You are here » Home » Companies » Company Overview » COSCO (India) Ltd

COSCO (India) Ltd.

BSE: 530545 Sector: Others
NSE: N.A. ISIN Code: INE949B01018
BSE 00:00 | 24 Apr 143.40 0.40
(0.28%)
OPEN

149.00

HIGH

149.55

LOW

136.50

NSE 05:30 | 01 Jan COSCO (India) Ltd
OPEN 149.00
PREVIOUS CLOSE 143.00
VOLUME 80
52-Week high 348.00
52-Week low 124.10
P/E 18.08
Mkt Cap.(Rs cr) 60
Buy Price 140.00
Buy Qty 100.00
Sell Price 149.00
Sell Qty 83.00
OPEN 149.00
CLOSE 143.00
VOLUME 80
52-Week high 348.00
52-Week low 124.10
P/E 18.08
Mkt Cap.(Rs cr) 60
Buy Price 140.00
Buy Qty 100.00
Sell Price 149.00
Sell Qty 83.00

COSCO (India) Ltd. (COSCOINDIA) - Auditors Report

Company auditors report

To the members of Cosco (India) Limited Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Cosco (India)Limited ('the Company') which comprise the balance sheet as at 31 March 2018 thestatement of profit and loss and the cash flows and changes in equity of the Company inaccordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended anda summary of significant accounting policies and other explanatory information.

Management's Responsibility forthe Financial Statements

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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of theAct for safeguardingthe 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 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of theAct and the Rules made thereunder.

We conducted our audit in accordance with the Standards onAuditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

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

Opinion

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 theAct 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 31 March 2018 and its profit total comprehensive income the changes in equity andits cash flows for the year ended on thatdate.

Emphasis of Matter

Attention is drawn to the Note No. 7.2 & 7.4 regarding non moving inventories NoteNo 8.2 regarding provision for expected credit loss Note No 11.1 regarding landcompensation receivable Note No. 18.1 trade payable to MSME Note No 19.1(b) regardingother liabilities and Note No 42.2 regarding value of investment in erstwhile subsidiaryof company.

The Internal Audit system of the company needs to be strengthened in scope coverageand compliance. Ouropinion is notqualified in respect of these matters

Report on Other Legal and Regulatory Requirements

I. 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 of the Act we give in the"Annexure A" a statement on the matters specified in the paragraph 3 and 4 ofthe order.

II. As required by Section 143 (3) of theAct we report that:

(a) we have sought and obtained all the information and explanations which to the bestof our knowledge and beliefwere necessary for the purposes of ouraudit.

(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 statement of changes in equity and the statement of cash flow dealt with by thisReport are in agreement with the books of account;

(d) in our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards (Ind AS) specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015;

(e) on the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (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 to be included in the Auditor's 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 the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements;

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

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

For V. P. Jain & Associates
Chartered Accountants
Firm's registration number: 015260N
Swati Madan
Place: New Delhi Partner
Date: 30th May 2018 Membership number: 521697

Annexure - A to the Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended 31st March 2018 wereport that:

(i) In respect of fixed assets:

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

The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. In accordance withthis programme certain fixed assets were verified by the management during the year.According to the information and explanations given to us no material discrepancies werenoticed on such verification.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company and certificate provided by the bank the titledeeds of immovable properties are held in the name of the Company. Original copy of titledeed has not been produced as the same is deposited as security with bank under loanagreement as confirmed by the management & Bank.

(ii) In respect of its inventories:

(a) As explained to us the inventories of finished goods semi-finished goods storesspare parts and raw materials were physically verified at the end oftheyearby theManagement. In case of inventories lying with third parties certificates of stocksholding have been received.

(b) In our opinion and according to the information and explanation given to us theprocedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.

(iii) The Company has not granted loans to parties covered in the register maintainedunder section 189 of the Companies Act 2013 ('theAct'). Thus paragraph 3(iii) of theOrder is not applicable to the Company

(iv) In our opinion and according to the information and explanations given to us theCompany has not given any loans and made any investment within the meaning of section 185& 186 of the Act. Thus paragraph 3(iv) of the Order is not applicable to the Company.

(v) According to the information and explanation given to us the company has notaccepted any deposits from the public. Thus paragraph 3(v) of the Order is not applicableto the Company.

(vi) It has been certified by the management that company is not required to maintainthe cost records prescribed under sub section (1) of the section 148 of the companies Act2013 since the same has not been specified by the Central Government. We have relied uponthe assertions of the management.

(vii) In respect of statutory dues:

(a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the company has generally been regular indepositing undisputed statutory dues including provident Fund Employees State insuranceincome tax sales tax wealth tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues applicable to it with the appropriateauthorities. There were no undisputed amounts payable in respect of the aforesaidstatutory dues in arrears as at 31.03.2018 for a period of more than six months from thedate they became payable.

(b) According to the information and explanations given to us there are no dues ofincome tax sales tax wealth tax service tax duty of customs duty of excise valueadded tax cess which have not been deposited as at 31.03.2018 on account of any dispute.

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowing to a financial institution bank Governmentduring the year.

(ix) The company has not obtained any term loan during the year so this para of orderis not applicable.

(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 duringthe course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with 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) 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.

(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 paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IAof the ReserveBank of IndiaAct 1934.

For V. P. Jain & Associates
Chartered Accountants
Firm's registration number: 015260N
Swati Madan
Place: New Delhi Partner
Date: 30th May 2018 Membership number: 521697

Annexure - B to the 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 Cosco(India) Limited ("the Company") as of 31 March 2018 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 CompaniesAct 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 CompaniesAct 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established 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 controlssystem over financial reporting and theiroperating effectiveness.

Our audit 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 systemoverfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting A company's internalfinancial control overfinancial reporting is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. Acompany's internal financial control overfinancial reportingincludes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 bedetected.Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects except in certain areas asstated below an adequate internal financial controls system over financial reporting andsuch internal financial controls over financial reporting were operating effectively as at31 March 2018 based on the internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of CharteredAccountants of India.

• Inventory Levels : needs to be monitored more effectively.

• The documentation and MIS : need improvement in respect of Annual procurement& Expense budget Procurement Budgeting & Planning of Traded Goods QuotationManagement Negotiation & Selection Contract labour management

• Dealers selection andAppointment: needs improvementto prevent appointmentof noncreditworthness dealer.

• HR (attendance monitoring & performance review): needs improvement w.r.t.modification of attendance sheet to prevent excess payment of salary.

• Fixed Assets Physical verification: needs improvement to see all items of fixedassets are physically verified in scale of 3 years.

For V. P. Jain & Associates
Chartered Accountants
Firm's registration number: 015260N
Swati Madan
Place: New Delhi Partner
Date: 30th May 2018 Membership number: 521697