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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 19, 15:52
51.85 0.55 (1.07%)
Volume
AVERAGE VOLUME
5-Day
11,523
10-Day
10,685
30-Day
11,626
12,998
  • Prev. Close

    51.30

  • Open Price

    50.60

  • Bid Price (Qty.)

    49.50 (999)

  • Offer Price (Qty.)

    51.20 (20)

NSE Live

Oct 19, 16:00
50.75 -0.50 (-0.98%)
Volume
AVERAGE VOLUME
5-Day
83,592
10-Day
71,286
30-Day
76,947
58,917
  • Prev. Close

    51.25

  • Open Price

    51.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    50.75 (500)

Annual Report

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

Auditor's Report

We have audited the accompanying financial statements of Indo Rama Synthetics (India) Limited (the Company), which comprise the Balance Sheet as at 31 March 2014 and the Statement of profit and Loss and the Cash Flow Statement for the year then ended and a summary of signifcant 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 notifed under the Companies Act, 1956, read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Afairs in respect of section 133 of the Companies Act, 2013 (together referred to as 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, but not for the purpose of expressing an opinion on the efectiveness of the entity''s internal controls. 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 sufcient 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 afairs of the Company as at 31 March 2014; (b) in the case of the Statement of profit and Loss, of the loss 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 a) Attention is drawn to note 44 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. 10.40 Crores has been recognized as expense (previous year an income of Rs. 21.11 Crores) in the financial statements for the year ended 31 March 2014 and included in exceptional items as an adjustment on the said application of Accounting Standard 30. Our opinion is not qualifed in respect of this matter. b) Attention is drawn to note 43 of the financial statements, which explains the management''s position regarding utilisation of Minimum Alternate Tax credit aggregating Rs. 57.91 Crores as at 31 March 2014. Based on the management''s assumptions and future business plans, no provision has been considered in the books of accounts in respect of Minimum Alternate Tax credit. Our opinion is not qualifed 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 notifed under the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Afairs in respect of section 133 of the Companies Act, 2013; and e. on the basis of written representations received from the directors as on 31 March 2014, and taken on record by the Board of Directors, none of the directors is disqualifed as on 31 March 2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. ANNEXURE TO THE AUDITORS'' REPORT 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 2014. (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 verifed 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 verifed by the management during the year. As informed to us, no material discrepancies were noticed on such verifcation. (c) Fixed assets disposed of during the year were not substantial and, therefore, do not afect 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 verifed by the management during the year. In our opinion, the frequency of such verifcation is reasonable. For stocks lying with third parties at the year end, written confrmations have been obtained. (b) In our opinion and according to the information and explanations given to us, the procedures for physical verifcation 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 verifcation 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 in the previous year and current year has granted interest free loans 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. 47.30 Crores and the year end balance of such loans was Rs. 45.45 Crores. (b) According to the information and explanations given to us and considering that the interest free loans have been given to a wholly owned subsidiary company, we are of the opinion that the terms and conditions on which the above loans have 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 loans granted to a subsidiary company listed in the register maintained under Section 301 of the Companies Act, 1956, the loans were not due for repayment in the current year in accordance with the stipulations agreed. (d) According to the information and explanations given to us, there is no overdue amount of more than Rupees one lakh in respect of loans granted to a subsidiary company listed in the register maintained under section 301 of the Companies Act, 1956. (e) According to the information and explanations given to us, the Company has not taken any loans from Companies, frms 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, Sales 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 an instance of value added tax due in which there was serious delay in depositing the same with the appropriate authorities but which has 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 2014 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 dues dispute paid under (Rs. Crores) protest (Rs. Crores) The Central Excise Act, Excise duty 1.06 - 1944 63.39 4.82 7.87 1.20 3.81 - 0.52 - Name of the Statue Period to which Forum where dispute it relates is pending The Central Excise Act, 1944 2002-03 Bombay High Court, Nagpur Bench 1996- 97 to Customs, Excise and 2008-09 Service Tax Appellate Tribunal 1996-97 to Commissioner of 2008-09 Central Excise and Customs (Appeals) 1997-98 to Commissioner/ 2010-11 Assistant Commissioner/ Deputy Commissioner 2008-10 Additional Commissioner Nagpur Name of the Statute Nature of Amount of Amount dues dispute paid under (Rs. Crores) protest (Rs. Crores) Bombay Sales Tax Sales tax 0.43 0.13 Act,1959/ Central Sales Tax Act, 1956 Maharashtra VAT Act, VAT 8.56 1.70 2002 Customs Act, 1962 Customs 214.25 - duty 0.08 - 6.01 - 0.04 - Finance Act, 1994 Service tax 0.22 - 0.22 - Income tax Act, 1961* Income tax 0.26 - 24.55 14.50 Name of the Statue Period to which Forum where dispute it relates is pending Bombay Sales Tax Act,1959/ Central Sales Tax Act, 1956 1998-99 to Joint Commissioner 1999-00 Sales Tax (Appeals), Nagpur Maharashtra VAT Act, 2002 2006-07 to Joint Commissioner 2008-09 Sales Tax (Appeals), Nagpur Customs Act, 1962 2006-07 Hon''ble Supreme Court 2002-03 Customs, Excise and Service Tax Appellate Tribunal 2006-07 Commissioner of Customs 1997- 98 to Assistant 1998-99 Commissioner/ Deputy Commissioner Finance Act, 1994 2002-03 to Customs, Excise and 2009-10 Service Tax Appellate Tribunal 2002-03 to Commissioner, Nagpur 2005-06 Income tax Act, 1961* AY 2006-07 Commissioner of Income Tax (Appeals) AY 2002-03 to Income Tax Appellate AY 2004-05 and Tribunal AY 2007-08 * 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 financialyearand in the immediately preceding financial year. (xi) According to the information and explanations given to us, the Company has delayed in repayment of dues (letters of credit) aggregatingRs. 281 Crores for a period ranging from 12 days to 89 days to various banks. 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 beneft 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. 160.43 Crores for long-term investments, primarily towards acquisition of fixed assets and long term loans. (xviii) The Company has not made any preferential allotment of shares to companies/frms/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) 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 : 20 May 2014 Membership No.: 090075