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Crimson Metal Engineering Company Ltd.

BSE: 526977 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE318P01016
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NSE 05:30 | 01 Jan Crimson Metal Engineering Company Ltd
OPEN 9.45
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VOLUME 100
52-Week high 9.45
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P/E
Mkt Cap.(Rs cr) 4
Buy Price 8.55
Buy Qty 100.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.45
CLOSE 9.45
VOLUME 100
52-Week high 9.45
52-Week low 7.45
P/E
Mkt Cap.(Rs cr) 4
Buy Price 8.55
Buy Qty 100.00
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

REPORT ON THE Ind AS FINANCIAL STATEMENTS

We have audited the accompanying Ind AS financial statements of CRIMSON METALENGINEERING COMPANY LIMITED ("the Company") which comprise the Balance Sheet asat March 31 2019 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of change in Equity for the year thenended and a summary of significant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE Ind AS 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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows &changes in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards Ind AS)prescribed underSection 133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities selection and application ofthe appropriate accounting policies making judgements and estimates that are reasonableand prudent 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 Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We conducted our audit of the Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments; the auditor considers internal control relevant to the Company's preparationand fair presentation of the Ind AS financial statements in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on the effectiveness of the Company's internal control. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by management as well as evaluating theoverall presentation of the Ind AS financial statements.

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

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe 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 31st March 2019 and its profit total comprehensive income its cashflows and the changes in equity for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

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

a) We have sought and obtained all the information and explanations which to the bestof our knowledge 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 including other ComprehensiveIncomethe Cash Flow Statement and Statement of changes in Equity dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid Ind As financial statements comply with the IndianAccounting Standards prescribed undersection 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 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 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 in accordancewith Rule 11 of the Companies (Audit and Auditors) Rule 2014 as amended in our opinionand to the best of our information and according to the explanation given to us:

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

ii) 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.

iii) There has been no delay in transferring amounts required to be transferred tothe Investor's Education and Protection Fund by the company.

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

For VISHAL JAIN & CO.

Chartered Accountants (FRN. 0541075)

(VISHAL JAIN)

Proprietor M No 209530

Place : Bangalore

Date : 30.05.2019

Annexure "A" to the Independent Auditors' Report on the Ind AS FinancialStatements of Crimson Metal Engineering Company Limited.

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/s.Crimson Metal Engineering Company Limited ("the Company") as of 31stMarch 2019 in conjunction with our audit of the standalone Ind AS financial statements ofthe 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 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 Ind AS 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 Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASfinancial 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 Ind ASfinancial 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 Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For VISHAL JAIN & CO.

Chartered Accountants (FRN. 0541075)

(VISHAL JAIN)

Proprietor M No 209530

Place : Bangalore

Date : 30.05.2019

Annexure - B to the Independent Auditors' Report on the Financial Statements of CrimsonMetal Engineering Company Limited

The Annexure referred to in paragraph 1 ofour Report of even date to the members ofCrimson Metal Engineering Company Limited. On the accounts of the Company for the yearended 31st March 2019.

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 propertiesare 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 Goods & Service Tax Custom Duty Excise Duty ValueAdded Tax cess and other material statutory dues as applicable with the appropriateauthorities.

(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 (Rs.in Lakhs) Period to which the amount relates Forum where the dispute is pending
Central Excise Act 1944 Adoption of Incorrect Jobwork Value 9.71 A/Y 2005-06 Hon'ble Madras High Court
Central Excise Act 1944 Wrong Availment of Cenvat 154.69 A/Y 2006-07 Hon'ble Madras High Court
ESI Additional Demand 7.09 A/Y 2009-13 ESI Court 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 of the balance sheet date.

9. The Company has not raised any moneys by way of initial public offer further publicoffer (including debt instruments) and term loans. Accordingly the provisions of Clause3(9) of the Order are not applicable to the Company.

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 across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

11.The Company has provided for Managerial Remuneration in Accordance with theProvision of Section 197 read with Section V to the Act. The Company has made the paymentto Managing Director in excess of Approved amount as per the information and explanationgiven to us this shall be ratified in forth coming Annual General Meeting.

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.In our opinion and according to the information and explanations given to us thecompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Ind AS financial statements etc. as required bythe applicable accounting standards.

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 theprovisions of Clause 3(14) of the Order are not applicable to the company.

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 Reserve Bankof India Act 1934.

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

For VISHAL JAIN & CO.

Chartered Accountants (FRN. 0541075)

(VISHAL JAIN)

Proprietor M No 209530

Place : Bangalore

Date : 30.05.2019