You are here » Home » Companies » Company Overview » Star Cement Ltd

Star Cement Ltd.

BSE: 540575 Sector: Industrials
NSE: STARCEMENT ISIN Code: INE460H01021
BSE 00:00 | 03 Apr 70.10 0.30
(0.43%)
OPEN

71.40

HIGH

71.40

LOW

66.60

NSE 00:00 | 03 Apr 69.30 -0.50
(-0.72%)
OPEN

68.20

HIGH

70.00

LOW

66.10

OPEN 71.40
PREVIOUS CLOSE 69.80
VOLUME 403
52-Week high 137.60
52-Week low 56.00
P/E 12.82
Mkt Cap.(Rs cr) 2,891
Buy Price 68.00
Buy Qty 50.00
Sell Price 70.70
Sell Qty 100.00
OPEN 71.40
CLOSE 69.80
VOLUME 403
52-Week high 137.60
52-Week low 56.00
P/E 12.82
Mkt Cap.(Rs cr) 2,891
Buy Price 68.00
Buy Qty 50.00
Sell Price 70.70
Sell Qty 100.00

Star Cement Ltd. (STARCEMENT) - Auditors Report

Company auditors report

Independent Auditors' Report

To

The Members of

STAR CEMENT LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of Star CementLimited (the "Company") which comprise the Standalone Balance Sheet as at March31 2018 the Standalone Statement of Profit and Loss (including Other ComprehensiveIncome) the Standalone Statement of Changes in Equity and the Standalone Cash FlowStatement for the year then ended and a summary of the significant accounting policiesand other explanatory information (hereinafter referred to as "the Standalone Ind ASFinancial Statements").

Management's Responsibility for the Standalone 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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended.

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 ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and 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 standalone IndAS financial 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 standalone Ind AS financialstatements based on our audit. In conducting our audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade there under and the Order issued under section 143(11) of the Act.

We have conducted our audit of the standalone Ind AS financial statements in accordancewith the 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 standalone financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone Ind AS financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2018 its profit including other comprehensive income the changesin equity and its cash flows for the year ended on that date.

Other Matter

The comparative financial information of the Company for the year ended March 31 2017and the transition date opening Balance Sheet as at April 12016 included in theseStandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 audited by the predecessor auditor Kailash B. Goel & Co. whose report forthe year ended March 31 2017 and March 31 2016 dated May 30 2017 and May

2 2016 respectively expressed an unmodified opinion on those standalone financialstatements as adjusted for the differences in the accounting principles adopted by theCompany on transition to the Ind AS which have been audited by us.

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 in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by section 143(3) of the Act we report that: (a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; (b) In our opinion proper books ofaccounts as required by law have been kept by the Company so far as it appears from ourexamination of those books; (c) The Standalone Balance Sheet the Standalone Statement ofProfit and Loss including Other Comprehensive Income Standalone Statement of Changes inEquity and the Standalone Cash Flows Statement dealt with by this Report are in agreementwith the books of account.

(d) In our opinion the accompanying standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;.

(e) On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 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". 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 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. TheCompany has disclosed the impact of pending litigations on its financial position in itsstandalone Ind AS financial statements-Refer note 40 to the standalone Ind AS financialstatements.. ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses; iii. There were no amountswhich were required to be transferred to the Investor Education and Protection Fund by theCompany.

For D.K. Chhajer& Co.
Chartered Accountants
Firm Registration No. 304138E
Niraj K Jhunjhunwala
Place : Kolkata Partner
Date : 17 May 2018 Membership No. 057170

i. In respect of the Company's Property plant & equipment: (a) The Company hasmaintained proper records showing full particulars including quantitative details andsituation of Property plant & equipment. (b) The Property plant & equipment ofthe Company are physically verified by the management according to a phased programme on arotational basis which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. No material discrepancies have been noticed on suchverification.

(c) On the basis of our examination of the records of the Company the title deeds ofimmovable properties are held in the name of the Company. ii. The inventory except goodsin transit and materials lying with third parties which have been substantially confirmedby them has been physically verified during the year by the management. In our opinionthe frequency of verification is reasonable and no material discrepancies were observed.iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013. So the provision of clause 3(iii) of the Order arenot applicable to the Company. iv. In our opinion and according to the information andexplanations given to us the Company has complied with the provisions of section 185 and186 of the Act with respect to loan and investments made. v. The Company has not acceptedany deposits within the meaning of Sections 73 to 76 of the Act and the Companies(Acceptance of Deposits) Rules 2014 (as amended). Accordingly the provisions of theclause 3 (v) of the Order are not applicable to the Company. vi. We have broadly reviewedthe accounts and records maintained by the Company pursuant to the rules made by theCentral Government for the maintenance of cost records under sub-section Section 148(1) ofthe Companies Act 2013 and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. We have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.vii. According to the information and explanations given to us in respect of statutorydues: (a) The Company has generally been regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income tax sales tax service taxgoods and service tax value added tax excise duty cess and other material statutorydues applicable to it with the appropriate authorities.

According to the information and explanations given to us there were no undisputedamounts payable in respect of provident fund employees' state insurance income taxsales tax service tax value added tax goods and service tax excise duty cess andother material statutory dues in arrears as at March 31 2018 for a period of more thansix months from the date they became payable except cement clinker cess amounting to RS.111.71/- Lacs. (b) According to the information and explanation given to us the followingdues of excise duty and entry tax have not been deposited by the Company on account ofdispute :

Name of the statute The Central Excise Act 1944 Nature of dues Excise Duty Amount (H Lakh) 370.45 Period to which the amount relates Apr-'09 to March -12 Forum where the dispute is pending Commissioner Central Excise & Service Tax Shiilong
The Central Excise Act 1944 Excise Duty 57.18 2009-10 & 2013-14 Commissioner (Appeals)
The Central Excise Act 1944 Excise Duty 9.50 Jan-‘05 to Sep-‘05 CESTAT
The Central Excise Act 1944 Excise Duty 8.99 Oct-‘05 to Jul-‘06 CESTAT
The Central Excise Act 1944 Excise Duty 1.48 Jan-'05 to Oct-‘06 CESTAT
West Bengal Tax On Entry Of Goods Entry Tax 634.07 Apr-'13 to June'17 Kolkata High Court
Into Local Areas Act 2012.#

viii. The Company has not defaulted in repayment of loans or borrowings from financialinstitutions or banks. The Company has not issued any debentures. ix. The Company has notraised any money by way of initial public offer/further public offer/debt instruments/term loans. Accordingly the provisions of Clause 3(ix) of the Order are not applicable tothe Company. x. To the best of our knowledge and according to the information andexplanations given to us no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the course of our audit.

xi. The Company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013. xii. The Company is not a Nidhi Company and hence reporting underclause 3 (xii) of the Order is not applicable to the Company. xiii. In our opinion andaccording to the information and explanations given to us and based on our examination ofthe records of the Company transactions with the related parties are in compliance withsection 177 and 188 of the Companies Act 2013 where applicable and the details have beendisclosed in the notes to the standalone financial statements as required by theapplicable accounting standards. xiv. During the year the Company has not made anypreferential allotment/private placements of shares/ fully/partly convertible debenturesand hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.xv. The Company has not entered into any non-cash transactions with directors or personconnected with him as referred to in section 192 of the Companies Act 2013. Accordinglyparagraph 3(xv) of the Order is not applicable. xvi. The Company is not required to beregistered under section 45-IA of the Reserve Bank of India Act 1934.

For D.K. Chhajer & Co.
Chartered Accountants
Firm Registration No. 304138E
Niraj K Jhunjhunwala
Place : Kolkata Partner
Date : 17 May 2018 Membership No. 057170

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 Star CementLimited ("the Company") as of March 31 2018 in conjunction with our audit ofthe standalone Ind AS financial 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 ("the 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 the Company's policies the safeguardingof its 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 deemed tobe prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 our judgement 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 detailaccurately 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 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 be detected.Also projections of any evaluation of the Internal Financial controls over financialreporting to future periods are subject to 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 an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 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 D.K. Chhajer & Co.
Chartered Accountants
Firm Registration No. 304138E
Niraj K Jhunjhunwala
Place : Kolkata Partner
Date : 17 May 2018 Membership No. 057170