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Star Cement Ltd.

BSE: 540575 Sector: Industrials
NSE: STARCEMENT ISIN Code: INE460H01021
BSE LIVE 15:40 | 17 Nov 112.05 0.90
(0.81%)
OPEN

111.00

HIGH

113.20

LOW

110.20

NSE 15:45 | 17 Nov 112.60 1.65
(1.49%)
OPEN

113.00

HIGH

113.50

LOW

111.00

OPEN 111.00
PREVIOUS CLOSE 111.15
VOLUME 18674
52-Week high 135.00
52-Week low 102.00
P/E 64.40
Mkt Cap.(Rs cr) 4,697
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 111.00
CLOSE 111.15
VOLUME 18674
52-Week high 135.00
52-Week low 102.00
P/E 64.40
Mkt Cap.(Rs cr) 4,697
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

STAR CEMENT LIMITED

(Formerly Cement Manufacturing Company Limited)

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements ofStar Cement Limited ('the Company') which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these standalone financial statements that give a true andfair view of the financial position financial performance and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting 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 controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalonefinancial statements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the standalone financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone financial statements that give atrue 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'sDirectors as well as evaluating the overall presentation of the standalone financialstatements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Financial Statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2017 and its profit and its cash flows for theyear 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 sub-section(11) of section 143 of the Act we give in the Annexure A a statement on the mattersspecified in the paragraph 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) in our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;

(c) the balance sheet the statement of profit and loss and the cashflow statement dealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014;

(e) on the basis of the written representations received from theDirectors as on 31st March 2017 taken on record by the Board of Directors none of theDirectors is disqualified as on 31st March 2017 from being appointed as a Director interms of Section 164 (2) of the Act;

(f) with respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B"; and

(g) with respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of its pending litigations onits financial position in its standalone financial statement - Refer Note 2.31 to thestandalone financial statement.

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

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

iv. The Company has provided requisite disclosures in its standalonefinancial statement as to holdings as well as dealings in Specified Bank Notes during theperiod from 8th November 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by the Company Refer to Note 2.39 to the standalone financialstatement.

For KAILASH B. GOEL & CO.
Firm Registration No. 322460E
Chartered Accountants
CA. Arun Kumar Sharma
Place : Kolkata Partner
Date : 30th May 2017 Membership No. 057329

ANNEXURE - A TO THE AUDITORS' REPORT

The Annexure referred to in Independent Auditors' Report to the membersof the Company on the Standalone Financial Statements for the year ended 31st March 2017we report that:

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets

(b) The fixed assets of the Company are physically verified bymanagement according to a phased programme on a rotational basis which in our opinion isreasonable having regard to the size of the Company and the nature of its fixed assets. Nomaterial discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

(ii) The inventory except goods in transit and materials lying withthird parties which have been substantially confirmed by them has been physicallyverified during the year by the management. In our opinion the frequency of verificationis reasonable and no material discrepancies were observed.

(iii) The Company has not granted loan to any body corporate covered inthe register maintained under section 189 of the Companies Act 2013 ('the Act'). So theprovision of paragraph 3(iii) are not applicable to the Company.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the loans and investments made.

(v) On the basis of our examination of books and record of the Companyin our opinion and according to the information and explanations given to us the Companyhas not accepted deposits during the year and therefore the directives issued by theReserve Bank of India and the provisions of sections 73 to 76 or any relevant provisionsof the Companies Act 2013 and the rules framed there under are not applicable to theCompany.

(vi) We have broadly reviewed the accounts and records maintained bythe Company pursuant to the rules made by the Central Government for the maintenance ofcost records under Section 148(1) of the Act. We are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have however not madea detailed examination of the said records with a view to determine that they areaccurate.

(vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted / accruedin the books of account in respect of undisputed statutory dues including provident fundemployees' state insurance income-tax sales tax service tax duty of customs duty ofexcise value added tax cess and any other statutory dues have been regularly depositedduring the year by the Company with the appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable in respect ofprovident fund employees' state insurance income tax sales tax value added tax dutyof customs duty of excise service tax cess and other material statutory dues were inarrears as at 31st March 2017 for a period of more than six months from the date theybecame payable except as detailed below.

Nature of Due Amount (H lacs)
Cement Clinker Cess 99.68

(b) According to the information and explanations given to us thereare no material dues of duty of customs income tax sales tax service tax and valueadded tax which have not been deposited with the appropriate authorities on account of anydispute. However according to information and explanations given to us the followingdues of duty of excise and service tax have not been deposited by the Company on accountof disputes:

Name of the Statute Nature of dues Amount (Rs. in lacs) Period to which amount relates Forum where dispute is pending
The Central Excise Act 1944 Excise Duty 72.92 2005-06 & 2006-07 CESTAT
The Central Excise Act 1944 Excise Duty 370.45 Apr-'09 to March-12 CESTAT
The Central Excise Act 1944 Excise Duty 57.18 2009-10 to 2013-14 CESTAT
The Central Excise Act 1944 Excise Duty 46.09 June 2014 Deputy Commissioner Central Excise Shillong
The Central Excise Act 1944 Excise Duty 105.93 April 2014 Commissioner Central Excise Shillong
The Central Excise Act 1944 Excise Duty 13.71 2006-07 and 2007-08 CESTAT
The Central Excise Act 1944 Excise Duty 4.75 Jan-'05 to Sep-'05 CESTAT
The Central Excise Act 1944 Excise Duty 4.50 Oct-'05 to Jul-'06 CESTAT
The Central Excise Act 1944 Excise Duty 0.74 Jan-'05 to Oct-'06 CESTAT

(viii) Based on our audit procedures and as per the information &explanation given by the management the Company has not defaulted in repayment of dues tofinancial Institution or Banks. The Company has not issued any debentures.

(ix) The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.Accordingly paragraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.

(xi) According to the information and explanations give

to us and based on our examination of the records of the Company theCompany has paid/provided for managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanations give to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with Directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For KAILASH B. GOEL & CO.
Firm Registration No. 322460E
Chartered Accountants
CA. Arun Kumar Sharma
Place : Kolkata Partner
Date : 30th May 2017 Membership No. 057329

ANNEXURE - B TO THE AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Star Cement Limited (Formerly Cement Manufacturing Company Limited)("the Company") as of 31 March 2017 in conjunction with our audit of thestandalone 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 andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting 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's 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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone financial statements whether due tofraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally 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 detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and Directors of theCompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the Company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2017 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For KAILASH B. GOEL & CO.
Firm Registration No. 322460E
Chartered Accountants
Place : Kolkata CA. Arun Kumar Sharma Partner
Date : 30th May 2017 Membership No. 057329