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Crimson Metal Engineering Company Ltd.

BSE: 526977 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE318P01016
BSE 00:00 | 12 Jun Crimson Metal Engineering Company Ltd
NSE 05:30 | 01 Jan Crimson Metal Engineering Company Ltd
OPEN 7.11
PREVIOUS CLOSE 7.11
VOLUME 1000
52-Week high
52-Week low
P/E 5.43
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.11
CLOSE 7.11
VOLUME 1000
52-Week high
52-Week low
P/E 5.43
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Crimson Metal Engineering Company Ltd. (CRIMSONMETAL) - Auditors Report

Company auditors report

TO THE MEMBERS OF CRIMSON METAL ENGINEERING COMPANY LIMITED ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Crimson Metal EngineeringCompany Limited ("the Company") which comprise the Balance Sheet as at March31 2017 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE 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 preparation ofthese Financial Statements that give the true and fair view of the financial positionfinancial performance and cash flows of the Company with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities selection and application of theappropriate accounting policies making judgements and estimates that are reasonable andprudent and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofthe Company's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of 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 financial statement.

OPINION

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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: (a) In the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2017; (b) In the case of the Statement of Profitand Loss of the profit of the Company for the year ended on that date; and (c) In thecase of the Cash Flow Statement of the cash flows of the Company for the year ended onthat date.

(d) Company had provided requisite disclosures as to holdings as well as dealings inSpecified Bank Notes during the period from 8th November 2016 to 30thDecember 2016 in point 2(g) of the notes of accounts which are in accordance with thebooks of accounts maintained by the Companay and based on our audit procedure and relyingon the management representation we report that the disclosures are in accordance with thebooks of accounts maintained by the company and as produced to us by the management.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by Section 143(3) of the Act we report that:

a. We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose 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 the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d. In our opinion the Balance Sheet the Statement of Profit and Loss and the CashFlow Statement comply with Accounting Standards notified under the Act read with theGeneral Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairsin respect of Section 133 of the Companies Act 2013

e. On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g. With respect to the other matters included in the auditor's report and to the bestof our information and according to the explanation given to us.

1) The company has disclosed the impact of pending litigation on its financial positionin its financial statement.

2) The company has made provision as required under the applicable law or AccountingStandards for material foreseeable losses if any on long term contracts includingderivative contracts.

3) There has been no delay in transferring amounts required to be transferred to theinvestor's education and protection fund by the company.

2. 1. As required by the Companies (Auditor's Report) Order 2016 (the Order) issued bythe Central Government of India in terms of Section 143(3) of the Act we give in the"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For ABHAY JAIN & Co.

Chartered Accountants

(FRN. 000008S)

(A K JAIN)

Partner

M No 70224

Place : Chennai Date : 30.05.2017

Annexure - A to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of CrimsonMetal Engineering Company Limited ("the company") as of 31st March2017in conjunction with our audit of the consolidated financial statements of the Companyas of and 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 Companyconsidering 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 audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 the Holding Company and its subsidiary company which is companyincorporated in India have in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting 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 ICAI.

For ABHAY JAIN & Co.

Chartered Accountants

(FRN. 000008S)

(A K JAIN)

Partner

M No 70224

Place : Chennai

Date : 30.05.2017

CRIMSON METAL ENGINEERING COMPANY LIMITED (Formerly known as SRI SAARBATI STEEL TUBESLIMITED)

Annexure - B to the Independent Auditors' Report

The Annexure referred to in paragraph 1 of Our Report of even date to the members ofCRIMSON METAL ENGINEERING COMPANY LIMITED. On the accounts of the Company for the yearended 31st March 2017.

On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:

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

(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification. In ouropinion the frequency of verification is reasonable

(c) The title deeds of immovable properties are held in the name of the Company.

2. (a) As explained to us inventories have been physically verified during the year bythe management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness. The Company is generally maintaining proper records of its inventories. Nomaterial discrepancy was noticed on physical verification of stocks by the management ascompared to book records.

3. (a) According to the information and explanations given to us and on the basis ofour examination of the books of account the Company has not granted any loans secured orunsecured to companies firms or other parties listed in the register maintained underSection 189 of the Companies Act 2013. Therefore the provision of clause 3(3a) (3b) and(3c) of the said order are not applicable to the Company

4. In our opinion and according to the information and explanations given to us theCompany has not given any loan nor made any investment and not provided guarantee or anysecurity as such the provisions of Section 185 and 186 of the Companies Act 2013 is notapplicable on the Company.

5. The Company has not accepted any Deposits from the public within the meaning ofsection 73 74 75 and 76 of the Act and the rules framed there under to the extentnotified.

6. We have broadly reviewed the cost records maintained by the Company pursuant to theRules prescribed by the Central Government under Section 148(1) of the Companies Act 2013and are of the opinion that prima facie the prescribed cost records have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

7. (a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess andother material statutory dues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues of income tax sales tax service taxduty of customs and duty of excise duty value added tax as at [balance sheet date] whichhave not been deposited on account of a dispute are as follows :

Name of the statute Nature of dues Amount Period to which the amount relates Forum where the dispute is pending
(Rs.in Lakhs)
Central Excise Act 1944 Adoption of Incorrect 9.71 A/Y 2005-06 Hon'ble Madras
Jobwork Value High Court
Central Excise Act 1944 Wrong Availment of A/Y 2006-07 Hon'ble Madras
154.69
High Court
ESI Cenvat Additional Demand A/Y 2009-12 ESI Court
7.09
Puducherry

8. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government as at the balance sheet date.

9. The Company has not raised any moneys by way of initial public offer further publicoffer (including debt instruments) . The Term Loans has been applied for the purposes forwhich those are raised.

10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come acrossanyinstance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Management.

11. The Company has paid/ provided for managerial remuneration in accordance withtherequisite approvals mandated by the provisions of Section 197 read with Schedule V tothe Act.

12. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(12) of the Order are not applicable to the Company.

13. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under AccountingStandard (AS) 18 Related Party Disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.

14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review39.Accordingly the provisions of Clause 3(14) of the Order are not applicable to theCompany.

15. The Company has not entered into any non cash transactions with its directors orpersons connected with him.

Accordingly the provisions of Clause 3(15) of the Order are not applicable to theCompany.

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

Accordingly the provisions of Clause 3(16) of the Order are not applicable to theCompany.

For ABHAY JAIN & Co.
Chartered Accountants
(FRN. 000008S)
(A K JAIN)
Partner
M No 70224
Place : Chennai
Date : 30.05.2017