You are here » Home » Companies » Company Overview » Container Corporation Of India Ltd

Container Corporation Of India Ltd.

BSE: 531344 Sector: Others
NSE: CONCOR ISIN Code: INE111A01017
BSE 15:40 | 22 Jan 1487.95 15.60
(1.06%)
OPEN

1472.00

HIGH

1500.00

LOW

1472.00

NSE 15:49 | 22 Jan 1483.25 9.60
(0.65%)
OPEN

1476.70

HIGH

1500.00

LOW

1470.55

OPEN 1472.00
PREVIOUS CLOSE 1472.35
VOLUME 37757
52-Week high 1500.00
52-Week low 912.00
P/E 36.70
Mkt Cap.(Rs cr) 36,264
Buy Price 0.00
Buy Qty 0.00
Sell Price 1483.20
Sell Qty 39.00
OPEN 1472.00
CLOSE 1472.35
VOLUME 37757
52-Week high 1500.00
52-Week low 912.00
P/E 36.70
Mkt Cap.(Rs cr) 36,264
Buy Price 0.00
Buy Qty 0.00
Sell Price 1483.20
Sell Qty 39.00

Container Corporation Of India Ltd. (CONCOR) - Auditors Report

Company auditors report

TO THE MEMBERS OF

CONTAINER CORPORATION OF INDIA LIMITED

Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements

We have audited the accompanying standalone Ind AS financial statements of CONTAINERCORPORATION OF INDIA LIMITED ("the Company") which comprise the BalanceSheet as at 31 March 2017 the Statement of Profit and Loss (including othercomprehensive income) the Cash Flows Statement and the statement of changes in equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information (herein after referred to as "Standalone Ind AS FinancialStatements").

Management's Responsibility for the Standalone Ind AS 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 preparationand presentation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance (including in equity of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified in the Companies (Indian

Section 133 of the Act.

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 standalone IndAS financial statements that give a true and fair view and are free error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. While conducting our audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade there under.

We conducted our audit of standalone Ind AS 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 standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialfinancialstatements whether due to fraud or error. In misstatement of the standalone IndAS making those risk assessments the auditor considers internal financialcontrol relevantto the Company's preparation of the standalone Ind AS financialstatements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS 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 31 March 2017 its profit (including other comprehensive income) its cashflows and the changes in equity for the year ended on that date.

Emphasis of Matter

1. We draw attention to the Note no. 53 to the standalone Ind AS financial statementsof 31 March 2017 which describe investment of `54.60 Crore in equity of IGTPL a jointventure in which the company hold 14.56% equity whose net worth has been fully erodedi.e. IGTPL is having accumulated losses of `608.46 crore (as per unaudited accounts ofF.Y. 2016-17) in which the company's share is `88.59 crore which exceeds the investmentin the joint venture as on 31 March 2017. Management has not recognized any impairment inthe value of the assets as in the opinion of the management the expected present valueof future cash flows exceeds the carrying amount of the asset.

Our opinion is not modified in respect of this matter.

2. We further draw attention to the Note no. 54 to the standalone Ind AS financialstatements non provision for diminution/impairment in the value of investment amounting to`146.62 Crores in equity of M/s Fresh & Healthy Enterprises Limited (FHEL) a whollyowned subsidiary company whose net worth has been fully eroded. Management has notrecognized any impairment in the value of the assets as in the opinion of the managementthe expected present value of future cash flows exceeds the carrying amount of the asset.

Our opinion is not modified in respect of this matter.

Other Matters

The comparative financial information of the Company for the year ended 31 March 2016and the transition date opening balance sheet as at 01 April 2015 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting amended) forthe year ended 31 March 2016 and 31 March 2015 which were audited by other auditor onwhich they have expressed an unmodified opinion dated 25 May 2016 and 28 May 2015respectively. The adjustments to those financial statements for the differences inaccounting principles adopted by the Company on transition to the Ind AS have been auditedby us on which we have expressed an unmodified opinion vide our report dated 25 May2017. Our opinion is not modified in respect of this matter.

We did not audit the financial statements/information of 8 regions included in thestandalone Ind AS financial statements of the Company whose financialstatements/financialinformation reflect `2700.23 Crore as at 31 March 2017 totalassetsof and total revenuesof `5417.78 Crores for the year ended on that date as considered in the standalone Ind ASfinancial these regions have been audited by the branch auditors whose reportsstatements.Thefinancial have been furnished to us and our opinion in so far as it relatesto the amounts and disclosures included in respect of these regions is based solely onthe report of such branch auditors. Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("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" a statement on the matters specified inthe paragraph 3 and 4 of the Order.

2. As required by Section 143(5) of the Act we give in the "Annexure B" astatement on the matters specified Directions issued by The Comptroller and AuditorGeneral of India and in our opinion no action is required to be taken thereon and thereis no impact on the accounts and financial statements of the Company.

3. As required by Section 143 (3) of the Act we report that:

(a) W e 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 and proper returnsadequate for the purpose of our audit have been received from the regions not visited byus.

(c) The reports on the accounts of regions of the company audited under section 143 (8)of the Act by branch auditors have been sent to us and have been dealt within preparingour report in the manner considered necessary by us. (d) The Balance Sheet the Statementof Profit and Loss (including other comprehensive income) the Cash Statement and thestatement of changes in equity dealt with by this Report are in agreement with the booksof account and with the returns received from the regions not visited by us.

(e) In our opinion the aforesaid standalone Ind AS financial statements comply withthe specified in the Companies (Indian Accounting Standards) Rules 2015 (as amended)under Section 133 of the Act.

(f) On the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

(g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and operating effectiveness of such controls refer to ourseparate report in "Annexure C"; and

(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 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 standalone Ind AS financial statements-refer note no.-41 to the standaloneInd AS financial statements of 31 March 2017;

ii. the Company is not required to make any provision for any material foreseeablelosses under any law or Indian Accounting Standard (Ind AS) on long term contracts. Alsothe Company is not dealing into derivatives contracts;

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the company; and

iv. the Company has provided requisite disclosures in note no. 12 to the Ind ASfinancial statements as to holdings as well as dealings in Specified Bank Notes during theperiod from 8 November 2016 to 30 December 2016. Based on audit procedures and relyingon the management representation we report that the disclosures are in accordance withbooks of account maintained by the Company and as produced to us by the Management.However as stated in note no. 12 amount aggregating to SBN `62500/- have been receivedfrom transactions which are not permitted.

For Arun K Agarwal & Associates
Chartered Accountants
(Firm's Registration No. 003917N)
sd/-
Place: New Delhi Arun Kumar Agarwal
Date: 25th May 2017 (Partner)
Membership. No. 082899

Annexure A to Independent Auditors' Report

Referred to Paragraph 1 under the heading of "Report on Other Legal and RegulatoryRequirements" of our report of even date i. (a) The Company has maintainedproper records showing full particulars including quantitative details and situation offixed assets.

(b) The fixed assets have been physically verified by the management in a phasedmanner designed to cover all the items a period of three years which in our opinion isreasonable having regards to the size of the company and nature of its business.Pursuant to the programme a portion of the fixed assets has been physically verified bythe the year and no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company except for items mentioned below:

(` in crores)
Details of Property Net Amount
RO Premises at Egmore Chennai 1.79
Staff Quarters at Chennai 1.14
Jangpura-Building 0.63
Jangpura-Land 0.44
Leasehold Land at Kadakola 19.38
Leasehold Land-MMLP Vishakhapatnam 93.29

ii. The Company has carried out physical verification of inventory at reasonableintervals and no material discrepancy were noticed during such verification. iii. TheCompany has granted unsecured loans to 2 wholly owned subsidiary companies i.e. M/s Fresh& Healthy Enterprises

Limited (FHEL) and M/s CONCOR Air Limited.

(a) In our opinion and according to the information and explanations given to us theterms and conditions of the grant of such loans are not prejudicial to the company'sinterest;

(b) Payments of interest are regular in respect of CONCOR Air Limited. However nopayment of interest has been received from FHEL since October 2015. Payment of Principleis not yet due in both the cases.

(c) Interest amounting to `12.76 Cr is overdue in relation to loan to FHEL for morethan ninety days. According to the information and explanations given to us the companyis following up the recovery of overdue amount.

iv. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans investments guarantees and security.

v. The Company has not accepted any deposits from the public within the meaning ofSections 737475 and 76 of the Companies Act 2013 and Rules framed there under.

vi. As per the information and explanations given to us the maintenance of costrecords has not been prescribed by the Central Government under section 148(1) of theCompanies Act 2013 for services rendered by the company.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the books of account of the company except Property tax of `0.26Crores and Building Worker Cess of `2.53 Crores is outstanding as on 31 March 2017 for aperiod of more than six month from the date it became payable amount deducted/accrued inthe books of account in respect of undisputed statutory dues including Provident FundIncome Tax Sales tax Service Tax Custom Duty Value Added Tax Cess and any otherstatutory dues have generally been regularly deposited during the year by the company withappropriate authorities.

(b) According to the information and explanations given to us the following dues ofIncome tax and service tax have not been deposited by the company on account of disputes:

(` in Crores)
S. No. Name of Statue Nature of dues Forum where dispute is pending Period to which amount relates Amount
1. Finance Act 1994 Service Tax CESTAT September 2002 to June 2008 1.48*
Bangalore
CCE (Appeals) 01.05.2003 to 16.07.2003 0.01
CCE 2004-05 0.11
CCE (Appeals) January 2004-March 2004 0.02
CCE 2005-06 0.20
CESTAT 2007-08 to 2009-10 103.84
DGCEI Oct. 2010 to Mar. 15 5.13
2. Income Tax Act 1961 Income Tax Supreme Court A.Y. 2003-04 5.30
A.Y. 2004-05 9.64
A.Y. 2005-06 11.99
A.Y. 2007-08 24.75
ITAT Delhi A.Y. 2006-07 98.54
A.Y. 2007-08 95.59
A.Y. 2008-09 2.67
A.Y. 2009-10 0.88
A.Y. 2010-11 121.08
A.Y. 2011-12 165.80
A.Y. 2012-13 24.37
A.Y. 2013-14 15.59
CIT (Appeals) A.Y. 2014-15 134.59
3. Jal Sansthan Kanpur Water Tax Allahabad High Court 2000-01 to date 0.69

* one third share of the total disputed amount viii. The Company has not defaulted inrepayment of loans or borrowing to a financial institution bank Government or dues todebenture holders during the year.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

x. According to the information and explanation given to us by the management and basedon the audit procedures performed no material fraud by the Company or on the Company byits officers or employees has been noticed or reported during the year.

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Ind AS financial statements as required by theapplicable accounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

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

For Arun K Agarwal & Associates
Chartered Accountants
(Firm's Registration No. 003917N)
sd/-
Place: New Delhi Arun Kumar Agarwal
Date: 25th May 2017 (Partner)
Membership. No. 082899

Annexure B to Independent Auditors' Report

Referred to Paragraph 2 under the heading of "Report on Other Legal and RegulatoryRequirements" of our report of even date

According to the information and explanations given to us we report as under:

S. No. Areas Examined Observations/Findings
1. Whether the company has clear title/lease deeds for freehold and leasehold land respectively? If not please state the area of freehold and leasehold land for which title/lease deeds are not available. The Company has clear title/ lease deeds for freehold and leasehold properties respectively except 6 properties where some of the compliances to establish clear title/execution of lease deed in favour of the company are pending. Out of these 6 properties 2 cases pertain to allotment of land one at Vishakhapatnam admeasuring 98 acres and another at Kadakola admeasuring 55.55 acres.
2. Whether there are any cases of waiver/write off of debts/ loans/ interest etc. if yes the reasons there for and amount involved. Yes there were waivers of terminal service charges amounting to `3807403/- and warehousing charges amounting to `830960/- during the F.Y. 2016-17. It is reported to be business practice being followed by the company. Further interest amounting to `2461685/- has been waived in relation to the loan to wholly owned subsidiary due to reduction in interest rate as per the approval of competent authority.
`112085/- towards doubtful debts has been written off during the F.Y. 2016-17 as per the approval of competent authority. There are refunds of terminal service charges amounting to `58483.061/- and warehousing charges amounting to `357300/- during the year which are duly approved by competent authority.
3. Whether proper records are maintained for inventories lying with third parties & assets received as gifts/grants from the Govt. or other authorities. (a) There are no inventories lying with third parties.
(b) The company has not received any assets as gifts from Govt. or other authorities. Proper records have been maintained in case of grant received.
For Arun K Agarwal & Associates
Chartered Accountants
(Firm's Registration No. 003917N)
sd/-
Place: New Delhi Arun Kumar Agarwal
Date: 25th May 2017 (Partner)
Membership. No. 082899

Annexure C to Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") We have audited the internalfinancialcontrols over financial reporting ofCONTAINER CORPORATION OF INDIA LIMITED ("theCompany") as of 31 March 2017 in conjunction with our audit of the standalone Ind ASfinancial statements of the Company for the year ended on that 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 ("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 safeguarding ofits 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 Companies Act 2013.

Auditors' 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") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated 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 judgment 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 financialstatements in accordance with generallyaccepted accounting to permit preparation of 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 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 31 March 2017 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 Chartered Accountants of India.

For Arun K Agarwal & Associates
Chartered Accountants
(Firm's Registration No. 003917N)
sd/-
Arun Kumar Agarwal
Place: New Delhi
(Partner)
Date: 25th May 2017
Membership. No. 082899