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Century Enka Ltd.

BSE: 500280 Sector: Industrials
NSE: CENTENKA ISIN Code: INE485A01015
BSE LIVE 15:59 | 09 Dec 280.20 2.15
(0.77%)
OPEN

279.85

HIGH

284.35

LOW

277.00

NSE LIVE 15:40 | 09 Dec 280.10 2.05
(0.74%)
OPEN

279.00

HIGH

283.90

LOW

278.05

OPEN 279.85
PREVIOUS CLOSE 278.05
VOLUME 7544
52-Week high 362.75
52-Week low 144.80
P/E 8.04
Mkt Cap.(Rs cr) 612.24
Buy Price 280.20
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00
OPEN 279.85
CLOSE 278.05
VOLUME 7544
52-Week high 362.75
52-Week low 144.80
P/E 8.04
Mkt Cap.(Rs cr) 612.24
Buy Price 280.20
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00

Century Enka Ltd. (CENTENKA) - Auditors Report

Company auditors report

TO THE MEMBERS OF CENTURY ENKA LIMITED

Report on the Financial Statements

1. W have audited the accompanying financial statements of e Century Enka Limited (the"Company") which comprise the Balance Sheet as at March 31 2016 the Statementof Profit and Loss the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 (the "Act") with respect to thepreparation of these financial statements to give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting 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 design implementation and maintenance of adequate internalfinancial controls 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.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting standards and matters which are required to be included in theaudit report.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors’ judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

8. In our opinion and to the best of our information and according to the expla givento us the aforesaid financial statements nations 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 at March31 2016 and its profit and its cash flows for the year ended on that date.

Emphasis of Matter

9. W draw your attention to Note 32(b) to the financial statements e regarding theCompany’s appeal pending before CESTAT Mumbai against the excise duty demandaggregating Rs.22927 lacs plus interest thereon and penalty of Rs. 22927 lacs. Based onexpert legal advice and merits of the case no provision has been considered necessary bythe Company. The final determination of the cash outflow if any would depend upon thefinal decision of the appropriate authorities in the future. Our opinion is not qualifiedin respect of this matter.

Report on Other Legal and Regulatory Requirements

10. As required by ‘the Companies (Auditor’s Report) Order 2016’issued by the Central Government of India in terms of sub-section (1 of section 143 of theAct (hereinafter referred to 1) as the "Order") and on the basis of such checksof the books and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure B a statement on thematters specified in paragraphs 3 and 4 of the Order.

11. 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 purposes 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 the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) of theAct.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure A.

(g) With respect to the other matters to be included in the Auditors’ Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us:

i. The Company has disclosed the impact if any of pending litigations as at March 312016 on its financial position in its financial statements Refer Note 32(a) 32(b) and 40;

ii. The Company has long-term contracts including derivative contracts as at March 312016 for which there were no material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March 312016..

For Price Waterhouse
Firm Registration Number: 301112E
Chartered Accountants
Jeetendra Mirchandani
Mumbai Partner
May 04 2016 Membership Number 48125

Annexure to A` Independent Auditor’s Report

Referred to in paragraph 11(f) of the Independent Auditors’ Report of even date tothe members of Century Enka Limited on the financial statements for the year ended March31 2016

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Act

1. We have audited the internal financial controls over financial reporting of CenturyEnka Limited ("the Company") as of March 31 2016 in conjunction with our auditof the financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

2. The Company’s management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company’s internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliab of financial reporting andthe preparation of financial ility statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Price Waterhouse
Firm Registration Number: 301112E
Chartered Accountants
Jeetendra Mirchandani
Mumbai Partner
May 04 2016 Membership Number 48125

Annexure to B Independent Auditor’s Report

Referred to in paragraph 10 of the Independent Auditors’ Report of even date tothe members of Century Enka Limited on the financial statements for the year ended March31 2016

i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of 3 years which in our opinionis reasonable having regard to the size of the Company and the nature of its assets.Pursuant to the programme a portion of the fixed assets has been physically verified bythe Management during the year and no material discrepancies have been noticed on suchverification.

(c) The title deeds of immovable properties as disclosed in Note 12 on fixed assets tothe financial statements are held in the name of the Company.

ii. The physical verification of inventory has been conducted at reasonable intervalsby the Management during the year. The discrepancies noticed on physical verification ofinventory as compared to book records were not material.

iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Therefore the provisions of Clause 3(iii) (iii) (a) (iii) (b)and (iii) (c) of the said Order are not applicable to the Company.

iv. The Company has not granted any loans or provided any guarantees or security to theparties covered under Section 185 of the Act. In our opinion and according to theinformation and given to us the Company has complied with explanations the provisions ofSection 186 of the Act in respect of loans investments made and guarantee / securityprovided by it as applicable.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified.

vi. Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including provident fund employees’ state insuranceincome tax sales tax service tax duty of customs duty of excise value added tax andother material statutory dues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of wealth-tax and cess which have not beendeposited on account of any dispute. The particulars of dues of income tax sales taxservice tax duty of customs and duty of excise as at March 31 2016 which have not beendeposited on account of a dispute are as follows:

Name of the statute Nature of dues Amount Amount paid under protest Period to which the amount relates Forum where the dispute is pending
(Rs. lacs) (Rs. lacs)
The Income-tax Act 1961 Income-tax 118 - AY 2004-05 Calcutta High Court
50 - AY 2008-09 Income-tax Appellate Tribunal
The Central Excise Act 1944 Excise Duty including 20 - 2000-01 and 2001-02 Customs Excise and
penalty as applicable 66 66 January 1995 to September 1995 Service T Appellate ax Tribunal
203 - 2007-08 to 2010-11 & 2012- 2013 Commissioner of Customs and Central Excise
The Central Excise Act 1944 Excise Duty (Refer Note 1 below) 22927 700 April 2000 to March 2003 Customs Excise and Service T Appellate ax
Penalty 22927 - Tribunal
Finance Act 1994 Penalty on Service- tax dues 8 - January 2005 to November 2012 Customs Excise and Service Tax Appellate
Service tax 141 - May 2009 to January 2014 Tribunal
The Customs Act 1962 Customs Duty 159 68 1994-95 2001-02 and 2006-07 Customs Excise and Service T Appellate ax Tribunal
The Gujarat Sales-tax Act 1969 Sales-tax including interest and penalty 672 73 2000-01 The Supreme Court of India
The Gujarat Value Added T Act 2006 ax Sales-tax 13 - 2007-08 Joint Commissioner of Sales-tax (Appeals)
The Maharashtra Value Added Tax Act Value Added Tax 33 8 2008-09 Commissioner of Sales- tax

Note 1- This does not include the interest claimed (not quantified) by the Centralexcise authorities. viii. According to the records of the Company examined by us and theinformation and explanation given to us the Company has not defaulted in repayment ofloans or borrowings to any bank. The company has not taken any loans from the Government.It has not issued any debentures.

ix. The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans. Accordingly the provisions ofClause 3(ix) of the Order are not applicable to the Company.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by the Management.

xi. The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii. The Company has entered in to transactions with related parties in compliancewith the provisions of Sections 177 and 188 of the Act. The details of related partytransactions have been disclosed in the financial statements as required under AccountingStandard (AS) 18 ‘Related Party Disclosures’ specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts Rules) 2014.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year. Accordingly the provisions ofClause 3(xiv) of the Order are not applicable to the Company.

xv. The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For Price Waterhouse
Firm Registration Number: 301112E
Chartered Accountants
Jeetendra Mirchandani
Mumbai Partner
May 04 2016 Membership Number 48125

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