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 LIVE 09:55 | 08 Dec 1120.80 5.85
(0.52%)
OPEN

1120.00

HIGH

1123.30

LOW

1105.00

NSE LIVE 09:57 | 08 Dec 1121.50 8.70
(0.78%)
OPEN

1120.00

HIGH

1123.95

LOW

1114.55

OPEN 1120.00
PREVIOUS CLOSE 1114.95
VOLUME 1161
52-Week high 1544.00
52-Week low 1050.85
P/E 31.98
Mkt Cap.(Rs cr) 21852.24
Buy Price 1119.25
Buy Qty 13.00
Sell Price 1121.35
Sell Qty 13.00
OPEN 1120.00
CLOSE 1114.95
VOLUME 1161
52-Week high 1544.00
52-Week low 1050.85
P/E 31.98
Mkt Cap.(Rs cr) 21852.24
Buy Price 1119.25
Buy Qty 13.00
Sell Price 1121.35
Sell Qty 13.00

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

Company auditors report

To The Members of

Container Corporation Of India Limited

Report On the Standalone Financial Statements

We have audited the accompanying standalone financial statements of CONTAINERCORPORATION OF INDIA LIMITED ("the Company") which comprise the BalanceSheet as at march 312016 the Statement of Profit and Loss Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation annexed thereto in which are incorporated the accounts of eight regions forthe year ended on that date audited by the respective branch auditors appointed by theComptroller and Auditor General of India relied upon by us and the accounts of Corporateoffice New Delhi audited by us.

Management 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 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 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.

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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made these under.

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.

Opinion

In our opinion and to the best of our information and according to the explanationgiven 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 March 312016 and its Profit and its Cash Flow for the year ended on the date.

Emphasis of Matter

We draw attention to the following matters in the notes to the financial statements:

A) Note 10 (A) II & Note no. 26.18 (g) which describes the Investment in the equityshares of subsidiary company Fresh & Healthy Enterprises Limited has incurred netcash loss during the current year and previous year(s) and said Company's Currentliabilities exceeded its current assets as on 31.03.2016. These conditions indicate theexistence of material uncertainty that casts significant doubt about the company's abilityto continue as going concern. FHEL has accumulated losses of R 139.43 crore as on31.03.2016 against the CONCOR's investment of Rs 146. 62 crore. Management is making allpossible efforts for revival and its confident of its turn-around.

B) Note no. 26.18 (f) Which describes investment of R 54.60 crore in India GatewayTerminal (P) Ltd. though CONCOR share (R 89.23 crore) of accumulates losses of R 612.88crore (as per unaudited accounts of FY 2015-16) in IGTPL exceeds its investment ( R 54.60crore) in the JV as on 31.03.2016. Management is making all possible efforts for revivaland is confident of its turn-around

C) Note no. 26.26 The Company has identified a suspected fraud against it with regardto misappropriation of funds by its officers of NWR Region during the year. The said casehas been referred to investigating Agency and the matter is under investigation as ondate. The amount involved in the said suspected fraud is Rs 1.83 crore.

Our opinion is not modified in these matters.

Other Matters

We did not audit the financial statements of eight regions included in the standalonefinancial statements of the Company.

The financial statements of these regions have been audited by branch auditors whosereports have been furnished to us and our opinion in so far as it relates to the amountsand disclosure included in respect of these regions is based solely on the report of suchbranch auditors.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsections 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraph 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 explanation which to the best ofour knowledge and belief were necessary for the purpose 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 branches not visited byus.

c. The reports on the accounts of the branch offices of the Company audited undersection 143 (8) of the Act by branch auditors have been sent to us and have been properlydealt with by us in preparing this report.

d. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the book of account and with the returnsreceived from the branches not visited by us.

e. In our opinion the aforesaid standalone financial statement comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

f. On the basis of written representations received from the directors as on March312016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312016 from being appointed as a director in terms of section 164 (2) of theAct.

g. 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 B".

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 in note 26 (ii) (C) offinancial statements as contingent liability of Rs 1297.98 crore.

ii) There are not any material foreseeable losses on long-term contacts thereforecompany has not made any provisions required under the applicable law or accountingstandards.

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

3. As required by section 143 (5) of the Act and sub directions issued by C&AGunder the same we give in Annexure-C of our report on such matter.

For Kumar Vijay Gupta & Co.
Chartered Accountants
FRN: 07814N
(CA Pawan Garg)
Place: New Delhi Partner
Date: 25/05/20116 Membership No.: 097900

"Annexure A: to the Independent Auditors' Report

Referred to in paragraph 1 under the heading "Report on Other Legal &Regulatory requirements of our report of even date to the financial statement of theCompany for the year ended March 312016:

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

(b) The Fixed Assets have been physically verified by the management in a phasedmanner designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have been noticed.

(c) The title deeds of immovable properties are held in the name of the company exceptland in Gurgaon worth Rs 4931031 and buildings in Chennai worth R 33000000 sale/leasedeeds are yet to be executed.

2. (a) The management has conducted the physical verification of inventory atreasonable intervals.

(b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.

3. The Company has granted the following unsecured loans to companies covered in theRegister maintained under section 189 of the Act.

Working Capital loan given to its subsidiary company Fresh and Healthy Enterprises Ltd.R 31.45 crore. An Interest of Rs 10.56 crore is due for more than ninety days.

Long Term Loan given to its subsidiary company Concor Air Limited of Rs 125 Crore.

4. In our opinion and according to the information and explanation given to us thecompany has compiled with the provisions of section 185 and 186 of the Companies Act 2013in respect to loans investments guarantees and security.

5. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregards to the deposits accepted from the public are not applicable.

6. As informed to us the maintenance of Cost Records has not been specified by theCentral Government under subsection (1) of Section 148 of the Act in respect of theactivities carried on by the company.

7. (a) According to information and explanations given to us on the basis of ourexamination of the books of account

and records the Company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance Income-Tax Sales Tax Service TaxDuty of Customs Duty of Excise Value added Tax Cess and any other statutory dues withthe appropriate authorities.

(b) According to the information and explanation given to us there are dues of incometax sales tax service tax duty of customs duty of excise value added tax outstandingon account of any dispute are given below:

Forum Where Pending Description Nature of Dues Amount (Rs In crore) Period
Service Tax Dept. ICD-Ludhiana-Case Show cause notice no-IV (16)/FAR/CCI/LDH- III/176/04/265 Dated 27.04.2005 Service Tax Finance Act 1994 0.01 01.05.2003 to 16.07.2003
CCE Service tax demand for DDL/ Ludhiana dated 20.04.2010 Service Tax Finance Act 1994 0.11 2004-05
CCE (Appeals) Excess credit utilized in provisional return for the period of January 2004-March 2004 Service Tax Finance Act 1994 0.02 January 2004-March 2004
CCE Service tax demand for DDL/ Ludhiana dated 21.10.2010 Service Tax Finance Act 1994 0.20 2005-06
Service Tax Dept. CERA SHOW CAUSE NOTICE- DL/II/ST/R-XI/LAR/CONCOR /73/2010 dated 18.10.2012 Service Tax Finance Act 1994 103.84 2007-08 to 2009-10
Service Tax Dept. Service Tax-CERA show cause notice dated 06.10.2009 Service Tax Finance Act 1994 191.77 2003-04 to 2006-07

 

Forum Where Pending Description Nature of Dues Amount (Rs In crore) Period
DGCEI DGCEI show cause notice dated 06.02.2015 Service Tax Finance Act 1994 497.63 Oct. 2012 to Sep 2014
DGCEI DGCEI show cause notice dated 13.04.2016 Service Tax Finance Act 1994 5.13 Oct. 2010 to 2014-15
CIT (Appeals) Regular Assessment Income Tax Act 1961 507.82 AY 2006-07 to 2013-14
Appeals preferred by Dept. Appeal Income Tax Act 1961 331.95 AY 2003-04 to 2010-11
CIT (Appeals) Reassessment Income Tax Act 1961 100.14 AY 2007-08 to 2008-09

8. According to the information and explanations given to us and as per the books andrecords examined by us the company does not have any dues payable to any financialinstitutions banks and debenture holders.

9. Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

10. Based upon the audit procedures performed and the information and explanationsgiven by the management we report that The Company has identified a suspected fraudagainst it with regard to misappropriation of funds by its officers of NWR Region duringthe year.

The said case has been referred to investigative Agency and the matter is underinvestigation as on date. The amount involved in the said suspected fraud is Rs 1.83crore.

11. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of sections 197 readwith Schedule V to the Companies Act;

12. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the order are not applicable to the Company.

13. In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

14. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clauses 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.

15. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions clause 3 (xv) of theorder not applicable to the company and hence not commented upon.

16. In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

For Kumar Vijay Gupta & Co.
Chartered Accountants
FRN: 07814N
(CA Pawan Garg)
Place: New Delhi Partner
Date: 25th May 2016 Membership No.: 097900

ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF CONTAINER CORPORATION OF INDIA LIMITED

Report on the internal Financial Controls under Clauses (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ContainerCorporation of India Limited ("the Company") as of March 312016 in conjunctionwith our audit of the standalone financial statement 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") and the Standards on Auditing to the extent applicable toan audit of internal financial controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 controls based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material 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 qualified audit opinion on the Company's internal financialcontrols system over financing 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 gernerallyaccepted 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 the receipts andexpenditures 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 Limitation of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collision 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 control 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

According to the information and explanation given to us and based on our audit thefollowing material weaknesses have been identified as at March 312016:

The company has identified a suspected fraud against it with regard to misappropriationof funds by its officers of NWR Region during the year. The said case has been referred toInvestigating Agency and the matter is under investigation as on date. The amount involvedin the said suspected fraud is Rs 1.83 crore.

A 'material weakness' is a deficiency or a combination of deficiencies in internalfinancial control over financial reporting such that there is a reasonable possibilitythat a material misstatement of the company's annual or interim financial statements willnot be prevented or detected on a timely basis.

In our opinion except for the possible effects of the material weakness describedabove on the achievement of the objectives of the control criteria the Company hasmaintained in all material respects adequate internal financial controls over financialreporting and such internal financial controls over financial reporting were operatingeffectively as of March 31 2016 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.

We have considered the material weaknesses identified and reported above in determiningthe nature timing and extent of audit test applied in our audit of the March 312016standalone financial statement of the Company and these material weaknesses do not affectour opinion on the standalone financial statement of the Company.

For Kumar Vijay Gupta & Co.
Chartered Accountants
FRN: 07814N
(CA Pawan Garg)
Place: New Delhi Partner
Date: 25th May 2016 Membership No.: 097900

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard