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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 17, 16:00
52.55 -1.45 (-2.69%)
Volume
AVERAGE VOLUME
5-Day
19,836
10-Day
16,128
30-Day
10,823
20,110
  • Prev. Close

    54.00

  • Open Price

    53.20

  • Bid Price (Qty.)

    52.95 (3)

  • Offer Price (Qty.)

    53.60 (500)

NSE Live

Sep 17, 15:57
52.95 -1.05 (-1.94%)
Volume
AVERAGE VOLUME
5-Day
86,023
10-Day
96,576
30-Day
62,178
77,435
  • Prev. Close

    54.00

  • Open Price

    54.90

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    52.95 (2)

Annual Report

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

Auditor's Report

We have audited the accompanying financial statements (standalone financial statements) of Indo Rama Synthetics (India) Limited (the Company), which comprise the Balance Sheet as at 31 March 2015, 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 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 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. Auditors'' 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, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. 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 standalone 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 31 March 2015 and of its loss and its cash flows for the year ended on that date. 5. Emphasis of matter We draw attention to the following matters in the Notes to the standalone financial statement: a) Note 42 of the standalone 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. 4.69 Crores has been recognised as expense (previous year expense of Rs. 10.40 Crores) in the financial statements for the year ended 31 March 2015 and included in exceptional items as an adjustment on the said application of Accounting Standard 30. b) Note 41 of the standalone financial statements, which explains the management''s position regarding utilisation of Minimum Alternate Tax credit aggregating Rs. 57.33 Crores as at 31 March 2015. Based on the management''s assumptions and future business plans, no provision has been considered in the books of account in respect of Minimum Alternate Tax credit. Our opinion is not modified in respect of this matter. 6. Report on Other Legal and Regulatory Requirements (i) 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 Act, we give in the Annexure, a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable. (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 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, 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 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, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2015 from being appointed as a director in terms of Section 164 (2) of the Act; f. with respect to the other matters to be included in the Auditors'' 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 notes 36 and 39 to the standalone financial statements; ii. the Company did not have any long term contracts, including derivative contracts outstanding as at 31 March 2015 for which there were any material foreseeable losses; and iii. there has been no delay in transferring amounts that were required to be transferred to the Investor Education and Protection Fund by the Company. Annexure referred to in paragraph 6 of the Independent Auditors'' Report to the Members of Indo Rama Synthetics (India) Limited on the Standalone financial statements for the year ended 31 March 2015. (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. (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 are 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, during the previous year had granted interest free unsecured loans to a wholly owned subsidiary company covered in the register maintained under Section 189 of the Companies Act, 2013. (b) According to the information and explanations given to us, in case of loans granted to a wholly owned subsidiary company listed in the register maintained under Section 189 of the Companies Act, 2013, the loans were not due for repayment in the current year in accordance with the stipulations. (c) 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 wholly owned subsidiary company listed in the register maintained under section 189 of the Companies Act, 2013. (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) According to the information and explanations given to us, the Company has not accepted any deposits from public during the year. (vi) 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 sub section (1) of section 148 of the Companies Act, 2013 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. (vii) (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, Employees'' State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Duty of Customs, Duty of Excise, Cess and other material statutory dues, to the extent applicable, have generally been regularly deposited with the appropriate authorities, except in respect of Value Added Tax, where there were few serious delays in depositing the same with the appropriate authorities, though the same 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, Employees'' State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Duty of Customs, Duty of Excise, Value Added tax, Cess and other material statutory dues, to the extent applicable, were in arrears as at 31 March 2015 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, Sales-tax, Wealth-tax, Service tax, Duty of Customs, Value Added Tax, Duty of Excise and Cess, which have not been deposited with the appropriate authorities on account of any dispute, except as mentioned below: Name of the Statute Nature of dues Amount of Amount paid dispute under protest (Rs. Crores)# (Rs. Crores) The Central Excise Act, 1944 Duty of Excise 1.44 - 64.29 5.90 6.75 0.08 3.81 - Bombay Sales Tax Act, 1959/ Sales tax 0.43 0.13 Central Sales Tax Act, 1956 Maharashtra VAT Act, 2002 VAT 13.64 3.60 214.25 - 0.08 - Customs Act, 1962 Duty of Customs 6.01 - 0.04 - Finance Act, 1994 Service tax 0.22 0.08 0.22 - Income tax Act, 1961 * Income tax 0.26 - 24.55 14.50 Name of the Statute Period to which it Forum where dispute is relates pending The Central Excise Act, 1944 2002-03 and Bombay High Court, 2005-06 Nagpur Bench 1996- 97 to Customs, Excise and 2008-09 Service Tax Appellate Tribunal 1996-97 to Commissioner of Central 2008-09 Excise and Customs (Appeals) 1997-98 to Commissioner/ Assistant 2010-11 Commissioner/ Deputy Commissioner Bombay Sales Tax Act, 1959/ 1998-99 to Joint Commissioner Sales Central Sales Tax Act, 1956 1999-00 Tax (Appeals), Nagpur Maharashtra VAT Act, 2002 2006-07 to 2008-09 and Joint Commissioner sales 2010-11 to 2013-14 tax (Appeals), Nagpur 2006-07 Supreme Court 2002-03 Customs, Excise and Service Tax Appellate Tribunal Customs Act, 1962 2006-07 Commissioner of Customs 1997- 98 to Assistant Commissioner/ 1998-99 Deputy Commissioner Finance Act, 1994 2002-03 to Customs, Excise and 2009-10 Service Tax Appellate Tribunal 2002-03 to 2005-06 Commissioner, Nagpur 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. # including interest/ penalties, where quantified and demanded by authorities. According to the information and explanations given to us, and on the basis of the records of the subsidiary companies examined by us, there are no dues of Sales tax, Wealth Tax, Service tax, Duty of Customs, Duty of Excise, Value Added tax, Income tax and Cess, which have not been deposited with the appropriate authorities on account of any dispute. (c) According to the information and explanations given to us, the Holding Company has transferred the required amount to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 and rules made thereunder within the stipulated time. The subsidiary companies did not have any dues on account of Investor Education and Protection Fund. (viii) The Holding 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. Further, the subsidiary companies were incorporated and registered for a period of less than five years. Thus, the provisions of clause 3(viii) of the Order are not applicable to the subsidiary companies. (ix) According to the information and explanations given to us, the Holding Company has not defaulted in the repayment of dues to financial institutions or banks. Further, the Company has not issued any debenture during the year. According to the information and explanations given to us, the subsidiary companies did not have any outstanding dues to any financial institution or banks or debenture holders during the year. (x) According to the information and explanations given to us, the Holding Company and the subsidiary companies have not given any guarantees for loans taken by others from banks and financial institutions, except the guarantees given by IRRL which are in respect of loans taken by a wholly owned subsidiary company. We are of the opinion that the terms and conditions on which guarantees have been given to lenders are not prejudicial to the interest of IRRL. (xi) According to the information and explanations given to us, term loans have been applied for the purpose for which such loans were obtained. (xii) According to the information and explanations given to us, no fraud on or by the Group has been noticed or reported during the year. For B S R and Associates Chartered Accountants ICAI Firm registration number: 128901W Kaushal Kishore Place : Gurgaon Partner Date : 18 May 2015 Membership No.: 090075