Auditor Report of CMI Ltd.
Mar 31, 2023
CMI LIMITED
Report on the Audit of the Standalone Financial Statements Qualified
Opinion
We have audited the financial statements of CMI LIMITED ("the Company"), which comprise the Balance sheet as at 31st March 2023, and the statement of Profit and Loss (including other comprehensive income), Statement of Changes in Equity and statement of cash flows for the year ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Opinion paragraph below, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2023, its profit/loss (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Basis of Qualified Opiniona) Going Concern Concept
The accumulated losses of the company as at the close of 31st March 2023 amounting to Rs.14305.62 Lakhs as against which the paid up capital of the company is Rs.1603.07 Lakh and the losses has totally eroded the net worth of the company. The company has been incurring continues losses for the past many years. The total liabilities of the company as at the close of 31st March 2023 is Rs. 44,200.49 lakhs (Previous year Rs. 45304.43 lakhs) against which the Fixed and current assets book values are only Rs. 31,497.94 lakhs (Previous year Rs.43,610.91 lakhs).
b) The Company has not complied the disclosure for the following as per IND AS
a. IND-AS 19: The Company has not identified, measured, quantified and disclosed the gratuity and leave encashment and its impact on the current financial statements.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Information other than the financial statements and auditors'' report thereon
The Company''s board of directors is responsible for the preparation of the other information. The other information comprises the information included in the Board''s Report including Annexures to Board''s Report but does not include the financial statements and our auditor''s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Key Audit Matter
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
|
The key audit matter |
How the matter was addressed in our audit |
|
Revenue - Performance Obligations The company is in the business of manufacturing of various types of Cables, and sells to customers through institutional globally. Sales contracts contain various performance obligations and other terms and the determination of when significant performance obligations have been met varies albeit a specific point in time can often be established. As a consequence, the company has analyzed its various sales contracts and concluded on the principles for deciding in which period or periods the Company''s sales transactions should be recognized as revenue. |
Audit Procedure Applied Our audit included but was not limited to the following procedures: ⢠Mapped and evaluated selected systems and processes for revenue recognition and tested a sample of key controls. ⢠Selecting a sample from each type of the contracts with the customers, and testing the operating effectiveness of the internal control, relating to identification of the distinct performance obligations and determination of transaction price. ⢠Tested sample of sales transactions for compliance with the company''s accounting principles. ⢠Read and assessed the disclosure made in the financial statements for assessing compliance with disclosure requirements. |
|
Revenue - Variable Consideration Revenue is recognized in accordance with Ind AS 115, net of discounts, incentives, and rebates accrued by customers based on sales. At the reporting date, the company estimates and accrues for discounts and rebates they consider as having been incurred but not yet paid. |
Audit Procedure Applied Our audit included but was not limited to the following procedures: ⢠Understanding the policies and procedures applied to revenue recognition including an analysis of the effectiveness of controls related to revenue recognition processes employed by the Company. ⢠Carrying out substantive analytical procedures, analysing the actual performance of revenue and cost of sales related to discounts, incentives and rebates etc. ⢠Considered the terms of the contracts to determine the transaction price including any |
|
variable consideration to verify the transaction price used to compute revenue and to test the basic of estimation of the variable consideration. |
|
|
⢠Analyzing and discussing with |
|
|
management significant contracts including contractual terms and conditions related to discounts, incentives and rebates used in the related estimates. |
|
|
⢠Reviewing disclosures included in the |
|
|
notes to the accompanying financial |
|
|
statements. |
Emphasis of Matter
Attention is invited to Note 22(iii) under Explanatory Notes to Financial Statements regarding Financial Liabilities-Non Current Borrowings. As loan accounts with company''s lenders had turned NPA during the financial year, resultantly the updated loan account statements after the NPA date are not available in some cases hence the liabilities have been recognised on the basis of latest available loan account statements and balances therein, the company has not accounted for liabilities towards banks/financial institutions beyond the NPA dates.
Attention is invited to Note 31 under Explanatory Notes to Financial Statements regarding change in inventories. The company had reduced inventory for Rs. 5064.62 Lakhs during the financial year 2021-22 as exceptional items on the basis of technical report obtained by the management as difference in actual stock and book stock. During the financial year 2022-23, the management certifies the inventory which was valued at cost or Net Realizable Value (NRV) whichever is less. We relied on the management representation in this regard.
Other Information
The Company''s management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company''s annual report, but does not include the financial statements and our auditors'' report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The company is in CIRP Process under the insolvency and Bankruptcy Code, 2016 ("the IBC") vide order of Hon''ble NCLT dated 28.07.2023. Management''s and Board of Director''s of the Company (Power Suspended) as per the provisions of the IBC working under authorization of Mr. Deepak Maini, Resolution Professional of the Company, approved the following Responsibility for the Financial Statements
The Company''s management and Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the state of affairs, profit/loss (including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management and Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management and the Board of Directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the ''Annexure A'', a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
A) As required by Section 143 (3) of the Act, we report that:
a) We have sought and 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 it 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 aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2023 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in ''Annexure B''.
B) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position - refer note 41 to the Financial Statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
C) With respect to the matter to be included in the Auditor''s Report under section 197(16):
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is within eleven per cent of the net profits computed in the manner laid down in section 198 of the Act.
For Krishna Neeraj & Associates Chartered Accountants FRN:023233N
Place: New Delhi CA. Krishna Kr Neeraj
Date: 31/10/2023 Partner
Membership No. 506669
Mar 31, 2016
To the Members of CMI Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of CMI LIMITED (''the Company''), which comprise the balance sheet as at 31st March, 2016, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Act") with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and 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 statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair 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 and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide 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 explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
a. in case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2016;
b. in case of the statement of Profit and Loss, of the profit for the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe 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 of the order.
2. As required by Section 143 (3) of the Act, we report that:
a. we have sought and 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 it 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 aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. on the basis of the written representations received from the Directors as on 31st March, 2016 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March, 2016 from being appointed as a Director in terms of Section 164 (2) of the Act;
f. with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure - B"; and
g. with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its financial statements - Refer Note 25 (B)(1) to the financial statements;
ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure - A to Independent Auditors'' Report
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31st March, 2016, we report that:
i. a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b. The fixed assets of the Company have been physically verified by the Management at reasonable intervals and no material discrepancies were noticed on such verification. In our opinion, periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
c. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. The physical verification of the inventory has been conducted at reasonable intervals by the Management and no material discrepancies were noticed on such verification.
iii. According to the information and explanation given to us and based on the audit procedures conducted by us, the Company has granted loans to one body corporate covered in the register maintained under section 189 of the Companies Act, 2013 (''the Act'')
a. In our opinion, the rate of interest and other terms and conditions on which the loans had been granted to the bodies corporate listed in the register maintained under Section 189 of the Act were not, prima facie, prejudicial to the interest of the Company.
b. In the case of loans granted to the bodies corporate listed in the register maintained under section 189 of the Act, the borrowers have been regular in the payment of the principal and interest as stipulated.
c. There are no overdue amounts in respect of the loan granted to a body corporate listed in the register maintained under section 189 of the Act.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
v. The Company has not accepted any deposits from the public within the meaning of Section 73 to 76 of the Act and the rules framed there under. Therefore the provisions of clause (v) of the order is not applicable.
vi. We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the rules made by the Central Government of India, the maintenance of cost records has been prescribed under sub-section (1) of Section 148 of the Act, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii. a. According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of employees'' state insurance and duty of excise. According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31st March, 2016 for a period of more than six months from the date they became payable except VAT of Rs. 14,14,286/- and CST of Rs. 1,09,59,442/-.
b. According to the information and explanations given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, which have not been deposited with the appropriate authorities on account of any dispute except the following:
Financial Year Law Amounts
Prior Years TDS Rs. 64,469/-
viii. According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or banks at the balance sheet date.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) but the Company has raised term loans during the year and these were applied for the purposes for which those are raised.
x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has made preferential allotment of shares during the year.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with Directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
ANNEXURE - B TO THE INDEPENDENT AUDITORS'' REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF THE CMI LIMITED Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of CMI LIMITED ("the Company") as at 31st March, 2016 in conjunction with our audit of the standalone 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 internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with 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 to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial 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 and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A
Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of the Management and Directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For J. K. MANOCHA & ASSOCIATES
Chartered Accountants
FRN:007345N
J. K. MANOCHA (Partner)
Membership No.: 082442
Place: New Delhi
Date: 27th May, 2016
Mar 31, 2015
We have audited the accompanying financial statements of CMI Limited
("the Company"), which comprise the Balance Sheet as at March 31, 2015,
the Statement of Profit and Loss and Cash Flow Statement for the year
then ended, 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 in
Section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements.
The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give true
and fair view in order to design audit procedures that are appropriate
in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide 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
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of the Statement of Profit and Loss, of the profit of
the company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
Report on other Legal and regulatory requirements
As required by the Companies (Auditor's Report) Order, 2015 ("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
statement on the matters specified in paragraphs 3 and 4 of the Order.
(a) We have sought and 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 Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the directors
as on March 31, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31,2015, from being
appointed as a director in terms of Section 164(2) of the Act
(f) With respect to the other matters included in the Auditor's Report
in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014, in our opinion and to best of our information and according to
the explanations given to us :
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements- Refer Note B-1 to the
financial statements,
ii) The Company did not have any long-term contracts including
derivative contracts, for which there were any material foreseeable
losses,
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company
Annexure to Independent Auditor's Report
The Annexure referred to in our report to the members CMI Limited for
the year Ended on 31st March 2015. We report that:
On the basis of such checks as we considered appropriate and according
to the information 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 including quantitative details and situation of its fixed
assets.
b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets shall be verified in a phased
manner. Accordingly, the Company has carried out a physical
verification of fixed assets at the end of the current year. No
discrepancies were noted on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
2. a) As explained to us, the inventories have been physically verified
by the management at regular intervals during the year.
b) The procedures of physical verification of inventories followed by
the management are 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. No
discrepancy was noticed on physical verification of stocks by the
management as compared to book records.
3. According to the information and explanations given to us and on the
basis of our examination of the books of account, the Company has not
granted any loan, secured or unsecured, to companies, firms or other
parties covered in the register maintained under Section 189 of the
Companies Act, 2013. Consequently, the provisions of clauses iii (a)
and iii(b) of the order are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedure commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any major weakness in the internal control system.
5. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from public
covered under Sections 73 to 76 of the Companies Act, 2013.
6. We have broadly reviewed the Cost Accounting records maintained by
the Company under clause of sub section (1) of Section 148 of the
Companies Act, 2013 and we are of the opinion that prima-facie the
prescribed cost records have been made and maintained.
7. a) According to the information and explanation given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income tax,
wealth tax, service tax, sales-tax, custom duty, excise duty, value
added tax, cess and other undisputed statutory dues were generally
outstanding, at the year end, for a period of more than six months from
the date they became payable except Central Sales Tax Rs. 1,00,63,647/-
and VAT Rs. 8,83,522/-.
b) According to the information and explanations given to us, there are
following amounts payable in respect of income tax, wealth tax, service
tax, sales tax, customs duty, excise duty, value added tax and cess
whichever applicable, which have not been deposited on account of any
disputes.
F.Y LAW AMOUNTS
2014-15 TDS Rs. 919.00
2012-13 TDS Rs. 1.00
2011-12 TDS Rs. 1,864.50
Prior Years TDS Rs. 71,237.85
c) According to the information and explanations provided to us, the
company is not required to transfer to investor education and
protection fund. Thus the provision of clause (vii)(c) of the order is
not applicable on the company.
8. The Company does not have any accumulated loss at the end of
financial year more than fifty percent of its net worth and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
9. According to the books of accounts and records of the company,
during the year under audit, the company has not defaulted in repayment
of dues to a financial institution, bank or debenture holders.
10. In our opinion and according to information and explanations given
to us, the company has not given guarantees for loans taken by others
from banks and financial institutions.
11. According to information and explanations given to us the company
has raised new term loans during the year and the same have been
applied for the purpose for which they were raised. The term loans
outstanding at the beginning of the year have been applied for the
purposes for which they were raised.
12. According to information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the course of our
audit.
For J.K. MANOCHA & ASSOCIATES
Chartered Accountants FRN: 007345N
J.K. MANOCHA
Place: Delhi (Partner)
Date: 30-05-2015 Membership No.: 082442
Mar 31, 2014
We have audited the accompanying financial statements of CMI Limited
("the Company"), which comprise the Balance Sheet as at March 31, 2014,
the Statement of Profit and Loss and Cash Flow Statement for the year
then ended, and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 (the Act) read with of Section 133 of the Companies Act, 2013
and in accordance with the accounting principles generally the General
Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the profit of
the company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of section
227(4A) of the Act, we give in the annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, 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 purpose 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;
bb) Since (all) the branch(es) of the Company are also audited by us,
the report on the accounts of branch offices audited by other auditor
under section 228(3)(c) of the Companies Act, 1956 is not applicable.
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub- section (3C) of section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated 13th September, 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
Annexure to Independent Auditor''s Report
The Annexure referred to in paragraph 1 of our report of even date to
the members of CMI Limited on the accounts of the company for the year
ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information 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 including quantitative details and situation of its fixed
assets.
b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
c) During the period, the Company has disposed certain items of its
fixed assets. In our opinion and according the information and
explanations given to us, the aforesaid disposal has not affected the
going concern assumption.
2. a) As explained to us, the inventories have been physically
verified during the year by the management. In our opinion, the
frequency of verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties covered in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
b) According to the information and explanations given to us, the
Company has taken unsecured loans from companies, firms or other
parties covered in the register maintained under Section 301 of the
Companies Act, 1956, and the details are as follows:
No. of Parties - 1
The maximum amount involved during the year - Rs. 566.70 lacs Year end
balance - Rs. 463.08 lacs
c) The terms and conditions of unsecured loans taken from Companies,
firms or other parties are not prima facie prejudicial to the interest
of the Company.
d) As per the explanation and information given to us, the Company has
paid interest on the loans at prevailing market rates.
e) As per the information and explanation provided to us, the Company
is repaying principal as per stipulation and there is no overdue
amount.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories, fixed assets and for sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
internal control system.
5. a) According to the information and explanations given to us, we
are of the opinion that transactions that need to be entered into 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 to contracts or
arrangement entered in the register maintained under Section 301 of the
Companies Act, 1956 and exceeding the value of Rs. 5,00,000/- (Rupees
Five Lacs) 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.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit as per the
provisions of Section 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposit) Rules 1975.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the Cost Accounting records maintained by
the Company pursuant to the Companies (Cost Accounting Records) Rules,
2011 prescribed by the Central Government under Section 209 (1) (d) of
the Companies Act, 1956 and we are of the opinion that prima-facie the
prescribed cost records have been made and maintained.
9. a) According to the records of the Company, the Company is
generally regular in depositing with the appropriate authorities the
undisputed statutory dues including Provident Fund, Investor Education
& Protection Fund, Employees'' State Insurance, Excise Duty, Cess,
Service Tax, Custom Duty and other material statutory dues applicable
to it.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income tax,
wealth tax, service tax, sales-tax, custom duty, excise duty, cess and
other undisputed statutory dues were generally outstanding, at the year
end, for a period of more than six months from the date they became
payable except Central Sales Tax Rs. 1,05,74,897/- and VAT Rs.
7,77,909/-.
c) According to the information and explanations given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
10. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of the clause (xiii)
of paragraph 4 of the Companies (Auditor''s Report) Order, 2003 (as
amended) are not applicable to the Company.
14. In our opinion and according to information and explanations given
to us, the Company is not dealing in or trading in shares, securities,
debentures and other investment. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
15. In our opinion and according to information and explanations given
to us, the company has not given guarantees for loans taken by others
from banks and financial institutions.
16. According to information and explanations given to us the company
has not raised new term loans during the year. The term loans
outstanding at the beginning of the year have been applied for the
purposes for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis have
been used for long-term investment by the Company.
18. According to the information and explanations given to us 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.
19. The Company has not issued any debentures.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to information and explanations given
to us, no fraud on or by the Company has been noticed or reported
during the year.
For J.K. MANOCHA & ASSOCIATES
Chartered Accountants
FRN: 007345N
J.K.MANOCHA
(Partner)
Membership No.: 082442
Place: Delhi
Date: 30-05-2014
Mar 31, 2013
We have audited the accompanying financial statements of CMI Limited
("the Company"), which comprise the Balance Sheet as at March 31,
2013, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention to Note 2 to the financial statements which describe
that the gratuity liability in respect of the previous year up to March
31, 2012 has been adjusted against revenue reserves and surplus in the
financial statements for the year ended March 31, 2013.
Our opinion is not qualified in respect of this matter.
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of section
227(4A) of the Act, we give in annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, 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 purpose 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Act;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
Annexure to Independent Auditor''s Report
The Annexure referred to in paragraph 1 of our report of even date to
the members of CMI Limited on the accounts of the company for the year
ended 31st March, 2013.
On the basis of such checks as we considered appropriate and according
to the information 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 including quantitative details and situation of its fixed
assets.
b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
c) During the period, the Company has disposed certain items of its
fixed assets. In our opinion and according the information and
explanations given to us, the aforesaid disposal has not affected the
going concern assumption.
2. a) As explained to us, the inventories have been physically
verified during the year by the management. In our opinion, the
frequency of verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inven-
tories. No material discrepancy was noticed on physical verification of
stocks by the management as compared to book records.
3. a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties covered in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
b) According to the information and explanations given to us, the
Company has taken unsecured loans from companies, firms or other
parties covered in the register maintained under Section 301 of the
Companies Act, 1956, and the details are as follows:
No. of Parties  4
The maximum amount involved during the year  Rs. 590.00 lacs
Year end balance  Rs. 527.70 lacs
c) The terms and conditions of unsecured loans taken from Companies,
firms or other parties are not prima facie prejudicial to the interest
of the Company.
d) As per the explanation and information given to us, the Company has
paid interest on the loans at prevailing market rates.
e) As per the information and explanation provided to us, the Company
is repaying principal as per stipulation and there is no overdue
amount.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories, fixed assets and for sale of
goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system.
5. a) According to the information and explanations given to us, we
are of the opinion that transactions that need to be entered into 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 to contracts or
arrangement entered in the register maintained under Section 301 of the
Companies Act, 1956 and exceeding the value of Rs. 5, 00,000/ - (Rupees
Five Lacs) 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.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit as per the
provisions of Section 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposit) Rules 1975.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the Cost Accounting records maintained by
the Company in respect of manufacturing of cables pursuant to the order
made by the Central Government for maintenance of cost accounting
records under Section 209 (1) (d) of the Companies Act, 1956 and we are
of the opinion that prima-facie prescribed records have been made and
maintained.
9. a) According to the records of the Company, the Company is
generally regular in depositing with the appropriate authorities the
undisputed statutory dues including Provident Fund, Investor Education
& Protection Fund, Employees'' State Insurance, Excise Duty, Cess,
Service Tax, Custom Duty and other material statutory dues appli- cable
to it.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income tax,
wealth tax, service tax, sales-tax, custom duty, excise duty, cess and
other undisputed statutory dues were generally outstanding, at the year
end, for a period of more than six months from the date they became
payable except Central Sales Tax Rs. 96,33,110/- and VAT Rs.
7,77,909/-.
c) According to the information and explanations given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
10. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion the Company is not a chit fund or a nidhi /mutual
benefit fund/society. Therefore, the provision of this clause of the
Companies (Auditor''s Report) Order, 2003 (as amended) is not applicable
to the Company.
14. In our opinion and according to information and explanations given
to us, the Company is not dealing in or trading in shares, securities,
debentures and other investment. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
15. The company has given guarantees for loans taken by others from
banks and financial institutions. According to the information and
explanations given to us, we are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interest of
the Company.
16. The company has raised new term loans during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purposes for which they were raised.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that there are no funds raised on short-term basis have been
used for long- term investment by the Company.
18. According to the information and explanations given to us the
Company has made preferential allotment of shares during the year to
parties and companies covered in the register maintained under Section
301 of the Act.
19. The Company has not issued any debentures.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to information and explanations given
to us, no fraud on or by the Company has been noticed or reported
during the year.
For J.K. MANOCHA & ASSOCIATES
Chartered Accountants FRN: 007345N
J.K.MANOCHA
(Proprietor)
Membership No.: 082442
Place: Delhi
Date: 31-05-2013
Mar 31, 2011
1. We have audited the attached Balance Sheet of CMI LIMITED as at
31st March, 2011 together with the Profit and Loss Account and the Cash
Flow Statement for the year ended as 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.
2. We conducted our audit in accordance with the Accounting 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 misstatements. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India, in terms of sub-section (4A) of
Section 227 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.
4. Further to our comments in the Annexure referred to above, we
report that:-
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our audit ;
ii) 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 ;
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts ;
iv) In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956 in so far as they apply to the Company ;
v) On the basis of written representations received from the directors,
as on 31st March 2011 and taken on record by the Board of Directors, we
report that none of the Directors are disqualified as on 31st March 2011
from being appointed as a Director in terms of clause (g) of sub-section
(1) of Section 274 of the Companies Act, 1956 ;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with significant
accounting policies & notes thereon 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 :
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
b) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to Auditors' Report
Annexure referred to in Paragraph 3 of the Auditors' Report of even
date to the Members of CMI Limited on the financial statement for the
year ended 31st March, 2011.
i) a) The Company has maintained proper records showing full
particulars
including quantitative details and situation of fixed assets.
b) As explained to us, all the assets have been physically verified by
the management during the year and no material discrepancies were
noticed on such verification.
c) In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and going concern status of the Company is
not effected.
ii) a) The stock of inventory has been physically verified, during the
year, by
the management of the Company. In our opinion, the frequency of
verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) On the basis of examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and were properly dealt with in the
books of account.
iii) a) As per information and explanation given to us, the Company has
not granted loans to companies, firms or other parties covered under
Section 301 of the Companies, Act, 1956.
b) As per information & explanation given to us, the Company has taken
unsecured loans from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956, and
the details are as follows: -
No. of Parties - 10
The maximum amount involved during the year - Rs. 1172.75 Lacs
Year-end balance - Rs. 695.73 Lacs
c) The Terms and Conditions of unsecured loans taken from Companies,
firms or other parties are not prima facie prejudicial to the interest
of the Company.
d) As per the explanation and information given to us, the Company has
not paid any interest on the above loans.
e) As per the information and explanation provided to us, the Company
is repaying principal as per stipulation and there is no overdue amount.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and sale of goods on the basis
of examination of books of accounts and records of the Company and
according to the information and explanation given to us, we have neither
come across nor informed of any major weakness in the Internal Control
system during the course of our audit.
v. a) According to the information and explanations given to us, we
are of the opinion that transactions that need to be entered into 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 to contracts or
arrangement entered in the register maintained under Section 301 of the
Companies Act, 1956 and exceeding the value of Rs. 5, 00,000/- (Rupees
Five Lacs) 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. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit as per the provisions
of Section 58A and 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposit) Rules 1975.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the Cost Accounting records maintained
by the Company in respect of manufacturing of cables pursuant to the order
made by the Central Government for maintenance of cost accounting records
under Section 209 (1) (d) of the Companies Act, 1956 and we are of the
opinion that prima-facie prescribed records have been made and
maintained.
ix. a) According to the records of the Company, the Company is
generally regular in depositing with the appropriate authorities the
undisputed statutory dues including Provident Fund, Investor Education
& Protection Fund, Employees' State Insurance, Excise Duty, Cess, Service
Tax, Custom Duty and other material statutory dues applicable to it.
Further, since the Central Government has till date not prescribed the
amount of Cess payable under Section 441A of the Companies Act, 1956,
therefore we are not in a position to comment upon the regularity or
otherwise on the Company in depositing the same.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income tax,
wealth tax, service tax, sales-tax, custom duty, excise duty, cess and
other undisputed statutory dues were generally outstanding, at the year
end, for a period of more than six months from the date they became
payable.
c) According to the information and explanation given to us, there are
no dues in respect of income tax, wealth tax, service tax, custom duty
and cess which have not been deposited on account of any dispute.
x. In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and the immediately
preceding financial year.
xi. Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to any bank. The Company
has no outstanding dues in respect of a financial institution or debenture
holders.
xii. As per the information and explanation given to us, we are of the
opinion that the Company has not granted loans and advances on the basis
of security by way of pledge of shares, debentures and other securities
during the year.
xiii. In our opinion, the Company is not a chit fund or Nidhi Mutual
benefit fund/ society.
Therefore the provisions of clause 4(xiii) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investment. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
xv. In our opinion, the terms and conditions on which the Company has
given guarantees for loans taken by other from banks or financial
institutions are not prejudicial to the interest of the Company.
xvi. As per information and explanation given to us, the Company has
raised car loans to the tune of Rs. 5.00 Lacs during the year. The
balance as on 31st March 2010 is 22.16 Lacs.
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 the funds raised on short-term basis have not been used to finance
any long-term investment.
xviii. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and Companies covered in the register maintained under Section 301 of
the Act.
xix. The Company has not issued any debentures.
xx. The Company has not raised money by Public issue during the year.
xxi. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
FOR J. K. MANOCHA AND ASSOCIATES
CHARTERED ACCOUNTANTS
PLACE : DELHI J.K. MANOCHA
DATE : 27-05-2011 PROPRIETOR
Mar 31, 2010
1. We have audited the attached Balance Sheet of CMI LIMITED as at
31st March, 2010 together with the Profit and Loss Account and the Cash
Flow Statement for the year ended as on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the Accounting 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 misstatements. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India, in terms of sub-section (4A) of
Section 227 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.
4. Further to our comments in the Annexure referred to above, we
report that:-
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii) 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;
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
iv) In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956 in so far as they apply to the Company;
v) On the basis of written representations received from the directors,
as on 31st March 2010 and taken on record by the Board of Directors, we
report that none of the Directors are disqualified as on 31st March
2010 from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956 ;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with significant
accounting policies & notes thereon 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 :
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
b) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to Auditors Report
Annexure referred to in Paragraph 3 of the Auditors Report of even
date to the Members of CMI Limited on the financial statement for the
year ended 31st March, 2010.
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, all the assets have been physically verified by
the management during the year and no material discrepancies were
noticed on such verification.
c) In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and going concern status of the Company is
not effected.
ii) a) The stock of inventory has been physically verified, during the
year, by the management of the Company. In our opinion, the frequency
of verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) On the basis of examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and were properly dealt with in the
books of account.
iii) a) As per information and explanation given to us, the Company has
not granted loans to companies, firms or other parties covered under
Section 301 of the Companies, Act, 1956.
b) As per information & explanation given to us, the Company has taken
unsecured loans from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956, and
the details are as follows: -
No. of Parties-10
The maximum amount involved during the year - Rs. 1525.63 Lacs
Year-end balance - Rs. 1074.74 Lacs
c) The Terms and Conditions of unsecured loans taken from Companies,
firms or other parties are not prima facie prejudicial to the interest
of the Company.
d) As per the explanation and information given to us, the Company has
not paid any interest on the above loans.
e) As per the information and explanation provided to us, the Company
is repaying principal as per stipulation and there is no overdue
amount.
iv. In our opinion and according to the information and explanations
given to us, there are adequate
internal control procedures commensurate with the size of the Company
and the nature of its business with regard to purchase of inventory,
fixed assets and sale of goods on the basis of examination of books of
accounts and records of the Company and according to the information
and explanation given to us, we have neither come across nor informed
of any major weakness in the Internal Control system during the course
of our audit.
v a) According to the information and explanations given to us, we are
of the opinion that transactions that need to be entered into 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 to contracts or
arrangement entered in the register maintained under Section 301 of the
Companies Act, 1956 and exceeding the value of Rs. 5,00,000/- (Rupees
Five Lacs) 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. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit as per the
provisions of Section 58Aand 58AAof the Companies Act, 1956 and the
Companies (Acceptance of Deposit) Rules 1975.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the Cost Accounting records maintained
by the Company in respect of manufacturing of cables pursuant to the
order made by the Central Government for maintenance of cost accounting
records under Section 209 (1) (d) of the Companies Act, 1956 and we are
of the opinion that prima-facie prescribed records have been made and
maintained.
ix. a) According to the records of the Company, the Company is
generally regular in depositing with the appropriate authorities the
undisputed statutory dues including Provident Fund, Investor Education
& Protection Fund, Employees State Insurance, Excise Duty, Cess,
Service Tax, Custom Duty and other material statutory dues applicable
to it.
Further, since the Central Government has till date not prescribed the
amount of Cess payable under Section 441A of the Companies Act, 1956,
therefore we are not in a position to comment upon the regularity or
otherwise on the Company in depositing the same.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees state insurance, income tax,
wealth tax, service tax, sales-tax, custom duty, excise duty, cess and
other undisputed statutory dues were generally outstanding, at the year
end, for a period of more than six months from the date they became
payable.
c) According to the information and explanation given to us, there are
no dues in respect of income tax, wealth tax, service tax, custom duty
and cess which have not been deposited on account of any dispute.
x. In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year.
xi. Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to any bank. The Company
has no outstanding dues in respect of a financial institution or
debenture holders.
xii. As pert^infCTmatbn and explanation given to us, we are of the
opinion that the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities during the year.
xiii. in our opinion, the Company is not a chit fund or Nidhi Mutual
benefit fund/ society. Therefore fteprovistens of clause 4(xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to ûë
Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other fcraesfrnent Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
xv. In our opinion, the terms and conditions on which the Company has
given guarantees for loans taken by other from banks or financial
institutions are not prejudicial to the interest of the Company.
xvi. As per information and explanation given to us, the Company has
raised car loans to the tune of Rs. 26.00 Lacs during the year. The
balance as on 31st March 2009 is 18.88 Lacs.
xvi According to me information and explanations given to us and on an
overall examination of the balance sheet of the Gompany, we report that
the funds raised on short-term basis have not been used to finance any
long-term investment.
xviS. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and Companies covered in the register maintained under Section 301 of
the Act.
xix. The Company has not issued any debentures.
xx. The Company has not raised money by Public issue during the year.
xxi. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
FOR J. K. MANOCHA & ASSOCIATES
CHARTERED ACCOUNTANTS
J.K. MANOCHA
PROPRIETOR
PLACE: DELHI
DATE : 30-05-2010
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on CMI Ltd.
-
CMI Ltd. Tools
- Bulk Deals
-
CMI Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- BSE Price History
- NSE Price History
-
CMI Ltd. Key Financial Ratios
- Ratios
-
CMI Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
CMI Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
CMI Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
CMI Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
