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Crompton Greaves Ltd.

BSE: 500093 Sector: Engineering
NSE: CROMPGREAV ISIN Code: INE067A01029
BSE LIVE 15:44 | 02 Dec 76.10 -0.40
(-0.52%)
OPEN

76.60

HIGH

77.85

LOW

75.35

NSE LIVE 15:52 | 02 Dec 76.30 -0.10
(-0.13%)
OPEN

76.40

HIGH

77.85

LOW

75.45

OPEN 76.60
PREVIOUS CLOSE 76.50
VOLUME 152457
52-Week high 88.65
52-Week low 38.79
P/E
Mkt Cap.(Rs cr) 4769.57
Buy Price 0.00
Buy Qty 0.00
Sell Price 76.10
Sell Qty 1152.00
OPEN 76.60
CLOSE 76.50
VOLUME 152457
52-Week high 88.65
52-Week low 38.79
P/E
Mkt Cap.(Rs cr) 4769.57
Buy Price 0.00
Buy Qty 0.00
Sell Price 76.10
Sell Qty 1152.00

Crompton Greaves Ltd. (CROMPGREAV) - Auditors Report

Company auditors report

TO THE MEMBERS OF CROMPTON GREAVES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Crompton GreavesLimited (the ‘Company’) which comprise the Balance Sheet as at 31st March2016 the Statement of Profit and Loss the Statement of Changes in Equity and the CashFlows Statement for the year then ended and a summary of the significant accountingpolicies and other explanatory information.

Management’s 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 of 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 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 theauditor’s judgement including the assessment of the risks of material misstatementof the 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 financial statements that gives a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and reasonablenessof the accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven 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 31st March 2016 and its loss changes in equity and its cash flows for the yearended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 (the‘Order’) issued by the Central Government of India in terms of Section 143(11)of the Act we give in the Annexure ‘A’ a Statement on the matters specified inparagraphs 3 and 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 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 the Statement of Changes inEquity and the Cash Flow Statement dealt with by this report are in agreement with thebooks of account;

(d) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (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 ‘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 39 to 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) there has been no delay in transferring amounts required to be transferred toInvestor Education and Protection Fund by the Company.

SHARP & TANNAN CHARTERED ACCOUNTANTS
Firm’s Registration No.109982W by the hand of
Milind P Phadke
Mumbai 27th May 2016 PARTNER Membership No. 033013

ANNEXURE ‘A’ TO THE INDEPENDENT AUDITORS’ REPORT (referred to inparagraph 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 ofimmovable properties are held in the name of the Company.

(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 such verification which were not material have been properlydealt with in the books of account.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to firms limited liability partnerships or otherparties covered in the register maintained under Section 189 of the Act. The Company hasgranted unsecured loans to companies covered in the register maintained under Section 189of the Act:

(a) the terms and conditions are not prejudicial to the Company’s interest;

(b) the receipts of principle amounts and interest have been regular / as perstipulations; and

(c) there are no overdue amounts for more than ninety days.

(iv) According to the information and explanations given to us the Company hascomplied with the provisions of Sections 185 and 186 of the Act in respect of loansinvestments guarantees and security.

(v) According to the information and explanations given to us and the records examinedby us the Company has not accepted any deposits from the public during the year.Accordingly the Paragraph 3(v) of the Order is not applicable to the Company.

(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 with respect to its manufacturing activities and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. The contents of these accounts and records have not 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’ 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 18.94 2010-11 2012-13 Commissionerate (Appeals)
The Central Sales Tax Act 1956 Local Sales Tax Acts and Works Contract Tax Act Tax interest and penalty 1.11 1989-90 1999-00 1991-92 1996-97 High Court
26.54 1992-93 1994-95 2000-01 to 2010-11 2014-15 Tribunal / CESTAT
94.65 1999-00 1997- 98 1998- 99 2001-02 to 2014-15 Commissionerate (Appeals)
The Central Excise Act 1944 the Customs Act 1962 and Service Tax under the Finance Act 1994 Duty service tax interest and penalty 0.21 1986 -87 to 1988-89 2001-02 2002-03 2004-05 to 2007-08 High Court
11.09 1991-92 1998-99 to 2013-14 CESTAT / Tribunal
13.44 2002-03 to 2015-16 Commissionerate (Appeals)

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

(viii) According to the information and explanations given to us and as per the recordsof the Company examined by us the Company has not defaulted in repayment of loans orborrowings to financial institutions and banks. The Company has not taken any loans orborrowings from Government. The Company has not issued any debentures. Accordingly theParagraph 3(viii) of the Order is not applicable to the Company.

(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 explanations given to us on an overallbasis the term loans were applied for the purposes for which those were raised.

(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 or provided in accordance with the approvals mandated by theprovisions 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 transactions withthe related parties are in compliance with Sections 177 and 188 of the Act whereapplicable and the relevant details have been disclosed in the financial statements etc.as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us the Company has 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 him duringthe year. Accordingly the Paragraph 3(xv) of the Order is not applicable 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’s Registration No.109982W
by the hand of
Milind P Phadke
PARTNER
Mumbai 27th May 2016 Membership No. 033013

ANNEXURE ‘B’ TO THE INDEPENDENT AUDITORS’ REPORT (referred to inparagraph 2(f) of our report of even date)

We have audited the internal financial controls over financial reporting of CromptonGreaves Limited (the ‘Company’) as of 31st March 2016 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information 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 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 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 the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorisations of management and directors of the Company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisitionuse or disposition of the Company’s assets that could have a material effect on thefinancial 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’s Registration No.109982W by the hand of
Milind P Phadke
Mumbai 27th May 2016 PARTNER Membership No. 033013

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