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CHL Ltd.

BSE: 532992 Sector: Services
NSE: N.A. ISIN Code: INE790D01020
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NSE 05:30 | 01 Jan CHL Ltd
OPEN 4.80
PREVIOUS CLOSE 4.80
VOLUME 250
52-Week high 10.00
52-Week low 4.75
P/E 4.17
Mkt Cap.(Rs cr) 26
Buy Price 4.75
Buy Qty 100.00
Sell Price 5.44
Sell Qty 100.00
OPEN 4.80
CLOSE 4.80
VOLUME 250
52-Week high 10.00
52-Week low 4.75
P/E 4.17
Mkt Cap.(Rs cr) 26
Buy Price 4.75
Buy Qty 100.00
Sell Price 5.44
Sell Qty 100.00

CHL Ltd. (CHL) - Auditors Report

Company auditors report

To the Members of C H L LIMITED

Report on the audit of the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of CHLLIMITED("the company")which comprise the Balance Sheet as at 31 March 2019 theStatement of Profit and Loss including the Statement of other Comprehensive Income theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as ‘'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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2019 and profit/loss (changes in equity)and its cash flows for the yearended on that date.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income and cash flows and change inequity of the Company in accordance with the accounting principles generally accepted inIndia including the India Accounting Standards (Ind AS) specified under Section 133 ofthe Act read with Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial controls thatwere operating 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 financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those board of directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the audit of the standalone financial statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safe guards. From the matters communicatedwith those charged with governance we determine those matters that were of mostsignificance in the audit of the financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor's report unlesslaw or regulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

Report on other Legal and Regulatory Requirements

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 in theparagraph 3 and 4 of the Order to the extent applicable.

2. As required by section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books

(c) The Balance Sheet and the Statement of Profit and Loss (including othercomprehensive income) the Cash Flow Statement and the Statement of Changes in Equitydealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid Standalone financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with rule 7 ofthe Companies (Accounts) Rules2014;

(e) On the basis of written representations received from the directors as on 31 March2019 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2019 from being appointed as a director in terms of Section 164(2) of theAct.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

(g) With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to ourbest of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations as at 31st March 2019on its financial position in its Standalone Financial Statements–(Refer Note No. 28)to the Standalone Financial Statements;

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred toInvestor Education and Protection Fund.

For D G A & Co.
Chartered Accountants
Firm Reg. No. 003486N
(D K Agarwal FCA)
Place: New Delhi Partner
Dated: 28.05.2019 Membership No. 080355

ANNEXURE- A to the Independent Auditor's Report on the Standalone Financial Statementsof CHLLIMITED for the year ended 31st March 2019

i. a. The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

b. The fixed assets have been physically verified by the Management during the year inaccordance with a regular programme of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. The discrepanciesnoticed on such verification which were not material have been properly dealt with in thebooks of account.

c. According to the information and explanations given to us and on the basis of ourexaminations of the records of the company the title deeds of the immovable propertiesare held in the name of the company.

ii. In our opinion and according to the information and explanations given to usinventories have been physically verified by the management at reasonable intervals havingregard to the size of the company and no material discrepancy was noticed on suchverification as compared to book records.

iii. According to the information and explanations given to us the company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register required under section 189 of theCompanies Act 2013. Accordingly the provisions of clause paragraph 3 (iii) (a) (b) and(c) of the Order are not applicable.

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 and any guarantee or security provided.

v. The Company has not accepted any deposits from the public.

vi. The Central Government has not prescribed the maintenance of cost records undersection 148 (1) of the Companies Act 2013.

vii. a. The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insurance incometax goods and service tax duty of custom duty of excise value added tax cess andother statutory dues applicable to it.

b. According to information and explanations given to us no undisputed amounts payablein respect of provident fund employee'e state insurance income tax goods and servicetax duty of custom duty of excise value added tax cess and other material statutorydues were in arrears as at 31st March 2019 for a period of more than six months from thedate they become payable.

c. In our opinion and according to the information and explanations given to us by thecompany and its tax advisor/consultant following dues of income tax have not beendeposited by the company on account of disputes:

S.No. Name of the Statue Nature of Dues Amount (Rs.) Period to which the amount relate Forum where dispute is pending
1 Income-tax Act 1961 U/S 250/143(3) 9802032 AY 2005-06 ITATDelhi
2 Income-tax Act 1961 U/S 250/143(1) 1025750 AY 2007-08 CIT (Appeal)
3 Income-tax Act 1961 U/S 271(1) 716786 AY 2009-10 ITATDelhi
4 Income-tax Act 1961 U/S 143(3) 432959 AY 2010-11 Rectification u/s 154 is pending
5 Income-tax Act 1961 U/S 143(3) 6911130 AY 2011-12 ITAT Delhi
6 Income-tax Act 1961 U/S 143(3) 4564190 AY 2012-13 ITATDELHI
7 Income-tax Act 1961 U/S 143(3) 6053880 AY 2013-14 CIT (Appeal)
8 Income-tax Act 1961 U/S 143(3) 5040460 AY 2015-16 CIT (Appeal)
9 Income-tax Act 1961 U/S 271(1) 6495410 AY 2012-13 CIT (Appeal)
10 Service Tax (Finance Act 1994 Service Tax Rule 1994) U/S 73(1) Sec 78Sec 77(2) 56545957 SCN dt 21.10.09 & 22.10.10 (F.Y.2004-05 to 2009-10) Appeal CESTATDelhi

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to the banks and financial institutions.

ix. According to the information and explanations given to us the Company has notraised money by way of initial public offer or further public offer (including debtinstruments). In our opinion and according to the information and explanations given tous the term loans taken by the Company have been applied for the purpose for which theywere raised.

x. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

xi. According to the information and explanations given to us and based on ourexamination of the records of the company the managerial remuneration has been providedin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

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

xiii. In our opinion and according to the information and explanations given to us alltransactions with the related parties are in compliance with section 177 and 188 of theCompanies Act 2013 where applicable and the details of such transactions have beendisclosed in the Financial Statements as required by the applicable accounting standards.

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

xv. In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with the directors or personsconnected with him. Accordingly clause (xv) of the 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 D G A & Co.
Chartered Accountants
Firm Reg. No. 003486N
(D K Agarwal FCA)
Place: New Delhi Partner
Dated: 28.05.2019 Membership No. 080355

ANNEXURE- B to the Independent Auditor's Report on the Standalone Financial StatementsofCHLLIMITED for the year ended 31st March 2019 Report on the Internal Financial Controlsunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financial reporting of C H LLimited ("the Company") as of 31 March 2019 in conjunction with our audit of thestandalonefinancial 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 was established andmaintained and if such controls operated effectively in all material respects Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment 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 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 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For D G A & Co.
Chartered Accountants
Firm Reg. No. 003486N
(D K Agarwal FCA)
Place: New Delhi Partner
Dated: 28.05.2019 Membership No. 080355