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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

Oct 18, 13:21
52.15 0.25 (0.48%)
Volume
AVERAGE VOLUME
5-Day
12,381
10-Day
10,045
30-Day
11,373
4,514
  • Prev. Close

    51.90

  • Open Price

    52.90

  • Bid Price (Qty.)

    51.75 (2)

  • Offer Price (Qty.)

    52.30 (200)

NSE Live

Oct 18, 13:21
51.80 -0.35 (-0.67%)
Volume
AVERAGE VOLUME
5-Day
88,992
10-Day
73,661
30-Day
74,664
47,776
  • Prev. Close

    52.15

  • Open Price

    52.45

  • Bid Price (Qty.)

    51.80 (205)

  • Offer Price (Qty.)

    52.00 (250)

Annual Report

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

Auditor's Report

1. Report on the Financial Statements

We have audited the accompanying financial statements of Indo Rama Synthetics (India) Limited (the Company), which comprise the Balance Sheet as at 31 March 2013 and the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

2. 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 controls 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. Auditors' 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 controls 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.

4. 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.

5. Emphasis of matter

Attention is drawn to note 45 to the financial statements, which explains the early application, since the year 2010-11, of Accounting Standard 30 Financial Instruments- Recognition and Measurement, issued by the Institute of Chartered Accountants of India. An amount of Rs. 21.11 Crores has been recognized as income in these financial statements for the year ended 31 March 2013 and included in exceptional items as an adjustment on application of Accounting Standard 30. Our opinion is not qualified in respect of this matter.

6. Report on Other Legal and Regulatory Requirements

i. 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.

ii. As required by section 227(3) of the Act, we report that:

a. 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;

b. 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;

c. 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;

d. 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 Companies Act, 1956; and

e. on the basis of written representations received from the directors as on 31 March 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2013 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure referred to in paragraph 6 of the Independent Auditors' Report to the Members of Indo Rama Synthetics (India) Limited on the accounts for the year ended 31 March 2013.

(i) (a) According to the information and explanations given to us, 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 for 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) According to the information and explanations given to us, and 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) (a) According to the information and explanations given to us, the Company has granted an interest free loan to a wholly owned subsidiary company covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount outstanding during the year was Rs. 28.01 Crores and the year end balance of such loans was Rs. 28.01 Crores.

(b) According to the information and explanations given to us and considering that the interest free loan has been given to a wholly owned subsidiary company, we are of the opinion that the terms and conditions on which the above loan has been granted to a subsidiary company listed in the register maintained under Section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(c) According to the information and explanations given to us, in case of loan granted to a subsidiary company listed in the register maintained under Section 301, the loan is repayable on demand and has not been recalled during the year.

(d) According to the information and explanations given to us, there is no overdue amount of more than Rupees one lakh in respect of loan granted to a subsidiary company listed in the register maintained under section 301.

(e) According to the information and explanations given to us, the Company has not taken any loans from Companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(iv) 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) 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) 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) According to the information and explanations given to us, 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, Wealth tax, Service tax, Customs duty, Excise duty and other material statutory dues, to the extent applicable, have generally been regularly deposited except in respect of sales tax/ value added tax dues which have not been regularly deposited with the appropriate authorities and there have been serious delays in several case which have been deposited before the year end.

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 2013 for a period of more than six months from the date they became payable.

(b) According to the information and explanations 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, Cess and Excise duty which have not been deposited with the appropriate authorities on account of any dispute, except as mentioned below:

Name of the Statute Nature of Amount of Amount paid dues dispute* under protest (Rs. Crores) (Rs. Crores)

The Central Excise Act, Excise duty 1.06 - 1944 63.47 4.82

7.87 1.20

3.26 -

1.03 -

Bombay Sales Tax Sales tax 0.43 0.13 Act,1959/ Central Sales Tax Act, 1956

Maharashtra VAT Act, VAT 18.24 1.70 2002

Customs Act, 1962 Customs 92.15 duty

137.98 13.45#

6.01 -

0.04 -

Finance Act, 1994 Service tax 0.22 -

0.22 -

Income Tax Act, 1961 Income tax 0.31 0.31

24.24 14.19

Name of the Statute Period to Forum where dispute is pending which it relates

The Central Excise Act, 1944 2002-03 Bombay High Court, Nagpur Bench

1996- 97 to Customs, Excise and Service Tax 2008-09 Appellate Tribunal

1996-97 to Commissioner of Central Excise 2008-09 and Customs (Appeals)

1997-98 to Commissioner/ Assistant 2010-11 Commissioner/ Deputy Commissioner

2008-10 Additional Commissioner Nagpur

Bombay Sales Tax Act, 1959 1998-99 to Joint Commissioner Sales Tax 1999-00 (Appeals), Nagpur

Maharashtra VAT Act, 2002 2006-07 to Joint Commissioner Sales tax 2009-10 (Appeals), Nagpur

Customs Act, 1962 2002-03 and Customs, Excise and Service Tax 2006-07 Appellate Tribunal

2006-07 to Commissioner of Central Excise 2010-11 and Customs (Appeals)

2006-07 Joint Directorate General of Foreign Trade, Bhopal

1997-98 to Assistant Commissioner/ Deputy 1998-99 Commissioner

Finance Act, 1994 2002-03 to Customs, Excise and Service Tax 2009-10 Appellate Tribunal

2002-03 to Commissioner, Nagpur 2005-06

Income Tax Act, 1961 AY 2007-08 Commissioner of Income Tax (Appeals)

AY 2002-03 to Income Tax Appellate Tribunal AY 2004-05

* Excluding cases where losses / unabsorbed depreciation have been adjusted by the tax authorities without raising any demands, though disputed by the Company.

# Includes amount adjusted against refund by the authorities and protested 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 delayed in repayment of dues aggregating Rs. 44.88 Crores for a period ranging from 40 days to 92 days to a bank. However, there are no overdue amounts outstanding to banks and financial institutions as at the year end.

(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 an overall examination of the balance sheet of the Company at the end of the year, we report that, the Company has used short term funds to the extent of Rs.237.85 Crores for long-term investments, primarily towards fixed assets and investments.

(xviii) The Company has not made any preferential allotment of shares to companies/firms/parties covered in the register maintained under Section 301 of the Companies Act, 1956 during the year.

(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 course of our audit.

For B S R and Associates

Chartered Accountants

Firm registration number: 128901W

Kaushal Kishore

Place: Gurgaon Partner

Date: 10 May 2013 Membership No.: 090075