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Chowgule Steamships Ltd.

BSE: 501833 Sector: Infrastructure
NSE: CHOWGULSTM ISIN Code: INE490A01015
BSE LIVE 14:25 | 05 Dec 14.19 0.60
(4.42%)
OPEN

14.25

HIGH

14.25

LOW

13.25

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 14.25
PREVIOUS CLOSE 13.59
VOLUME 25052
52-Week high 22.75
52-Week low 11.64
P/E
Mkt Cap.(Rs cr) 51.52
Buy Price 13.25
Buy Qty 382.00
Sell Price 14.19
Sell Qty 180.00
OPEN 14.25
CLOSE 13.59
VOLUME 25052
52-Week high 22.75
52-Week low 11.64
P/E
Mkt Cap.(Rs cr) 51.52
Buy Price 13.25
Buy Qty 382.00
Sell Price 14.19
Sell Qty 180.00

Chowgule Steamships Ltd. (CHOWGULSTM) - Auditors Report

Company auditors report

TO THE MEMBERS OF CHOWGULE STEAMSHIPS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying Standalone financial statements of CHOWGULESTEAMSHIPS LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2016 the Statement of Profit and Loss and the Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility 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 with theaccounting principles generally accepted in India including the Accounting Standardsprescribed under Section 133 of the Act as applicable.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder and the Order under section 143(11) ofthe Act.

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 prescribed under Section 133 of the Act as applicable.

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act.

(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’. Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial control overfinancial reporting.

(g) 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 21 to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any 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.

2. As required by the Companies (Auditors' Report) Order 2016 ("the order’)issued by the Central Government in terms of Section 143(11) of the Act we give in'Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.

For S. B. BILLIMORIA & CO.
Chartered Accountants
(Firm's Registration No. 101496W)
Joe Pretto
Place : Mumbai Partner
Date : May 06 2016 Membership No. 077491

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 (f) under 'Report on Other Legal and RegulatoryRequirements' of our report of even date on the standalone financial statements ofChowgule Steamships Limited for the year ended 31st March 2016)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of CHOWGULESTEAMSHIPS LIMITED ("the Company") as of 31st March 2016 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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

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

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2016 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For S. B. BILLIMORIA & CO.
Chartered Accountants
(Firm's Registration No. 101496W)
Joe Pretto
Place : Mumbai Partner
Date : May 06 2016 Membership No. 077491

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under "Report on Other Legal and RegulatoryRequirements" section of our report of even date on the standalone financialstatements of Chowgule Steamships Limited for the year ended 31st March 2016)

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

(b) Some of the fixed assets were physically verified during the year by the Managementin accordance with a programme of verification which in our opinion provides for physicalverification of all the fixed assets at reasonable intervals. According to the informationand explanations given to us no discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deeds Agreement of Assignmentand Agreement for Sale provided to us we report that the title deeds comprising all theimmovable properties of land and buildings which are freehold are held in the name of theCompany as at the balance sheet date.

(ii) As explained to us inventories were physically verified during the year on amonthly basis by independent ship manager who manage the Company's vessel at reasonableintervals. In our opinion and having regard to the nature of the Company's business theinterval of physical verification is reasonable. In our opinion and according to theinformation and explanations given to us the Company's inventories comprise paints andlube oil on board the ship. Having regard to the nature of the Company's business andscale of operations quantities are determined by physical count and it is not considerednecessary to maintain records of movements of inventories of such items by the vessel inwhich they are carried. As quantities are determined by physical count and records ofmovement are not maintained on board the vessel the question of discrepancies on physicalverification does not arise.

(iii) According to the information and explanations given to us the Company hadgranted loan unsecured to a company covered in the register maintained under section189 of the Companies Act 2013 in respect of which:

(a) The terms and conditions of the grant of such loan in our opinion prima facie isnot prejudicial to the company's interest.

(b) The schedule of repayment of principal and payment of interest has not beenstipulated and in the absence of such schedule we are unable to comment on the regularityof the repayments or receipts of principal amounts and interest.

(c) In the absence of stipulation the amount overdue cannot be determined.

(iv) The Company has not granted any loans made investments or provided guarantees andhence reporting under clause (iv) of the order is not applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposit during the year and does not have any unclaimed deposit. Hencereporting under clause (v) of the order is not applicable.

(vi) Having regard to the nature of the Company's business / activities reporting underclause (vi) of the order is not applicable.

(vii) According to the information and explanation given to us in respect of statutorydues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Income-Tax Service Tax Value Added Tax cess and othermaterial statutory dues applicable to it with the appropriate authorities. Employees'State Insurance Sales Tax Customs Duty Excise Duty are not applicable to the company.There were no undisputed amounts payable in respect of Provident Fund Income-Tax ServiceTax Value Added Tax cess and other material statutory dues in arrears as at 31st March2016 for a period of more than six months from the date they became payable.

(b) Details of dues of Income-tax and Sales Tax which have not been deposited as on31st March 2016 on account of disputes are given below:

Name of Statue Nature of Dues Forum where Dispute is Pending Period to which the amount relates Amount involved (Rs in lakhs)
The Tamil Nadu General Sales Tax Act 1959 Sales Tax High Court of Madras FY 1995-96 237.00*
The Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals) FY 2003-04 9.28#
The Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals) FY 2004-05 7.42#
The Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals) FY 2011-12 16.02#
The Income Tax Act 1961 Income Tax The Assistant Commissioner of Income Tax FY 2012-13 9.76#

* R 47.40 lakhs paid as deposit

# R 42.48 lakhs adjusted against Refund by Income Tax Authority

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to bank. The Company has notobtained any borrowings from financial institution and government. The Company has notissued any debentures.

(ix) The Company has not raised moneys by way of Initial Public Offer of further publicoffer (including debt instruments) or term loan and hence reporting under clause (ix) ofthe order is not applicable.

(x) 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 or its officersor employees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid managerial remuneration in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V of the Companies Act 2013.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theorder is not applicable to the company.

(xiii) In our opinion and according to the information and explanation given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all the transactions with the related parties and the details of relatedparty transactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

(xiv) During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of the order is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or directors of its subsidiary companies or persons connected with them andhence the provisions of section 192 of the Companies Act 2013 are not applicable.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For S. B. BILLIMORIA & CO.
Chartered Accountants
(Firm's Registration No. 101496W)
Joe Pretto
Place : Mumbai Partner
Date : May 06 2016 Membership No. 077491

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