TO THE MEMBERS OF COMMERCIAL ENGINEERS & BODY BUILDERS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of CommercialEngineers & Body Builders Co Limited(the Company) which comprise the Balance Sheet asat 31 March2015 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.
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 of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the 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 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; anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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.
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 in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
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.
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 31 March2015 and its lossand 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 bythe Central Government in terms of Section 143(11) of the Act we give in the Annexure astatement on the matters specified in paragraphs 3 and 4 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 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 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 the written representations received from the directors as on 31March2015taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March2015 from being appointed as a director in terms of Section 164 (2) of theAct.
(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 29to the financial statements;
(ii) The Company did not have any long-term contracts including derivative contractsfor which 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.
| ||For Deloitte Haskins & Sells LLP |
| ||Chartered Accountants |
| ||(Firm's Registration No. 117366W/W-100018) |
| ||Rupen K. Bhatt |
| ||Partner |
|Mumbai Dated: 21st May 2015 ||(Membership No. 46930) |
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
Re: Commercial Engineers & Body Builders Co Limited
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)
(i) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.
(ii) In respect of its inventories:
a) As explained to us inventories were physically verified during the year by themanagement at reasonable intervals except for inventories lying with third parties whereconfirmations of inventories held by such third parties have been received.
b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.
(iii) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the Register maintained under Section 189 of the CompaniesAct 2013.
(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 the saleof goods and services. During the course of our audit we have not observed any majorweakness in such internal control system.
(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits from the public during the year. Therefore theprovisions of clause 3(v) of the Order are not applicable to the Company.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost records and audit) Rules 2014 prescribed by the Central
Government under Section 148 (1) of the Companies Act 2013 are of the opinion thatprima facie the prescribed cost records have been maintained. We have however not madea detailed examination of the cost records with a view to determine whether they areaccurate or complete.
(vii) According to the information and explanations given to us in respect of statutorydues:
(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident fund Employees' State Insurance Income-tax Sales-tax Wealth-taxService Tax Customs duty Excise duty Cess and any other material statutory duesapplicable to it with the appropriate authorities except for Entry Tax Value Added Tax(VAT) and Central Sales Tax (CST) though the delays in deposit have not been serious.
(b) There were no undisputed amounts payable in respect of Provident fund Employees'State Insurance Income-tax Sales-tax Wealth-tax Service Tax Customs duty Exciseduty Cess and any other material statutory dues in arrears as at 31 March 2015 for aperiod of more than six months from the date they became payableexcept for Entry Tax VATand CST as follows;
|Period ||Nature of the Dues ||Amount (Rs.) ||Due Date ||Date of Payment |
|2014-2015 ||Entry Tax ||107158 ||10- August-14 ||Not Yet Paid |
|2014-2015 ||Entry Tax ||145736 ||10-September-14 ||Not Yet Paid |
|2011-2012 ||Value Added Tax Assessment dues ||2363229 ||4-July-2014 ||Not Yet Paid |
|2011-2012 ||Central Sales Tax Assessment dues ||1340677 ||4-July-2014 ||Not Yet Paid |
(a) Details of dues of Income Tax Sales Tax Customs Duty and Excise Duty which havenot been deposited as on 31 March 2015 on account of disputes are given below:
|Nature of the dues ||Name of statute ||Amount ||Period to which the amount relates ||Forum where dispute is pending |
|Central Sales Tax ||Central Sales Tax Act 1956 ||9.43 ||April 2007 to March 2008 and April 2010 to March 2011 ||Appellate Board Bhopal |
|Central Sales Tax ||Central Sales Tax Act 1956 ||6.62 ||April 2012 to March 2013 ||Additional Commissioner Jabalpur |
|Excise Duty ||Central Excise Act 1944 ||3913.43 ||April 2003 - October 2013 ||Central Excise Commissioner Bhopal |
|Excise Duty ||Central Excise Act 1944 ||101.18 ||September 2013 to March 2014 ||Central Excise Commissioner Jabalpur |
|Excise Duty ||Central Excise Act 1944 ||569.89 ||April 2009 - March 2014 ||Central Excise Commissioner Jamshedpur |
|Excise Duty ||Central Excise Act 1944 ||4.10 ||August 2013 to February 2014 ||Central Excise Commissioner Pithampur |
|Excise Duty ||Central Excise Act 1944 ||3.37 ||August 2013 to March 2014 ||Deputy Commissioner of Customs Central Excise and Service Tax Jabalpur |
|Excise Duty ||Central Excise Act 1944 ||500.38 ||December 2006 - March 2010 ||The Customs Excise and Service Tax Appellate Tribunal New Delhi |
|Income Tax ||Income Tax Act 1956 ||15.93 ||April 2011- March 2012 ||Commissioner(appeal) Kanpur |
|MP Entry Tax ||Entry Tax on goods purchased ||22.24 ||April 2009-March 2010 ||Additional Commissioner Jabalpur |
|Value Added Tax ||MP Commercial Tax Act 1994 ||1498.44 ||April 2007-March 2012 & April 2012- March 2013 ||Additional Commissioner Jabalpur |
(d) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
(i) The accumulated losses of the Company at the end of the financial year are lessthanfifty per cent of its net worth and the Company has incurred cash losses during thefinancial year covered by our audit and in the immediately preceding financial year.
(ii) In our opinion and according to the information and explanations given to us theCompany has defaulted in the repayment of dues to banks.Details of continuing defaults inpayment of principle and Interest on working facility and long-term loan from banks as on31st March 2015 are as follows:
|Particulars ||Due Date ||Principle ||Interest ||Date of Payment |
|Vendor finance facility ||05-Jun-13 ||169.96 ||34.43 ||Not Paid |
|Vendor finance facility ||06-Jun-13 ||240.00 ||75.56 ||Not Paid |
|Vendor finance facility ||09-Jul-13 ||14.00 ||4.21 ||Not Paid |
|Vendor finance facility ||11-Jul-13 ||104.18 ||31.25 ||Not Paid |
|Vendor finance facility ||29-Jul-13 ||134.27 ||39.30 ||Not Paid |
(x) According to the information and explanations given to us the Company has notgiven any guarantees for loans taken by others from banks or financial institutions.
(xi) In our opinion and according to the information and explanations given to us theterm loans have been applied by the Company during the year for the purposes for whichthey were obtained.
(xii) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company was noticed or reported during theyear.
| ||For Deloitte Haskins & Sells LLP |
| ||Chartered Accountants |
| ||(Firm's Registration No. 117366W/W-100018) |
| ||Rupen K. Bhatt |
|Mumbai ||Partner |
|Dated: 21st May 2015 ||(Membership No. 46930) |