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Cimmco Ltd.

BSE: 505230 Sector: Others
NSE: CIMMCO ISIN Code: INE184C01028
BSE LIVE 12:26 | 09 Dec 67.00 -0.55
(-0.81%)
OPEN

68.25

HIGH

68.25

LOW

66.60

NSE LIVE 15:58 | 09 Dec 67.10 -0.50
(-0.74%)
OPEN

67.40

HIGH

67.85

LOW

66.30

OPEN 68.25
PREVIOUS CLOSE 67.55
VOLUME 104
52-Week high 103.40
52-Week low 56.35
P/E
Mkt Cap.(Rs cr) 135.00
Buy Price 67.00
Buy Qty 198.00
Sell Price 67.75
Sell Qty 30.00
OPEN 68.25
CLOSE 67.55
VOLUME 104
52-Week high 103.40
52-Week low 56.35
P/E
Mkt Cap.(Rs cr) 135.00
Buy Price 67.00
Buy Qty 198.00
Sell Price 67.75
Sell Qty 30.00

Cimmco Ltd. (CIMMCO) - Auditors Report

Company auditors report

TO

THE MEMBERS OF CIMMCO LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Cimmco Limited ("theCompany") which comprise the Balance Sheet as at March 31 2015 the Statementof Profit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. 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. We conducted our audit in accordancewith the Standards on Auditing issued by the Institute of Chartered Accountants of Indiaas specified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

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 controls 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 internal control. Anaudit also includes evaluating the appropriateness of 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 auditevidence we have obtained is sufficient and appropriate to provide a basis for ourqualified audit opinion on the financial statements.

Basis for Qualified Opinion

We draw attention to Note No. 12.2 regarding certain claims of Rs4695.36 lacs (Rs4899.34 lacs as at 31st March 2014) net of Rs 150.00 lacs received under a guaranteegiven by the Company which have been considered good and recoverable by the management.Although the management is hopeful to recover the claims in full pending decision of theCourts/Arbitration proceedings we are unable to comment on their recoverability and anyconsequential impact arising there from in these financial statements. Our audit opinionon the financial statements for the previous year was also qualified in respect of theabove matter.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effect of the matter described in the Basis forQualified Opinion paragraph above the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 312015 of its loss and its cash flows for the year ended on thatdate.

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) Except for the possible effect of the matter described in the Basis for QualifiedOpinion paragraph in our opinion proper books of account as required by law have beenkept by the Company so far as 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) Except for the possible effect of the matter described in the Basis for QualifiedOpinion paragraph in our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e) The matter described in the Basis for Qualified Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the Company;

f) On the basis of written representations received from the directors as on March312015 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312015 from being appointed as a director in terms of Section164 (2) of the Companies Act 2013;

g) The qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified Opinion paragraph above;

h) 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 ofour 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 6(b)(i) and 30 to the financialstatements;

ii. The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;

iii. There are no amounts which were required to be transferred during the year to theInvestor Education and Protection Fund by the Company.

For S. R. BATLIBOI & CO. LLP
Chartered Accountants
ICAI Firm Registration No.: 301003E
per Kamal Agarwal
Place: Kolkata Partner
Date: April 182015 Membership No.: 58652

ANNEXURE TO THE AUDITOR'S REPORT

Referred to in our report of even date to the members of Cimmco Limited as at and forthe year ended March 312015

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

(b) All fixed assets have not been physically verified by the management during theyear but there is a regular programme of verifying the fixed assets over a period of threeyears which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. No material discrepancies were noticed on such verification.

(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 and no materialdiscrepancies were noticed on physical verification.

(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 Companies Act 2013. Accordingly theprovisions of clause 3(iii)(a) and (b) of the Order are not applicable to the Company andhence not commented upon.

(iv) In our opinion and according to the information and explanations given to us andhaving regard to the explanation that some of the items purchased are of special natureand suitable alternative sources do not exist for obtaining comparable quotations thereofthere 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 deposit 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 Companies Act 2013 related to the manufacture of wagons andengineering products and are of the opinion that prima facie the specified accounts andrecords have been made and maintained. We have not however made a detailed examinationof the same.

(vii) (a) Undisputed statutory dues including provident fund employees's tateinsurance income-tax sales-tax wealth-tax service tax customs duty excise dutyvalue added tax cess and other material statutory dues as applicable to the Company havegenerally been regularly deposited with the appropriate authorities.

(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:

Name of the Statute Nature of Dues Amount (Rs. in lacs) Period to which the amount relates Forum where dispute is pending
The Central Excise Act 1944 Incorrect availment of cenvat credit non-payment of excise duty non- maintenance of separate records for common inputs and input services used for production of exempted and non-exempted excisable products and non- inclusion of value of free supply in the assessable value non-compliance with Rule6(3A) etc. 2157.68 1999-2000 and 2011-12 Hon'ble CESTAT Delhi
126.28 1989-1994 Hon'ble High Court Gwalior
224.19 1993-94 Hon'ble Supreme Court
The Customs Act 1962 Differential Customs Duty Penalty for non-submission of necessary documents for consumption of imported goods 32.17 2004-05 Hon'ble CESTAT Delhi
The Rajasthan Sales Tax Act / Central Sales Tax Act 1956 Differential Sales Tax and Non-submission of statutory forms 520.63 1998-90 to 2000-01 Hon'ble High Court Rajasthan

(d) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year in accordance with therelevant provisions of the Companies Act 1956 (1 of1956) and rules made thereunder.

(viii) Without considering the consequential effects if any of the matter stated inthe basis for qualified opinion paragraph of our auditors' report the Company'saccumulated losses at the end of the financial year are more than fifty percent of its networth. The Company has incurred cash losses in the current and immediately precedingfinancial 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 bank. The Company did not have any outstanding dues in respect of a financialinstitution or debenture holders during the year.

(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 explanations given to us by the management termloans were applied for the purpose for which the loans were obtained.

(xii) Based upon the audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and as per the information and explanationsgiven by the management we report that no fraud on or by the Company has been noticed orreported during theyear.

For S. R. BATLIBOI & CO. LLP
Chartered Accountants
ICAI Firm Registration No.: 301003E
per Kamal Agarwal
Place: Kolkata Partner
Date: April 182015 Membership No.: 58652

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