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Cantabil Retail India Ltd.

BSE: 533267 Sector: Industrials
NSE: CANTABIL ISIN Code: INE068L01016
BSE 00:00 | 01 Dec 363.50 23.95
(7.05%)
OPEN

353.35

HIGH

394.75

LOW

353.35

NSE 00:00 | 01 Dec 362.80 22.05
(6.47%)
OPEN

340.75

HIGH

395.00

LOW

340.75

OPEN 353.35
PREVIOUS CLOSE 339.55
VOLUME 18837
52-Week high 394.75
52-Week low 200.60
P/E 73.14
Mkt Cap.(Rs cr) 594
Buy Price 363.50
Buy Qty 41.00
Sell Price 366.25
Sell Qty 450.00
OPEN 353.35
CLOSE 339.55
VOLUME 18837
52-Week high 394.75
52-Week low 200.60
P/E 73.14
Mkt Cap.(Rs cr) 594
Buy Price 363.50
Buy Qty 41.00
Sell Price 366.25
Sell Qty 450.00

Cantabil Retail India Ltd. (CANTABIL) - Auditors Report

Company auditors report

To

The Members of

Cantabil Retail India Limited

Report on the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of CantabilRetail India Limited (the Company) which comprises the Balance Sheet as at March 31 2019the Statement of Profit and Loss (including Other Comprehensive Income) Statement ofChanges in Equity and statement of cash flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.

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 Ind AS and accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2019 and profit total comprehensive income thechanges in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor s Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone Ind AS financial statements under the provisions of the Companies Act 2013 andthe Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Key Audit Matters

Key Audit Matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements of the currentperiod. These matters were addressed in the context of our audit of the Standalone Ind ASfinancial statements as a whole and informing our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report

(i) Revenue Recognition

(As described in note 2.22 of the standalone Ind AS financial statements)

For the year ended March 31 2019 the Company hasrecognized revenue from contracts with customers amounting to Rs. 28855.08 lakhs. Our audit procedures included the following: policy prepared as per Ind AS 115 Revenue from contracts with customers .
Revenue from contracts with customers is recognised whencontrol of the goods or services are transferred to the customerat an amount that reflects the consideration to which theCompany expects to be entitled in exchange for those goodsor services. • Assessed the design and tested the operating effectiveness of internal controls related to revenue recognition discounts and rebates.
The Company has generally concluded that asprincipal it typically controls the goods or services beforetransferring them to thecustomer. • Performed sample tests of individual sales transaction and traced to sales invoices and other related documents. Further in respect of the samples checked that the revenue has been recognized as per theagreed terms.
The variety of terms that define when control are transferredto the customer as well as the high value of the transactionsgive rise to the risk that revenue is not recognized in the correctperiod.
Revenue is measured net of net of returns and allowances and trade discounts.
Revenue is also an important element of how the Company measures its performance. The Company focuses on revenueas a key performance measure which could create an incentivefor revenue to be recognized before the risk and rewards havebeen transferred. • To test cut off selected sample of sales transactions made pre- and post-year end agreeing the period of revenue recognition to third party support such as transporter invoice and customer confirmation of receipt of goods.
• Tested the calculations related to discounts by agreeing a sample of amounts recognized to underlying arrangements with customers and other supporting documents.
Accordingly due to the significant risk associated with revenuerecognition in accordance with terms of Ind AS 115 Revenuefrom contracts with customersit was determined to be a keyaudit matter in our audit of the standalone Ind AS financialstatements. • Performed monthly analytical procedures of revenue by streams to identify any unusual trends.
• Obtained confirmations from customers on sample basis to support existence of trade receivables and assessed the relevant disclosures made in the financial statements; to ensure revenue from contracts with customers are in accordance with the requirements of relevant accounting standards.
(ii) Contingent Liability under Indirect Tax Laws
(As described in note 59 of the standalone Ind AS financial statements)
As at March 31 2019 there is a contingent liability in respect of denial of CENVAT of service tax under Cen- tral Excise Act 1944 for the financial year 2012-13 amounting to Rs. 110.39 lakhs which are pending adju- dication with Hon ble High Court of Delhi. Our audit procedures includes review of opinion received from expert and the nature of amounts involved the sustainability and the likelihood of contingent liability upon final resolution.

We have determined that there are no other key audit matters to communicate in ourreport.

Information Other than the Standalone Ind AS financial Statements and Auditor s ReportThereon

The Company s Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisBoard s Report including Annexures to Board s Report Business Responsibility ReportCorporate Governance and Shareholder s Information but does not include the standaloneInd AS financial statements and our auditor s report thereon.

Our opinion on the standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone Ind AS financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management 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 of thesestandalone Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income changes in equityand cash flows of the Company in accordance with accounting principles generally acceptedin India including Indian Accounting Standards (Ind AS) prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate implementation and maintenance of accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone Ind AS financial statement that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements management is responsible forassessing the Company s ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are also responsible foroverseeing the company s financial reporting process.

Auditor s Responsibilities for the Audit of Standalone Ind AS financial Statement

Our objectives are to obtain reasonable assurance about whether the Standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor s report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has internal financial controls with reference to Financial Statements inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management s use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor s report to the related disclosures inthe standalone Ind AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor s report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind ASfinancialstatements for the financial year ended March 31 2019 and are therefore the keyaudit matters. We describe these matters in our auditor s report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor s Report) Order 2016 ( the Order ) issued bythe Central Government of India in terms of sub-section (11) of section 143 of theCompanies Act 2013 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 including the Statement of OtherComprehensive

Income the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended.

e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164 (2) of theAct.

f) With respect to the adequacy of the Internal Financial Control with reference toFinancial Statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in Annexure B . Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company s Internal financial controls overfinancial reporting.

g) In our opinion the managerial remuneration for the year ended March 31 2019 hasbeen paid/provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act.

h) 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 pending litigations on its financialposition in its standalone Ind AS financial statements Refer Note 59 to the Standalone IndAS financial statements;

(ii) The Company did not have any long-term contracts including derivative contractsfor which 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 Akhil Mittal & CO.
Chartered Accountants
(Firm s Registration No. 026177N)
CA Akhil Mittal
Place : New Delhi Partner
Date : May 23 2019 (Membership No. 517856)

Annexure A to the Independent Auditors Report

The Annexure referred to in our Independent Auditors Report to the members of theCompany on the standalone Ind AS financial statements for the year ended March 31 2019we report that:

i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

b) The Company has a regular program of physical verification of its fixed assets bywhich property plant and equipments are verified in a phased manner. In accordance withthis program certain property plant and equipments were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

c) According to the information and explanation given to us and on the basis of ourexamination of the records of the company the title deeds of the immovable propertiesincluded in property plant and equipmentare held in the name of the company.

ii. a) The management of the Company has conducted the physical verification ofinventory at reasonable intervals during the year.

b) The procedure of physical verification of inventory followed by the management isreasonable and adequate in relation to the size of the Company and nature of its business.

c) The Company has maintained the proper records of inventory and no materialdiscrepancies were noticed on physical verification.

iii. The Company has not granted any loans to companies firms or other parties coveredin the register maintained under section 189 of the Companies Act 2013 ( the Act ).

iv. The company has not granted any loans under provisions of section 185 and hascomplied with provisions of section 186 of the Companies Act 2013in respect of loansinvestments guarantees and security.

v. The Company has not accepted any deposits within the meaning of sections 73 to 76 ofthe act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3(v) of the order are not applicable.

vi. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act.

vii. a) The company is generally with appropriate authorities regular in depositingundisputed statutory dues including provident fund employees state insurance income-taxsales-tax service tax duty of customs duty of excise goods and services tax valueadded tax cess and any other statutory dues applicable to it.

b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fundemployees state insurance income-tax service taxsales-tax duty of custom duty of excise value added tax goods andservice tax cess andother material statutory dues were outstanding at the year end for a period of more thansix monthsfrom the date they became payable

c) According to the records of the companythe dues outstanding of employees stateinsurance income- tax sales-tax dutyof custom duty of excise goods and service taxcess and other statutory dues on account of any dispute are as follows:

Name of the statute Nature of dues Amount (in Rs) Period to which the amount relates Forum where dispute is pending
Central Excise Act 1944 Denial of CENVAT credit of Service Tax 86.35 lakhs September 2012 to February 2013 Hon ble High court of Delhi
Central Excise Act 1944 Denial of CENVAT credit of Service Tax 24.04 lakhs Marcch 2012 Hon ble High court of Delhi
Income Tax Act TDS Demand u/s 201(1) & 201 (1A) 5.56 lakhs FY 2010-11 Office of the Com- missioner of Income Tax (Appeals)-2

viii In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing to afinancial institution bank or Government.

ix. In our opinion and according to the information and explanations given by themanagement the Company has utilized themonies raised by way of term loans for thepurposes for which they were obtained. The Company has not raised any money byway ofinitial public offer/further public offer/debt instruments during the year.

x. In our opinion no material fraud by the company or on the Company by its officers oremployees has been noticed or reported during the course of our audit.

xi. In our opinion and according to the information and the explanations given to usand based on examination of records of the company the company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act.

xii. In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

xiii. In our opinion and according to the information and the explanations given to usand based on our examination of the records of the company all transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereever applicable and the details of such transactions have been disclosed in the FinancialStatements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv. According to the information and the explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him underthe provisions of section 192 of Companies Act 2013.

xvi. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Akhil Mittal & CO.
Chartered Accountants
(Firm s Registration No. 026177N)
CA Akhil Mittal
Place : New Delhi Partner
Date : May 23 2019 (Membership No. 517856)

Annexure - B to the Independent Auditor s Report of even date on the Standalone Ind ASfinancial statements of Cantabil Retail India Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of CantabilRetail India Limited (the company) as of March 31 2019 in conjunction with our audit ofthestandalone 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 internalfinancialcontrols based on the internal control over financial reportingcriteriaestablished by the Company considering the essential components of internalcontrol stated inthe Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued bythe Institute of Chartered Accountants of India( ICAI ). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operatingeffectively for ensuring the orderly and efficientconduct of its business including adherence tocompany s policies the safeguarding of itsassets the prevention and detection of frauds anderrors the accuracy and completeness ofthe accounting records and the timely preparation ofreliable financial information asrequired under the Companies Act 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Company s internal financialcontrols overfinancial reporting based on our audit. We conducted our audit in accordancewiththe Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the Guidance Note ) and the Standards on Auditing issued by ICAI and deemed to beprescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to anaudit ofinternal financial controls both applicable to an audit of Internal FinancialControls and bothissued by the Institute of Chartered Accountants of India. ThoseStandards and the GuidanceNote require that we comply with ethical requirements and planand perform the audit toobtain reasonable assurance about whether adequate internalfinancial controls over financialreporting was established and maintained and if suchcontrols operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacyofthe internal financial controls system over financial reporting and their operatingeffectiveness.Our audit of internal financial controls over financial reporting includedobtaining anunderstanding of internal financial controls over financial reportingassessing the risk that amaterial weakness exists and testing and evaluating the designand operating effectiveness ofinternal control based on the assessed risk. The proceduresselected depend on the auditor sjudgement including the assessment of the risks ofmaterial misstatement of the financialstatements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovidea basis for our audit opinion on the Company s internal financial controls systemoverfinancial reporting of the company.

Meaning of Internal Financial Controls over Financial Reporting

A company s internal financial control over financial reporting is a process designedto providereasonable assurance regarding the reliability of financial reporting and thepreparation offinancial statements for external purposes in accordance with generallyaccepted accountingprinciples. A company s internal financial control over financialreporting includes those policiesand procedures that

1. pertain to the maintenance of records that in reasonable detailaccurately andfairly reflect the transactions and dispositions of the assets of the company;

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparationof financial statements in accordance with generally accepted accountingprinciples and thatreceipts and expenditures of the company are being made only inaccordance withauthorisations of management and directors of the company; and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use ordisposition of the company s assets that could have amaterial 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 includingthe possibility of collusion or improper management override ofcontrols material misstatementsdue to error or fraud may occur and not be detected. Alsoprojections of any evaluation of theinternal financial controls over financial reportingto future periods are subject to the risk that theinternal financial control overfinancial reporting may become inadequate because of changes inconditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the company has in all material respects an adequate internalfinancialcontrols system over financial reporting and such internal financial controlsover financialreporting were operating effectively as at March 31 2019 based ontheinternal control over financial reporting criteria established by the Companyconsidering theessential components of internal control stated in the Guidance Note onAudit of InternalFinancial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Akhil Mittal & CO.
Chartered Accountants
(Firm s Registration No. 026177N)
CA Akhil Mittal
Place : New Delhi Partner
Date : May 23 2019 (Membership No. 517856)

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