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Cheviot Company Ltd.

BSE: 526817 Sector: Industrials
NSE: N.A. ISIN Code: INE974B01016
BSE 00:00 | 20 Mar 683.35 1.00
(0.15%)
OPEN

699.45

HIGH

700.00

LOW

680.00

NSE 05:30 | 01 Jan Cheviot Company Ltd
OPEN 699.45
PREVIOUS CLOSE 682.35
VOLUME 1024
52-Week high 1106.67
52-Week low 640.00
P/E 9.43
Mkt Cap.(Rs cr) 442
Buy Price 683.00
Buy Qty 15.00
Sell Price 690.00
Sell Qty 10.00
OPEN 699.45
CLOSE 682.35
VOLUME 1024
52-Week high 1106.67
52-Week low 640.00
P/E 9.43
Mkt Cap.(Rs cr) 442
Buy Price 683.00
Buy Qty 15.00
Sell Price 690.00
Sell Qty 10.00

Cheviot Company Ltd. (CHEVIOTCOMPANY) - Auditors Report

Company auditors report

TO THE MEMBERS OF CHEVIOT COMPANY LIMITED

Report on the Ind AS Financial Statements

1. We have audited the accompanying Ind AS financial statements of CHEVIOT COMPANYLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2018 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS Financial Statements

2. 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 ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed undersection 133 of the Act read with the Companies (Indian Accounting Standard) Rules 2015 asamended and other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these Ind AS financial statementsbased on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act and other applicableauthoritative announcements issued by Institute of Chartered Accountants of India. ThoseStandards and pronouncements require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the Ind AS financialstatements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the Ind AS financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe Ind AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

5. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

6. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in

conformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2018 and its profit total comprehensive incomeits cash flows and the changes in equity for the year ended on that date.

Other Matter

7. The corresponding financial information of the Company as at and for the year ended31st March 2017 and the transition date opening balance sheet as at 1st April 2016included in these Ind AS financial statements are based on the previously issuedfinancial statements for the years ended 31st March 2017 and 31st March 2016 preparedin accordance with the Companies (Accounting Standards) Rules 2006 (as amended) whichwere audited by the predecessor auditor on which an unmodified opinion was expressed videtheir audit report dated 24th May 2017 and 25th May 2016 respectively which is alsoexplained in Note No. 55 to the attached financial statements. These financial statementshave been adjusted for differences in accounting principles to comply with Ind AS and suchadjustments on transition to Ind AS which has been approved by the Company's Board ofDirectors have been audited by us.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

8. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein "Annexure A" a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

9. As required by Section 143(3) of the Actbased on our audit we reportto the extentapplicable 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 Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164(2) of the Act.

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 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 has disclosed the impact of pending litigations on its financialposition in its financial statements as stated in Note No. 43 to the financial statement;

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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. The disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from 8th November 2016 to 30th December 2016have not been made since they do not pertain to the financial year ended 31st March 2018.

For Singhi & Co.

Chartered Accountants Firm's Registration No. 302049E

Ankit Dhelia

Partner

Membership No. 069178

Place : Kolkata

Date : 23rd May 2018

Annexure 'A' to the Independent Auditors Report

(Referred to in paragraph 8 with the heading 'Report on Other Legal and RegulatoryRequirements' section of our report

of even date in respect to Statutory Audit of Cheviot Company Limited )

We report that:

i. In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to us fixed assets have been physically verified during the year bythe management at reasonable intervals and no material discrepancies have been noticed onsuch physical verification. In our opinion this periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company. However the company is in the process of registration ofcertain portion of land at Budge Budge in it's name.

ii. In respect of inventories physical verification has been conducted at reasonableintervals during the year by the management and in our opinion the frequency ofverification is reasonable. According to the information and explanation given to us nomaterial discrepancies were noticed on physical verification of inventories as compared tothe book records. Inventories lying with outside parties have been confirmed by them atthe year end.

iii. The Company has not granted any loan to parties covered in the register maintainedunder section 189 of the Companies Act 2013. Accordingly clause 3(iii) of the order isnot applicable to the company.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act with respectto the loans and investments made.

v. According to the information and explanations given to us the Company has notaccepted any deposits from public during the year. Accordingly clause 3(v) of the orderis not applicable to the Company.

vi. We have broadly reviewed the accounts and records maintained by the Companypursuant to the Order made by the Central Government for the maintenance of cost recordsunder Section 148(1) of the Companies Act 2013. We are of the opinion that prime-faciethe prescribed accounts and records have been made and maintained. However we have notcarried out a detailed examination of the same.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records

of the Company the Company is regular in depositing undisputed statutory duesincluding provident fund employee's state insurance income tax sales tax service taxduty of customs duty of excise value added tax cess and other statutory dues with theappropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome tax sales tax service tax duty of customs duty of excise value added tax cessand other material statutory dues were in arrears as at 31st March 2018 for a period ofmore than six months from the date they became payable.

(b) According to the information and explanation given to us the dues of sales taxincome tax duty of customs duty of excise service tax and value added tax which havenot been deposited on account of any dispute and the forum where the dispute is pending ason 31st March 2018 are as under :-

Name of the statute Nature of dues Amount

(Rs.)

Period to which the amount relates Forum where dispute is pending
West Bengal Sales Tax Act 1994 Sales Tax 0.22 F.Y. 1993-94 Revision Level
Income Tax Act 1961 Income Tax 6.36 F.Y. 2009-10 Assessing Officer
36.24 F.Y. 2010-11 Appeal Level
3.45 F.Y. 2011-12 Tribunal Level
15.81 F.Y. 2012-13 Appeal Level
19.62 F.Y. 2013-14 Appeal Level
Central Excise Act 1944 Excise Duty 4764.37 March-11 to February-13 Tribunal Level
Central Sales Tax Act 1956 Central Sales Tax 1.52 F.Y. 2014-15 Revision Level
Service Tax under the Finance Act 1994 Service Tax 0.81 F.Y. 2015-16 Commissioner Level

viii. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment of duesto banks or financial institutions. There were no debentures outstanding at any timeduring the year.

ix. The Company had raised money during the year by way of term loans and the same hasbeen applied for the purpose for which it was raised. The Company did not raise any moneyby way of initial public offer or further public offer (including debt instruments) duringthe year.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by

its officers or employees has been noticed or reported during the course of our audit.

xi. According to the information and explanations given to us and based on ourexamination of the records of the

Company the Company has paid/provided for managerial remuneration in accordance withthe requisite approvals mandated by the provisions of Section 197 read with Schedule V tothe Companies Act 2013.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly clause 3(xii) of the Order is not applicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting 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. Accordingly clause 3(xiv) of the order is not applicable to the Company.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly clause 3(xv) ofthe Order is not applicable.

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

For Singhi & Co.

Chartered Accountants Firm's Registration No. 302049E

Ankit Dhelia Partner

Membership No. 069178

Place : Kolkata Date : 23rd May 2018

Annexure - 'B' to the Independent Auditors' Report

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 CheviotCompany Limited ("the Company") as at 31st March 2018 in conjunction withour audit of the 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 internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 was 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material 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 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 controlsover financial reporting to future periods are subject to the risk that the internalfinancial control over financial reporting may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

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 2018 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 Singhi & Co.

Chartered Accountants Firm's Registration No. 302049E

Ankit Dhelia

Partner

Membership No. 069178

Place : Kolkata

Date : 23rd May 2018