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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 21, 16:00
51.40 0.35 (0.69%)
Volume
AVERAGE VOLUME
5-Day
11,348
10-Day
16,618
30-Day
10,753
16,460
  • Prev. Close

    51.05

  • Open Price

    50.60

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Sep 21, 15:47
50.70 -0.30 (-0.59%)
Volume
AVERAGE VOLUME
5-Day
70,394
10-Day
98,906
30-Day
61,171
115,682
  • Prev. Close

    51.00

  • Open Price

    51.05

  • 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 (the Company) as at 31 March 2011 and also the Profit and Loss Account and the Cash Flow Statement of the Company 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 (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, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account; (iv) in our opinion, the Balance Sheet, the Profit and Loss Account and the 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, to the extent applicable; (v) on the basis of the written representations received from the directors as on 31 March 2011, and taken on record by the Board of Directors, we report that none of the directors of the Company is disqualified as on March 31, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; and (vi) 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 31 March 2011; 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 the Cash Flow Statement, of the cash flows of the Company for the year ended on that date. Annexure to the Auditors Report Annexure referred to in paragraph 3 of the Auditors Report to the Members of Indo Rama Synthetics (India) Limited on the accounts for the year ended 31 March 2011. (i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. (b) As explained to us, the fixed assets are physically verified by the management in accordance with a phased programme designed to cover all items of fixed assets over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and nature of its fixed assets. In accordance with this programme, certain categories of fixed assets at certain locations have been physically verified by the management during the year. As informed to us, no material discrepancies were noticed on such verification. (c) Fixed assets disposed off during the year were not substantial and, therefore, do not affect the going concern assumption. (ii) (a) According to the information and explanations given to us, the inventories, except goods in transit and stocks lying with third parties, have been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. For stocks lying with third parties at the year end, written confirmations have been obtained. (b) In our opinion and according to the information and explanations given to us, the procedures for 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) On the basis of our examination of the records of inventories, we are of the opinion that the Company is maintaining proper records of inventories. As informed to us, the discrepancies noticed on physical verification of inventories as compared to the book records were not material and have been properly dealt with in the books of account. (iii) According to the information and explanations given to us, the Company has neither granted nor taken any loans, secured or unsecured, to or from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, paras 4 (iii) (b) to (g) of the Order are not applicable. (iv) 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 with regard to purchase of inventories and fixed assets and with regard to the sale of goods. The activities of the Company do not involve sale of services. Further, on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have been informed of any instances of major weaknesses in the aforesaid internal control system. (v) (a) In our opinion, and according to the information and explanations given to us, 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 that section. (b) In our opinion, and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, and exceeding Rs 5 lacs 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) The Company has not accepted any deposits from the public during the year. (vii) In our opinion and according to the information and explanations given to us, 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 in respect of products where, pursuant to the rules made by the Central Government, the maintenance of cost records has been prescribed 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. However, we have not made a detailed examination of such records with a view to determine whether they are accurate or complete. (ix) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Customs duty, Excise duty and other material statutory dues, to the extent applicable, have generally been regularly deposited during the year by the Company with the appropriate authorities. There were no dues on account of Cess under section 441A of the Companies Act, 1956 since the date from which the aforesaid section comes into force has not yet been notified by the Central Government. 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, Sales tax, Wealth tax, Service tax, Customs duty, Excise duty and other material statutory dues were in arrears as at 31 March 2011 for a period of more than six months from the date they became payable. (b) According to the information and explanation given to us, and on the basis of the records of the Company examined by us, there are no dues of Income tax, Wealth tax, Service tax, Sales tax, Customs duty, Excise duty and cess which have not been deposited with the appropriate authorities on account of any dispute, except as mentioned below: (Rs. crore) Name of the Nature of Amount Amount Period to Statute dues of paid under which it dispute* protest relates The Central Excise Excise duty 3.91 - 2002-03 to Act, 1944 2004-05 58.03 5.97 1996-97 to 2008-09 9.81 0.08 1996-97 to 2008-09 0.26 - 1997-98 to 2010-11 Bombay Sales Tax Sales tax 0.43 0.13 1998-99 to Act,1959/ 1999-00 Central Sales Tax Act, 1956 Maharashtra VAT VAT 13.62 1.70 2008-09 to Act, 2002 2009-10 Customs Act, 1962 Custom 0.08 - 2002-03 duty 15.79 1.12 2010-11 0.79 0.79 2010-11 0.04 - 1997-98 to 1998-99 Income Tax Act, Income tax 0.01 - Assessment 1961 year 2007-08 Finance Act, 1994 Service Tax 2.84 - 2004-05 to 2009-10 0.22 - 2002-03 to 2005-06 Name of the Forum where dispute is Statute pending The Central Excise Bombay High Court, Nagpur Act, 1944 Bench Customs, Excise and Service Tax Appellate Tribunal Commissioner Appeal Assistant Commissioner/ Deputy Commissioner Bombay Sales Tax Joint Commissioner Sales Tax Act,1959/ Central (Appeals), Nagpur Sales Tax Act, 1956 Maharashtra VAT Joint Commissioner Sales tax Act, 2002 (Appeals), Nagpur Customs Act, 1962 Customs, Excise and Service Tax Appellate Tribunal Commissioner Appeal Special Valuation Branch, Delhi Assistant Commissioner/ Deputy Commissioner * Excluding cases where losses / unabsorbed depreciation have been adjusted by the tax authorities without raising any demands, though disputed by the Company. (x) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the immediately preceding financial year. (xi) According to the information and explanations given to us, the Company has defaulted in repayment of dues to a bank amounting to Rs. 104.20 crore (for delays ranging upto one year) and Rs. 63.76 crore (for delays ranging from one year to two years). During the year, out of total overdue amounts the Company has paid Rs. 89.35 crore to the said bank and Rs. 78.61 crore is outstanding as at the year end. Further, with regard to the delays in repayment of dues to certain other bank and financial institution, the Company has entered into reschedulement arrangements with them, involving amounts aggregating Rs. 67.88 crore. Before such arrangements, the delays in payments of dues ranged upto two years. The Company has initiated steps to comply with terms and conditions, where applicable, stated in these arrangements. Considering the above referred reschedulement, the delays in the above cases have presently been considered as regularised. (xii) According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) According to the information and explanations given to us, the Company is not a chit fund or a nidhi/ mutual benefit fund/ society. (xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. (xv) According to the information and explanations given to us, the Company has not given any guarantees for loans taken by others from banks or financial institutions. (xvi) According to the information and explanations given to us, term loans have been applied for the purpose for which such loans were obtained. (xvii) According to the information and explanations given to us and on overall examination of the balance sheet of the Company, we report that the funds raised on short-term basis have not been used for long term investment. (xviii) During the year, the Company has issued convertible preferential warrants to companies covered in the register maintained under Section 301 of the Companies Act, 1956. According to the information and explanations given to us, these warrants have been issued at a price which is not prejudicial to the interest of the Company. (xix) The Company did not have any outstanding debentures during the year. (xx) The Company has not raised any money by public issues during the year. (xxi) Based on the audit procedures performed and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year. For B S R and Associates Chartered Accountants Firm registration number: 128901W Kaushal Kishore Partner Membership No.: 090075 Place : Gurgaon Date : 26 April 2011