India Carbon Limited Unlisted Shares

Financial Report Summary

S. SAMANTA & Co., Chartered Accountants, issued an Independent Auditor's Report to the Members of INDIA CARBON LIMITED regarding the audit of the company's financial statements. The report covers the Balance Sheet as of March 31, 2024, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of changes in Equity, and the Cash Flow Statement for the year then ended, along with a summary of significant accounting policies and explanatory information.

Opinion and Basis of Opinion:

The auditors expressed an opinion that the financial statements give a true and fair view in conformity with accounting principles generally accepted in India, including IND AS, and provide the information required by the Act. The audit was conducted in accordance with Standards on Auditing specified under section 143(10) of the Act (SAs). The auditors confirmed their independence from the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) and believe that the audit evidence obtained is sufficient and appropriate to provide a basis for their audit opinion.

Key Audit Matters:

A key audit matter identified was ongoing litigations regarding entry tax under the WB Entry Tax Act 2012, which could potentially impact the results if the exposures materialize. The matter is sub-judice and referenced in Note 32 to the Financial Statements. The audit approach included a combination of tests of internal controls and substantive procedures, with supporting documentation tested for the positions taken by management.

Responsibilities:

The Company's Board of Directors is responsible for the other information, including the Report on Corporate Governance, Shareholder information, and the Report of the Board of Directors & Management Discussion and Analysis. The auditor's opinion does not cover this other information, and they do not express any assurance conclusion thereon. The Board is also responsible for matters stated in section 134 (5) of the Companies Act.2013 ("the Act") and the maintenance of adequate accounting records.

The auditor’s responsibilities include obtaining reasonable assurance about whether the financial statements are free from material misstatement, exercising professional judgment, maintaining professional skepticism, identifying and assessing risks, obtaining an understanding of internal financial control, evaluating accounting policies, and concluding on the appropriateness of the going concern basis.

Other Legal and Regulatory Requirements:

As required by the Companies (Auditor's Report) Order 2020 ("the Order"), a statement on the matters specified in paragraphs 3 & 4 of the order is provided in 'Annexure A.' Furthermore, as required by section 143(3) of the Act, the auditors report that they have obtained all necessary information and explanations, proper books of account have been kept, the financial statements are in agreement with the books, and the IND AS financial statements comply with the Accounting Standards specified under section 133 of the act. They also confirm, based on representations from the directors, that none are disqualified from being appointed as a director. Regarding Internal Financial Controls, refer to "Annexure B" for the report expressing an unmodified opinion on their adequacy and operating effectiveness.

Additional Points Noted in the Report:

The report also addresses the remuneration paid to directors, pending litigation, long-term contracts, transfers to the investor's education and protection fund, and the use of funds by the Company. Specifically, no funds have been advanced or loaned to intermediaries with the understanding they would be lent to ultimate beneficiaries. The dividend declared and paid is compliant with Section 123 of the Act. The company uses accounting software with an audit trail facility, which has operated throughout the year without evidence of tampering.

Annexure A:

Annexure A to the Independent Auditors' Report includes details on the maintenance of property records, physical verification of property, holding of title deeds, and other compliance matters. The company has maintained proper records of property, plant, and equipment and intangible assets. Physical verification of property, plant, and equipment (excluding furniture and fixtures) was conducted by management at reasonable intervals. The Company has been sanctioned working capital limits exceeding five Crores rupees from banks based on the security of current assets. Quarterly returns or statements filed with the banks are in agreement with the books of account.

Outstanding Statutory Dues Under Dispute:

The report lists outstanding statutory dues not deposited on account of disputes, including CST Act (Rs. 3.42 lacs for 2010-11), GST (Rs. 11.83 lacs for 2018-19), ESI (Rs. 15.54 lacs for 2018-19), and Entry Tax (Rs. 395.76 lacs for 2012-13 to 2017-18).

Other Points in Annexure A:

There are no instances of surrendered or disclosed unrecorded income. The Company has not defaulted in repayment of dues to financial institutions, banks, or debenture holders. The Company is not declared as a willful defaulter, and it has not raised money by way of initial public offer or further public offer. No fraud by the company or on the company was noticed. The company is not a Nidhi Company. Transactions with related parties comply with sections 177 and 188 of the Companies Act. The company has an internal audit system, and the reports of the internal auditor were considered. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

Annexure B:

Annexure B addresses the internal financial controls over financial reporting. The management is responsible for establishing and maintaining internal financial controls. The auditor's responsibility is to express an opinion on the Company's internal financial controls. In the auditor's opinion, the Company has an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2024.

Financial Results for the Quarter Ended 31st March, 2024:

The audited financial results for the quarter ended March 31, 2024, were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on May 18, 2024. Revenue from Operations was Rs. 8,092.43 Lakhs and Total Income was Rs. 8759.90 Lakhs. The Net Profit/Loss for the period was Rs. 1731.20 Lakhs. Earning Per Share was Rs. 65.33. The Balance Sheet and Cash Flow statement were also presented, detailing assets, liabilities, equity, and cash flows from operating, investing, and financing activities. Property, Plant, and Equipment amounted to Rs 1925.37 lakhs while inventories were Rs 8191.28 lakhs. Cash and cash equivalents was Rs 2919.93 lakhs. Total equity was Rs 52178.30 lakhs.