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Crompton Greaves Consumer Electrical Ltd.

BSE: 539876 Sector: Engineering
NSE: CROMPTON ISIN Code: INE299U01018
BSE LIVE 13:42 | 06 Dec 145.50 0.50
(0.34%)
OPEN

144.25

HIGH

146.00

LOW

143.70

NSE LIVE 14:00 | 06 Dec 145.55 0.60
(0.41%)
OPEN

144.95

HIGH

146.20

LOW

144.25

OPEN 144.25
PREVIOUS CLOSE 145.00
VOLUME 9813
52-Week high 191.00
52-Week low 126.20
P/E 34.81
Mkt Cap.(Rs cr) 9119.21
Buy Price 145.45
Buy Qty 120.00
Sell Price 145.90
Sell Qty 100.00
OPEN 144.25
CLOSE 145.00
VOLUME 9813
52-Week high 191.00
52-Week low 126.20
P/E 34.81
Mkt Cap.(Rs cr) 9119.21
Buy Price 145.45
Buy Qty 120.00
Sell Price 145.90
Sell Qty 100.00

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

Company auditors report

To the Members of Crompton Greaves Consumer Electricals Limited Report on the FinancialStatements

We have audited the accompanying financial statements of Crompton Greaves ConsumerElectricals Limited (the Rs. Company Rs. ) which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss and the Statement of Cash Flows for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

Management Responsibility for the Financial Statements

The Company Board of Directors is responsible for the matters stated in Section 134(5)of the Companies Act 2013 (the Rs. Act Rs. ) 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 adequate 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 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 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 the auditorjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company preparation of the financialstatements that gives a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and reasonableness of the accounting estimates made by theCompany Directors as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our 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 2016 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 Report) Order 2016 (the Rs. Order Rs. )issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure Rs. A Rs. a Statement on the matters specified in paragraphs 3 and 4 ofthe Order to the 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) 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 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (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 Rs. B Rs. ;

(g) with respect to the other matters to be included in the Auditor 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 of the financial statements);

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

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

SHARP & TANNAN

Chartered Accountants

Firm Registration No.109982W

by the hand of

MILIND P. PHADKE

Partner

Membership No. 033013

Mumbai 18th May 2016

ANNEXURE Rs. A Rs. TO THE INDEPENDENT AUDITOR REPORT

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

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

(b) As explained to us these fixed assets have been physically verified by themanagement in accordance with a phased programme of verification which in our opinion isreasonable considering the size of the Company and nature of its assets. The frequency ofphysical verification is reasonable and no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us the title deeds ofcertain immovable properties are being transferred in the name of the Company. (Refer Note42 of the financial statements)

(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. Thediscrepancies noticed on verification between the physical stocks and the book recordswhich were not material have been properly dealt with in the books of account.

(iii) According to the information and explanations give 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 provisions ofSections 185 and 186 of the Act in respect of loans investments guarantees and securityare not applicable to the Company.

(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) We have broadly reviewed the books of account and records maintained by theCompany specified by the Central Government for the maintenance of cost records underSection 148(1) of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. The contents of these accounts and records havenot been examined by us.

(vii) (a) According to the information and explanations given to us the Company isgenerally regular in depositing undisputed statutory dues including provident fundemployees Rs. state insurance income tax sales tax service tax duty of customs dutyof excise value added tax cess and any other statutory dues where applicable to theappropriate authorities. According to the information and explanations given to us thereare no arrears of outstanding statutory dues as at the last day of the financial year fora 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 2016 which have not been deposited onaccount of a dispute pending are as under:

Name of the Statute Nature of the disputed dues Amount (Rs. crore)* Period to which the amount relates Forum where disputes are pending
The Income Tax Act 1961 Tax Interest and Penalty 11.71 2009-10 2010-11 Commissionerate (Appeals)
The Central Sales Tax Tax Interest and Penalty 0.06 1999-00 High Court
Act 1956 Local Sales Tax Acts and Works Contract Tax Act 13.10 1997 -98 to 2015-16 Commissionerate (Appeals)
2.50 1994-95 1996-97 2000-01 to 2003-04 CESTAT/Tribunal
2006-07 to 2010-11

 

Name of the Statute Nature of the disputed dues Amount (Rs. crore)* Period to which the amount relates Forum where disputes are pending
The Central Excise Act 1944 the Customs Act 1962 and Service Tax under the Finance Act 1994 Duty Service Tax Interest and Penalty 0.06 1.37 2005-06 to 2010-11 2001-02 CESTAT 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 not issuedany debentures.

(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 loans have been applied for the purpose for which theterm loans were 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 and provided in accordance with the provisions of Section 197read 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 and therelevant details have been disclosed in the Financial Statements etc. as required by theapplicable accounting standards.

(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 had notentered into any non-cash transactions with directors or persons connected with him duringthe year. Accordingly compliance with the provisions of Section 192 of the Act is notapplicable to the Company.

(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 Registration No.109982W

by the hand of

MILIND P. PHADKE

Partner

Membership No. 033013

Mumbai 18th May 2016

ANNEXURE Rs. B Rs. TO THE INDEPENDENT AUDITOR REPORT

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

We have audited the internal financial controls over financial reporting of CromptonGreaves Consumer Electricals Limited (the Rs. Company Rs. ) as of 31st March 2016 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management Responsibility for Internal Financial Controls

The Company 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 (theRs. Guidance Note Rs. ) issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 (the Rs. Act Rs.).

Auditors Rs. Responsibility

Our responsibility is to express an opinion on the Company internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note and the Standards on Auditing issued by ICAI and deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the ICAI. 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 control based on the assessed risk. The proceduresselected depend on the auditor 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 internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company internal financial control over financial reporting is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company 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 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 31st March 2016 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 Registration No.109982W

by the hand of

MILIND P. PHADKE

Partner

Membership No. 033013

Mumbai 18th May 2016

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