To the Members of INDO BORAX & CHEMICALS LIMITED
Report on the Financial Statements
Opinion
We have audited the standalone financial statements of INDO BORAX & CHEMICALS
LIMITED ("the Company") which comprises the Balance Sheet as at March 31.2021.
the Statement of Profit and Loss, (including Other Comprehensive Income), statement of
changes in Equity and statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and other
explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Ind AS 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 stare of affairs of the Company
as at March 31, 2021, and its total comprehensive income (comprising of profit and other
comprehensive income), its cash flows and the changes in equity for theyear ended on that
date.
Basis forOpinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
Financial Statements of our report. We are independent of the Company in accordance with
the Code of Ethics issued by the Institute of Chartered Accountants of India and we have
fulfilled our other ethical responsibilities in accordance with the provisions of the
Companies Act. 2013. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion on the standalone financial statements.
Key Audit matter:
We have determined that there are no key audit matters to communicate in our report.
Other information:
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Management Discussion and Analysis,
Boards Report including Annexures to Boards Report, Report on Corporate Governance,
Business Responsibility Report and Shareholders Information, but does not include the
consolidated financial statements, standalone financial statements, and our auditors
report thereon.
- Our opinion on the standalone financial statements docs not cover the other
information and we do not express any form of assurance conclusion thereon.
- In connection with our audit of the standalone financial statements, our
responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the standalone financial statements or
our knowledge obtained during the course of our audit or otherwise appears to be
materially misstated.
- If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Managements and Board of Directors Responsibility for the Standalone Financial
Statements:
The Companys 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 Ind AS standalone financial statements that give a true and fair view of the
financial position, financial performance, (including Other Comprehensive Income), changes
in equity and cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the accounting Standards specified in the companies
( Indian Accounting Standard) rules 2015 ( as amended ) under section 133 of the Companies
Act, 2013, This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the Company
and for preventing and detecting frauds and other irregularities; selection and
application of appropriate implementation and maintenance of 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 Ind AS financial statement that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
In preparing the Ind AS financial statements, management is responsible for assessing
the Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors is also responsible for overseeing the companys financial
reporting process.
Auditors Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if. individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
(i) Identify and assess the risks of material misstatement of the standalone Financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not delecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of Internal control.
(ii) Obtain an understanding ofinternal controls relevant to the audit in order to
design audit procedures that arc 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 reportingand the operating effectiveness of such
controls
(iii) Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures in the standalone financial statements
made by the Management.
(iv) Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the ability of
the company to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditors report to the related
disclosures in the Stand alone financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditors report. I lowevcr, future events or conditions
may cause the Company to cease to continue as a going concern.
(v) Evaluate the overall presentation, structure and content of the Ind AS financial
statements, including the disclosures, and whether the Standalone consolidated financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the results of our work: and
(ii) to evaluate the effect of any identified misstatements in the standalone financial
statements
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, the auditor
determines those matters that were of most significance in the audit of the financial
statements of the current period and arc therefore the key audit matters. In accordance
with the requirements of SA 701. the auditor describes these matters in the auditors
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, the auditor determines that a matter should nor be
communicated in the auditors report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2016 ("the Order"),
issued by the Central Government of India in terms of subsection (11) of section 143 of
the Companies Act, 2013, we give in the Annexure "A" statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
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 purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss, (including other comprehensive
income) and the Cash Plow 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 as on 31st
March, 2021 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2021 from being appointed as a director in terms of Section
164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness ofsuch controls, refer to our
separate Report in "Annexure A".
g. With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of Section 197(16) of the Act. as amended,
In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during theyear is in
accordance with the provisions ofSection 197 of the Act.
h. 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 as at 31 March, 2021 on
its financial position in its Ind AS financial position in its standalone financial
statements - refer Note 38 to the Ind AS financial statements.
ii) The Company did not have any long term contracts includingderivate contracts as at
31 March, 2021.
iii) There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection fund by the company during the year ended 31 March,
2021.
Annexure (A) to the independent Auditors Report
Referred to in paragraph 1 under Report on Other Legal and Regulator) Requirements
in the Independent Auditors Report of even dale to the members of IN DO BORAX &
CHEMICALS LIMITED on the standalone financial statements for the year ended 31"
March, 2021]
1. (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) All fixed assets have been physically verified by the management in a phased
periodical manner, which in our opinion is reasonable having regard to the size of the
Company and the nature of its assets. According to the information and explanations given
to us, no material discrepancies were noticed on such verification.
(c) As per the information and explanations given to us, the immovable properties owned
by the company are held in the name of the company. In respect of immovable property taken
on lease and disclosed as fixed assets in standalone financial statements, the lease
agreement is In the name of the Company.
2. The Inventories have been physically verified during the year by the management. In
our opinion, frequency of verification of inventory is reasonable. There are no material
discrepancies noticed by the management.
3. According to the information and explanations given to us. the company has not
granted any loans secured or unsecured to companies, firms Limited Liability Partnerships
or other parties covered in the register maintained under section 189 of the Companies
Act. Accordingly, the provisions of clause 3(iii) (a), (b,) and (c) of the Order are not
applicable to the Company and hence not commented upon.
4. As per the information and explanations provided to us. there is no loans,
investments, guarantees and securities given by the company to which provisions of section
185 of the Companies Act, 2013 do not apply. In our opinion and according to the
information and explanations given to us the Company has complied with the provisions of
Section 186 of the Companies Act, 2013 in respect of grant of loans, making investments
and providing guarantees and securities, as applicable.
5. In our opinion and according to the information and explanations given to us, the
Company has not accepted any deposits from the public within the provisionsofSection 73 to
76 of the Companies Act, 2013 and the rules framed there under.
6. We have broadly reviewed the cost records maintained by the Company pursuant to the
Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under
sub-section (1) of Section 148 of the Companies Act. 2013 and are of the opinion that
prima facie the prescribed cost records have been so made and maintained. We have,
however, not made a detailed examination of the cost records with a view to determine
whether they arc accurate or complete.
7. a) According to the information and explanations given to us and on the basis of the
examination of the books of account, the Company has been regular in depositing undisputed
statutory dues including Provident Fund, Investor education and Protection Fund,
Employees Stale Insurance, Income-tax, Sales-tax, Service tax. Value Added Tax Customs
Duty, Excise Duly, and other statutory dues applicable to it 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, Sales tax, Service tax, Customs Duty. Excise Duty 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.
According to the records of the Company, disputed commercial claim not deposited on
account of dispute are as follows:
| Name of Statute / Description |
Amount in Rs. In Lacs |
Period to which the amount relates |
Forum where dispute is pending |
| Commercial Claim |
9.02 |
1992-93 |
Bombay High Court |
8. based on our audit procedures and on the information and explanations given by the
management, we are of the opinion that the company has not defaulted in repayment of loans
or borrowings to banks. The Company does not have any borrowings by way debentures.
9. The Company has not raised money by way of initial public off er including debt
instruments during the year and did not have any term loans outstanding during the year.
10. During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practice in India, and
according to the information and explanations given by the management, we report that no
fraud by the Company or any fraud on the Company by its officers or employees has been
noticed or reported during the course ofouraudit.
11. As per the information and explanations given to us the managerial remuneration has
been paid or provided in accordance with the requisite approvals mandated by the
provisions of section 197 read with schedule V of the Companies Act, 2013.
12. As per the information and explanations given to us the company is not a Nidhi
Company.
13. As per the information and explanations given to us the company all transactions
with the related parties are in compliance with section 177 and 188 of the Companies Act,
2013 where applicable and details have been disclosed in the Standalone Financial
Statements, etc., as required by the applicable accounting standards.
14. As per the information and explanations given to us, the company has not made any
preferential allotment or private placement of shares or fully or partly convertible
debentures during the year review
15. As per the information and explanations given to us, the company has not entered
into any non- cash transactions with the directors or persons connected with him.
16. As per the information and explanations given to us, the company is not required to
get it registered under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE BTO THE INDEPENDENT AUDITORS REPORT
REFERRED TO IN PARAGRAPH 1(F) OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF
INDO BORAX & CHEMICALS LIMITED
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
In conjunction with ouraudit of thestandalone financial statements of I ndo Borax &
Chemicals Limited (the "Company") as at and for the year ended 31 March 2021, we
have audited the internal financial controls over financial reporting Internal Financial
Controls Over Financial Reporting of the Company as of that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishingand maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute ofChartered Accountants of India (ICAI).
These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to companys policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act. 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to financial statements based on our audit. We conducted ouraudit
in accordance with the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting (the "Guidance Note") and the Standards on Auditing deemed
to be prescribed under section 143(10) of the Act to the extent applicable to an audit of
internal financial controls, both applicable to an audit of internal financial controls
and both issued by the ICAI. Those Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls with reference to financial statements
was established and maintained and if such controls operated effectively in all material
respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the Internal financial controls system over financial reporting and their operating
effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an
understanding of internal financial controls over financial reporting, assessing the risk
that a material weakness exists, and testing and evaluating the design and operating
effectiveness ol internal control based on the assessed risk. The procedures selected
depend on the auditors judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence, we have obtained is sufficient and appropriate to
provide a basis for our adverse audit opinion on the Companys internal financial controls
system over financial reporting.
Meaningof Internal Financial Controls over Financial Reporting:
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements clue to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31,2021. based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
|
For Pulindra Patel & Co. |
|
Chartered Accountants |
|
Firm Registration No.: 115187 |
|
Pulindra Patel |
| Place: Mumbai |
Proprietor |
| Date : 14" june, 2021 |
Membership No.: 048991 |
|
UDIN No.: 21048991AAAAIG4241 |
+91-9892691696
