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Indo Rama Synthetics (India) Ltd.

BSE: 500207 | NSE: INDORAMA |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE156A01020 | SECTOR: Textiles - Spinning - Synthetic Blended

BSE Live

Sep 20, 16:00
51.05 -1.90 (-3.59%)
Volume
AVERAGE VOLUME
5-Day
11,348
10-Day
16,618
30-Day
10,753
7,997
  • Prev. Close

    52.95

  • Open Price

    53.55

  • Bid Price (Qty.)

    50.55 (430)

  • Offer Price (Qty.)

    51.05 (61)

NSE Live

Sep 20, 15:42
51.00 -1.95 (-3.68%)
Volume
AVERAGE VOLUME
5-Day
70,394
10-Day
98,906
30-Day
61,171
43,514
  • Prev. Close

    52.95

  • Open Price

    52.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2018 2016 2015 2014 2013 2012 2011 2010 2009

Auditor's Report

1. We have audited the attached Balance Sheet of Indo Rama Synthetics (India) Limited (or the Company) as at March 31, 2008 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. 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 amounts 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 (as amended) (the Order) 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 purposes 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, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; iv. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956; v. On the basis of the written representations received from the directors, as on March 31, 2008, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2008 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; vi. Without qualifying our opinion, we draw attention to Note 7 of Schedule 22 to the Financial Statements, where based on a legal opinion, the Company has during the quarter ended March 31, 2008, changed its accounting policy to adjust foreign exchange fluctuations related to purchase of fixed assets to the cost of fixed assets as per the requirement of Schedule VI to the Companies Act, 1956, which is at variance to the requirements of Companies (Accounting Standard) Rules, 2006 dated December 7, 2006. vii a) As discussed in Note 4 (b) of Schedule 22 to the Financial Statements, the Company has adjusted liability for Minimum Alternative Tax for the period 2001 -02 to 2006-07 amounting to Rs. 147,699 thousand (net of MAT Credit Entitlement of Rs.26,428 thousand) from General Reserve instead of adjusting the same through Profit and Loss Account which is not in accordance with generally accepted accounting principles. b) As discussed in Note 6 of Schedule 22 to the Financial Statements, the Company has not provided for mark to market losses amounting to Rs. 117,447 thousand on outstanding derivative instruments as on March 31, 2008. We further report that had the observations made by us in paragraph (vii) (a) and (b) been considered, loss after tax for the year would be Rs. 194,723 thousand as against the reported profit ofRs. 30,503 thousand. Deferred Tax Liability and Credit Balance of Profit and Loss Account as on March 31, 2008 would have been lower by Rs.39,920 thousand and Rs.225,226 thousand respectively. General Reserve and Secured loans would have increased by Rs. 147,699 thousand and Rs. 117, 447 thousand respectively. viii. In our opinion and to the best of our information and according to the explanations given to us subject to our comment in para 4(vii) (a) and (b) above, 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 March 31, 2008; b) in the case of the Profit and 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 REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE Re: Indo Rama Synthetics (India) Limited (i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. (b) Fixed assets have been physically verified by the management during the year based on a phased programme of verifying all the assets over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its fixed assets. As informed, no material discrepancies were noticed on such verification. (c) There was no substantial disposal of fixed assets during the year. (ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the year. (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 the nature of its business. (c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification. (iii) (a) As informed, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Therefore, the provisions of clause 4(iii) (b), (c) and (d) of the Order, are not applicable to the Company. (e) As informed, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Therefore, the provisions of clause (iii) (f) and (g) of the Order, are not applicable to the Company. (iv) The Company has purchased fixed assets relating to expansion project. We are explained that majority of these assets are of a unique and specialized nature and hence, in such cases, it is not possible to make a comparison of prices with the market rates. Read with the above, in our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas. (v) (a) According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered. (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements exceeding the value of Rupees five lacs have been entered into during the financial year at prices which are reasonable having regard to the prevailing market prices at the relevant time. (vi) The Company has not accepted any deposits from the public. (vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business. (viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1 )(d) of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. (ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty, cess have been regularly deposited with the appropriate authorities. (b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, wealth- tax, service tax, sales-tax, customs duty, excise duty, cess and other undisputed statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable. (c) According to the records of the Company, the dues outstanding of income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty and cess on account of any dispute, are as follows: Name of the Statute Nature of dues Amount (Rs.OOO) The Central Excise Excise duty demand 563,124 Act, 1944 including fine and penalty Bombay Sales Sales tax demand 6,027 Tax Act, 1959/ Central Sales Tax Act, 1956 Customs Act, 1962 Custom duty demand 266,728 Period to Forum where dispute is pending which it (Amount Rs.OOO) relates 10/1995 Honble Supreme Court - Rs.50,712 to Mumbai High Court (Nagpur bench) 07/2007 - Rs.26,035 Customs, Excise & Service Tax Appellate Tribunal - Rs.438,094 Commissioner Appeal - Rs.27,704 Additional Commissioner - Rs.20,579 1998-99 Deputy Commissioner Sales Tax 1999-2000 (Appeals), Nagpur 2001-02 Customs, Excise & Service Tax Appellate Tribunal - Rs.2,300 Commissioner Appeal - Rs.264,428 (x) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year. (xi) (a) Based on our audit procedures and as per the information and explanations given by the management, the Company has defaulted in repayment of dues to banks and a debenturesholder. Details of which are given below: Nature of Dues Amount (Rs.OOO) Banks Principal 106,961 Principal 42,365 Principal 125,563 Principal 85,000 Principal 53,978 Principal 82,939 Principal 28,893 Due Date Date of Payment 15.10.07 10.06.08 15.10.07 06.06.08 28.03.08 25.06.08 31.03.08 23.06.08 15.04.07 14.05.07 15.04.07 17.05.07 14.05.07 23.05.07 Nature of Dues Amount (Rs. 000) Banks Principal 33,464 Principal 78,127 Principal 90,289 Principal 68,750 Principal 50,000 Principal 32,500 Principal 35,000 Principal 40,000 Principal 12,661 Principal 45,585 Principal 14,415 Principal 25,000 Interest 75,966 Interest 3,608 Interest 4,388 Interest 1,192 Interest 35,922 Interest 3,901 Debenturesholder Interest 19,928 Interest 3,916 Due Date Date of Payment 14.11.07 04.06.08 15.05.07 23.05.07 15.11.07 12.06.08 02.05.07 30.05.07 02.10.07 04.06.08 20.11.07 19.03.08 20.11.07 20.0308 20.11.07 24.03.08 20.11.07 25.03.08 31.12.07 26.03.08 31.12.07 29.03.08 31.12.07 27.03.08 15.10.07 28.03.08 15.10.07 05.05.08 14.11.07 05.02.08 14.11.07 15.05.08 15.11.07 05.02.08 15.11.07 15.05.08 13.04.07 16.05.07 13.01.08 28.03.08 (b) Based on our audit procedures and as per the information and explanations given by the management, following defaults have been rescheduled by the bank, financial institution and debenturesholder. Nature of Dues Amount (Rs. 000) Bank Principal 137,500 Financial Institution Principal 193,816 Interest 9,469 Debenturesholder Principal 96,250 Premium on Redemption of Debentures 55,000 Interest 6,056 (xii) According to the information and explanations given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable to the Company. (xiv) In respect of dealing / trading in shares, securities and other investments, in our opinion and according to the information and explanations given to us, proper records have been maintained of the transactions and contracts and timely entries have been made therein. The shares, securities and other investments have been held by the Company, in its own name. In our opinion and according to the information and explanations given to us the Company has not dealt in debentures. (xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institution. (xvi) Based on information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained. (xvii) According to the information and explanations given to us and on overall examination of the balance sheet and cash flow statement of the Company, we report that the Company has used short term funds to the extent of Rs. 668,957 thousand for long- term in vestment. (xviii)The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956. (xix) The Company has created adequate security or charge in respect of privately placed debentures issued in the earlier years. (xx) The Company has not raised any money through a public issue during the year. (xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit. For S. R. BATLIBOI & CO. Chartered Accountants per Manoj Gupta Partner Membership No.:83906 Place : New Delhi Date : June 30, 2008