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Star Cement Ltd.

BSE: 540575 Sector: Industrials
NSE: STARCEMENT ISIN Code: INE460H01021
BSE LIVE 15:40 | 18 Aug 116.00 1.20
(1.05%)
OPEN

117.70

HIGH

117.70

LOW

112.50

NSE 15:47 | 18 Aug 116.05 2.05
(1.80%)
OPEN

115.00

HIGH

116.95

LOW

112.70

OPEN 117.70
PREVIOUS CLOSE 114.80
VOLUME 6811
52-Week high 135.00
52-Week low 109.15
P/E 86.57
Mkt Cap.(Rs cr) 4,863
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 117.70
CLOSE 114.80
VOLUME 6811
52-Week high 135.00
52-Week low 109.15
P/E 86.57
Mkt Cap.(Rs cr) 4,863
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Star Cement Ltd. (STARCEMENT) - Auditors Report

Company auditors report

To

The Members of CEMENT MANUFACTURING COMPANY LIMITED

Report on the Financial Statement

We have audited the accompanying standalone financial statements of CementManufacturing Company Limited ("the Company") which comprise the Balance Sheetas at 31st March 2015 and the Statement of Profit and Loss and Cash Flow Statement forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes the maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement 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 the Rules made there under.

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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment 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's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by management as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thestandalone 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: (i) in the case of the Balance Sheet ofthe state of affairs of the Company as at 31st March 2015; (ii) in the case of theStatement of Profit and Loss account of the Profit of the Company for the year ended onthat date; and (iii) in the case of Cash Flow Statement of the Cash flows of the Companyfor the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2015 ("the order")as amended issued by the Central Government of India in terms of sub-section (11) Section143 of the Act we give in the Annexure a statement on the matters specified in paragraphs3 and 4 of the said 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 purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books 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 written representations received from the Directors as on March 312015 and taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2015 from being appointed as a Director in terms of sub-section (2) ofsection 164 of the Act;

f) 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:

i. The Company has disclosed the impact of its pending litigations on its financialposition in its financial statements – Refer Note 2.30 to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Kailash B. Goel & Co.
Firm Registration No.322460E

Chartered Accountants

CA. Arun Kumar Sharma
Place: Kolkata

Partner

Date: 28th April 2015 Membership No. 57329

Annexure referred to in Paragraph (1) under the heading of "Report on Other Legaland Regulatory Requirements" of our report of even date.

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.

(b) The fixed assets of the Company are physically verified by management according toa phased programme on a rotational basis which in our opinion is reasonable having regardto the size of the Company and the nature of its fixed assets. No material discrepancieswere noticed on such verification.

2. (a) The inventory except goods in transit and materials lying with third partieswhich have been substantially confirmed by them has been physically verified during theyear by the management. In our opinion the frequency of verification is reasonable.

(b) The procedures of physical verification of inventory followed by the Management arereasonable and adequate in relation to the size of the Company and nature of its business.

(c) The Company is maintaining proper records of inventory. No material discrepancieshave been noticed on physical verification of Inventory as compared to book records

3. The Company has not granted any unsecured loan to company covered in the registermaintained u/s 189 of the Companies Act 2013. So the provisions of paragrapRs. 3(iii) arenot applicable to the Company.

4. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business. During the course of our audit no major weakness has been noticedin these internal controls.

5. On the basis of our examination of books and records of the Company in our opinionand according to the information and explanations given to us the Company has notaccepted deposits during the year and therefore the directives issued by the Reserve bankof India and the provisions of Sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rules framed there under are not applicable to the Company.

6. We have broadly reviewed the accounts and records maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records underSection 148(1) of the Act. We are of the opinion that prima facie the prescribed accountsand records have been made and maintained. We have however not made a detailedexamination of the said records with a view to determine that they are accurate.

7 (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including Income Tax and other statutory dues applicable to it.There are no undisputed amount payable in respect of Income tax and other applicableStatutory dues which were in arrears as at 31.03.2015 for a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of disputed taxes and duties as at March 31 2015which have not been deposited are asunder.

Name of the Statute Nature of the dues Amount Period to which amount relates Forum where dispute is pending
(Rs. in Lacs)
The Central Excise Act 1944 Excise Duty 19.97 2004-05 2005-06 & 2006-07 CESTAT
The Central Excise Act 1944 Excise Duty 72.92 2005-06 & 2006-07 CESTAT
The Central Excise Act 1944 Excise Duty 185.22 Aug'09 to March'12 Commissioner Central Excise Shillong.
The Central Excise Act 1944 Excise Duty/ Service Tax 28.54 2009-10 to 2013-14 Joint Commissioner Central Excise Shillong
The Income Tax Act1961 Income tax 968.33 2011-12 Commissioner of Income Tax(Appeal)
Total 1274.98

(c) According to the information & explanation give to us there is no such amountwhich is required to be transferred to investor education and protection fund inaccordance with the relevant provisions of the Companies Act 2013 and rules madethereunder.

8. The Company has no accumulated losses at the end of the financial year. It has notincurred cash losses during the financial year covered by our audit and in the immediatelypreceding financial year.

9. Based on our audit procedures and as per the information & explanation given bythe management the Company has not defaulted in repayment of dues to financialInstitution or Banks. The Company has not issued any debentures.

10. In our opinion and on the basis of information and explanations given to us theterms and condition of guarantee given by the Company for loans taken from banks by itstwo subsidiaries are not prima-facie prejudicial to the interests of the Company.

11. In our opinion and on the basis of information and explanations given to us theterm loans were applied for the purposes for which the loans were obtained.

12. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company noticed or reported during the year nor have webeen informed of any such case by the management.

For Kailash B. Goel & Co.
Firm Registration No.322460E

Chartered Accountants

CA. Arun Kumar Sharma
Place: Kolkata

Partner

Date: 28th April 2015 Membership No. 57329