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Coventry Coil-O-Matic (Haryana) Ltd.

BSE: 523415 Sector: Auto
NSE: N.A. ISIN Code: INE964D01013
BSE LIVE 13:49 | 25 Nov 2.35 -0.12
(-4.86%)
OPEN

2.35

HIGH

2.35

LOW

2.35

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 2.35
PREVIOUS CLOSE 2.47
VOLUME 200
52-Week high 6.77
52-Week low 2.35
P/E
Mkt Cap.(Rs cr) 1.06
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.35
CLOSE 2.47
VOLUME 200
52-Week high 6.77
52-Week low 2.35
P/E
Mkt Cap.(Rs cr) 1.06
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Coventry Coil-O-Matic (Haryana) Ltd. (COVENTRYCOIL) - Auditors Report

Company auditors report

To the Members of COVENTRY COIL-O-MATIC (HARYANA) LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of COVENTRY COIL-O-MATIC(HARYANA) LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2015 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 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 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.

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 there 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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating 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 qualified audit opinion on the financial statements.

Basis for Qualified Opinion

The company has not made provisions of Interest & Other Charges on Secured Loanstaken from Financial Institutions/ Banks Rs. 95640344 as per interim order of thedivisional bench of Punjab and Haryana high court Chandigarh as stated in Note No.–(viii) of Other notes 21(B)& 3 (a) had the Provision been made the Loss up to theyear after tax Rs. 39162312/- would have resulted in loss Rs.134802656/- Reserve& Surplus Deficit (Balance of Statement of Profit and Loss ) would have beenRs.178061169/- instead of Rs.82420825/-.

The company had given physical possession of Approx. 10 Acre land as stated in Note No.7 (b) whose approx. cost appearing in books is Rs.1202000 to Alchemist AssetReconstruction Company Ltd. assignees of IDBI & IFCI (Financial Institutions) on 8thMarch 13 as per the directions of the Hon'ble Supreme Court who re-affirmed the InterimOrders of Hon'ble Punjab & Haryana High Court Chandigarh of 09-08-2011. Since thiswas only an interim order and the amount is yet to be adjudicated no effect has beengiven in the Fixed Assets Schedule of the Accounts consequent effect of profit/loss onthe said land in these Accounts.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the basis for qualifiedopinion paragraph the aforesaid financial statements give the information required by theAct 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 2015 and its Loss and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to:

a) Note No. 21 (B) para (xv) (iii) to financial statement which describes contingentliability not provided for claims under adjudication

• in DRT-II New Delhi by KMBL for recovery of Rs.47206961;

• in DRT-I New Delhi by AARCL for recovery of the dues calculated on the IFCIDebts Rs. 1337025581; and

• in DRT-I New Delhi by AARCL for recovery of the dues calculated on the I.D.B.I.Debts Rs. 931519000 (The Company has also filed counter claims of more thanRs.5000000000 on both KMBL and AARCL.)

b) Note No. 21 (B) para (iii) to financial statement which describes AccountReconciliation/Confirmation in respect of certain accounts of Debtors have not beenreceived and they are subject to confirmations and reconciliation. The management is ofthe opinion that adjustment if any arising out of such reconciliation would not havematerial effect on the financial statement of current year.

c) Note No. 21 (B) para (iv) to financial statement which describes AccountReconciliation/Confirmation in respect of certain accounts of Vendor's have not beenreceived and they are subject to confirmations and reconciliation. The management is ofthe opinion that adjustment if any arising out of such reconciliation would not havematerial effect on the financial statement of current year.

Our opinion is not qualified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 ("theOrder") issued by the Central

Government of India in terms of sub-section (11) of section 143 of the Act we give inthe Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order tothe extent applicable.

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. Except forthe effects of matter described in the Basis for Qualified Opinion paragraph above in ouropinion proper books of account as required by law have been kept by the Company so faras 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. Except for the effects of matter described in the Basis for Qualified Opinionparagraph above 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 Basis for Qualified Opinion paragraph above may have anadverse effect on the fucntioning of the company.

f. On the basis of the written representations received from the directors as on 31stMarch 2015 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms of Section164 (2) of the Act.

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 (B) (xv) to the Financial Statements;

ii. The Company did not have any material foreseeable losses on long term contractsincluding derivative contracts;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor

Education & Protection Fund by the company.

For SINGHI & CO.
Chartered Accountants
Firm Registration No. 302049E
B.L. Choraria
Place: New Delhi Partner
Date: 30th May’2015 Membership No. 22973

Annexure referred to in paragraph 1 of our report of even date on the other legal andregulatory requirements

Re: COVENTRY COIL-O-MATIC (HARYANA) LIMITED

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

b. The management has made a policy to conduct physical verification once in a block of3 years. Hence no physical verification has been carried out during the year.

(ii) a. As explained to us inventories (exceptstock lying with third parties andin-transit) were physically verified during the year by the management. In respect ofinventory lying with third parties these have substantially been confirmed by them. Inour opinion the frequency of verification is reasonable.

b. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the management are reasonableand adequate in relation to the size of the Company and the nature of its business.

c. In our opinion and according to the information and explanation given to us theCompany is maintaining proper records of inventory and no material discrepancies werenoticed on physical verification wherever done.

(iii) The Company has not granted loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act.Accordingly the requirements of clauses (iii) (a) to (b) of the paragraph 3 of the orderare not applicable.

(iv) In our opinion and according to the information and explanations given to usthere is 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 no major weakness has beennoticed in internal control system.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of directivesissued by the Reserve Bank of India and hence provisions of Section 73 to 76 or any otherrelevant provisions of Companies Act 2013 and rules framed there under with regard to thedeposits accepted from the public are not applicable to the company.

(vi) The company is required to maintain cost records pursuant to the rules made by thecentral government for the maintenance of cost records under sub-section (1) of section148 of the Companies Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. We have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.

(vii) a. According to the records of the Company the Company is irregular indepositing undisputed statutory dues including provident fund employees’ stateinsurance income-tax sales taxservice tax duty of custom duty of excisevalueadded-tax cess and other statutory dues applicable to it with the appropriateauthorities. However there are no arrears at the year end for a period of more than sixmonths.

b. According to the information and explanation given to us and records of the Companythere are no dues outstanding of income tax sales tax wealth tax service tax duty ofcustom duty of excise value added tax or cess on account of any dispute other than thefollowing:

Name of Statue Nature of Dues Periods to which the amount pertain Amount (in Rs.) (Net of Deposit) Forum where dispute is pending
Central Excise Service Tax 2007-08 410613 CESTAT

(viii) The Company has accumulated losses at the end of the financial year which hascompletely eroded its net-worth and it has incurred cash loss in the current year and inthe immediately preceding financial year.

(ix) In regard to the default in repayment of Term Loan the divisional bench of Punjaband Haryana High Court Chandigarh has passed an interim order of total long term loan interest etc. for Rs. 185000000/-. The company has not made provision during the yearfor balance amount of Rs. 95640344 as referred to in note no.-(viii) of Other notes21(B).

(x) According to the information and explanations given to us the Company has notgiven any corporate guarantees in favour of financial institution/bank for loans taken byothers.

(xi) To the best of our knowledge and belief and according to the information andexplanations given to us term loans availed during the year by the Company were primafacie applied by the Company for the purpose for which loans were obtained.

(xii) Based on our examination of the books and records of the Company carried out inaccordance with the generally accepted auditing practice in India and according to theinformation and explanations given to us no fraud on or by the Company noticed orreported during the year.

For SINGHI & CO.
Chartered Accountants
Firm Registration No. 302049E
B.L. Choraria
Place: New Delhi Partner
Date: 30th May’2015 Membership No. 22973

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