To the Members of Ambuja Cements Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Ambuja CementsLimited (the Company) which comprise the Balance Sheet as at December 312015 the Statement of Profit and Loss and Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.
Management'sResponsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (the Act) with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance withaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India as specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing an opinionon whether the Company has in place an adequate internal financial controls system overfinancial reporting and the effectiveness of such controls. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thestandalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as atDecember 31 2015 its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 of the Order.
2. 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 bestof 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 theCompany so far as it appears from our examination of those books;
(c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
(e) On the basis of written representations received from the directors as on December31 2015 and taken on record by the Board of Directors none of the directors isdisqualified as on December 31 2015 from being appointed as a director in terms ofsection 164 (2) of the Act;
(f) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements - Refer note 28 to 30 to the financial statements;
(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For S R B C & CO LLP
ICAI Firm Registration Number : 324982E
per Ravi Bansal
Membership Number : 49365
Place of Signature :Mumbai
Date : 10 February 2016
Annexure referred to in paragraph 1 under the heading Report on Other Legal andRegulatory Requirements of our report of even date
Re : Ambuja Cements Limited ('the Company')
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a programme for physical verification on a rotational basis whichin our opinion is reasonable having regards to the size of the Company and the nature ofits assets. Accordingly certain fixed assets have been physically verified by themanagement during the year and no material discrepancies were noticed on suchverification.
(ii) (a) The management has conducted physical verification of inventory at reasonableintervals during the year.
(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) The Company is maintaining proper records of inventory. Discrepancies noted onphysical verification of inventories were not material and have been properly dealt within the books of account.
(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under section 189 of the Act. Accordingly the provisions ofclause 3(iii)(a) and (b) of the Order are not applicable to the Company and hence notcommented upon.
(iv) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business for the purchase of inventory and fixed assets and for thesale of goods and services. During the course of our audit we have not observed any majorweakness or continuing failure to correct any major weakness in the internal controlsystem of the company in respect of these areas.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Act related to the manufacture of cement and are of the opinionthat prima facie the specified accounts and records have been made and maintained. Wehave not however made a detailed examination of the same.
(vii) (a) The Company has been generally regular in depositing with appropriateauthorities undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax wealth-tax service tax customs duty excise dutyvalue added tax cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax wealth-taxservice tax sales-tax customs duty excise duty value added tax cess and othermaterial statutory dues were outstanding at the year end for a period of more than sixmonths from the date they became payable.
(c) According to the records of the Company the dues outstanding of income-taxsales-tax wealth-tax service tax customs duty excise duty value added tax and cess onaccount of any dispute are as follows :
(Rs in crores)
| || || || || |
Forum where dispute is pending
|Name of the Statute ||Nature of dues ||Period to which the amount relates ||Commis-sionarate ||Appellate authorities and Tribunals ||High Courts ||Supreme Court ||Total |
|Central Sales Tax Act 1956 and various State Sales Tax Acts ||Demand of Sales Tax / Additional Purchase Tax ||1988-2014 ||22.95 ||10.38 ||96.80 ||107.75 ||237.88 |
|Customs Act 1962 ||Demand of Customs duty Interest and Penalty ||2000-2013 ||1.59 ||40.10 ||- ||- ||41.69 |
|Central Excise Act 1944 ||Demand of excise duty Denial of Cenvat Credit Interest and Penalty ||1993-2010 ||5.84 ||20.32 ||0.75 ||2.16 ||29.07 |
|Finance Act 1994 ||Denial of Service Tax Credit and Penalty ||2005-2011 ||1.44 ||25.54 ||0.01 ||- ||26.99 |
|Chhattisgarh Upkar (Sanshodhan Adhiniyam) 2004 ||Cess on Electricity Generation ||2006-2015 ||- ||- ||- ||23.03 ||23.03 |
|Rajasthan Finance Act 2008 ||Environment Cess ||2008-2015 ||- ||- ||13.77 ||- ||13.77 |
|The Punjab Prohibition of Cow Slaughter Act 1955 ||Cow Cess ||2014-2015 ||- ||- ||2.22 ||- ||2.22 |
|Income Tax Act 1961 ||Demand of interest on TDS ||2011-2012 ||1.55 ||- ||- ||- ||1.55 |
| || ||Total ||33.37 ||96.34 ||113.55 ||132.94 ||376.20 |
Amounts given above are net of amounts deposited
(d) According to the information and explanations given to us the amount required tobe transferred to investor education and protection fund in accordance with the relevantprovisions of the Companies Act 1956 (1 of 1956) and rules made thereunder has beentransferred to such fund within time.
(viii) The Company has no accumulated losses at the end of the financial year and ithas not incurred cash losses in the current and immediately preceding financial year.
(ix) Based on our audit procedures and as per the information and explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to a financial institution. The Company has no outstanding dues in respect of bank ordebenture holder.
(x) According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from bank or financial institutions.
(xi) Based on the information and explanation given to us by the management term loanswere applied for the purpose for which the loans were obtained.
(xii) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company has been noticedor reported during the year.
For S R B C & CO LLP
ICAI Firm Registration Number : 324982E
per Ravi Bansal
Membership Number : 49365
Place of Signature : Mumbai Date : 10 February 2016