You are here » Home » Companies » Company Overview » Cheviot Company Ltd

Cheviot Company Ltd.

BSE: 526817 Sector: Industrials
NSE: CHEVIOT ISIN Code: INE974B01016
BSE 00:00 | 27 Jun 1192.15 -8.55
(-0.71%)
OPEN

1191.00

HIGH

1208.00

LOW

1183.10

NSE 00:00 | 27 Jun 1192.35
(%)
OPEN

1209.95

HIGH

1211.65

LOW

1183.25

OPEN 1191.00
PREVIOUS CLOSE 1200.70
VOLUME 464
52-Week high 2055.55
52-Week low 1041.10
P/E 9.04
Mkt Cap.(Rs cr) 718
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1191.00
CLOSE 1200.70
VOLUME 464
52-Week high 2055.55
52-Week low 1041.10
P/E 9.04
Mkt Cap.(Rs cr) 718
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Cheviot Company Ltd. (CHEVIOT) - Auditors Report

Company auditors report

TO THE MEMBERS OF CHEVIOT COMPANY LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Cheviot Company Limited ("the Company") which comprise the balance sheet as at March 31 2021 and thestatement of profit and loss (including other comprehensive income) statement of changesin equity and statement of cash flows for the year then ended and notes to the financialstatements including a summary of the significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 ("Act") in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2021 and it's profit including other comprehensiveincome the changes 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) specified under section 143(10) of the Act. Our responsibilities under those SA's 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 thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that significance in ouraudit of the our professional judgement were of most financial statements of the currentperiod. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. For each matter below our description of how our auditaddressed the matter is provided in that context.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor'sresponsibilities for the audit of the financial statements section of our reportincluding in relation to these matters. Accordingly our audit included the performance ofprocedures designed to respond to our assessment of the risks of material misstatement ofthe financial statements. The results of our audit procedures including the proceduresperformed to address the matters below provide the basis for our audit opinion on theaccompanying financial statements.

The key audit matter How our audit addressed the key audit matter
Valuation of Inventories
Refer to note 14 to the financial statements. As described in the accounting policies in note 3.1 to the financial statements inventories are carried at the lower of cost and net realisable value. As a result the management applies judgment in determining the appropriate provisions for obsolete stock based upon a detailed analysis of old inventory net realisable value below cost based upon future plans for sale of inventory. We obtained assurance over the appropriateness of the management's assumptions applied in calculating the value of the inventories and related provisions by:-
1. Completing a walkthrough of the inventory valuation process and assessed the design and implementation of the key controls addressing the risk.
2. Verifying the effectiveness of key inventory controls operating over inventories; including sample based physical verification.
3. Verifying for a sample of individual products that costs have been correctly recorded.
4. Comparing the net realisable value to the cost price of inventories to check for completeness of the associated provision.
5. Reviewing the historical accuracy of inventory provisioning and the level of inventory write-offs during the year.
6. Recomputing provisions recorded to verify that they are in line with the Company policy.
Our Observation:
Based on the audit procedures performed we are satisfied that the valuation of inventories is appropriate.
B. Valuation and existence of Non-Current and Current Investments Our audit procedures included:
Refer note 9 and 15 to the financial statements. The company holds Non-Current and Current Investments amounting to Rs. 19324.90 lakhs and Rs. 12913.64 lakhs respectively which represents 43.61% of total assets as at March 31 2021.The Investments comprise of mutual funds debenture and bonds government securities preference shares and Alternate Investment Fund and are majorly actively traded with readily available quoted market prices / net assets value. The investments being financial instruments needs to be appropriately designated at fair value through profit or loss fair value through other comprehensive income (not to be recycled) or at amortised cost. Further these financial instruments need to be valued and classifiedas Level 1 2 or 3 financial instruments as per the fair value hierarchy. This was an area of focus for our audit and the area where significant audit effort was directed. 1. We understood assessed and tested the design and operating effectiveness of key controls surrounding fair valuation of investments.
2. We have obtained demat account holding statement / confirmations Mutual fund and Alternate Investment Fund statements to verify the existence and ownership of the Company's Investment portfolio.
3. We have verified on sample basis the fair valuation of all Investments held as at March 31 2021 to the Net Assets Value provided by the respective Mutual funds and Alternate Investment Funds market value of quoted equity and preference shares debenture and bonds and government securities from source data and tested the arithmetical accuracy of the calculation of valuation of investments.
4. We assessed the adequacy of the Company's disclosures.
Our Observation:
Based on the audit procedures performed we are satisfied with valuation and existence of non-current and current investment.

Information Other than the Financial Statements and Auditors'Report Thereon

The Company's management and Board of directors are responsible for the other information.The other information comprises the information included in the Company's annual report but does not includethe financial statements and our auditors' report thereon.

Our opinion on the 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 financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) ofthe Act with respect to the preparation of these financial statements that give a true andfair view of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgements and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error. statementsmanagement and Board of directors are responsible for assessing the Company's In preparing the financial ability tocontinue as a going concern disclosing as applicable matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso.

The Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the FinancialStatements

Our objectives are to obtain reasonable assurance about whether thefinancial statements as a material misstatement whether due to fraud or error and toissue an auditor's reportthat includes our opinion. Reasonable assurance is a high level of assurance but is not aguarantee that an audit conducted in accordance with SAs will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesefinancial statements. As part of an audit in accordance with SAs we exercise professionaljudgement and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial statements whether due design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company's ability to continue as a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date 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 thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the resultsof our work; and

(ii) to evaluate the effect of any identified misstatements in thefinancial statements. We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies our audit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditors' report unless law or regulation precludes public disclosure about the matter orwhen 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 Requirements

1. As required by the Companies (Auditors' Report) Order 2016 ("the Order") issued by the Central Government in terms of Section 143 (11) of the Act wegive 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 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 (including othercomprehensive income) the statement of changes in equity and the statement of cash flowsdealt with by this Report are in agreement with the books of account. statements complywith the Ind AS specified under Section 133 of the Act

d) In our opinion the aforesaid financial read with Companies (IndianAccounting Standards) Rules 2015 as amended

e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "AnnexureB".

g) In our opinion and according to the information and explanationsgiven to us the managerial remuneration for the year ended March 31 2021 has been paid /provided by the Company to its directors in accordance with the provisions of Section 197read with Schedule V to the Act.

h) With respect to the other matters to be included in the Auditors' Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations as atMarch 31 2021 on its financial position in its financial statements - Refer Note 46.1 tothe financial statements.

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

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund ("IEPF")by the Company.

For Singhi & Co.

Chartered Accountants

Firm's Registration No. 302049E

Ankit Dhelia

Place : Kolkata

Partner

Date : May 15 2021

Membership No. 069178

UDIN : 21069178AAAAAR1963

Annexure ‘A' to the Independent Auditors' Report

(Referred to in paragraph 1 with the heading Report on Other Legal and Regulatory Requirements' section of our report of even date inrespect to Statutory Audit of Cheviot Company Limited for the year ended March 312021) We report that:

i. In respect of its Property Plant & Equipment:

a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of property plant & equipment.

b) As explained to us property plant and equipment have beenphysically verified during the year by the management in a phased manner in accordancewith a planned programme of verifying them once in three years and no materialdiscrepancies have been noticed. In our opinion such physical verification thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

c) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties included in property plant & equipment are held in the name of theCompany. However the Company is in the process of registration of certain portion of landat Budge Budge in it's name.

ii. In respect of inventories physical verification has been conductedat reasonable intervals during the year by the management and in our opinion the frequencyof verification is reasonable. According to the information and explanation given to usno material discrepancies were noticed on physical verification of inventories as comparedto the 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 theregister maintained under Section 189 of the Companies Act 2013. Accordingly clause 3(iii) of the order is 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 Sections 185 and 186 of theAct with respect to the loans and investments made. The Company has neither issued anyguarantee nor has provided any security on behalf of any party.

v. According to the information and explanations given to us theCompany has not accepted any deposits from public within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended) during theyear. Accordingly clause 3 (v) of the order is not applicable to the Company. vi. We havebroadly reviewed the accounts and records maintained by the Company pursuant to the Ordermade by the Central Government for the maintenance of cost records under Section 148(1) ofthe Companies Act 2013. We are of the opinion that prime-facie the prescribed accountsand records have been made and maintained. However we have not carried out a detailedexamination of the same.

vii. (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company the Company is regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome tax goods and service tax sales tax service tax duty of customs duty ofexcise value added tax cess and other statutory dues with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of provident fund employees' state insurance income tax goods and service tax sales taxservice tax duty of customs duty of excise value added tax cess and other materialstatutory dues were in arrears as at March 31 2021 for a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanation given to us the duesof goods and service tax sales tax income tax duty of customs duty of excise servicetax and value added tax which have not been deposited on account of any dispute and theforum where the dispute is pending as on March 31 2021 are as under :-

Name of the statute

Nature of dues

Amount (` in lakhs)

Period to which the amount relates

Forum where dispute is pending

Income Tax Act 1961

Income Tax

31.04

F.Y. 2010-11

Commissioner of Income tax (Appeals)

23.91

F.Y. 2015-16

Commissioner of Income tax (Appeals)

40.13

F.Y. 2016-17

Commissioner of Income tax (Appeals)

53.46

F.Y. 2017-18

Commissioner of Income tax (Appeals)

viii. Based on our audit procedures and according to the informationand explanations given to us we are of the opinion that the Company has not defaulted inrepayment of dues to banks or financial institutions. There were no debentures outstandingat any time during the year. ix. In our opinion and according to the information andexplanations given to us the Company has not raised any monies by way of initial publicoffer or further public offer (including debt instruments) and term loan during the year.x. Based upon the audit procedures performed for the purpose of reporting true and fairview of the financial statements and according to the information and explanations givento us no material fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the year. xi. According to the information andexplanations given 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 explanations given to us the Companyis 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 our examination ofthe records of the Company transactions with the related parties are in compliance withSections 177 and 188 of the Act where applicable and details of such transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards. 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 our examination ofthe records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly clause 3 (xv) of the Order is notapplicable. xvi. The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.

For Singhi & Co.

Chartered Accountants

Firm's Registration No. 302049E

Ankit Dhelia

Place : Kolkata

Partner

Date : May 15 2021

Membership No. 069178

UDIN : 21069178AAAAAR1963

Annexure - 'B' to the Independent 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 with reference to these financial statements of CHEVIOT COMPANY LIMITED ("the Company") as of March 31 2021 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date.

Management's Responsibility for internal financial controls

The Board of Directors of the Company is responsible for establishingand maintaining 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 andmaintenance of adequate internal financial controls that were operating effectively forensuring the efficient conduct of its business including adherence to respective Company's policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financialcontrols over financial reporting with reference to these financial statements based onour audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards onAuditing prescribed under Section 143(10) of the Companies Act 2013 controls. ThoseStandards to the extent applicable to and the Guidance Note require that audit of internalfinancial we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting with reference to these financial statements was and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlsover financial reporting with reference to these financial statements and their operatingeffectiveness. statement included obtaining an understanding of internal financialinternal financial controls with reference to financial controls with reference tofinancial statement assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficientandappropriate to provide a basis for our audit opinion on the Company's internal financial controls over financial reporting withreference to these financial statements.

Meaning of internal financial controls over financial reporting withreference to these financial statements

A company'sinternal financial control over financial reporting with reference to these financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting statements for external purposes in accordance with generallyaccepted accounting principles. reporting with reference to these financial statementsincludes 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 that could have a materialeffect on the financial statements.

Limitations of Internal Financial Controls over financial reportingwith reference to these financial statements

Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls with reference to financial statement tofuture periods are subject to the risk that the internal financial control over financialreporting with reference to these financial statements may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls over financial reporting with reference to these financial statementsand such internal financial controls over financial reporting with reference to thesefinancial statements were operating effectively as at March 31 2021 based on theinternal financial controls 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 Singhi & Co.

Chartered Accountants

Firm's Registration No. 302049E

Ankit Dhelia

Place : Kolkata

Partner

Date : May 15 2021

Membership No. 069178

UDIN : 21069178AAAAAR1963

.