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CG Power & Industrial Solutions Ltd.

BSE: 500093 Sector: Engineering
NSE: CGPOWER ISIN Code: INE067A01029
BSE LIVE 15:40 | 14 Dec 84.40 -1.25
(-1.46%)
OPEN

85.65

HIGH

86.10

LOW

83.30

NSE 15:56 | 14 Dec 84.15 -1.55
(-1.81%)
OPEN

85.40

HIGH

86.20

LOW

83.10

OPEN 85.65
PREVIOUS CLOSE 85.65
VOLUME 159454
52-Week high 97.30
52-Week low 55.60
P/E 35.61
Mkt Cap.(Rs cr) 5,290
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 85.65
CLOSE 85.65
VOLUME 159454
52-Week high 97.30
52-Week low 55.60
P/E 35.61
Mkt Cap.(Rs cr) 5,290
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

CG Power & Industrial Solutions Ltd. (CGPOWER) - Auditors Report

Company auditors report

(formerly known as Crompton greaves limited)

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of CG Power andIndustrial Solutions Limited (Formerly known as Crompton Greaves Limited) (the"Company") which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information (hereinafterreferred to as "the standalone Ind AS financial statements").

Management's Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance including Other Comprehensive Income Cash Flowsand Changes in Equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards specified underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended.

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 the 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 standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based 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 the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sBoard of Directors as well as evaluating the overall presentation of the standalone IndAS financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs oftheCompany as at 31st March 2017 and its profit (including Other

Comprehensive Income) its Cash Flows and Changes in Equity 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 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 in paragraphs 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 (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the relevant books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended;

(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 terms of Section164(2) of the Act;

(f) With respect to the adequacy ofthe internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure ‘B'; and

(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 standalone Ind AS financial statements (Refer Note 39 to the standaloneInd AS financial statements);

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

(3) there has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company; and

(4) The Company has provided requisite disclosures in Note 40 to these standalone IndAS financial statements as to the holdings of Specified Bank Notes on November 8 2016 andDecember 30 2016 as well as dealings in Specified Bank Notes during the period fromNovember 8 2016 to December 30 2016. Based on audit procedures performed and therepresentations provided to us by the management we report that the disclosures are inaccordance with the books of account maintained by the Company and as produced to us bythe Management.

For SHARP & TANNAN For CHATURVEDI & SHAH

CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS

Firm's Registration No.109982W Firm's Registration No.101720W

Vinayak M. Padwal PARTNER

Membership No. 049639

Place: New Delhi Dated: 26th May 2017

Parag D. Mehta PARTNER

Membership No. 113904

(i) In respect of its fixed assets:

(a) The Company has maintained 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 other than inventory lying with third parties. In our opinion thefrequency of such verification is reasonable. In respect of inventory lying with thirdparties we have relied on the confirmations obtained by the management from such parties.The discrepancies noticed on such verification which were not material have beenproperly dealt 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 principal 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 grant ofloans making investments providing guarantees and securities.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public during the year. Accordingly the Paragraph 3(v) ofthe 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 and on the basis of our examination of the records of the Company amount deducted /accrued in the books of account in respect of undisputed statutory dues includingprovident fund employees' state insurance duty of customs duty of excise sales taxvalue added tax entry tax service

tax income tax cess and any other statutory dues have generally been regularlydeposited with the appropriate authorities though there has been a slight delay in fewcases with regards to sales tax entry tax service tax and income tax (tax deducted atsource).

According to the information and explanations given to us no undisputed amount payablein respect of provident fund employees' state insurance income tax sales tax servicetax duty of customs duty of excise value added tax cess and other material statutorydues were in arrears as at 31st March 2017 for a period of more than six months from thedate 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 been deposited onaccount of a dispute pending are as under:

Name of the Statute Nature of the disputed dues Amount ' crore* Period to which the amount relates Forum where disputes is pending
The Income Tax Act 1961 Tax Interest and Penalty 13.15 2011-12 2013-14 Commissionerate (Appeals)
The Central Excise Act 1944 The Customs Act 1962 and Service Tax Duty Service tax Interest and Penalty 0.21 2001-02 and 2002-03 High Court
under the Finance Act 1994 10.77 1991-92 1999-00 to 2014-15 Tribunal / CESTAT
17.87 2002-03 to 2015-16 Commissionerate (Appeals)
The Central Sales Tax Act 1956 Local Sales Tax Act and Works Contract Tax Act Tax Interest and Penalty 1.14 1989-90 1991-92 1996-97 1999-00 2006-07 High Court
50.94 1992-93 1994-95 1996-97 2000-01 to 2003-04 2005-06 to 2008-09 2011-12 2014-15 CESTAT / Tribunal
106.42 1997-98 to 1999-00 2001-02 to 2014-15 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 banks. The Company has not taken any loans or borrowings from financialinstitutions and Government. The Company has not issued any debentures.

(ix) According to the information and explanations given to us the Company has notraised money 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 standalone Ind AS financialstatements etc. as required by the applicable Indian 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.

For SHARP & TANNAN For CHATURVEDI & SHAH
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
Firm's Registration No.109982W Firm's Registration No.101720W

 

Vinayak M. Padwal Parag D. Mehta
PARTNER PARTNER
Membership No. 049639 Membership No. 113904

Place: New Delhi Dated: 26th May 2017

We have audited the internal financial controls over financial reporting of CG Powerand Industrial Solutions Limited (Formerly known as Crompton Greaves Limited) (the"Company") as of 31st March 2017 in conjunction with our audit of thestandalone Ind AS financial statements of the Company for 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 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's policiesthe safeguarding 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"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 standalone Ind AS financial statements whether due to fraudor 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 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 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.

For SHARP & TANNAN For CHATURVEDI & SHAH
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
Firm's Registration No.109982W Firm's Registration No.101720W
Vinayak M. Padwal Parag D. Mehta
PARTNER PARTNER
Membership No. 049639 Membership No. 113904

Place: New Delhi Dated: 26th May 2017