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CCL International Ltd.

BSE: 531900 Sector: Others
NSE: N.A. ISIN Code: INE778E01031
BSE 11:16 | 22 Jun 17.60 -0.70
(-3.83%)
OPEN

17.50

HIGH

19.20

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17.50

NSE 05:30 | 01 Jan CCL International Ltd
OPEN 17.50
PREVIOUS CLOSE 18.30
VOLUME 230
52-Week high 21.50
52-Week low 4.26
P/E
Mkt Cap.(Rs cr) 34
Buy Price 17.60
Buy Qty 198.00
Sell Price 19.15
Sell Qty 5.00
OPEN 17.50
CLOSE 18.30
VOLUME 230
52-Week high 21.50
52-Week low 4.26
P/E
Mkt Cap.(Rs cr) 34
Buy Price 17.60
Buy Qty 198.00
Sell Price 19.15
Sell Qty 5.00

CCL International Ltd. (CCLINTERNATIONA) - Auditors Report

Company auditors report

To

The Members of

CCL INTERNATIONAL LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of CCL InternationalLimited ("the Company") which comprise the Balance Sheet as at 31st March2020 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the standalone financial statements").

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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2020 its profit and totalComprehensive Income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr. No. Key Audit Matter Auditor's Response
1. Revenue recognition over time in Construction contracts We have performed analytical reviews of revenue and margins reported and evaluated management's routines for follows up of the projects financial results and also discussed latter with management.
From financial year 2019-20 the Company has applied Ind AS 115 "Revenue from Contracts with Customers". The main portion of the Company's income relates to construction contracts. In all material respects revenue is related to construction projects and is recognized over time i.e applying percentage of completion. Thus revenue and costs in construction projects is recognized based on assumptions and estimates on future outcome as documented in the projected forecasts. These forecasts include estimates of costs for e.g. labour material subcontractors and defect liability. From time to time the latter may require updated estimates also for completed projects. As applicable forecasts also include assessment of claims on customer relating to e.g change or additional orders and deficiencies in tender conditions. The element of assumptions and estimates means that final results may deviate from those now reported. The size of the amounts involved combined with element of assumptions and estimates make this a key audit matter.
On the sample basis we have examined revenue and the recognized project cost on which the determination of completion ratio is based. We have also tested the mathematical accuracy of the percentage of completion profit calculation.
We have discussed with the company the principles methods and assumptions on which estimates are based including those forming the basis for defect liability provisions for projects already completed.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report CorporateGovernance and Shareholder's Information but does not include the standalone financialstatements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon. In connection with ouraudit of the standalone financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

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's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone 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 responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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 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 standalonefinancial 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 financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness 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 financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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 financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirement

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 ofthe 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 purpose 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 statement of changes in Equity and Statement of Cash Flow dealt with by thisReport are in agreement with the books of account;

d. In our opinion the aforesaid standalone financial statements comply with the IndianAccounting 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 312020 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of Section 164(2) of theAct.

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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company does not have any litigation on its financial position.

ii. The Company has not made provision as required under the applicable law oraccounting standards for material foreseeable losses if any on long-term contractsincluding derivative contracts.

iii. The company was not required to deposit or pay any dues in respect of the InvestorEducation and Protection Fund during the year.

For KPMC & Associates
Chartered Accountant
Firm Reg. No. 005359C
Date: 16.07.2020
Place: Ghaziabad (Sanjay Mehra)
Partner
M No. 075488
UDIN: 20075488AAAABJ3971

The Annexure-A 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 2020we report that:

1. In respect of Fixed Assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situations of Fixed Assets.

b. The fixed assets have been physically verified by the management during the year andno material discrepancies were noticed on such verification. In our opinion the frequencyof verification of the fixed assets is reasonable having regard to the size of the Companyand the nature of its assets.

c. The title deeds of all the immovable properties (which are included under the head'fixed assets') are held in the name of the Company.

2. In respect of Inventory:

a. The management has conducted physical verification of inventory at reasonableintervals during the year.

b. The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

c. The Company is maintaining proper records of inventory and no material discrepanciesbetween physical inventory and book records were noticed on physical verification.

3. The Company has not granted any loan secured or unsecured to companies firms orother parties covered in

the register maintained under Section 189 of the Act.

4. According to information and explanations given to us the Company has not grantedany loans or provided

any guarantees or security to the parties covered under Section 185 of the Act. TheCompany has complied with the provisions of Section 186 of the Act in respect ofinvestments made or loans or guarantee or security provided to the parties covered underSection 186.

5. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve

Bank of India and the provisions of Sections 73 to 76 or any other relevant provisionsof the Act and the Companies (Acceptance of Deposit) Rules 2015 with regard to thedeposits accepted from the public are not applicable.

6. According to the information and explanations given to us pursuant to the rulesprescribed by the Central

Government for the maintenance of cost records under section 148(1) of the CompaniesAct 2013 we have broadly reviewed the cost records and are of the opinion that primafacie the prescribed records have been made and maintained by the Company.

7.

(i) According to the information and explanations given to us and on the basis ofexamination of the records of the Company the Company is generally regular in depositingwith appropriate authorities undisputed statutory dues including income tax tds salestax service tax goods and service tax duty of customs duty of excise value added taxcess and any other material statutory dues whenever applicable. According to theinformation and explanations given to us no undisputed amounts payable in respect of theabove were in arrears as on 31st March 2019 for a period of more than six months from thedate on when they become payable.

(ii) According to the information and explanation given to us and records examined byus there are no dues of income tax service tax custom duty excise duty value addedtax goods and services tax & cess or any other statutory dues which have not beendeposited on account of any dispute except the amounts mentioned below:

Name of the statute Nature of dues Demand amount (Rs.) Amount paid (Rs.) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Demand u/s 148/147 222821760.00 10584758.00 AY 2011-12 CIT (Appeals) Delhi
Income Tax Act 1961 Demand u/s 154 167920.00 AY 2015-16 Income Tax Officer New Delhi
Income Tax Act 1961 Demand u/s 143(1a) 1907830.00 AY 2017-18 Income Tax Officer New Delhi

8. According to the information and explanations given to us the Company has notdefaulted in repayment of loans and borrowing to bankers & financial institutions. TheCompany does not have issued any debentures.

9. According to the information and explanations given to us the Company has notraised any moneys by way

of initial public offer or further public offer (including debt instruments). In ouropinion the term loans availed during the year were applied for the purposes for whichthe loans were obtained.

10. To the best of our knowledge and according to the information and explanation givento us no fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit.

11. According to the information and explanations given to us and based on ourexamination of records of the company the company has paid managerial remuneration inaccordance with the provisions of section 197 read with Schedule V to the Companies Act2013.

12. According to the information and explanations given to us the company is not NidhiCompany as prescribed under Section 406 of the Act.

13. According to the information and explanations given to us and based on ourexamination of records of the company all transactions with the related parties are incompliance with sections 177 and 188 of

Companies Act 2013 where ever applicable and the details of such transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards.

14. According to the information and explanations given to us and based on ourexamination of records of the company the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the year.

15. According to the information and explanations given to us and based on ourexamination of records of the company the company has not entered into any non-cashtransactions with directors or persons connected with them.

16. According to the information and explanation given to us the Company is notrequired to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For KPMC & Associates
Chartered Accountant
Date: 16.07.2020 Firm Reg. No. 005359C
Place: Ghaziabad (Sanjay Mehra)
Partner
M No. 075488
UDIN: 20075488AAAABJ3971

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

We have audited the internal financial controls over financial reporting of CCLInternational Limited ("the Company") as of 31st March 2020 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 controlsstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India ("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

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 on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 were established andmaintained and if such controls operated effectively in all material respects.

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 judgment 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 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 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 authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect onthe 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 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For KPMC & Associates Chartered Accountant Firm Reg. No. 005359C

Date: 16.07.2020
Place: Ghaziabad (Sanjay Mehra)
Partner
M No. 075488
UDIN: 20075488AAAABJ3971