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Crompton Greaves Consumer Electrical Ltd.

BSE: 539876 Sector: Engineering
NSE: CROMPTON ISIN Code: INE299U01018
BSE LIVE 15:40 | 22 Sep 211.35 -6.95
(-3.18%)
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216.55

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217.60

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210.00

NSE 15:57 | 22 Sep 210.95 -7.05
(-3.23%)
OPEN

217.95

HIGH

218.00

LOW

210.00

OPEN 216.55
PREVIOUS CLOSE 218.30
VOLUME 272825
52-Week high 246.00
52-Week low 135.05
P/E 47.18
Mkt Cap.(Rs cr) 13,246
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 216.55
CLOSE 218.30
VOLUME 272825
52-Week high 246.00
52-Week low 135.05
P/E 47.18
Mkt Cap.(Rs cr) 13,246
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Crompton Greaves Consumer Electrical Ltd. (CROMPTON) - Auditors Report

Company auditors report

To the Members of Crompton Greaves Consumer Electricals Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Crompton Greaves ConsumerElectricals Limited (the 'Company') which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the significant accounting policies and other explanatory information.

Management's Responsibilityforthe 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 thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adeguate accounting records in accordance withthe provisions of the Act for safeguarding of 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 Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards reguire that we comply with ethicalreguirements 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 judgement 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 gives a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its profit and 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 2016 (the 'Order') issued bythe Central Government of India in terms of Section 143(11) of the Act we give in theAnnexure 'A' a Statement 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

(e) on the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164 (2) of the Act; and

(f) 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';

(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:

(1) the Company has disclosed the impact of pending litigations on its financialposition in its financial statements - (Refer Note 28 to the financial statements);

(2) the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

(3) reporting on being no delay in transferring amounts required to be transferred toInvestor Education and Protection Fund by the Company is not applicable; and

(4) the Company has provided requisite disclosures in the financial statements as toholdings as well as in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. Based on audit procedures and relying onthe management representation we report that the disclosures are in accordance with thebooks of account maintained by the Company and as produced to us by the management -(Refer Note 44 to the financial statements).

SHARP & TANNAN

Chartered Accountants

Firm's Registration No.109982W

by the hand of

Edwin P. Augustine

Partner

Membership No. 043385

Mumbai 26th May 2017

ANNEXURE A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 of our report of even date)

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme a portion of the fixed assets has been physically verifiedby the management during the year and no material discrepancies have been noticed on suchverification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets.

(c) According to the information and explanations given to us the title deeds ofimmovable properties are generally in the name of the Company except in two cases offreehold land acquired consequent to the 'Scheme' - (Refer Note 43 to the financialstatements) with gross and net carrying amounts of ' 1.76 crores and ' 1.76 croresrespectively - (Refer Note 1 1 to the financial statements) in respect of which the deedsof conveyance is yet to be completed.

(ii) As explained to us inventories have been physically verified by the managementduring the year. In our opinion the frequency of such verification is reasonable. Nomaterial discrepancies were noticed on verification between the physical stocks and thebook records.

(iii) According to the information and explanations given to us the Company has notgranted loans secured or unsecured to companies firms limited liability partnerships orother parties covered in the register maintained under Section 189 of the Act.Accordingly the Paragraph 3(iii) of the Order is not applicable to the Company.

(iv) According to the information and explanations given to us the Company has notgranted any loan or given any guarantees or provided any security to the parties coveredunder Section 185 of the Act. Further the Company has not made any investment or givenany loan or given any guarantee or provided any security within the meaning of Section 186of the Act. Accordingly the Paragraph 3(iv) of the Order is not applicable to theCompany.

(v) The Company has not accepted any deposits from the public during the year to whichthe directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76and other relevant provisions of the Act and the rules framed thereunder apply.

(vi) The maintenance of cost records has been specified by the Central Government underSection 148(1) of the Act. We have broadly reviewed the cost records maintained by theCompany pursuant to the Companies (Cost Records and Audit) Rules 2014 as amendedprescribed by the Central Government under Section 148(1) of the Act and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. We have however not made a detailed examination of these accounts andrecords with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations

given to us 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 whereapplicable to the appropriate authorities. According to the information and explanationsgiven to us there are no arrears of outstanding statutory dues as at the last day of thefinancial year for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and the records examinedby us the particulars of income tax sales tax service tax duty of customs duty ofexcise and value added tax as at 31st March 2017 which have not beendeposited on account of a dispute pending are as under:

Name of the Statute Nature of the disputed dues Amount (Rs. crores)* Period to which the amount relates Forum where disputes are pending
The Income Tax Act 1961 Tax Interest and Penalty 14.83 2009- 10 2010- 11 Commissionerate (Appeals)
The Central Sales Tax Act Tax Interest and Penalty 0.06 1999-2000 High Court
1956 Local Sales Tax Acts and Works Contract Tax Act 32.04 1997-98 to 2016-17 Commissionerate (Appeals)
6.01 1994-95 1996-97 CESTAT/Tribunal
2000-01 to 2003-04
2006-07 to 2010-11
The Central Excise Act 1944 the Customs Act 1 962 and Service Tax under the Duty Service tax Interest and Penalty 0.04 2005-06 to 2010-11 CESTAT
Finance Act 1994 1.37 2001-02 Commissionerate (Appeals)

(*net of pre-deposit paid in getting the stay/appeal admitted)

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to financial institutions and banks. TheCompany has not taken any loans or borrowings from Government. The Company has issuedredeemable non-convertible debentures during the year however there are no dues forrepayment.

(ix) According to the information and explanations given to us the Company has notraised monies by way of initial public offer or further public offer (including debtinstruments). In our opinion and according to the information and explanations given tous on an overall basis the term loan has been applied for the purpose for which the termloan was obtained.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyfraud by the Company or any fraud on the Company by its officers or employees noticed orreported during the year nor have we been informed of such case by management.

(xi) According to the information and explanations given to us the managerialremuneration has been paid / provided in accordance with the requisite approvals mandatedby the provisions of Section 197 read with Schedule V to the Act.

(xii) According to the information and explanations given to us the Company is not aNidhi company. Accordingly the Paragraph 3(xii) of the Order is not applicable to theCompany.

(xiii) According to the information and explanations given to us all the transactionswith the related parties are in compliance with Sections 177 and 188 of the Act whereapplicable. The relevant details of such related party transactions have been disclosed inthe financial statements etc. as required under Accounting Standard (AS) 18 RelatedParty Disclosures specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(xiv) According to the information and explanations given to us the Company had notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. Accordingly the Paragraph 3(xiv) of the Order isnot applicable to the Company.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with ^ directors or persons connected with himduring the year. Accordingly the Paragraph 3(xv) of the Order is not applicable to theCompany.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

SHARP & TANNAN

Chartered Accountants

Firm's Registration No.109982W

by the hand of

Edwin P. Augustine

Partner

Membership No. 043385

Mumbai 26th May 2017

ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) of our report of even date)

Report on the Internal Financial Controls under Section 143(3)(i) of the Companies Act2013

We have audited the internal financial controls over financial reporting of CromptonGreaves Consumer Electricals Limited (the 'Company') as of 31st March 2017 inconjunction with our audit of the financial statements of the Company for the year endedon 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 Reporting (the'Guidance Note') issued 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 (the 'Act').

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 and the Standards on Auditing issued by The ICAI and deemed to beprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 judgement 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 to permit preparation of financial statements inaccordance with generally accepted accounting principles and that 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 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as of 31st 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 issued by theICAI.

SHARP & TANNAN

Chartered Accountants Firm's

Registration No.109982W

by the hand of

Edwin P. Augustine

Partner

Membership No. 043385

Mumbai 26th May 2017