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Crestchem Ltd.

BSE: 526269 Sector: Industrials
NSE: N.A. ISIN Code: INE293N01016
BSE LIVE 13:51 | 28 Nov 13.70 -0.40
(-2.84%)
OPEN

13.40

HIGH

13.70

LOW

13.40

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 13.40
PREVIOUS CLOSE 14.10
VOLUME 200
52-Week high 14.49
52-Week low 9.31
P/E
Mkt Cap.(Rs cr) 4
Buy Price 13.70
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00
OPEN 13.40
CLOSE 14.10
VOLUME 200
52-Week high 14.49
52-Week low 9.31
P/E
Mkt Cap.(Rs cr) 4
Buy Price 13.70
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00

Crestchem Ltd. (CRESTCHEM) - Auditors Report

Company auditors report

To the Members of

CRESTCHEM LIMITED Indrad(Kadi)

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Crestchem Limited(‘the Company’) which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss (including other comprehensive income) theStatement of Cash Flows and the Statement of Changes in Equity for the year then ended anda summary of the significant accounting policies and other explanatory information (hereinafter referred to as "Ind AS financial statements").

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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with relevant rules issued thereunder.

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 Ind ASfinancial 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 Ind AS financial statements basedon our audit.

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 of Ind AS financial statementsin accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe Ind AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of the Ind AS financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the Ind AS financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the financialposition of the Company as at 31st March 2017 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date.

Emphasis of Matter

During the earlieryears the company has sold / disposed off major Property Plant&Equipment like Land Factory Building and a significant portion of its Plant &Machinery. This condition indicates the existence of a material uncertainty that may castsignificant doubt about the Company’s ability to continue as a going concern.However Financial Statements of the Company have been prepared on a going concern basis.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of section 143(11) of theAct we give in the Annexure-A a statement on the matters specified in the paragraph 3and 4 of the order to the extent applicable.

2. As required by Section 143(3) of the Act we report that: (a) we have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. (b) in our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; (c) the balance sheet the statement of profit and loss thestatement of cash flows and the statement of changes in equity dealt with by this Reportare in agreement with the books of account; (d) in our opinion the aforesaid Ind ASfinancial statements comply with the Indian Accounting Standards specified under Section133 of the Act read with relevant rule issued thereunder; (e) on the basis of the writtenrepresentations received from the directors as on 31 March 2017 taken on record by theBoard of Directors none of the directors is disqualified as on 31 March 2017 from beingappointed as a director in terms of Section 164 (2) of the Act; (f) with respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate report in"Annexure B"; and (g) with respect to the other matters to be included in theAuditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 read with Companies (Audit and Auditors) Amendment Rules 2017 in our opinionand to the best of our information and according to the explanations given to us: i theCompany has disclosed the impact of pending litigations on its financial position in itsInd AS financial statements; ii. the Company did not have any long-term contractsincluding derivative contracts for which there were any material foreseeable losses; iii.there were no amounts which were required to be transferred to the Investor Education andProtection Fund by the Company.

iv. the Company has provided requisite disclosures in its Ind AS financial statementsas to holdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 9 to the Ind AS financial statements.

For TALATI & TALATI
Chartered Accountants
(Firm Reg. No 110758W)
AHMEDABAD (UMESH H.TALATI)
DATE: 30th May 2017 PARTNER
M.NO. 34834

ANNEXURE-A TO INDEPENDENT AUDITOR’S REPORT :

(Referred to in paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date.) i) In respect of itsFixed Assets:

a) The company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets on the basis of availableinformation.

b) As explained to us a major portion of the fixed assets has been physically verifiedby the management during the year in accordance with a phased program of verificationadopted by the Company. In our opinion the frequency of verification is reasonable havingregard to the size of the company and nature of its assets. As informed to us no materialdiscrepancies were noticed on such physical verification. c) There were no immovableproperty held by the company hence sub clause

(c) of Clause (i) of Paragraph (3) of Companies Auditor’s Report Order 2016 isnot applicable to the company. ii) As explained to us inventories were physicallyverified by the management at reasonable intervals during the year and there were nomaterial discrepancies noticed on Physical Verification by the management. iii) Accordingto the information and explanations given to us and on the basis of the records producedbefore us the company has not granted any Loan Secured or Unsecured to the companies orfirms or other parties covered in the register maintained under section 189 of theCompanies Act 2013 and hence sub-clause (a) (b) & (c) of clause (iii) of Paragraph 3of the Companies Auditor’s Report Order 2016 are not applicable to the Company. iv)In our opinion and according to the information and explanations given to us thecompany has not made any loans investments and guarantees to any party referred to insection 185 and 186 of Companies Act 2013. Hence Clause (iv) of Paragraph 3 of CompaniesAuditor’s Report Order 2016 is not applicable to the Company. v) In ouropinion and according to the information and explanations given to us the Company has notaccepted any deposit and hence the provisions of Section 73 to 76 or any other relevantprovisions of the Companies Act and the Companies (Acceptance of Deposits) Rules 2014with regard to the deposits accepted are not applicable to the Company.

Therefore the provisions of Clause (v) of paragraph 3 of the Companies Auditor’sReport Order 2016 are not applicable to the Company. According to the information andexplanations given to us no order has been passed by Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any Court or any other Tribunal. vi) Inour opinion and according to the information and explanation given to us the CentralGovernment of India has not prescribed the maintenance of Cost Accounting Records undersub Section (1) of Section 148 of the Companies Act 2013 andhence Clause (vi) ofParagraph 3 of Companies Auditor’s Report Order 2016 is not applicable to theCompany.

vii) In respect of the Statutory dues: a) The company is regular in depositingother statutory dues applicable to it. According to the information and explanations givento us and on the basis of records produced before us FBT of Rs. 42540/- is outstandingfor more than six months. Except above there are no undisputable amount payable in respectof Income Tax Sales Tax custom duty excise duty and cess were outstanding as at 31stMarch 2017 for a period of more than six months from the date they become payable. b)According to the records of the company there are no dues of Sales Tax Income TaxExcise Duty and Cess which have not been deposited on account of any dispute.

viii) On the basis of information and explanations given to us and on the basis ofrecords produced before us the company has not defaulted in repayment of loans orborrowing to a Financial Institution Bank and Government. And during the year thecompany has not raised money by issuing debentures and hence question of default inrepayment of dues to debenture holders does not arise. ix) During the period underreview the company has not raised any moneys by way of initial public offer or furtherpubic offer and term loans. Hence Clause (ix) of Paragraph 3 of Companies Auditor’sReport Order 2016 is not applicable to the Company.

x) In our opinion and according to the information and explanations given to us andbased on management representation no fraud by the company or any fraud on the company byits officers or employees has been noticed or reported during the year.

xi) On the basis of the information and explanation given to us and on the basis ofrecords produced before us managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013.

xii) As the company is not a Nidhi Company. Hence Clause (xii) Paragraph 3 ofCompanies Auditor’s Report Order 2016 is not applicable to the company.

xiii) According to the information and explanations given to us and based onmanagement representation all the transactions with the related parties are in compliancewith section 177 and 188 of Companies Act 2013

xiv) On the basis of the information and explanation given to us and on the basisof records produced before us the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review.

xv) On the basis of the information and explanation given to us and on the basis ofrecords produced before us the company has not entered into any non- cash transactionswith directors or persons connected with him. Hence Clause (xv) of Paragraph 3 ofCompanies Auditor’s Report Order 2016 is not applicable to the Company. xvi) TheCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For TALATI & TALATI
Chartered Accountants
(Firm Reg. No 110758W)
AHMEDABAD (UMESH H.TALATI)
DATE: 30th May 2017 PARTNER
M.NO. 34834

Annexure - B to the 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 internal financial controls over financial reporting of Company asof 31 March 2017 in conjunction with our audit of the financial statements of the Companyfor 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 safeguardingof its 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 ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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.

Disclaimer of Opinion

As informed to us the Company is under process of preparing documents pertaining toInternal Financial Control system and hence the same were not made available to us toenable us to determine if the Company has established adequate internal financial controlover financial reporting and whether such internal financial controls were operatingeffectively as at March 31 2017.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the Company and the disclaimer has affectedour opinion on the financial statements of the Company and we have issued a qualifiedopinion on the financial statements.

For TALATI & TALATI
Chartered Accountants
(Firm Reg. No 110758W)
AHMEDABAD (UMESH H.TALATI)
DATE: 30th May 2017 PARTNER
M.NO. 34834