CROMPTON GREAVES LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
TO THE MEMBERS OF
CROMPTON GREAVES LIMITED
We have audited the attached Balance Sheet of Crompton Greaves Limited (the
`Company`) as at 31st March, 2012, the Statement of Profit and Loss and
also the Cash Flow Statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the Company`s
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In accordance with provisions of Section 227 of the Companies Act 1956, we
report that:
1. As required by the Companies (Auditor`s Report) Order, 2003 as amended
by the Companies (Auditor`s Report) (Amendment) Order, 2004 issued by the
Central Government of India in terms of Section 227 (4A) of the Companies
Act, 1956, we enclose in the Annexure, a statement on the matters specified
in paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to above, we report
that:
(a) we have obtained all the information and explanations, which to the
best of 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 the Company, so far as appears from our examination of those books;
(c) the Balance Sheet, the Statement of Profit and Loss and the Cash Flow
Statement dealt 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 Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Section 211 (3C) of the Companies Act,
1956; and
(e) on the basis of the written representations received from directors of
the Company as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on 31st
March, 2012 from being appointed as a director in terms of Section 274
(1)(g) of the Companies Act, 1956.
In our opinion and to the best of our information and according to the
explanations given to us, the said Financial Statements, read together with
the Significant Accounting Policies in Note 1 and the Notes on the
Financial Statements in Note 2 to 49, give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit for the
year ended on that date; and
(iii) in case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
For SHARP & TANNAN
CHARTERED ACCOUNTANTS
Registration No. 109982W
L. Vaidyanathan
PARTNER
Mumbai, 25th May, 2012 Membership No. 16368
Annexure to the Auditors` report
(referred to in pArAGrAph 1 of our report of even Date)
(i)(a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of all fixed assets.
(b) As explained to us, these fixed assets have been physically verified by
the management, in accordance with a phased programme of verification,
which in our opinion, is reasonable, considering the size of the Company
and nature of its assets. The frequency of physical verification is
reasonable and no material discrepancies were noticed on such verification.
(c) The Company has not disposed off any substantial part of its fixed
assets during the year, so as to affect its going concern status.
(ii)(a) As explained to us, the inventories have been physically verified
by the management during the year. In our opinion, the frequency of such
verification is reasonable.
(b) As per the information given to us, the procedures of physical
verification of inventory followed by the management are, in our opinion,
reasonable and adequate in relation to the size of the Company and the
nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and the
book records, which were not material, have been properly dealt with in the
books of account.
(iii)(a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms and other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Accordingly, paragraphs 4 (iii)(b), (c) and
(d) of the Companies (Auditor`s Report) Order, 2003 are not applicable to
the Company.
(b) According to the information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms and
other parties covered in the register maintained under Section 301 of the
Companies Act, 1956. Accordingly, paragraphs 4 (iii)(f) and (g) of the
Companies (Auditor`s Report) Order, 2003 are not applicable to the Company.
(iv) In our opinion, and according to the information and explanations
given to us, there is adequate internal control system commensurate with
the size of the Company and nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services. During
the course of audit, we have neither come across nor have been informed of
any continuing failure to correct major weaknesses in the aforesaid
internal control system.
(v)(a) According to the information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements that need to
be entered in the register maintained under Section 301 of the Companies
Act, 1956, have been so entered.
(b) In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of such contracts or arrangements
entered in the register maintained under Section 301 of the Companies Act,
1956 and exceeding the value of rupees five lakhs in respect of any party
during the year, have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) The Company has accepted deposits from the public and in our opinion
and according to the information and explanations given to us, the
directives issued by the Reserve Bank of India and the provisions of
Sections 58A, 58AA and other relevant provisions of the Companies Act, 1956
and the rules framed thereunder, where applicable, have been complied with.
We are informed that no order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any Court or any
other Tribunal.
(vii) In our opinion, the Company has an internal audit system commensurate
with its size and nature of its business.
(viii) We have broadly reviewed the books of account and records maintained
by the Company pursuant to the rules prescribed by the Central Government
for the maintenance of cost records under Section 209(1)(d) of the
Companies Act, 1956, in respect of electric fans, motors, power driven
pumps, transformers and electric lamps and are of the opinion that prima
facie the prescribed accounts and records have been made and maintained.
The contents of these accounts and records have not been examined by us.
(ix)(a) According to the information and explanations given to us, in our
opinion, the Company has been regular in depositing undisputed statutory
dues including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales tax, wealth tax, service tax,
custom duty, excise duty, cess and other statutory dues, as applicable,
with the appropriate authorities. According to the information and
explanations given to us, no undisputed amounts were in arrears as at 31st
March, 2012, for a period of more than six months from the date they become
payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of income tax, sales
tax, service tax, excise duty and cess as at 31st March, 2012, which have
not been deposited on account of a dispute, are as under the table
overleaf.
Name of the Nature of Amt. Period to Forum where
Statue the disputed Rs. which the disputes are
dues Crore amount pending
relates
The Income Tax Tax and 0.38 1998-99 High Court
Act, 1961 interest 1999-2000
2.28 2008-09 Comissioner
(Appeals)
The Central Sales Tax, interest 7.13 1989-90 High Court
Tax Act, 1956, and penalty 1991-92
Local Sales Tax 1996-97
Acts and Works 1997-98
Contract Tax Act 1999-2000
2005-06 to
2008-09
11.20 1992-93 Tribunal
1996-97
1997-98
1998-99
2000-01 to
2008-09
17.87 1994-95 Commissionerate
1998-99 to (Appeals)
2008-09
The Central Excise Duty, service 0.41 2001-02 High Court
Act, 1944 and tax and 2002-03
Service tax under penalty 2004-05 to
the Finance Act, 2007-08
1994
9.72 1990-91 CESTAT/
1999-2000 to Tribunal
2001-02
2003-04 to
2010-11
5.13 2001-02 to Commissionerate
2009-10 (Appeals)
2011-12
(*net of pre-deposit paid in getting the stay/appeal admitted)
(x) The Company has no accumulated losses as at 31st March, 2012 and it has
not incurred any cash losses in the financial year ended on that date and
in the immediately preceding financial year.
(xi) According to the information and explanations given to us, in our
opinion the Company has not defaulted in the repayment of dues to any
financial institutions or bank as at the balance sheet date. The Company
has not issued any debentures.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) The provisions of any special statute applicable to chit fund/
nidhi/mutual benefit fund/society are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in securities. The
Company has invested surplus funds in mutual funds. According to the
information and explanations given to us, proper records have been
maintained of the transactions and contracts and timely entries have been
made therein. The investments in mutual funds have been held by the Company
in its own name.
(xv) In our opinion and according to the information and explanations given
to us, the terms and conditions of guarantee given by the Company for loans
taken by others from bank or financial institutions are not prima facie
prejudicial to the interests of the Company.
(xvi) In our opinion and according to the information and explanations
given to us, the term-loans have been applied for the purposes for which
they were obtained.
(xvii) According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that no
funds raised on short-term basis have been used for long-term investments.
(xviii) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section 301
of the Companies Act, 1956, during the year.
(xix) The Company has not issued any debentures during the year. Hence,
reporting on paragraph 4 (xix) of the Companies (Auditor`s Report) Order,
2003 pertaining to creation of security or charge for debentures does not
arise.
(xx) The Company has not raised any money by public issues during the year.
Accordingly, paragraph 4 (xx) of the Companies (Auditor`s Report) Order,
2003 is not applicable to the Company.
(xxi) During the course of our examination of the books and records of the
Company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations given
to us, we have neither come across any instances of material fraud on or by
the Company, noticed or reported during the year, nor have we been informed
of such case by the management.
For SHARP & TANNAN
CHARTERED ACCOUNTANTS
Registration No. 109982W
L. Vaidyanathan
PARTNER
Mumbai, 25th May, 2012 Membership No. 16368 |