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Commercial Engineers & Body Builders Company Ltd.

BSE: 533272 Sector: Engineering
NSE: CEBBCO ISIN Code: INE209L01016
BSE 00:00 | 17 Sep 33.20 -0.50
(-1.48%)
OPEN

32.80

HIGH

34.65

LOW

32.80

NSE 00:00 | 17 Sep 33.60 0.10
(0.30%)
OPEN

34.45

HIGH

34.45

LOW

32.85

OPEN 32.80
PREVIOUS CLOSE 33.70
VOLUME 14390
52-Week high 43.25
52-Week low 12.85
P/E 26.56
Mkt Cap.(Rs cr) 297
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 32.80
CLOSE 33.70
VOLUME 14390
52-Week high 43.25
52-Week low 12.85
P/E 26.56
Mkt Cap.(Rs cr) 297
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Commercial Engineers & Body Builders Company Ltd. (CEBBCO) - Auditors Report

Company auditors report

To the Members of Commercial Engineers and Body Builders Co Limited Report on the Auditof the Financial Statements Opinion

We have audited the financial statements of Commercial Engineers and Body Builders CoLimited ("the Company") which comprise the balance sheet as at 31 March 2020and the statement of profit and loss (including other comprehensive income) statement ofchanges in equity and statement of cash flows for the year then ended and notes to thefinancial statements including a summary of the significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("Act") in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 march 2020 and loss and other comprehensiveincome 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) specifiedunder section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditors' Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the financial statements.

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.

Revenue Recognition See note 28 to the financial statements
The key audit matter How the matter was addressed in our audit
The Company's revenue from operations (i.e. sale of goods) for the year ended 31 March 2020 was INR 12354.67 Lakhs. In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficient appropriate audit evidence:
Revenue is recognized in accordance with accounting policies as detailed in "Significant accounting policies" in the Financial Statements. • Assessed the appropriateness of the accounting policy for revenue recognition as per the relevant accounting standard;
Standards on Auditing presume a fraud risk with regard • Evaluated the design and implementation of key controls in relation to revenue recognition and tested the operating effectiveness of such controls for a sample of transactions;
to revenue recognition. Also revenue is one of the key performance indicators of the Company which makes it susceptible to misstatement. • Performed detailed testing by selecting samples of revenue transactions recorded during and after the year. For such sample verified the underlying documents including customer acceptance to assess whether these are recognised in the appropriate period in which control is transferred; and
In view of the above we have identified revenue recognition as a key audit matter. • Assessed the adequacy of the disclosures made in accordance with the relevant accounting standard.

Other Information

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance

conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Management's and Board of Directors' Responsibility for the Financial Statements

The Company's Management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these financial statementsthat give a true and fair view of the state of affairs loss and other comprehensiveincome changes in equity and cash flows 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. 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; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring accuracy and completeness of the accounting records relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

In preparing the financial statements the Management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the 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 auditors' 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:

D Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to

provide 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 internal control.

D Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether

the company has adequate internal financial controls with reference to financialstatements in place and the operating

effectiveness of such controls.

D Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures in the financial statements made by theManagement and Board of Directors.

D Conclude on the appropriateness of the Management and Board of Directors use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may

cast significant doubt on the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in ourauditors' report to the related disclosures in the financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditors' report. However future events orconditions may cause the Company to cease to continue as a going concern.

D Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions 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 any significant deficiencies in internalcontrol 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors' 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 we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

2. (A) 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 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 the statement of cash flows dealt with bythis Report are in agreement with the books of account.

d)nouropiniontheaforesaidfinancialstatementscomplywiththeIndASspecifiedundersection133oftheAct.

e) On the basis of the written representations received from the directors as on 31March 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 from being appointed as adirectorintermsofSection164(2)oftheAct.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the

CompanyandtheoperatingeffectivenessofsuchcontrolsrefertoourseparateReportin"AnnexureB".

(B) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to theexplanationsgiventous:

i. The Company has disclosed the impact of pending litigations as at 31 March 2020 onits financial position in

itsfinancialstatements-ReferNote40(A)tothefinancialstatements.

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

materialforeseeablelosses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by

theCompany.

iv. The disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from 8 November 2016 to 30 December 2016 havenot been made in these financial statements sincetheydonotpertaintothefinancialyearended31March2020.

(C) WithrespecttothemattertobeincludedintheAuditors'Reportundersection197(16):

In our opinion and according to the information and explanations given to us theremuneration paid by thecompanytoitsdirectorsduringthecurrentyearisinaccordancewiththeprovisionsofSection197oftheAct.TheremunerationpaidtoanydirectorisnotinexcessofthelimitlaiddownunderSection197oftheAct.TheMinistryof Corporate Affairshas not prescribedotherdetailsunder Section 197(16)which are requiredto be commented uponbyus.

For B S R & Co. LLP
Chartered Accountants
Firm Registration No.: 101248W/W-100022
Shashank Agarwal
Place : Gurugram Partner
Date : 22 July 2020 Membership No.: 095109
ICAI UDIN No: 20095109AAAAEV7702

Annexure A referred to in our Independent Auditors' Report to the members of CommercialEngineers and Body Builders

Co Limited on the Financial Statements for the year ended 31 March 2020

We report that:

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and

situation of its fixed assets.

(b) According to the information and explanations given to us the Company has aregular programme of physical verification of its fixed assets by which fixed assets areverified every year. In our opinion this periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets. Asinformed to us the discrepancies noticed on such verification were not material and havebeen properly adjusted in the books of account.

(c) According to the information and explanations given to us and on the basis of ourexamination of the books of

account the title deeds of immovable property are held in the name of the Company.

(ii) The inventory except stocks lying with third parties has been physicallyverified by the management during the year. In our opinion the frequency of suchverification is reasonable. For stocks lying with third parties at the year end writtenconfirmation have been obtained. As informed to us the discrepancies noticed onverification between the physical stocks and the book records were not material and havebeen properly adjusted in the books of account.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies or other parties covered in theregister maintained under section 189 of the Act. As informed to us there are no firmsand Limited Liability Partnerships covered in the register maintained under section 189 ofthe Act. Accordingly paragraph 3(iii) of the Order is not applicable.

(iv) According to the information and explanations given to us the Company has notgiven any loans made any investments or provided any guarantee or security as specifiedunder Section 185 and 186 of the Companies Act 2013. Accordingly the provisions ofparagraph 3(iv) of the Order is not applicable to the Company.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public.

Accordingly paragraph 3(v) of the Order is not applicable.

(vi)AccordingtotheinformationandexplanationsgiventoustheCentralGovernmenthasnotprescribedthemaintenanceofcost records under sub-section (1) of Section 148 of the Act for any of the goods sold bythe Company. Accordingly para 3(vi)oftheOrderisnotapplicable.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including goods and services tax ('GST')and other material statutory dues have generally been regularly deposited with theappropriate authorities though have been slight delays in deposit of provident fundemployees'stateinsuranceandincometax.

According to the information and explanations given to us no amounts payable inrespect of undisputed statutory dues including provident fund employees' state insuranceincome-tax goods and services tax service tax sales tax duty of excise and value addedtax and other material statutory dues were in arrears as at 31 March2020foraperiodofmorethansixmonthsfromthedatetheybecamepayable.

(b) According to the information and explanations given to us there are no dues ofincome tax sales tax service tax

duty of excise value added tax and goods and services tax which have not beendeposited with the appropriate

authorities on account of any dispute except as mentioned below:

(INR in Lakhs)

Name of Statute Nature of Dues Forum where dispute is pending Period to which the amount relates Amount Involved* Amount Paid under Protest
Central Excise AC Jabalpur April 2009- June 2009 14.37 -
Act 1944 Excise Duty High Court Madhya Pradesh July 2008 - August 2009 2047.00 -
MP Commercial Tax Act1994 Value Added Tax Appellate Board Bhopal F Y 2007-08 64.41 18.03
Appellate Board Bhopal F Y 2008-09 63.35 17.78
Supreme Court F Y 2012-13 1406.50 -
Dy. Commissioner Jabalpur F Y 2013-14 131.44 32.86
Appellate Board Bhopal F Y 2007-08 11.02 3.09
Central Sales Tax Act1956 Central Sales Tax Appellate Board Bhopal F Y 2010-11 29.77 28.29
Additional Commissioner Jabalpur F Y 2012-13 6.11 2.81
Additional Commissioner Jabalpur F Y 2015-16 8.34 0.84
Additional Commissioner Jabalpur F Y 2016-17 5.98 2.00
Income Tax Act 1956 Income Tax CIT (Appeals) Kanpur A.Y. 2011-12 9.96 9.96
CIT (Appeals) Allahabad A.Y. 2013-14 594.65 -

* amounts as per demand orders including interest and penalty wherever indicated in thedemand.

(viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to its bankers. The Company did not have any loans or borrowings from financialinstitutions or government during the year and has not issued any debentures.

(ix) Based on our examination of books of account and according to the information andexplanations given to us the Company has utilized all the money raised by way of termloans for the purpose for which they were raised. Further the Company has not raisedmoney by way of initial public offer or further public offer (including debt instruments).

(x) Based on our examination of the books of account and according to the informationand explanations given to us no fraud by the Company and no fraud on the Company by itsofficers or employees has been noticed or reported during the course of our audit.

(xi) Based on our examination of the books of account and according to the informationand explanations given to us the Company has paid / provided managerial remuneration inaccordance with the requisite approvals mandated by the provision of section 197 read withSchedule V of the Act.

(xii) According to the information and explanations given to us the Company is not anidhi company. Accordingly paragraph

3 (xii) of the Order is not applicable.

(xiii) Based on our examination of the books of account and according to theinformation and explanations given to us all transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and the details have beendisclosed in the financial statements as required by the applicable accounting standards.

(xiv) Based on our examination of the books of account and according to the informationand explanations given to us the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.Accordingly paragraph 3(xiv) of the Order is not applicable.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly paragraph 3(xv) of the Order is not applicable.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-

IA of the Reserve Bank of India Act 1934.

For B S R & Co. LLP
Chartered Accountants
Firm Registration No.: 101248W/W-100022
Shashank Agarwal
Place : Gurugram Partner
Date : 22 July 2020 Membership No.: 095109
ICAI UDIN No: 20095109AAAAEV7702

Annexure 'B' to the Independent Auditors' report on the financial statements ofCommercial Engineers and Body

Builders Co Limited for the period ended 31 March 2020.

Report on the internal financial controls with reference to the aforesaid financialstatements under Clause (i) of Sub-

section 3 of Section 143 of the Companies Act 2013

(Referred to in paragraph 1(A)(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of

even date)

Opinion

We have audited the internal financial controls with reference to financial statementsof Commercial Engineers and Body Builders Co Limited ("the Company") as of 31March 2020 in conjunction with our audit of the financial statements of the Company forthe year ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to financial statements and such internal financial controls wereoperating effectively as at 31 March 2020 based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (the "Guidance Note").

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note. 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 (hereinafter referred to as"the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing prescribed undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols with reference to financial statements. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and whether such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of such internal financial controlsassessing 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 judgement 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 with reference to financial statements.

Meaning of Internal Financial controls with Reference to Financial Statements

A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements include those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial controls with Reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

For B S R & Co. LLP
Chartered Accountants
Firm Registration No.: 101248W/W-100022
Shashank Agarwal
Place : Gurugram Partner
Date : 22 July 2020 Membership No.: 095109
ICAI UDIN No: 20095109AAAAEV7702

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