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CG Power & Industrial Solutions Ltd.

BSE: 500093 Sector: Engineering
NSE: CGPOWER ISIN Code: INE067A01029
BSE 00:00 | 22 May 5.65 -0.06
(-1.05%)
OPEN

5.67

HIGH

5.99

LOW

5.57

NSE 00:00 | 22 May 5.60 -0.10
(-1.75%)
OPEN

5.70

HIGH

5.95

LOW

5.55

OPEN 5.67
PREVIOUS CLOSE 5.71
VOLUME 209731
52-Week high 39.95
52-Week low 4.69
P/E
Mkt Cap.(Rs cr) 354
Buy Price 5.58
Buy Qty 25.00
Sell Price 5.75
Sell Qty 1.00
OPEN 5.67
CLOSE 5.71
VOLUME 209731
52-Week high 39.95
52-Week low 4.69
P/E
Mkt Cap.(Rs cr) 354
Buy Price 5.58
Buy Qty 25.00
Sell Price 5.75
Sell Qty 1.00

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

Company auditors report

TO THE MEMBERS OF CROMPTON GREAVES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Crompton Greaves Limited (the'Company') which comprise the Balance Sheet as at 31st March 2014 the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the accounting standards referred to in Section 211(3C) of theCompanies Act 1956 read with the General Circular No.15/2013 dated 13th September 2013of the Ministry of Corporate Affairs with respect to Section 133 of the Companies Act2013. This responsibility includes the design implementation and maintenance of internalcontrol relevant to the preparation and presentation of the financial statements that givea true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofthe Company's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Companies Act1956 in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2014;

(b) in the case of the Statement of Profit and Loss of the profit for the year endedon that date; and

(c) in case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2003 and as amended by theCompanies (Auditor's Report) (Amendment) Order 2004 (together the 'Order') issued by theCentral Government of India in terms of Section 227 (4A) of the Companies Act 1956 wegive in the Annexure a statement on the matters specified in Clauses 4 and 5 of theOrder.

2. As required by Section 227(3) of the Companies Act 1956 we report that:

(a) we have obtained all information and explanations which to the best of ourknowledge 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 appears from our examination ofthose books;

(c) the Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this report are in agreement with the books of account;

(d) in our opinion the Balance Sheet the Statement of Profit and Loss and the CashFlow Statement comply with the accounting standards referred to in Section 211 (3C) of theCompanies Act 1956 read with the General Circular No.15/2013 dated 13th September 2013of the Ministry of Corporate Affairs with respect to Section 133 of the CompaniesAct2013; and

(e) on the basis of the written representations received from directors of the Companyas on 31st March 2014 and taken on record by the Board of Directors we report that noneof the directors is disqualified as on 31st March 2014 from being appointed as adirector in terms of Section 274 (1)(g) of the Companies Act 1956.

SHARP & TANNAN
CHARTERED ACCOUNTANTS
Firm's Registration No.109982W
by the hand of
Milind P. Phadke
PARTNER
Mumbai 29th May 2014 Membership No. 033013

ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT (referred to in paragraph 1 of our reportof even date)

(i) (a) The Company is maintaining proper records to show full particulars includingquantitative details and situation of all 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 opinionis reasonable considering the size of the Company and nature of its assets. The frequencyof physical verification is reasonable and no material discrepancies were noticed on suchverification.

(c) The Company has not disposed of any substantial part of its fixed assets during theyear so as to affect its going concern status.

(ii) (a) As explained to us the inventories have been physically verified by themanagement during the year. In our opinion the frequency of such verification isreasonable.

(b) As per the information given to us the procedures of physical verification ofinventory followed by the management are in our opinion reasonable and adequate inrelation to the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory. The discrepancies noticedon verification between the physical stocks and the book records which were not materialhave been properly dealt with in the books of account.

(iii) (a) According to the information and explanations given to us the Company hasnot granted any loans secured or unsecured to companies Arms and other parties coveredin the register maintained under Section 301 of the Companies Act 1956. AccordinglyClauses 4(iii) (b) (c) and (d) of the Order are not applicable to the Company.

(b) According to the information and explanations given to us the Company has nottaken any loans secured or unsecured from companies Arms and other parties covered inthe register maintained under Section 301 of the Companies Act 1956. Accordingly Clauses4(iii) (f) and (g) of the Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to usthere is adequate internal control system commensurate with the size of the Company andnature of its business for the purchase of inventory and fixed assets and for the sale ofgoods and services. During the course of audit we have neither come across nor have beeninformed of any continuing failure to correct major weaknesses in the aforesaid internalcontrol system.

(v) (a) According to the information and explanations given to us we are of theopinion that the particulars of contracts or arrangements that need to be entered in theregister maintained under Section 301 of the Companies Act 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us thetransactions made in pursuance of such contracts or arrangements entered in the registermaintained under Section 301 of the Companies Act 1956 and exceeding the value of rupeesAve lakhs in respect of any party during the year have been made at prices which arereasonable having regard to the prevailing market prices at the relevant time.

(vi) The Company has accepted deposits from the public and in our opinion and accordingto the information and explanations given to us the directives issued by the Reserve Bankof India and the provisions of Sections 58A 58AA and other relevant provisions of theCompanies Act 1956 and the rules framed thereunder where applicable have been compliedwith. We are informed that no order has been passed by the Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any Court or any otherTribunal.

(vii) In our opinion the Company has an internal audit system commensurate with itssize and nature of its business.

(viii) We have broadly reviewed the books of account and records maintained by theCompany pursuant to the rules prescribed by the Central Government for the maintenance ofcost records under Section 209 (1) (d) of the Companies Act 1956 and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained. Thecontents of these accounts and records have not been examined by us.

(ix) (a) According to the information and explanations given to us

in our opinion the Company has been regular in depositing undisputed statutory duesincluding provident fund investor education and protection fund employees stateinsurance income-tax sales tax wealth tax service tax custom duty excise duty cessand other statutory dues as applicable with the appropriate authorities. According tothe information and explanations given to us no undisputed amounts were in arrears as at31st March 2014 for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of income tax sales tax service tax exciseduty custom duty and cess as at 31st March 2014 which have not been deposited onaccount of a dispute are as under:

Name of the Statute Nature of the disputed dues Amount ~ crore* Period to which the amount relates Forum where disputes are pending
The Income Tax Act 1961 Tax interest and penalty 39.93 2007-08 2008-09 and 2010-11 Commissionerate (Appeals)
The Central Sales Tax Act 1956 Local Sales Tax Acts and Works Contract Tax Act Tax interest and penalty 1.16 1989-90 1991-92 1996-97 1999-2000 2005-06 to 2008-09 High Court
12.86 1992-93 1994-95 1996-97 to 1998-99 2000-01 to 2003-04 2005-06 to 2008-09 Tribunal / cestat
34.52 1998-99 to 2011-12 Commissionerate (Appeals)
The Central Excise Act 1944 the Customs Act 1962 and Service tax under the Finance Act 1994 Duty service tax interest and penalty 0.25 2001- 02 2002- 03 2004-05 to 2007-08 High Court
10.82 1991-92 1999-2000 to 2001-02 2003-04 to 2010-11 2013-14 CESTAT / Tribunal
4.11 2001-02 to 2012-13 Commissionerate (Appeals)

(*net of pre-deposit paid in getting the stay / appeal admitted)

(x) The Company has no accumulated losses as at 31st March 2014 and it has notincurred any cash losses in the financial year ended on that date and in the immediatelypreceding financial year.

(xi) According to the information and explanations given to us the Company has notdefaulted in the repayment of dues to any financial institutions or banks as at thebalance sheet date. The Company has not issued any debentures.

(xii) According to the information and explanations given to us the Company has notgranted any loans and advances on the basis of security by way of pledge of sharesdebentures and other securities. Accordingly the Clause 4(xii) of the Order is notapplicable to the Company.

(xiii) The provisions of any special statute applicable to chit fund / nidhi / mutualbenefit fund / societies are not applicable to the Company.

(xiv) In our opinion and according to the information and explanations given to us theCompany is not dealing in or trading in securities. The Company has invested surplus fundin mutual funds. According to the information and explanations given to us proper recordshave been made of the transactions and contracts and timely entries have been madetherein. The investments in mutual funds have been held by the Company in its own name.

(xv) In our opinion and according to the information and explanations given to us theterms and conditions of guarantee given by the Company for loans taken by others frombanks or financial institutions are not prima facie prejudicial to the interests of theCompany.

(xvi) In our opinion and according to the information and explanations given to us theterm loans have been applied for the purposes for which they were obtained.

(xvii) According to the information and explanations given to us and on overallexamination of the balance sheet of the Company we report that no funds raised onshort-term basis have been used for long-term investments.

(xviii) The Company has not made any preferential allotment of shares to parties orcompanies covered in the register maintained under Section 301 of the Companies Act 1956during the year.

(xix) The Company has not issued any debentures during the year. Accordingly theClause 4(xix) of the Order is not applicable to the Company.

(xx) The Company has not raised any money by public issues during the year.Accordingly the Clause 4(xx) of the Order is not applicable to the Company.

(xxi) During the course of our examination of books and records of the Company carriedout in accordance with the generally accepted auditing practices in India and accordingto the information and explanations given to us we have neither come across any instancesof material fraud on the Company and no fraud by the Company noticed or reported duringthe year nor have we been informed of such case by the management.

SHARP & TANNAN
CHARTERED ACCOUNTANTS
Firm's Registration No.109982W
by the hand of
Milind P. Phadke
PARTNER
Mumbai 29th May 2014 Membership No. 033013