Act. Our responsibilities under those Standards are further described in the "Auditor''s Responsibilities for the audit of the Standalone Financial Statements" section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
4. We draw your attention to note 45 (a) to the Standalone Financial Statements in respect of Scheme of Amalgamation (the "Scheme") between the Company and its subsidiary, namely Pranavaditya Spinning Mills Limited, from the appointed date of October 1, 2020, as approved by National Company Law Tribunal vide its order dated October 3, 2022. Accordingly, the figures for the period ended March 31,2022, have been restated to give effect to the aforesaid merger.
Our conclusion is not modified in respect of this matter.
5. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter |
How our audit addressed the key audit matter |
Assessment of litigations and related disclosure of contingent liabilities Refer note 3.21 and 39 to the Standalone Financial Statements "Contingent liabilities and commitments". As at March 31, 2023, the Company has exposure towards litigations amounting to H8,159.22 Lakhs relating to various matters as set out in the aforesaid Note. |
As part of our audit, our procedures included the following: a) We understood, assessed and tested the design and operating effectiveness of key controls surrounding assessment of litigations; b) We inquired with the management for recent developments and the status of the material litigations which were also reviewed and noted by the Audit Committee; |
Key audit matter |
How our audit addressed the key audit matter |
Significant management judgement is required to assess such matters to estimate the possible outcome in these cases and determine the probability of outflow of economic resources, and whether a provision should be recognised, or a disclosure should be made. The management judgement is also supported with expert''s advice in certain cases as considered appropriate. We considered this a key audit matter as the eventual outcome of these matters is uncertain and the position taken by the management is based on its significant judgement, supported by expert''s advice where applicable. |
c) We performed our assessment on a test basis on the underlying supporting the contingent liabilities/other significant litigations disclosed in the Standalone Financial Statements; d) We used auditor''s experts to gain an understanding and to evaluate some of the disputed matters and provisioning of current tax expenses; e) We considered management expert''s note, obtained by management; f) We evaluated management''s assessment around those matters that are not disclosed or not considered as contingent liability, as the probability of material outflow is considered to be remote by the management; and g) We assessed the adequacy of the Company''s disclosures. Based on the above work performed, the assessment in respect of litigations and related disclosures relating to contingent liabilities/other significant litigations in the Standalone Financial Statements is considered to be reasonable. |
Assessment of Purchase Price Allocation (PPA) in case of acquisition of Home Textile Unit at Bhilad in accordance with Ind-AS 103 - Business Combination Refer to note 3.24 to the Standalone Financial Statements "Business combinations" and note 45 (b) to the Standalone Financial Statements. The Company acquired a Home Textile unit located at Bhilad as a going concern on April 2, 2022 by way of slump sale for a consideration of H56,230 Lakhs. The Company determined the acquisition to be business combination in accordance with Ind AS 103 ''Business Combinations'', which requires the identified assets and liabilities to be recognised at fair value at the date of acquisition with the excess of identified fair value of recognised assets and liabilities over the acquisition cost as capital reserve. An independent external professional valuation expert was engaged by the Management to perform valuation of tangible and intangible assets. Such valuation was performed as a part of PPA. Consequently, the Company has recognised tangible and intangible assets (excluding capital reserve) of H34,480 Lakhs and Capital reserve of H478.19 Lakhs. Significant assumptions and estimates were used by the Management and the external professional valuation expert in areas such as determination of the fair values of the identified assets acquired and liabilities assumed in the acquisition transaction, resultant impact on deferred taxes, discounted fair value of the consideration and thus we consider this to be a key audit matter. |
As part of our audit, our procedures included the following: a) We understood and evaluated the design and testing of operating effectiveness of controls over the accounting of business combinations; b) We reviewed the business transfer agreement and other documents related to acquisition to obtain an understanding of the transaction and to confirm the consideration; c) We evaluated the competence, capabilities and objectivity of the Management''s expert; d) We understood the work of the expert, and evaluated the appropriateness of the expert''s work; e) We involved auditor''s expert to review the PPA reports to assess the reasonableness of the underlying key assumptions used in determining the fair value of assets and liabilities as at the acquisition date; and f) We assessed the adequacy of relevant disclosures in the standalone financial statements. Based on our procedures performed above, the management''s assessment of PPA in case of acquisition of Home Textile Unit at Bhilad in accordance with the Ind AS 103 ''Business Combinations'' is considered to be reasonable. |
6. The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the standalone financial statements and our auditor''s report thereon. The annual report is expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate action as applicable under the relevant laws and regulations.
Responsibilities of management and those charged with governance for the standalone financial statements
7. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
8. In preparing the standalone financial statements, management is responsible for assessing the Company''s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s responsibilities for the audit of the standalone financial statements
9. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
10. As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
11. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
12. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
13. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
14. The standalone financial statements of the Company for the year ended March 31, 2022, were audited by another firm of chartered accountants under the Act, who, vide their report dated May 29, 2022, expressed an unmodified opinion on the standalone financial statements.
Report on other legal and regulatory requirements
15. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
16. 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 best of 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 the Company so far as it appears from our examination of those books.
(c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive loss), the Standalone Statement of Changes in Equity and the Standalone Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements 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 31, 2023, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023, 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 with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A".
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and 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 financial position in its standalone financial statements - Refer Note 39 to the standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts as
at March 31, 2023 for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company.
iv. (a) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 54 (a) vii to the standalone financial statements);
(b) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes to the standalone financial statements, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 54 (a) vii to the standalone financial statements); and
(c) Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.
v. The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Act.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 (as amended), which provides for books of account to have the feature of audit trail, edit log and related matters in the accounting software used by the Company, is applicable to the Company only with effect from financial year beginning April 1, 2023, the reporting under clause (g) of Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), is currently not applicable.
17. The Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Priyanshu Gundana
Partner
Place: Mumbai Membership Number: 109553
Date: May 30, 2023 UDIN: 23109553BGWNOA2118
Mar 31, 2017
To The Members of Indo Count Industries Limited Report on the Standalone Financial Statements
We have audited the accompanying financial statements of Indo Count Industries Limited (âthe Companyâ) which comprise the Balance Sheet as at 31st March,2017, the Statement of Profit and Loss (including other comprehensive income), Cash Flow Statement and the statement of changes in equity for the year then ended and a summary of significant accounting policies and other explanatory information.
Managementâs responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance and cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs responsibility
Our responsibility is to express an opinion on these standalone Ind AS Financial Statements based on our audit.
We have taken into account the provisions of the Act and the rules made there under including the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the standalone Ind AS Financial Statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS Financial Statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide 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 explanations given to us, the aforesaid standalone Ind AS Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2017, and its Loss (including other comprehensive income), its cash flows and the changes in equity for the period ended on that date.
Other Matters
The financial information of the Company for the year ended March 31, 2016 and the transition date opening balance sheet as at April 1, 2015 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements for the years ended March 31, 2016 and March 31, 2015 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by us, on which we expressed an unmodified opinion dated May 2, 2016 and May 9, 2015, respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us ,on which we have expressed an unmodified opinion vide our report dated May 15,2017
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory requirements
As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Companies Act, 2013, we give in the Annexure ''A'' a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
1. 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 best of 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 the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and
Loss (including other comprehensive income), the Cash Flow Statement and Statement of Changes 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 the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 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 financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure-B.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its standalone Ind AS Financial Statements-Refer Note Nos 29 and 38.
ii. The Company has made provisions, as required under the applicable laws or accounting standards, for material foreseeable losses, on long term contracts - Refer Note no 47, to the standalone Ind AS financial statements. Further the Company did not have any material foreseeable losses on derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company - Refer Note No. 25 to the financial statements.
iv. The company has provided requisite disclosures in the standalone Ind AS Financial Statements as regards its holdings and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the November 8, 2016 of the Ministry of Finance, during the period from 8th November, 2016 to 30th December, 2016. Based on audit procedures performed and the representations provided to us by the management we report that the disclosures are in accordance with books of account maintained by the company and as produced to us by the management - Refer Note No. 43.
i. (a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management during the year as per the phased program designed to cover all the fixed assets over a period, which in our opinion is reasonable having regard to the size of the company and nature of its assets. Discrepancies noticed on such verification, which are not material, have been properly dealt with in the books of accounts.
(c) The title deeds of all immovable properties are in the name of the company.
ii. As explained to us, the inventories have been physically verified during the year by the management at reasonable intervals except stocks lying with third parties in respect of whom confirmations have been obtained and the discrepancies noticed on physical verification as compared to book record, which are not material, have been properly dealt with in the books of account. In our opinion, the frequency of such verification is reasonable.
iii. The company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the Register maintained under Section 189 of the Act.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect to grant of loans, making investments and providing guarantees and securities, as applicable.
v. According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of Sections 73,74,75 and 76 of the Act and the rules framed there under to the extent notified.
vi. We have broadly reviewed the cost accounting records maintained by the company prescribed by the Central Government under Section 148(1) of the Act and are of the opinion that prima facie the prescribed records have been maintained. However, we are neither required to carry out nor have carried out detailed examination of such cost accounting records with a view to determine whether they are accurate or complete.
vii. We have broadly reviewed the cost accounting records maintained by the company prescribed by the Central Government under Section 148(1) of the Act and are of the opinion that prima facie the prescribed records have been maintained. However, we are neither required to carry out nor have carried out detailed examination of such cost accounting records with a view to determine whether they are accurate or complete.
viii. According to the records of the company, examined by us and information and explanations given to us:
a) Undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and others as applicable have generally been regularly deposited with the appropriate authorities except delay in few cases. There are no undisputed amounts payable in respect of aforesaid dues outstanding as at 31 March 2017 for a period of more than six months from the date they became payable.
b) There are no disputed dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax outstanding as at 31st March 2017 except:
ix. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to financial institution, banks and Government and dues to debenture holders.
Sl. No. |
Name of the statute |
Nature of the dues |
Amount ('' in lac) |
Period to which the amount relates |
Forum where dispute is pending |
1. |
Central Excise Act |
Cenvat Credit availed on excise duty paid |
40.30 |
2012-2013 |
Commission of Central Excise (A), Pune |
2. |
Central Excise Act |
Cenvat Credit availed on excise duty paid |
34.24 |
2011-2012 |
CESTAT (Tribunal) |
3. |
Central Excise Act |
Excise Duty |
1.40 |
2007-2008 |
Commission of Central Excise (A) |
4. |
Central Excise Act |
Rebate Claim |
13.98 |
2012-2013 |
Commission of Central Excise (A) |
5. |
Bombay Electricity Duty Act,1958 |
Electricity Duty |
292.07 |
2000-2006 |
Supreme Court |
6. |
Central Excise Act |
Service tax paid on Foreign Services |
19.54 |
2009-2014 |
Commissioner Appeal, Kolhapur |
7. |
Central Excise Act |
Service tax on commission on Sales |
23.54 |
2010-2013 |
Commissioner Appeal, Pune |
8. |
DGFT |
Export benefit under SHIS License |
856.18 |
2012-2013 |
DGFT |
x. In our opinion and according to the information and explanations given to us, the Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments). Further, the Term loans have been applied by the Company for the purposes for which they were raised.
xi. Based on the audit procedures performed and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.
xii. In our opinion and according to the information and explanations given to us, the company has paid/ provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act.
xiii. The Company is not a nidhi Company and hence reporting under clause (xii) pf Paragraph 3 of the CARO 2016 is not applicable.
xiv. In our opinion and according to the information and explanations given to us, the Company''s transactions with its related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of related party transactions have been disclosed in the Standalone Ind AS financial statements etc as required by the applicable accounting standards in Note No. 39 of the Financial Statements.
xv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xv) of Paragraph 3 of the CARO 2016 is not applicable to the Company.
xvi. In our opinion and according to the information and explanation given to us, during the year, the company has not entered into any non-cash transactions with directors or persons connected with him and hence reporting under clause (xvi) of Paragraph 3 of the CARO 2016 is not applicable to the Company.
xvii. In our opinion and according to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause
(i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Indo Count Industries Limited
(âthe Companyâ) as of March 31, 2017 in conjunction with our audit of the Standalone Ind AS Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India (ICAI)â. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and Standards on Auditing prescribed under section 143(10) of the Companies Act,2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that:
a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''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 financial reporting, including the possibility of collusion or improper management override of controls, 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 future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the 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 given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2017, based on âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the Institute of Chartered Accountants of India.
For B. K. Shroff & Co.
Chartered Accountants
Firm Reg. No. : 302166E
O.P. Shroff
Partner
Mumbai, May 15, 2017
Membership No.: 6329
Mar 31, 2016
We have audited the accompanying Statement of Standalone Financial
Statements of Indo Count Industries Limited ("the Company"), Which
comprise the Balance Sheet as at 31st March, 2016, the Statement of
Profit and Loss and the Cash Flow Statement for the year then ended,
and a summary of the significant accounting policies and other
explanatory information.
2. Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalonefinancial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2016 and its profit and its cash flows for the year
ended on that date.
5. Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2016 issued by
the Central Government of India in terms of Section 143(11) of the Act
(hereinafter referred to as the "Order") and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the "Annexure A" a Statement on the matters specified in
paragraphs 3 and 4 of the Order.
II. 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 best of 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 the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid standalone financia statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on 31st March, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2016
from being appointed as director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the interna financial controls over
financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate Report in "Annexure B".
g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements - Refer Note 21 to the
financial statements;
ii. The Company has long-term contracts including derivative contracts,
but there is no Mark to Market Losses as on balance sheet date-Refer
Note 31 to the financia statements.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company-Refer Note 9 to the financia statements.
Annexure A referred to in Paragraph 5(1) under the heading of "Report
on Other Legal and Regulatory Requirements" of our report of even date
to the members of Indo Count Industries Limited on the standalone
financial statements for the year ended 31st March, 2016.
i. (a) The company has maintained proper records showing I full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year as per the phased program designed to cover all the
fixed assets over a period, which in our opinion is reasonable having
regard to the size of the company and nature of its assets.
Discrepancies noticed on such verification, which are not material,
have been properly dealt with in the books of accounts.
(c) The title deeds of all immovable properties are in the name of the
company.
ii. As explained to us, the inventories have been physically verified
by the management during the year except stocks lying with third
parties in respect of whom confirmations have been obtained and the
discrepancies noticed on physical verification as compared to book
record, which are not material, have been properly dealt with in the
books of account. In our opinion, the frequency of such verification is
reasonable.
iii. According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to companies,
firms, limited liability partnerships or other parties covered in the
Register maintained under Section 189 of the Act.
iv. According to the records of the company, examined by us and
information and explanations given to us, the company has complied with
the provisions of Sections 185 and 186 of the Act with respect to
loans/guarantees given, investments made and securities provided.
v. The company has not accepted any deposits from the public within the
meaning of Sections 73 to 76 of the Act and the rules framed thereunder
to the extent notified.
vi. We have broadly reviewed the cost accounting records maintained by
the company prescribed by the Central Government under Section 148(1)
of the Act and are of the opinion that prima facie the prescribed
records have been maintained. However, we are neither required to carry
out nor have carried out detailed examination of such cost accounting
records with a view to determine whether they are accurate or complete.
vii. According to the records of the company, examined by us and
information and explanations given to us:
a) Undisputed statutory dues including provident fund, employees'' state
insurance, income tax, sales tax, service tax, duty of customs, duty of
excise, value added tax, cess and others as applicable have generally
been regularly deposited with the appropriate authorities except delay
in few cases. There are no undisputed amounts payable in respect of
aforesaid dues outstanding as at 31st March, 2016 for a period of more
than six months from the date they became payable.
b) There are no disputed dues of income tax or sales tax or service tax
or duty of customs or duty of excise or value added tax outstanding as
at 31st March, 2016 except:
SI. Name of Nature of the Amount Forum where
No. the statute dues (Rs. in lac) dispute is pending
1. Central Cenvat Credit 40.30 Commission of
Excise Act availed on
excise Central Excise
duty paid (A), Pune
2. Central Cenvat Credit 34.24 CESTAT
Excise Act availed on
excise (Tribunal)
duty paid
3. Central Excise Duty 1.40 Commission of
Excise Act Central Excise (A)
4. Central Service Tax 0.49 Commission of
Excise Act credit availed on Central Excise (A)
GTA
5. Central Rebate Claim 13.98 Commission of
Excise Act Central Excise (A)
6. Central Service Tax 29.15 Commission of
Excise Act credit availed on Central Excise (A)
Commission
7. Bombay Electricity Duty 292.07 Supreme Court
Electricity
Duty Act,1958
viii. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of loans or borrowings to financial institution, bank or
government or dues to debenture holders.
ix. According to the information and explanations given to us, the
Company has not raised any money by way of initial public offer or
further public offer (including debt instruments). Term loans have been
applied for the purposes for which they were obtained.
x. Based on the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by the Company by its officers/employees has been noticed or reported
during the year.
xi. According to the information and explanations given to us, the
company has paid/provided managerial remuneration in accordance with
the requisite approvals mandated by the provisions of section 197 read
with Schedule V to the Companies Act.
xii. The Company is not a nidhi company.
xiii. According to the records examined by us, and information and
explanations given to us, all transactions with the related parties are
in compliance with Sections 188 and 177 of the Act and necessary
details as required by the accounting standards have been disclosed in
note 32 of the Financia Statements.
xiv. The Company has not made any preferential allotment / private
placement of shares or fully or partly convertible debentures during
the year ended 31st March, 2016.
xv. According to the records of the Company examined by us and the
information and explanation given to us, the company has not entered
into any non-cash transactions with directors or persons connected with
him.
xvi. According to the information and explanations given to us, the
Company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1934.
For B.K Shroff & Co.
Chartered Accountants
Firm Registration Number : 302166E
O. P. Shroff
Partner Mumbai , May 7, 2016 Membership Number: 6329
Mar 31, 2016
We have audited the accompanying Statement of Standalone Financial
Statements of Indo Count Industries Limited ("the Company"), Which
comprise the Balance Sheet as at 31st March, 2016, the Statement of
Profit and Loss and the Cash Flow Statement for the year then ended,
and a summary of the significant accounting policies and other
explanatory information.
2. Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalonefinancial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2016 and its profit and its cash flows for the year
ended on that date.
5. Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2016 issued by
the Central Government of India in terms of Section 143(11) of the Act
(hereinafter referred to as the "Order") and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the "Annexure A" a Statement on the matters specified in
paragraphs 3 and 4 of the Order.
II. 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 best of 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 the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid standalone financia statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on 31st March, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2016
from being appointed as director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the interna financial controls over
financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate Report in "Annexure B".
g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements - Refer Note 21 to the
financial statements;
ii. The Company has long-term contracts including derivative contracts,
but there is no Mark to Market Losses as on balance sheet date-Refer
Note 31 to the financia statements.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company-Refer Note 9 to the financia statements.
Annexure A referred to in Paragraph 5(1) under the heading of "Report
on Other Legal and Regulatory Requirements" of our report of even date
to the members of Indo Count Industries Limited on the standalone
financial statements for the year ended 31st March, 2016.
i. (a) The company has maintained proper records showing I full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year as per the phased program designed to cover all the
fixed assets over a period, which in our opinion is reasonable having
regard to the size of the company and nature of its assets.
Discrepancies noticed on such verification, which are not material,
have been properly dealt with in the books of accounts.
(c) The title deeds of all immovable properties are in the name of the
company.
ii. As explained to us, the inventories have been physically verified
by the management during the year except stocks lying with third
parties in respect of whom confirmations have been obtained and the
discrepancies noticed on physical verification as compared to book
record, which are not material, have been properly dealt with in the
books of account. In our opinion, the frequency of such verification is
reasonable.
iii. According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to companies,
firms, limited liability partnerships or other parties covered in the
Register maintained under Section 189 of the Act.
iv. According to the records of the company, examined by us and
information and explanations given to us, the company has complied with
the provisions of Sections 185 and 186 of the Act with respect to
loans/guarantees given, investments made and securities provided.
v. The company has not accepted any deposits from the public within the
meaning of Sections 73 to 76 of the Act and the rules framed thereunder
to the extent notified.
vi. We have broadly reviewed the cost accounting records maintained by
the company prescribed by the Central Government under Section 148(1)
of the Act and are of the opinion that prima facie the prescribed
records have been maintained. However, we are neither required to carry
out nor have carried out detailed examination of such cost accounting
records with a view to determine whether they are accurate or complete.
vii. According to the records of the company, examined by us and
information and explanations given to us:
a) Undisputed statutory dues including provident fund, employees'' state
insurance, income tax, sales tax, service tax, duty of customs, duty of
excise, value added tax, cess and others as applicable have generally
been regularly deposited with the appropriate authorities except delay
in few cases. There are no undisputed amounts payable in respect of
aforesaid dues outstanding as at 31st March, 2016 for a period of more
than six months from the date they became payable.
b) There are no disputed dues of income tax or sales tax or service tax
or duty of customs or duty of excise or value added tax outstanding as
at 31st March, 2016 except:
SI. Name of Nature of the Amount Forum where
No. the statute dues (Rs. in lac) dispute is pending
1. Central Cenvat Credit 40.30 Commission of
Excise Act availed on
excise Central Excise
duty paid (A), Pune
2. Central Cenvat Credit 34.24 CESTAT
Excise Act availed on
excise (Tribunal)
duty paid
3. Central Excise Duty 1.40 Commission of
Excise Act Central Excise (A)
4. Central Service Tax 0.49 Commission of
Excise Act credit availed on Central Excise (A)
GTA
5. Central Rebate Claim 13.98 Commission of
Excise Act Central Excise (A)
6. Central Service Tax 29.15 Commission of
Excise Act credit availed on Central Excise (A)
Commission
7. Bombay Electricity Duty 292.07 Supreme Court
Electricity
Duty Act,1958
viii. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of loans or borrowings to financial institution, bank or
government or dues to debenture holders.
ix. According to the information and explanations given to us, the
Company has not raised any money by way of initial public offer or
further public offer (including debt instruments). Term loans have been
applied for the purposes for which they were obtained.
x. Based on the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by the Company by its officers/employees has been noticed or reported
during the year.
xi. According to the information and explanations given to us, the
company has paid/provided managerial remuneration in accordance with
the requisite approvals mandated by the provisions of section 197 read
with Schedule V to the Companies Act.
xii. The Company is not a nidhi company.
xiii. According to the records examined by us, and information and
explanations given to us, all transactions with the related parties are
in compliance with Sections 188 and 177 of the Act and necessary
details as required by the accounting standards have been disclosed in
note 32 of the Financia Statements.
xiv. The Company has not made any preferential allotment / private
placement of shares or fully or partly convertible debentures during
the year ended 31st March, 2016.
xv. According to the records of the Company examined by us and the
information and explanation given to us, the company has not entered
into any non-cash transactions with directors or persons connected with
him.
xvi. According to the information and explanations given to us, the
Company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1934.
For B.K Shroff & Co.
Chartered Accountants
Firm Registration Number : 302166E
O. P. Shroff
Partner Mumbai , May 7, 2016 Membership Number: 6329
Mar 31, 2015
We have audited the accompanying financial statements of Indo Count
Industries Limited ("the Company") which comprise the Balance Sheet as
at 31 March 2015, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, 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, 2015 ("the
Order"), issued by the Central Government of India in terms of sub-
section (11) of section 143 of the Companies Act, 2013, we give in the
Annexure, a statement on the matters specified in paragraphs 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 and obtained all the information and explanations
which to the best of 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 the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) In our opinion, the internal financial controls over financial
reporting of the Company and the operating effectiveness of such
controls are adequate.
g) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements - Refer Note 22 to the
financial statements;
ii. The Company has long-term contracts including derivative contracts,
but there is no Mark to Market losses as on balance sheet date;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure referred to in paragraph (1) under the heading of "Report on
Other Legal and Regulatory requirements" of our report of even date
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management according to a regular program, which, in our opinion, is
reasonable having regard to the size of the company and the nature of
its assets. No material discrepancies with respect to book records were
noticed on such verification.
(c) During the year, the company has not disposed off any substantial
part of its fixed assets. Therefore, it has not affected the going
concern concept of the company.
(ii) (a) Physical verification of inventory (except material in
transit) has been conducted by the management at reasonable intervals.
In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its business.
(c) The company is maintaining proper records of inventory.
Discrepancies noticed on verification of inventory as compared to book
records were not material.
(iii) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Act and as such clauses (iii) (a) and (b) of
the order are not applicable to the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal control system.
(v) According to the information and explanation given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of clause (v) of the Order are not applicable to the
Company.
(vi) We have broadly reviewed the books of account maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 148(1) of the Act, and we are
of the opinion that prima facie the prescribed accounts and records
have been made and maintained. However, we have not made a detailed
examination of such accounts and records.
(vii) (a) The company is generally regular in depositing with the
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees state
insurance, income tax, wealth tax, sales tax, service tax, custom duty,
excise duty, cess and other statutory dues applicable to it.
(b) According to the records of the company, dues of income-tax,
wealth-tax, sales tax, service tax, custom duty, excise duty and cess
which have not been deposited on account of any dispute are as under:-
S. Name of the statue Nature of the dues Amount
No (Rs. In lac)
1. Central Excise Act Cenvat Credit availed on 40.30
excise duty paid.
2. Central Excise Act Cenvat Credit availed on 34.24
excise duty paid.
3. Central Excise Act Excise Duty 1.40
4. Central Excise Act Service Tax credit 0.49
availed on GTA
5. Central Excise Act Custom Duty /Countervailing 27.17
Duty.
6. Central Excise Act Service Tax credit availed 29.15
on Commission
7. Bombay Electricity Electricity Duty 292.07
Duty Act, 1958
S. Name of the statue Forum where dispute is pending
No
1. Central Excise Act Commissioner of Central Excise (A), Pune.
2. Central Excise Act CESTAT (Tribunal)
3. Central Excise Act Commissioner of Central Excise (A)
4. Central Excise Act Commissioner of Central Excise (A)
5. Central Excise Act Commissioner of Central Excise (A)
6. Central Excise Act Commissioner of Central Excise (A)
7. Bombay Electricity Supreme Court
Duty Act, 1958
(c) No amount was required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 2013 and rules made there under.
(viii) The Company has no accumulated losses as at 31st March, 2015.
The company has not incurred any cash loss during the financial year.
(ix) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank or debenture holders.
(x) The Company has given guarantees for loans taken by others from
banks and financial institutions. According to the information and
explanations given to us, we are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interest of
the Company.
(xi) In our opinion, the term loans have been applied for the purposes
for which they were obtained.
(xii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For J.K.Shroff & Co.
Chartered Accountants
Firm Reg. No. : 302166E
Partner
Mumbai, 9th May, 2015 Membership Number: 6329
Mar 31, 2014
We have audited the accompanying financial statements of Indo Count
Industries Limited ("the Company") which comprise the Balance Sheet
as at 31 March 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General
Circular 15/2013 dated 13 September, 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013 and other
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2014;
b) In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
i. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii. In our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books;
iii. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
iv. In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Act read with the General
Circular 15/2013 dated 13 September,2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013; and
v. On the basis of written representation received from the directors as
at 31 March 2014 and taken on record by the Board of Directors, none of
the directors is disqualified as at 31 March 2014, from being appointed
as a director in terms of clause (g) of sub-section (1) of section 274
of the Act.
Annexure To Auditors'' Report
Annexure referred to in paragraph (1) under the heading of "Report on
Other Legal and Regulatory requirements" of our report of even date
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the management
according to a regular program, which, in our opinion, is reasonable
having regard to the size of the company and the nature of its assets.
No material discrepancies with respect to book records were noticed on
such verification.
(c) During the year, the company has not disposed off any substantial
part of its fixed assets. Therefore, it has not affected the going
concern concept of the company.
(ii) (a) Physical verification of inventory (except material in transit)
has been conducted by the management at reasonable
intervals. In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business.
(c) The company is maintaining proper records of inventory.
Discrepancies noticed on verification of inventory as compared to book
records were not material.
(iii) The company has neither granted nor taken loans, secured or
unsecured to / from companies firms or other parties covered in the
register maintained under section 301 of the Act and as such clauses
(iii) (b), (iii) (c) and (iii) (d) of the Order are not applicable to
the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets and for sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system.
(v) Transactions that need to be entered in the register maintained
under section 301 of the Companies Act, 1956.
a. Based upon the audit procedures applied by us and according to the
information and explanations given to us , we are of the opinion that
the particulars of contracts or arrangements referred to in section 301
of the Companies Act, 1956, have been entered in the register required
to be maintained under the section.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of the
Companies Act, 1956 and exceeding the value ofRs5.00 lac in respect of
any party during the year, have been made at prices which are
reasonable, having regard to prevailing market prices at the relevant
time.
(vi) According to the information and explanation given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of clause (vi) of the Order are not applicable to the
Company.
(vii) In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have not
made a detailed examination of such accounts and records.
(ix) (a) The company is generally regular in depositing with the
appropriate authorities undisputed statutory dues including
provident fund, investor education and protection fund, employees state
insurance, income tax, wealth tax, sales tax, service tax, custom duty,
excise duty, cess and other statutory dues applicable to it.
Annexure To Auditors'' Report
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, customs duty, excise duty and cess were outstanding as
at 31st March,2014 for a period of more than six months from the date
they became payable.
(c) According to the records of the company, dues of income-tax,
wealth-tax, sales tax, service tax, custom duty, excise duty and cess
which have not been deposited on account of any dispute are as under:-
S.No. Name of the statue Nature of the dues
1 Income Tax Act, 1961 Demand for A.Y.2011-12
2 Central Excise Act Cenvat Credit availed on excise duty paid.
3 Central Excise Act Cenvat Credit availed on excise duty paid .
4 Central Excise Act Excise Duty
5 Central Excise Act Service Tax credit availed on GTA
6 Central Excise Act Custom Duty /Countervailing Duty.
7 Central Excise Act Service Tax credit availed on Commission
8 Bombay Electricity
Duty Act, 1958 Electricity Duty
S.No. Amount (Rs In lac) Forum where dispute is pending
1 209.76 CIT (A),New Delhi
2 40.3 Commissioner of Central Excise (A), Pune.
3 68.46 CESTAT (Tribunal)
4 1.4 Commissioner of Central Excise (A)
5 0.49 Commissioner of Central Excise (A)
6 27.17 Commissioner of Central Excise (A)
7 23.53 Commissioner of Central Excise (A)
8 292.07 Supreme Court
(x) The Company has no accumulated losses as at 31st March, 2014. The
company has not incurred any cash loss during the financial year
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank or debenture holders.
(xii) According to the information and explanations given to us, the
company has not granted any loan and advance on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is neither a chit fund nor nidhi /
mutual benefit fund / society and hence clause (xiii) of the Order is
not applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments and accordingly,
the provisions of clause (xiv) of the Order is not applicable to the
company.
(xv) In our opinion, the company has given guarantee for loans taken by
others from banks or financial institutions.
(xvi) In our opinion, the term loans have been applied for the purposes
for which they were obtained.
(xvii)According to the information and explanation given to us and on
overall examination of the Balance Sheet of the company, we report that
no funds raised on short term basis have been utilized for long term
purposes.
(xviii) According to information and explanations given to us, the
company has not made any preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956.
(xix) According to the information and explanations given to us, the
company has not issued debentures during the year.
(xx) According to the information and explanations given to us, during
the year the company has not raised any money by public issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For B.K.Shroff & Co.
Chartered Accountants
Reg. No. : 302166E
O. P. SHROFF
Partner
Mumbai : 14th May, 2014 Membership Number 6329
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Indo Count
Industries Limited ("the Company") which comprise the Balance Sheet as
at 31 March 2013, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub- section (3C) of section
211 of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2013;
b) In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
(i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Act;
(v) On the basis of written representation received from the directors
as at 31 March 2013 and taken on record by the Board of Directors, none
of the directors is disqualified as at 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
Annexure referred to in paragraph (1) under the heading of ''Report on
Other Legal and Regulatory requirements" of our report of even date
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management according to a regular program, which, in our opinion, is
reasonable having regard to the size of the company and the nature of
its assets. No material discrepancies with respect to book records were
noticed on such verification.
(c) During the year, the company has not disposed off any substantial
part of its fixed assets. Therefore, it has not affected the going
concern concept of the company.
(ii) (a) Physical verification of inventory (except material in
transit) has been conducted by the management at reasonable intervals.
In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its business.
(c) The company is maintaining proper records of inventory.
Discrepancies noticed on verification of inventory as compared to book
records were not material.
(iii) The company has neither granted nor taken loans, secured or
unsecured to / from companies firms or other parties covered in the
register maintained under section 301 of the Act and as such clauses
(iii) (b), (iii) (c) and (iii)
(d) of the Order are not applicable to the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal control system.
(v) Transactions that need to be entered in the register maintained
under section 301 of the Companies Act, 1956.
a. Based upon the audit procedures applied by us and according to the
information and explanations given to us , we are of the opinion that
the particulars of contracts or arrangements referred to in section 301
of the Companies Act, 1956, have been entered in the register required
to be maintained under the section.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs.5.00 lac in respect
of any party during the year, have been made at prices which are
reasonable, having regard to prevailing market prices at the relevant
time.
(vi) According to the information and explanation given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of clause (vi) of the Order are not applicable to the
Company.
(vii) In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of such accounts and records.
(ix) (a) The company is generally regular in depositing with the
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees state
insurance, income tax, wealth tax, sales tax, service tax, custom duty,
excise duty, cess and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, customs duty, excise duty and cess were outstanding
as at 31st March, 2013 for a period of more than six months from the
date they became payable.
(x) The Company has no accumulated losses as at 31st March, 2013. The
company has not incurred any cash loss during the financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank or debenture holders.
(xii) According to the information and explanations given to us, the
company has not granted any loan and advance on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is neither a chit fund nor nidhi /
mutual benefit fund / society and hence clause (xiii) of the Order is
not applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments and accordingly,
the provisions of clause (xiv) of the Order is not applicable to the
company.
(xv) In our opinion, the company has not given guarantee for loans
taken by others from banks or financial institutions.
(xvi) In our opinion, the term loans have been applied for the purposes
for which they were obtained.
(xvii) According to the information and explanation given to us and on
overall examination of the Balance Sheet of the company, we report that
no funds raised on short term basis have been utilized for long term
purposes.
(xviii)According to information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956.
(xix) According to the information and explanations given to us, the
company has not issued debentures during the year.
(xx) According to the information and explanations given to us, during
the year the company has not raised any money by public issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For B.K. Shroff & Co.
Chartered Accountants
Reg. No. : 302166E
O. P. SHROFF
Partner
Mumbai: 24th May 2013 Membership Number 6329
Mar 31, 2012
1. We have audited the attached Balance Sheet of Indo Count Industries
Limited as at 31st March, 2012 and the Profit & Loss Account for the
year ended on that date annexed thereto and the cash flow statement for
the year ended on that date. These financial statements are the
responsibility of the company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the accounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order 2003 and the
Companies (Auditor's Report) (Amendment) Order, 2004 issued by the
Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
ii) In our opinion, proper bocks of account as required by law have
been kept by the company so far as appears from our examination of
those books.
iii) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
iv) In our opinion, subject to our observation in para v) below the
Balance Sheet, the Profit & Loss Account and the Cash Flow Statement
comply with the accounting standards referred to in sub- section (3C)
of section 211 of the Companies Act, 1956.
v) Attention is drawn to Note No.29(a) to the accounts regarding the
non provision of MTM loss in the financial statements as AS 30 is not
mandatory.
vi) On the basis of written representations received from the directors
and taken on record by the board of directors, we report that as on
31st March, 2012 none of the directors is disqualified from being
appointed as a director in terms of clause (g) of sub section (1) of
section 274 of the Companies Act, 1956.
Subject to the above in our opinion and to the best of our information
and according to the explanations given to us, the said accounts give
the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a. in the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2012;
b. in the case of the Profit & Loss Account, of the profit for the
year ended on that date; and
c. in the case of cash flow statement of the cash flows for the year
ended on that date.
Referred to in paragraph 3 of our report of even date
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management according to a regular program, which, in our opinion, is
reasonable having regard to the size of the company and the nature of
its assets. No material discrepancies with respect to book records were
noticed on such verification.
(c) During the year, the company has not disposed off any substantial
part of its fixed assets. Therefore, it has not affected the going
concern concept of the company.
(ii) (a) Physical verification of inventory (except material in
transit) has been conducted by the management at reasonable intervals.
In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its business.
(c) The company is maintaining proper records of inventory.
Discrepancies noticed on verification of inventory as compared to book
records were not material.
(iii) The company has neither granted nor taken loans, secured or
unsecured to / from companies firms or other parties covered in the
register maintained under section 301 of the Act and as such clauses
(iii) (b), (iii) (c) and (iii) (d) of the Order are not applicable to
the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal control system.
(v) Transactions that need to be entered in the register maintained
under section 301 of the Companies Act, 1956.
(a) Based upon the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in section 301
of the Companies Act, 1956, have been entered in the register required
to be maintained under the section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5.00 lac in
respect of any party during the year, have been made at prices which
are reasonable, having regard to prevailing market prices at the
relevant time.
(vi) According to the information and explanation given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of clause 4 (vi) of the Order are not applicable to the
Company.
(vii) In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of such accounts and records.
(ix) (a) The company is generally regular in depositing with the
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees state
insurance, income tax, wealth tax, sales tax, service tax, custom duty,
excise duty, cess and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, customs duty, excise duty and cess were outstanding
as at 31st March,2012 for a period of more than six months from the
date they became payable.
(x) The accumulated losses of the company as at 31st March, 2012 do not
exceed fifty percent of its net worth at the end of the said financial
year. The company has not incurred cash losses during the financial
year.
(xi) The company has defaulted in repayment of dues to banks as under-
Nature of Loan Delay in Amount
number of days (Rs. in Lac)
1. Late Payments:
Rupee Term loans
-Principal 0-30 days 631.09
Working Capital Term loans
-Principal 0-30 days 45.90
Demand term Loan
-Principal 60-90 days 55.92
2.Non Payments:
Demand Term Loan
-Principal 0-30 days 98.18
61-90 days 42.26
-Interest 0-30 days 26.73
31-60 days 25.42
61-90 days 26.23
91-120 days 10.95
(xii) According to the information and explanations given to us, the
company has not granted any loan and advance on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is neither a chit fund nor nidhi /
mutual benefit fund / society and hence clause 4 (xiii) of the Order is
not applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments and accordingly,
the provisions of clause 4 (xiv) of the Order is not applicable to the
company.
(xv) In our opinion, the company has not given guarantee for loans
taken by others from banks or financial institutions.
(xvi) In our opinion, the term loans have been applied for the purposes
for which they were obtained.
(xvii) According to the information and explanation given to us and on
overall examination of the Balance Sheet of the company, we are of the
opinion that the company has utilized Rs. 1,727.12 lac during the year
raised on short term basis for long term purposes.
(xviii) During the year the company has made a preferential allotment
of shares to parties and companies covered in the register maintained
under section 301 of the Act.
(xix) According to the information and explanations given to us, the
company has not issued debentures during the year.
(xx) According to the information and explanations given to us, during
the year the company has not raised any money by public issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For B. K. Shroff & Co.,
Chartered Accountants
Reg. No. 302166E
O. P. Shroff
Place : Mumbai Partner
Date : 25th May, 2012 Membership No. 6329
Mar 31, 2011
1. We have audited the attached Balance Sheet of Indo Count Industries
Limited as at 31st March, 2011 and the Profit & Loss Account for the
year ended on that date annexed thereto and the cash flow statement for
the year ended on that date. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the accounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order 2003 and the
Companies (Auditor's Report) (Amendment) Order, 2004 issued by the
Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
iii) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
iv) In our opinion, subject to our observation in para (v) below, the
Balance Sheet, the Profit & Loss Account and the Cash Flow Statement
comply with the accounting standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956.
v) Attention is drawn to Note No. 16(a) to the accounts regarding the
non provision of MTM loss in the financial statements as AS 30 is not
mandatory.
vi) On the basis of written representations received from the Directors
and taken on record by the Board of Directors, we report that as on
31st March, 2011 none of the Directors is disqualified from being
appointed as a Director in terms of clause (g) of sub section (1) of
section 274 of the Companies Act, 1956.
Subject to the above in our opinion and to the best of our information
and according to the explanations given to us, the said accounts give
the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
b. in the case of the Profit & Loss Account, of the profit for the
year ended on that date; and
c. in the case of cash flow statement of the cash flows for the year
ended on that date.
Annexure to Auditors' Report
Referred to in paragraph 3 of our report of even date
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management according to a regular program, which, in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies with respect to book records were
noticed on such verification.
(c) During the year, the Company has not disposed off any substantial
part of its fixed assets. Therefore, it has not affected the going
concern concept of the Company.
(ii) (a) Physical verification of inventory (except material in
transit) has been conducted by the management at reasonable intervals.
In our opinion, title frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory.
Discrepancies noticed on verification of inventory as compared to book
records were not material.
(iii) The Company has neither granted nor taken loans, secured or
unsecured to / from companies firms or other parties covered in the
register maintained under section 301 of the Act and as such clauses
(iii) (b), (iii) (c) and (iii) (d) of the Order are not applicable to
the Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal control system.
(v) Transactions that need to be entered in the register maintained
under section 301 of the Companies Act, 1956.
(a) Based upon the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion mat the
particulars of contracts or arrangements referred to in section 301 of
the Companies Act, 1956, have been entered in the register required to
be maintained under the section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs.5.00 lac in
respect of any party during the year, have been made at prices which
are reasonable, having regard to prevailing market prices at the
relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A of the Companies Act, and its Rules, and also the directives of
Reserve Bank of India. Since the Company has not defaulted in repayment
of deposits, compliance of Section 58AA or obtaining any order from the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal, does not arise.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of such accounts and records.
(ix) (a) The Company is regular in depositing with the appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income tax, wealth tax, sales tax, service tax, custom duty, excise
duty, cess and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, customs duty, excise duty and cess were outstanding
as at 31-03-2011 for a period of more than six months from the date
they became payable.
(c) According to the records of the Company, dues of income-tax,
wealth-tax, sales tax, service tax, customs duty, excise duty and cess
which have not been deposited on account of any dispute are as under :
-
Sr. Name of the Nature of the dues Amount Forum where
No. statute (Rs. in dispute is
lac) pending
1 Central Excise Cenvat Credit availed 3.89 Commissioner
Act on Service Tax paid OF (Appeals,
on outward freight Central
(Jan 05 to Jan 07) Excise, Pune)
2 Central Excise Cenvat Credit availed 2.96 CESTAT
Act on Service Tribunal
Tax paid on outward
freight fFeb 07 to
Feb 08)
(x) The accumulated losses of the Company as at 31st March, 2011 do not
exceed fifty percent of its net worth at the end of the said financial
year. The Company has not incurred cash losses during the financial
year.
(xi) The Company has defaulted in repayment of dues to banks as under-
Nature of Loan Delay in Amount
number of days (Rs. in
Lac)
Rupee Term loans 0-30 days 331.66
Working Capital 0-30 days 45.90
Term loans
(xii) According to the information and explanations given to us, the
Company has not granted any loan and advance on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is neither a chit fund nor nidhi /
mutual benefit fund / society and hence clause 4 (xii) of the Order is
not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments and accordingly,
the provisions of clause 4 (xiv) of the Order is not applicable to the
Company.
(xv) In our opinion, the Company has not given guarantee for loans
taken by others from banks or financial institutions.
(xvi) In our opinion, the term loans have been applied for the purposes
for which they were obtained.
(xvii) During the year the Company has made a preferential allotment of
shares to parties and companies covered in the register maintained
under section 301 of the Act.
(xviii) According to the information and explanations given to us, the
Company has not issued debentures during the year.
(ix) According to the information and explanations given to us, during
the year the Company has not raised any money by public issue.
(xx) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For B. K. Shroff & Co.,
Chartered Accountants
Reg. No. 302166E
O. P. Shroff
Partner
Membership No. 6329
Place : Mumbai
Date : 17th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Indo Count Industries
Limited as at 31st March, 2010 and the Profit & Loss Account for the
year ended on that date annexed thereto and the cash flow statement for
the year ended on that date. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the accounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order 2003 and the
Companies (Auditors Report) (Amendment) Order, 2004 issued by the
Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
iii) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
iv) In our opinion, subject to our observation in para v) below the
Balance Sheet, the Profit & Loss Account and the Cash Flow Statement
comply with the accounting standards referred to in sub- section (3C)
of section 211 of the Companies Act, 1956.
v) Attention is drawn to Note No. 19 (a) to the accounts regarding the
non provision of MTM loss in the financial statements as AS 30 is not
mandatory.
vi) On the basis of written representations received from the Directors
and taken on record by the Board of Directors, we report that as on
315l March, 2010 none of the Directors is disqualified from being
appointed as a Director in terms of clause (g) of sub section (1) of
section 274 of the Companies Act,1956.
Subject to the above in our opinion and to the best of our information
and according to the explanations given to us, the said accounts give
the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
b. in the case of the Profit & Loss Account, of the loss for the year
ended on that date; and
c. in the case of cash flow statement of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management according to a regular program, which, in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies with respect to book records were
noticed on such verification.
(c) During the year, the Company has not disposed off any substantial
part of its fixed assets. Therefore, it has not affected the going
concern concept of the Company.
(ii) (a) Physical verification of inventory (except material in
transit) has been conducted by the management at reasonable intervals.
In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory.
Discrepancies noticed on verification of inventory as compared to book
records were not material.
(iii) The Company has neither granted nor taken loans, secured or
unsecured to / from companies firms or other parties covered in the
register maintained under section 301 of the Act and as such clauses
(iii) (b), (iii) (c) and (iii) (d) of the Order are not applicable to
the Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal control system.
(v) Transactions that need to be entered in the register maintained
under section 301 of the Companies Act, 1956.
a. Based upon the audit procedures applied by us and according to the
information and explanations given to us , we are of the opinion that
the particulars of contracts or arrangements referred to in section 301
of the Companies Act, 1956, have been entered in the register required
to be maintained under the section.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs.5.00 lac in
respect of any party during the year, have been made at prices which
are reasonable, having regard to prevailing market prices at the
relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A of the Companies Act, and its Rules, and also the directives of
Reserve Bank of India. Since the Company has not defaulted in repayment
of deposits, compliance of Section 58AA or obtaining any order from the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal, does not arise.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of such accounts and records.
(ix) (a) The Company is regular in depositing with the appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income tax, wealth tax, sales tax, service tax, custom duty, excise
duty, cess and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, customs duty, excise duty and cess were outstanding
as at 31-03-2010 for a period of more than six months from the date
they became payable.
(c) According to the records of the Company, dues of income-tax,
wealth-tax, sales tax, service tax, customs duty, excise duty and cess
which have not been deposited on account of any dispute are as under:
Sr. Name of the
statute Nature of the dues Amount Forum where
No. (Rs. in lac) dispute is pending
1 Central Excise
Act Custom Duty / 1.05 CESTAT Tribunal,
Countervailing Duty Mumbai
2 Central Excise
Act Cenvat Credit
availed on 3.89 Commissioner of
Service Tax paid on (Appeals, Central
outward freight (Jan
05 to Jan 07) Excise, Pune)
3 Central Excise
Act Cenvat Credit availed
on Service Tax paid 2.96 CESTAT Tribunal
on outward freight
(Feb 07 to Feb 08)
(x) The accumulated losses of the Company as at 31st March, 2010 do not
exceed fifty percent of its net worth at the end of the said financial
year. The Company has not incurred cash losses during the financial
year. However, it had incurred cash losses in the immediately
preceding financial year.
(xi) The Company has defaulted in repayment of dues to banks as under-
Nature of Loan Delay in number of days Amount (Rs. in lac)
Rupee Term loans 0-30 days 5.64
Working Capital
Term loans 0-30 days 2.07
Term loans against
Forex losses 0-30 days 2.44
Non Convertible
Debentures 0-30 days 1.50
(xii) According to the information and explanations given to us, the
Company has not granted any loan and advance on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is neither a chit fund nor nidhi /
mutual benefit fund / society and hence clause 4 (xii) of the Order is
not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments and accordingly,
the provisions of clause 4 (xiv) of the Order is not applicable to the
Company.
(xv) In our opinion, the Company has not given guarantee for loans
taken by others from banks orfinancial institutions.
(xvi) In our opinion, the term loans have been applied for the purposes
for which they were obtained.
(xvii) During the year the Company has made a preferential allotment of
shares to parties and companies covered in the register maintained
under section 301 of the Act.
(xviii) According to the information and explanations given to us, the
Company has not issued debentures during the year.
(xix) According to the information and explanations given to us, during
the year the Company has not raised any money by public issue.
(xx) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For B. K. Shroff and Co.
Chartered Accountants
Reg. No. 302166E
O. P. Shroff
Place : Mumbai Partner
Date : 1st June, 2010 Membership No. 6329