Mar 31, 2023
We have audited the accompanying financial statements of CONTAINER CORPORATION OF INDIA LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2023, the Statement of Profit and Loss (including other comprehensive income), Statement of Changes in Equity, Statement of Cash Flows for the year then ended and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (herein after referred to as "the standalone financial statements").
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 Companies Act, 2013 ("the Act") in 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 (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
We conducted our audit of standalone financial statements 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 Standalone 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 ("ICAI") together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made there under 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.
We draw the attention to:
a) Refer Note no. 30, 39 and 51, which describe payment of Land License Fee to Indian Railways for land leased to it on the basis of company''s assessment and is not final. In view of the uncertainty of the lease terms, no Right of Use (ROU) has been assessed as required under Ind AS 116.
b) Balances of Sundry Debtors, Sundry Creditors and Advance to Other Parties including Railways are subject to confirmation and reconciliation, as referred in Note no. 68(a). These balances include outstandings for more than 3 years. The effect of the same is not ascertainable.
Our conclusion is not modified in respect of these matters.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financials statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon and we do not provide separate opinion on these matters.
We have determined that there are no key audit matters to be communicated in our audit report.
The Company''s Board of Directors is responsible for the other information. The other information comprises the Management Discussion and Analysis, Director''s Report including annexure to Director''s Report, Business Responsibility Report, Corporate Governance, ten years Financial/physical performance and data and letter from CMD included in the annual report of the company, but does not include the standalone financial statements and our auditor''s report thereon. The annual report is expected to be made available to us after the date of this auditor''s report.
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 identified above when it becomes available 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 communicate the fact. We have nothing to report in this regard.
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity 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. 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, the Board of Directors is 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 the Board of Directors either intends 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.
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:
(a) Identify and assess the risks of material misstatement of the financial results, 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.
(b) 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 Act, we are also responsible for expressing our opinion on whether the company has adequate Internal Financial Control System in place and the operating effectiveness of such controls.
(c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
(d) Conclude on the appropriateness of the Board of Directors'' 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.
(e) Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
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.
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 Act, we give in the "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the order, to the extent applicable.
2. The Comptroller & Auditor General of India has issued directions indicating the areas to be examined in terms of Sub section (5) of Section 143 of the Act, compliance of which are set out in "Annexure-B".
3. 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 accounts 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 (including other comprehensive income), the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of accounts.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
(e) As per the notification number G.S.R. 463(E) dated 5th June, 2015 issued by Ministry of Corporate Affairs, section 164(2) of the Act regarding the disqualifications of Directors is not applicable to the Company, since it is a Government Company.
(f) With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure C".
(g) With respect to the other matters to be included in the Auditor''s Report, as per notification number G.S.R. 463 (E) dated 5th June, 2015 issued by Ministry of Corporate Affairs, section 197(16) of the Act regarding the Managerial Remuneration is not applicable to the Company, since it is a Government Company.
(h) 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/arbitrations on its financial position in its standalone financial statements. Refer note no. 42 to the standalone 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.
iv. (a) The Management of the Company have represented to us that, to the best of their knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested ( either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company or any of such subsidiaries ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management of the Company has represented to us that, to the best of their knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company or any of such subsidiaries from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances performed by us on the Company, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule ll(e), as provided under (a) and (b) above, contain any material misstatement.
v. As stated in Note 19.2 to the standalone financial statements
a. The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
b. The interim dividend declared and paid by the Company during the year and until the date of this report is in compliance with Section 123 of the Act.
c. The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended 31st March 2023.
For S. N. Nanda & Co.
Chartered Accountants
FRN: 000685N
Sd/-
Date: 18th May 2023 S. N. Nanda
Place : New Delhi Partner
M. No. 005909
UDIN: 23005909BGWNTP4613
Mar 31, 2022
Opinion
We have audited the accompanying financial statements of CONTAINER CORPORATION OF INDIA LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2022, the Statement of Profit and Loss (including other comprehensive income), Statement of Changes in Equity, Statement of Cash Flows for the year then ended and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as âthe standalone financial statementsâ)
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 Companies Act, 2013 (âthe Actâ) in 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 2022, its profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Basis of Opinion
We conducted our audit of standalone financial statements 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 Auditorâs Responsibilities for the Audit of the Standalone 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 (âICAIâ) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made there under, 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.
Emphasis of Matter
We draw the attention to:
a) Refer Note 34(a) and 50, which describe payment of Land License Fee to Indian Railways for land leased to it on the basis of companyâs assessment and is not final. In view of the uncertainty of the lease terms, no Right of Use (ROU) has been assessed as required under Ind AS 116.
b) Balances of Sundry Debtors, Sundry Creditors and Advance to Other Parties including Railways are subject to confirmation and reconciliation, as referred to note no. 68(a). These balances include outstanding for more than 3 years. The effect of the same is not ascertainable.
Our conclusion is not modified in respect of these matter.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financials statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide separate opinion on these matters.
We have determined that there are no key audit matters to be communicated in our audit report.
Information Other than the Standalone Financial Statements and Auditorâs Report Thereon
The Companyâs Board of Directors is responsible for the other information. The other information comprises the Management Discussion and Analysis, Directorâs Report including annexure to Directorâs Report, Business Responsibility Report, Corporate Governance, ten years Financial/physical performance and data and letter from CMD included in the annual report of the company, but does not include the standalone financial statements and our auditorâs report thereon. The annual report is expected to be made available to us after the date of this auditorâs report.
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 identified above when it becomes available 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 communicate the fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity 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. 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, the Board of Directors is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends 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 Companyâs financial reporting process.
Auditorâs 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 auditorâs 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:
(a) Identify and assess the risks of material misstatement of the financial results, 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.
(b) 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 Act, we are also responsible for expressing our opinion on whether the company has adequate Internal Financial Control System in place and the operating effectiveness of such controls.
(c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
(d) Conclude on the appropriateness of the Board of Directorsâ 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 Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs 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 auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
(e) Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
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 auditorâs 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 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the order, to the extent applicable.
2. The Comptroller & Auditor General of India has issued directions indicating the areas to be examined in terms of Sub section (5) of Section 143 of the Act, compliance of which are set out in âAnnexure-Bâ.
3. 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 (including other comprehensive income), the Statement of Changes in Equity 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.
(e) As per the notification number G.S.R. 463(E) dated 5th June, 2015 issued by Ministry of Corporate Affairs, section 164(2) of the Act regarding the disqualifications of Directors is not applicable to the Company, since it is a Government Company.
(f) With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Câ.
(g) With respect to the other matters to be included in the Auditorâs Report, as per notification number G.S.R. 463 (E) dated 5th June, 2015 issued by Ministry of Corporate Affairs, section 197(16) of the Act regarding the Managerial Remuneration is not applicable to the Company, since it is a Government Company.
(h) With respect to the other matters to be included in the Auditorâs 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/arbitrations on its financial position in its standalone financial statements. Refer note no. 42 to the standalone 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.
(iv) (a) The Management of the Company have represented to us that, to the best of their knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company or any of such subsidiaries (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management of the Company has represented to us that, to the best of their knowledge and belief, no funds (which are material either individually or in the aggregate)have been received by the Company or any of such subsidiaries from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances performed by us on the Company, nothing has come to our notice that has caused us to believe that there presentations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
(v) As stated in Note 19.2 to the standalone financial statements
(a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
(b) The interim dividend declared and paid by the Company during the year and until the date of this report is in compliance with Section 123 of the Act.
(c) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
For S. N. Nanda & Co.
Chartered Accountants FRN: 000685N
Sd/-
Date: 19th May 2022 S. N. Nanda
Place : New Delhi Partner
M. No. 005909
UDIN: 22005909AJGHFV7639
Mar 31, 2021
Report on the Audit of Standalone Financial Statements Opinion
We have audited the accompanying financial statements of CONTAINER CORPORATION OF INDIA LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2021, the Statement of Profit and Loss (including other comprehensive income), Statement of Changes in Equity, Statement of Cash Flows for the year then ended and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as âthe standalone financial statementsâ).
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 Companies Act, 2013 (âthe Actâ) in 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 2021, its profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
We conducted our audit of standalone financial statements 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 Auditorâs Responsibilities for the Audit of the Standalone 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 (âICAIâ) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made there under, 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.
We draw the attention to:
a) Refer Note 39 and 51, which describe payment of Land Licence Fee to Indian Railways for land leased to it on the basis of companyâs assessment and is not final. In view of the uncertainty of the lease terms, no Right of Use (ROU) has been assessed as required under Ind AS 116.
b) Balances of Sundry Debtors, Sundry Creditors and Advance to Other Parties including Railways are subject to confirmation and reconciliation, as referred to note no. 60(a). These balances include outstanding for more than 3 years. The effect of the same is not ascertainable.
Our conclusion is not modified in respect of these matter.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financials statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide separate opinion on these matters.
We have determined that there are no key audit matters to be communicated in our audit report.
Information Other than the Standalone Financial Statements and Auditorâs Report Thereon
The Companyâs Board of Directors is responsible for the other information. The other information comprises the Management Discussion and Analysis, Directorâs Report including annexure to Directorâs Report, Business Responsibility Report, Corporate Governance, Ten years Financial/physical performance and data and letter from CMD included in the annual report of the company, but does not include the standalone financial statements and our auditorâs report thereon. The annual report is expected to be made available to us after the date of this auditorâs report.
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 identified above when it becomes available 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.
When we read the Annual report, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions as per applicable laws and regulations.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity 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. 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, the Board of Directors is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends 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 Companyâs financial reporting process.
Auditorâs 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 auditorâs 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 Act, we are also responsible for expressing our opinion on whether the company has adequate Internal Financial Control 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 the Board of Directors.
⢠Conclude on the appropriateness of the Board of Directorsâ 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 Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs 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 auditorâs 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 standalone 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 auditorâs 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, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the order, to the extent applicable.
2. The Comptroller & Auditor General of India has issued directions indicating the areas to be examined in terms of Sub section (5) of Section 143 of the Act, compliance of which are set out in âAnnexure-Bâ.
3. 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 (including other comprehensive income), the Statement of Changes in Equity 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) As per the notification number G.S.R. 463(E) dated 5th June, 2015 issued by Ministry of Corporate Affairs, section 164(2) of the Act regarding the disqualifications of Directors is not applicable to the Company, since it is a Government Company.
(f) With respect to the adequacy of Internal Financial Controls over Financial Reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Câ.
(g) With respect to the other matters to be included in the Auditorâs Report, as per notification number G.S.R. 463 (E) dated 5th June, 2015 issued by Ministry of Corporate Affairs, section 197(16) of the Act regarding the Managerial Remuneration is not applicable to the Company, since it is a Government Company.
(h) With respect to the other matters to be included in the Auditorâs 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/arbitrations on its financial position in its financial statements - Refer Note 42 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.
Chartered Accountants FRN: 000685N
Sd/-
Date: 21st May 2021 S. N. Nanda
Partner
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of CONTAINER CORPORATION OF INDIA LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31 March, 2018, the Statement of Profit and Loss (including other comprehensive income), the Cash Flows Statement and the statement of changes in equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âthe Standalone Financial Statementsâ).
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) 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 (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) 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 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. While conducting 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 and the order issued under section 143(11) of the Act.
We conducted our audit of standalone financial statements 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone 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 Companyâs Directors, as well as evaluating the overall presentation of the standalone 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, of the state of affairs of the Company as at 31 March 2018, its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
1. We draw attention to the Note no. 53 to the standalone financial statements of 31 March, 2018 which describe investment of Rs.54.60 Crore in equity of IGTPL, a joint venture in which the company hold 14.56% equity, whose net worth has been fully eroded. Management has not recognized any impairment in the value of the assets, as in the opinion of the management, the expected present value of future cash flows exceeds the carrying amount of the asset.
Our opinion is not modified in respect of this matter.
2. We further draw attention to the Note no. 54 to the standalone financial statements of 31 March, 2018, regarding non provision for impairment in the value of investment amounting to INR 146.62 Crores in equity of M/s Fresh & Healthy Enterprises Limited (FHEL), a wholly owned subsidiary company, whose net worth has been fully eroded. Management has not recognized any impairment in the value of the assets on account of future revival business plan and committed investment, as in the opinion of the management, the expected present value of future cash flows of the restructured business plan exceeds the carrying amount of the asset.
Our opinion is not modified in respect of this matter.
Other Matters
We did not audit the financial statements/information of 8 regions included in the standalone financial statements of the Company whose financial statements/financial information reflect total assets of Rs.3027.90 Crore as at 31 March, 2018 and total revenues of Rs.5946.40 Crores for the year ended on that date, as considered in the standalone financial statements. The financial statements/information of these regions have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these regions, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. As required by Section 143(5) of the Act, we give in the âAnnexure Bâ, a statement on the matters specified in the Directions issued by The Comptroller and Auditor General of India, and in our opinion, no action is required to be taken thereon and there is no impact on the accounts and financial statements of the Company.
3. 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 and proper returns adequate for the purpose of our audit have been received from the branches not visited by us.
(c) The reports on the accounts of regions of the company audited under section 143 (8) of the Act by branch auditors have been sent to us and have been dealt with in preparing our report in the manner considered necessary by us.
(d) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the statement of changes in equity dealt with by this Report are in agreement with the books of account and the returns received from the branch not visited by us.
(e) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act.
(f) On the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(g) 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 Câ; Our report express an unmodified opinion on the adequacy and operating effectiveness of the companyâs internal financial control over financial reporting.
(h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, 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 standalone financial statements-refer note no.-41 to the standalone financial statements of 31 March 2018;
ii. the Company is not required to make any provision for any material foreseeable losses under any law or Indian Accounting Standard, on long terms contracts. Also the Company is not dealing into derivatives contracts and
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 Auditorsâ Report
Referred to Paragraph 1 under the heading of âReport on Other Legal and Regulatory Requirementsâ of our report of even date
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regards to the size of the company and nature of its business. Pursuant to the programme, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies were noticed on such verification.
(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 except for items mentioned below:
(Rs. in Crores)
Details of Property |
Net Amount |
RO Premises at Egmore, Chennai |
1.72 |
Staff Quarters at Chennai |
1.08 |
Residential Flats, Kolkata |
0.52 |
Jangpura-Building |
0.85 |
Leasehold Land-MMLP, Vishakhapatnam |
90.08 |
Freehold land, Krishnapatnam Port |
31.07 |
Land at Village Bhavri |
0.04 |
Land at Vatera |
0.64 |
Jangpura-Land |
0.44 |
Leasehold Land at Kadakola |
19.18 |
ii. The Company has carried out physical verification of inventory at a reasonable intervals and no material discrepancy were noticed during such verification.
iii. The Company has granted unsecured loans to 2 wholly owned subsidiary companies i.e. M/s Fresh & Healthy Enterprises Limited (FHEL) and M/s CONCOR Air Limited.
(a) In our opinion and according to the information and explanations given to us, the terms and conditions of the grant of such loans are not prejudicial to the companyâs interest;
(b) Payments of interest are regular in respect of CONCOR Air Limited. However substantial payment of interest in case of FHEL is not regular. The borrower entity (FHEL) is not in a capacity to pay interest and principal as per stipulated terms. The due date of the loan and interest has been extended period after period to avoid default in the account.
(c) Interest amounting to INR 15.14 Cr is overdue in relation to loan to FHEL for more than ninety days. According to the information and explanations given to us, the company is following up the recovery of overdue amount.
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, investments, guarantees and security as applicable
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Companies Act, 2013 and Rules framed there under.
vi. As per the information and explanations given to us, the maintenance of cost records has not been prescribed by the Central Government under section 148(1) of the Companies Act, 2013 for services rendered by the company.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the books of account of the company, except Building & Other construction Worker Cess of Rs.1.99 Crores is outstanding as on 31 March, 2018 for a period of more than six month from the date it became payable, amount deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Income Tax, Sales tax, Service Tax, Custom Duty, Value Added Tax, Cess and any other statutory dues have generally been regularly deposited during the year by the company with appropriate authorities.
(b) According to the information and explanations given to us, the following dues of Income tax, water tax and service tax have not been deposited by the company on account of disputes:
(Rs. in Crores)
S. No |
Name of Statue |
Nature of Dues |
Forum where dispute is pending |
Period to which amount relates |
Amount |
1 |
Finance Act, 1994 |
Service tax |
CESTAT, Bangalore |
September 2002 to June 2008 |
1.48* |
CCE |
2004-05 |
0.11 |
|||
CCE (Appeals) |
January 2004-March 2004 |
0.02 |
|||
CCE |
2005-06 |
0.20 |
|||
2 |
Income |
Income Tax |
Supreme Court |
A.Y. 2003-04 |
5.30 |
Tax Act, 1961 |
A.Y. 2004-05 |
9.64 |
|||
A.Y. 2005-06 |
11.99 |
||||
A.Y. 2007-08 |
24.75 |
||||
High Court |
A.Y. 2008-09 |
48.13 |
|||
A.Y. 2009-10 |
113.68 |
||||
ITAT, Delhi |
A.Y. 2008-09 |
96.59 |
|||
A.Y. 2010-11 |
121.08 |
||||
A.Y. 2011-12 |
165.80 |
||||
A.Y. 2012-13 |
159.27 |
||||
A.Y. 2013-14 |
107.31 |
||||
A.Y. 2014-15 |
19.70 |
||||
CIT (Appeals) |
A.Y. 2015-16 |
167.41 |
|||
ITO (Income Tax Officer) |
A.Y. 2006-07 |
0.69 |
|||
3 |
Jal Sansthan, Kanpur |
Water Tax |
Allahabad High Court |
2000-01 to date |
0.69 |
* one third share of the total disputed amount
viii. The company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders during the year.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable to the company
x. According to the information and explanation given to us by the management and based the audit procedures performed, no material fraud by the company or on the Company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations give 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 to the company.
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 give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the company.
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 to the company.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
For Arun K Agarwal & Associates
Chartered Accountants
(Firmâs Registration No. 003917N)
Sd/-
Satish Gulati
Place: New Delhi (Partner)
Date: 30 April, 2018 M. No. 083897
Mar 31, 2017
TO THE MEMBERS OF
CONTAINER CORPORATION OF INDIA LIMITED
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
We have audited the accompanying standalone Ind AS financial statements of CONTAINER CORPORATION OF INDIA LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31 March, 2017, the Statement of Profit and Loss (including other comprehensive income), the Cash Flows Statement and the statement of changes in equity for the year then ended and a summary of the significant accounting policies and other explanatory information (herein after referred to as âStandalone Ind AS Financial Statementsâ).
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) 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 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. While conducting 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 of standalone Ind AS financial statements 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind AS 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 standalone Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 31 March 2017, its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
1. We draw attention to the Note no. 53 to the standalone Ind AS financial statements of 31 March, 2017 which describe investment of Rs,54.60 Crore in equity of IGTPL, a joint venture in which the company hold 14.56% equity, whose net worth has been fully eroded i.e. IGTPL is having accumulated losses of Rs,608.46 crore (as per unaudited accounts of F.Y. 2016-17) in which the company''s share is Rs,88.59 crore, which exceeds the investment in the joint venture as on 31 March, 2017. Management has not recognized any impairment in the value of the assets, as in the opinion of the management, the expected present value of future cash flows exceeds the carrying amount of the asset.
Our opinion is not modified in respect of this matter.
2. We further draw attention to the Note no. 54 to the standalone Ind AS financial statements of 31 March, 2017, regarding non provision for diminution/impairment in the value of investment amounting to Rs,146.62 Crores in equity of M/s Fresh & Healthy Enterprises Limited (FHEL), a wholly owned subsidiary company, whose net worth has been fully eroded. Management has not recognized any impairment in the value of the assets, as in the opinion of the management, the expected present value of future cash flows exceeds the carrying amount of the asset.
Our opinion is not modified in respect of this matter.
Other Matters
The comparative financial information of the Company for the year ended 31 March, 2016 and the transition date opening balance sheet as at 01 April, 2015 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) for the year ended 31 March, 2016 and 31 March, 2015 which were audited by other auditor, on which they have expressed an unmodified opinion dated 25 May, 2016 and 28 May, 2015, respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us, on which we have expressed an unmodified opinion vide our report dated 25 May, 2017. Our opinion is not modified in respect of this matter.
We did not audit the financial statements/information of 8 regions included in the standalone Ind AS financial statements of the Company whose financial statements/financial information reflect total assets of Rs,2700.23 Crore as at 31 March, 2017 and total revenues of Rs,5417.78 Crores for the year ended on that date, as considered in the standalone Ind AS financial statements. The financial statements/information of these regions have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these regions, is based solely on the report of such branch auditors. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. As required by Section 143(5) of the Act, we give in the âAnnexure Bâ, a statement on the matters specified in the Directions issued by The Comptroller and Auditor General of India, and in our opinion, no action is required to be taken thereon and there is no impact on the accounts and financial statements of the Company.
3. 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 and proper returns adequate for the purpose of our audit have been received from the regions not visited by us.
(c) The reports on the accounts of regions of the company audited under section 143 (8) of the Act by branch auditors have been sent to us and have been dealt within preparing our report in the manner considered necessary by us.
(d) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the statement of changes in equity dealt with by this Report are in agreement with the books of account and with the returns received from the regions not visited by us.
(e) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act.
(f) On the basis of the written representations received from the directors as on 31 March 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
(g) 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 Câ; and
(h) 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 standalone Ind AS financial statements-refer note no.-41 to the standalone Ind AS financial statements of 31 March 2017;
ii. the Company is not required to make any provision for any material foreseeable losses under any law or Indian Accounting Standard (Ind AS), on long term contracts. Also the Company is not dealing into derivatives contracts;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company; and
iv. the Company has provided requisite disclosures in note no. 12 to the Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November, 2016 to 30 December, 2016. Based on audit procedures and relying on the management representation, we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management. However as stated in note no. 12, amount aggregating to SBN ''62,500/- have been received from transactions which are not permitted.
Referred to Paragraph 1 under the heading of âReport on Other Legal and Regulatory Requirementsâ of our report of even date
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regards to the size of the company and nature of its business. Pursuant to the programme, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies were noticed on such verification.
(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 except for items mentioned below:
(Rs, in crores)
Details of Property |
Net Amount |
RO Premises at Egmore, Chennai |
1.79 |
Staff Quarters at Chennai |
1.14 |
Jangpura-Building |
0.63 |
Jangpura-Land |
0.44 |
Leasehold Land at Kadakola |
19.38 |
Leasehold Land-MMLP, Vishakhapatnam |
93.29 |
ii. The Company has carried out physical verification of inventory at reasonable intervals and no material discrepancy were noticed during such verification.
iii. The Company has granted unsecured loans to 2 wholly owned subsidiary companies i.e. M/s Fresh & Healthy Enterprises Limited (FHEL) and M/s CONCOR Air Limited.
(a) In our opinion and according to the information and explanations given to us, the terms and conditions of the grant of such loans are not prejudicial to the company''s interest;
(b) Payments of interest are regular in respect of CONCOR Air Limited. However no payment of interest has been received from FHEL since October, 2015. Payment of Principle is not yet due in both the cases.
(c) Interest amounting to Rs,12.76 Cr is overdue in relation to loan to FHEL for more than ninety days. According to the information and explanations given to us, the company is following up the recovery of overdue amount.
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, investments, guarantees and security.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73,74,75 and 76 of the Companies Act, 2013 and Rules framed there under.
vi. As per the information and explanations given to us, the maintenance of cost records has not been prescribed by the Central Government under section 148(1) of the Companies Act, 2013 for services rendered by the company.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the books of account of the company, except Property tax of Rs,0.26 Crores and Building Worker Cess of Rs,2.53 Crores is outstanding as on 31 March, 2017 for a period of more than six month from the date it became payable, amount deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Income Tax, Sales tax, Service Tax, Custom Duty, Value Added Tax, Cess and any other statutory dues have generally been regularly deposited during the year by the company with appropriate authorities.
(b) According to the information and explanations given to us, the following dues of Income tax and service tax have not been deposited by the company on account of disputes:
S. No. |
Name of Statue |
Nature of dues |
Forum where dispute is pending |
Period to which amount relates |
Amount |
1. |
Finance Act, 1994 |
Service Tax |
CESTAT, Bangalore |
September 2002 to June 2008 |
1.48* |
CCE (Appeals) |
01.05.2003 to 16.07.2003 |
0.01 |
|||
CCE |
2004-05 |
0.11 |
|||
CCE (Appeals) |
January 2004-March 2004 |
0.02 |
|||
CCE |
2005-06 |
0.20 |
|||
CESTAT |
2007-08 to 2009-10 |
103.84 |
|||
DGCEI |
Oct. 2010 to Mar. 15 |
5.13 |
|||
2. |
Income Tax Act, 1961 |
Income Tax |
Supreme Court |
A.Y. 2003-04 |
5.30 |
A.Y. 2004-05 |
9.64 |
||||
A.Y. 2005-06 |
11.99 |
||||
A.Y. 2007-08 |
24.75 |
||||
ITAT, Delhi |
A.Y. 2006-07 |
98.54 |
|||
A.Y. 2007-08 |
95.59 |
||||
A.Y. 2008-09 |
2.67 |
||||
A.Y. 2009-10 |
0.88 |
||||
A.Y. 2010-11 |
121.08 |
||||
A.Y. 2011-12 |
165.80 |
||||
A.Y. 2012-13 |
24.37 |
||||
A.Y. 2013-14 |
15.59 |
||||
CIT (Appeals) |
A.Y. 2014-15 |
134.59 |
|||
3. |
Jal Sansthan, Kanpur |
Water Tax |
Allahabad High Court |
2000-01 to date |
0.69 |
* one third share of the total disputed amount
viii. The Company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders during the year.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
x. According to the information and explanation given to us by the management and based on the audit procedures performed, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
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 Ind AS 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 not made any preferential allotment or private placement of shares or fully or partly convertible debentures 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.
Referred to Paragraph 2 under the heading of âReport on Other Legal and Regulatory Requirementsâ of our report of even date
According to the information and explanations given to us we report as under:
S. No. |
Areas Examined |
Observations/Findings |
1. |
Whether the company has clear title/lease deeds for freehold and leasehold land respectively? If not please state the area of freehold and leasehold land for which title/lease deeds are not available. |
The Company has clear title/ lease deeds for freehold and leasehold properties respectively except 6 properties, where some of the compliances to establish clear title/execution of lease deed in favour of the company are pending. Out of these 6 properties, 2 cases pertain to allotment of land, one at Vishakhapatnam admeasuring 98 acres and another at Kadakola admeasuring 55.55 acres. |
2. |
Whether there are any cases of waiver/write off of debts/ loans/ interest etc. if yes, the reasons there for and amount involved. |
Yes, there were waivers of terminal service charges amounting to Rs,38,07,403/- and warehousing charges amounting to Rs,8,30,960/during the F.Y. 2016-17. It is reported to be business practice being followed by the company. Further interest amounting to Rs,24,61,685/has been waived in relation to the loan to wholly owned subsidiary, due to reduction in interest rate as per the approval of competent authority. Rs,1,12,085/- towards doubtful debts has been written off during the F.Y. 2016-17 as per the approval of competent authority. There are refunds of terminal service charges amounting to Rs,5,84,83.061/- and warehousing charges amounting to Rs,3,57,300/during the year which are duly approved by competent authority. |
3. |
Whether proper records are maintained for inventories lying with third parties & assets received as gifts/grants from the Govt. or other authorities. |
(a) There are no inventories lying with third parties. (b) The company has not received any assets as gifts from Govt. or other authorities. Proper records have been maintained in case of grant received. |
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of CONTAINER CORPORATION OF INDIA LIMITED (âthe Companyâ) as of 31 March 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs 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 (âICAIâ). 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 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.
Auditorsâ 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 âGuidance Noteâ) 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 auditor''s 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 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 31 March, 2017, 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 Arun K Agarwal & Associates
Chartered Accountants
(Firm''s Registration No. 003917N)
sd/-
Arun Kumar Agarwal
Place: New Delhi
Date: 25- May 2017 (Partner)
Membership. No. 082899
Mar 31, 2016
We have audited the accompanying standalone financial statements of
CONTAINER CORPORATION OF INDIA LIMITED ("the Company") which comprise
the Balance Sheet as at march 31, 2016, the Statement of Profit and
Loss, Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information
annexed thereto, in which are incorporated the accounts of eight
regions for the year ended on that date audited by the respective
branch auditors appointed by the Comptroller and Auditor General of
India, relied upon by us and the accounts of Corporate Office, New
Delhi audited by us.
Management 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 ("the Act") with respect
to the preparation 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 these 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. 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
explanation 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, of the state of affairs of the Company as
at March 31, 2016, and its Profit and its Cash Flow for the year ended
on the date.
Emphasis of Matter
We draw attention to the following matters in the notes to the
financial statements:
A) Note 10 (A) II & Note no. 26.18 (g) which describes the Investment
in the equity shares of subsidiary company Fresh & Healthy Enterprises
Limited, has incurred net cash loss during the current year and
previous year(s) and, said Company''s Current liabilities exceeded its
current assets as on 31.03.2016. These conditions indicate the
existence of material uncertainty that casts significant doubt about
the company''s ability to continue as going concern. FHEL has
accumulated losses of Rs.139.43 crore as on 31.03.2016 against the
CONCOR''s investment of Rs.146. 62 crore. Management is making all
possible efforts for revival and its confident of its turn-around.
B) Note no. 26.18 (f) Which describes investment of Rs.54.60 crore in
India Gateway Terminal (P) Ltd., though CONCOR share (Rs.89.23 crore)
of accumulates losses of Rs.612.88 crore (as per unaudited accounts of
FY 2015-16) in IGTPL exceeds its investment ( Rs.54.60 crore) in the JV
as on 31.03.2016. Management is making all possible efforts for revival
and is confident of its turn-around
C) Note no. 26.26 The Company has identified a suspected fraud against
it with regard to misappropriation of funds by its Officers of NWR
Region during the year. The said case has been referred to
investigating Agency and the matter is under investigation as on date.
The amount involved in the said suspected fraud is Rs.1.83 crore.
Our opinion is not modified in these matters.
Other Matters
We did not audit the financial statements of eight regions included in
the standalone financial statements of the Company. The financial
statements of these regions have been audited by branch auditors whose
reports have been furnished to us, and our opinion in so far as it
relates to the amounts and disclosure included in respect of these
regions, is based solely on the report of such branch auditors.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (11) of sections 143 of the Act, we give in the
"Annexure A" a statement on the matters specified in 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 explanation
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 it appears from our examination of those
books and proper returns adequate for the purpose of our audit have
been received from the branches not visited by us.
c. The reports on the accounts of the branch Offices of the Company
audited under section 143 (8) of the Act by branch auditors have been
sent to us and have been properly dealt with by us in preparing this
report.
d. The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the book
of account and with the returns received from the branches not visited
by us.
e. In our opinion, the aforesaid standalone financial statement comply
with the Accounting Standards specified under section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
f. On the basis of written representations received from the directors
as on March 31, 2016 taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2016 from being appointed
as a director in terms of section 164 (2) of the Act.
g. 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 "Annexure B".
h. 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 in note
26 (ii) (C) of financial statements as contingent liability of Rs.1297.98
crore.
ii) There are not any material foreseeable losses on long-term
contacts, therefore company has not made any provisions, required under
the applicable law or accounting standards.
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
3. As required by section 143 (5) of the Act and sub directions issued
by C&AG under the same, we give in Annexure-C of our report on such
matter.
"Annexure A: to the Independent Auditors'' Report
Referred to in paragraph 1 under the heading "Report on Other Legal &
Regulatory requirements of our report of even date to the financial
statement of the Company for the year ended March 31, 2016:
1. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Fixed Assets have been physically verified by the management in
a phased manner, designed to cover all the items over a period of three
years, which in our opinion, is reasonable having regard to the size of
the company and nature of its business. Pursuant to the program, a
portion of the fixed asset has been physically verified by the
management during the year and no material discrepancies between the
books records and the physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name of the
company except land in Gurgaon worth Rs.49,31,031 and buildings in
Chennai worth Rs.330,00,000, sale/lease deeds are yet to be executed.
2. (a) The management has conducted the physical verification of
inventory at reasonable intervals.
(b) The discrepancies noticed on physical verification of the inventory
as compared to books records which has been properly dealt with in the
books of account were not material.
3. The Company has granted the following unsecured loans to companies
covered in the Register maintained under section 189 of the Act.
Working Capital loan given to its subsidiary company Fresh and Healthy
Enterprises Ltd. Rs.31.45 crore. An Interest of Rs.10.56 crore is due for
more than ninety days.
Long Term Loan given to its subsidiary company Concor Air Limited of
Rs.125 Crore.
4. In our opinion and according to the information and explanation
given to us, the company has compiled with the provisions of section
185 and 186 of the Companies Act, 2013 in respect to loans,
investments, guarantees, and security.
5. The Company has not accepted any deposits from the public and hence
the directives issued by the Reserve Bank of India and the provisions
of Sections 73 to 76 or any other relevant provisions of the Act and
the Companies (Acceptance of Deposit) Rules, 2015 with regards to the
deposits accepted from the public are not applicable.
6. As informed to us, the maintenance of Cost Records has not been
specified by the Central Government under sub- section (1) of Section
148 of the Act, in respect of the activities carried on by the company.
7. (a) According to information and explanations given to us on the
basis of our examination of the books of account and records, the
Company is generally regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income-Tax, Sales
Tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax,
Cess and any other statutory dues with the appropriate authorities.
(b) According to the information and explanation given to us, there are
dues of income tax, sales tax, service tax, duty of customs, duty of
excise, value added tax outstanding on account of any dispute are given
below:
Forum Where Description Nature of Dues
Pending
Service Tax Dept. ICD-Ludhiana-Case Show cause Service Tax
notice no-IV (16)/FAR/CCI/LDH- Finance Act 1994
III/176/04/265 Dated 27.04.2005
CCE Service tax demand for DDL/ Service Tax
Ludhiana dated 20.04.2010 Finance Act 1994
CCE Excess credit utilized in
provisional Service Tax
(Appeals) return for the period of January Finance Act 1994
2004-March 2004
CCE Service tax demand for DDL/ Service Tax
Ludhiana dated 21.10.2010 Finance Act 1994
Service Tax Dept. CERA SHOW CAUSE NOTICE- Service Tax
DL/II/ST/R-XI/LAR/CONCOR Finance Act 1994
/73/2010 dated 18.10.2012
Service Tax Dept. Service Tax-CERA show cause Service Tax
notice dated 06.10.2009 Finance Act 1994
DGCEI DGCEI show cause notice dated Service Tax
06.02.2015 Finance Act 1994
DGCEI DGCEI show cause notice dated Service Tax
13.04.2016 Finance Act 1994
CIT (Appeals) Regular Assessment Income Tax Act
1961
Appeals preferred by Appeal Income Tax Act
Dept. 1961
CIT (Appeals) Reassessment Income Tax Act
1961
Forum Where Pending Amount Period
(Rs. in
crore)
Service Tax Dept. 0.01 01.05.2003 to 16.07.2003
CCE 0.11 2004-05
CCE (Appeals) 0.02 January 2004-March 2004
CCE 0.20 2005-06
Service Tax Dept. 103.84 2007-08 to 2009-10
Service Tax Dept. 191.77 2003-04 to 2006-07
DGCEI 497.63 Oct. 2012 to Sep 2014
DGCEI 5.13 Oct. 2010 to 2014-15
CIT (Appeals) 507.82 AY 2006-07 to 2013-14
Appeals preferred by Dept. 331.95 AY 2003-04 to 2010-11
CIT (Appeals) 100.14 AY 2007-08 to 2008-09
8. According to the information and explanations given to us and as
per the books and records examined by us, the company does not have any
dues payable to any financial institutions, banks and debenture
holders.
9. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not raised moneys
by way of initial public offer or further public offer including debt
instruments and term Loans. Accordingly, the provisions of clause 3
(ix) of the Order are not applicable to the Company and hence not
commented upon.
10. Based upon the audit procedures performed and the information and
explanations given by the management, we report that The Company has
identified a suspected fraud against it with regard to misappropriation
of funds by its Officers of NWR Region during the year.
The said case has been referred to investigative Agency and the matter
is under investigation as on date. The amount involved in the said
suspected fraud is Rs.1.83 crore.
11. Based upon the audit procedures performed and the information and
explanations given by the management, the managerial remuneration has
been paid or provided in accordance with the requisite approvals
mandated by the provisions of sections 197 read with Schedule V to the
Companies Act;
12. In our opinion, the Company is not a Nidhi Company. Therefore, the
provisions of clause 4 (xii) of the order are not applicable to the
Company.
13. In our opinion, all transactions with the related parties are in
compliance with section 177 and 188 of Companies Act, 2013 and the
details have been disclosed in the Financial Statements as required by
the applicable accounting standards.
14. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not made any
preferential allotment or private placement of shares or fully or
partly convertible debentures during the year under review.
Accordingly, the provisions of clauses 3 (xiv) of the Order are not
applicable to the Company and hence not commented upon.
15. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not entered into
any non-cash transactions with directors or persons connected with him.
Accordingly, the provisions clause 3 (xv) of the order not applicable
to the company and hence not commented upon.
16. In our opinion, the company is not required to be registered under
section 45 IA of the Reserve Bank of India Act, 1934 and accordingly,
the provisions of clause 3 (xvi) of the Order are not applicable to the
Company and hence not commented upon.
For Kumar Vijay Gupta & Co.
Chartered Accountants
FRN: 07814N
(CA Pawan Garg)
Place: New Delhi Partner
Date: 25th May, 2016 Membership No.: 097900
Mar 31, 2015
We have audited the accompanying Financial Statements of Container
Corporation of India Limited ("the Company") which comprises the
Balance Sheet as at 31 st March, 2015, the Statement of Profit and Loss
and the Cash Flow Statement for the year then ended, and a summary of
the significant accounting policies and other explanatory information
annexed thereto, in which are incorporated the accounts of eight
regions audited by respective branch auditors appointed by the
Comptroller andAuditor General of India, relied upon by us and the
accounts of Corporate Office, New Delhi audited by us.
Management's Responsibility forthe Financial Statements
The Company's Board of Directors is responsible for the matters stated
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
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 misstatements, whether due to fraud or
error.
Auditor's 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 theAct 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 whetherthe 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 the material misstatement of the financial statements,
whether due to error or fraud. In making those risk assessments, the
auditor considers internal 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, but not forthe purpose of expressing an opinion on
whether the Company has in place an adequate internal controls system
over financial reporting and the operating effectiveness of such
controls.An audit also includes evaluating the appropriateness of
accounting policies used and 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 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:
i) In the case of balance sheet, of the state of affairs of the Company
as at March 31,2015;
ii) In the case of statement of profit and loss, of the profit of the
Company for the year ended on that date; and
iii) In the case of cash flow statement, of the cash flows for the year
ended on that date.
Emphasis of Matter
We draw attention to the following matters in the notes to the
financial statements:
A) Note 6 (A) c and part xxvii of Notes to the financial statement
which describes the Investment in the equity shares of subsidiary
company Fresh & Healthy Enterprises Limited, has incurred net cash loss
during the current year and previous year(s) and, said Company's
current liabilities exceeded its current assets as on 31.03.2015. These
conditions indicate the existence of material uncertainty that cast
significant doubt about the company's ability to continue as going
concern. FHEL has accumulated losses of Rs.114.36 crore as on
31.03.2015 against the CONCOR's investment of Rs.146.62 crore. No
provision for diminution in value of investment is made.
B) Part f) of point no. xviii) of Notes to the financial statements
which describes investment of Rs.54.60 crore in India Gateway Terminal
(P) Ltd, No provision for diminution in value of investment is made.
Our opinion is not modified in these matters.
Report on Other Legal and Regulatory Requirements
1. 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 -1 a
statement on the matters specified in paragraphs 3 and 4 of the Order;
2. As required by section 143(3)oftheAct, 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
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 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 31 March 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f. 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) Company has disclosed the impact of pending litigations in note
16(ii)(C) of financial statements as contingent liability of Rs.1387.68
crore.
ii) There are not any material foreseeable losses, on long term
contracts, therefore the Company has not made any provision, required
under the applicable law or accounting standards.
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
3. As required by section 143(5) oftheAct and sub-direction under the
same issued by C &AG, we give in Annexure - II our report on such
matters.
Referred to in paragraph 1 of report on other legal and regulatory
requirement's paragraph of our report on the financial statement for
the year ended 31 st March 2015,
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of
fixed assets.
(b) As per the information and explanations given to us, fixed assets
have been physically verified by the management during the year in a
phased manner, which in our opinion is reasonable having regard to the
size ofthe Company and the nature of its assets. The discrepancies
noticed on such physical verification were not material and the same
have been properly dealt with in the books of account.
(ii) (a) The inventories of the Company consisting of stores and spare
parts have been physically verified by the management during the year.
(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 ofthe Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventories.
As explained to us, the discrepancies noticed on verification between
the physical stocks and the book records were not material and have
been properly dealt with in the books of account.
(iii) The company has granted the following loans, unsecured, to
companies in the register maintained under section 189 of the Companies
Act, 2013.
Working Capital Loan to Fresh and Healthy Enterprises Ltd.(FHEL) up to
FY 2014-15
Total Amount Amount Balance Interest Interest
Disbursed Converted repaid out Accrued Received
Amount up into Equity by FHEL standing and due During FY
to FY during during as on from FHEL 2014-15
2014-15 FY 2014-15 FY2014 31.03.15 uptoFY
(Rs.) (Rs.) -15(Rs.) (Rs.) 2014-15 (Rs.)
(Rs.)
Loan-1 28,14,32,750 28,14,32,750 - - 8,41, -
82,118
Loan-2 15,00,00,000 15,00,00,000 - - 1,48, -
79,589
Loan-3 36,18,34,633 26,85,67,250 - 9,32, - 2,26,
67,383 57,815
Loan-4 53,00,00,000 - 19,42, 33,57, - 2,19,
90,000 10,000 75,558
Total 1,32,32,67,383 70,00,00,000 19,42, 42,89, 9,90, 4,46,
90,000 77,383 61,707 33,373
Long Term Loan to ConcorAir Ltd. up to FY 2014-15
Total Disbursed Amount repaid Balance Interest due and
Amount up to by ConcorAir outstanding received from
FY2014-15(Rs.) Ltd during as on ConcorAir Ltd
FY2014-15 31.03.15 upto FY2014-15
(Rs.) (Rs.) (Rs.)
Loan 125,00,00,000 - 125,00,00,000 11,63,75,007
Total 125,00,00,000 - 125,00,00,000 11,63,75,007
a) Out ofthe Loan given to wholly owned subsidiary Fresh and Healthy
Enterprises Ltd an amount of Rs.70 crore was converted into equity
during the year. Interest due over it of Rs.9,90,61,707/- is
outstanding as on 31.03.2015.; and
b) Reasonable steps have been taken by the company for recovery ofthe
principal & interest.
(iv) According to the information and explanations given to us, there
seems to be adequate internal control systems commensurate with the
size ofthe Company and the nature of its business forthe purchase of
inventory and fixed assets and forthe sale of services. The activities
ofthe Company does not involve sale of goods. Further, on the basis of
our examination ofthe books and records ofthe Company carried out in
accordance with the generally accepted auditing practices in India
and according to the information and explanations given to us, we
have neither come across nor have been informed of any
instance of a continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) The Company has not accepted any deposits from the public within
the meaning of directives issued by the Reserve Bank of India and
provisions of sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules framed there under.
(vi) As informed to us, the Central Government has not prescribed
maintenance of cost records under section 148(1) of the CompaniesAct,
2013.
(vii) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our
opinion, the Company is generally regular in depositing undisputed
statutory dues in respect of provident fund, employees'state insurance,
income tax, sales tax, wealth tax, service tax, customs duty, excise
duty, cess and other material statutory dues as applicable with the
appropriate authorities. Further, the undisputed amounts outstanding at
the year-end for a period of more than six months from the date they
became payable are given below:
PROPERTYTAXOUTSTANDING AS ON 31.03.2015
S.No. Name of Region Amount (inRs.)
1. North Central Region 1,07,48,345/-
2. Central Region 4,22,940/-
3. Southern Region 4,54,08,386/-
4. South Central Region 19,69,491/-
5. Western Region 87,85,587/-
6. North West Region 2,54,861/-
7. Corporate Office 9,16,609/-
(b) According to the information and explanations given to us and as
per the books and records examined by us, there are dues of Income Tax,
Wealth Tax, Custom Duty, Excise Duty, Service Tax and Cess which have
not been deposited on account of any dispute are given below:
Forum Description Natureof Amount Period
Where the Dues (Rs. in
pending crore)
CESTAT ICD-Ludhiana-Case
Show cause notice no Service Tax 0.01 01.05.2003
-IV(16)/FAR/CCI/LDH-III/ FinanceAct to
176/04/265 1994 16.07.2003
dated 27.04.2005
CCE Excess credit utilized in Service Tax 0.02 January 2004-
(Appeals) provisional return for FinanceAct March 2004
the period January 1994
2004-March 2004
CESTAT CERASHOW CAUSE NOTICE- Service Tax 103.84 2007-08to
DL/II/ST/R-XI/LAR/CONCOR Finance Act 2009-10
/73/2010 dated 18.10.2012 1994
CIT Regular Assessment Income Tax 173.75 AY 2012-13
(Appeals) Act, 1961
CIT Regular Assessment Income Tax 70.02 AY 2011-12
(Appeals) Act, 1961
Total 347.64
(c) According to the information and explanation given to us the
company has transferred an amount of Rs.1,02,399/-to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under within time.
(viii) The Company has neither accumulated losses as at the end of the
financial year nor has incurred any cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
(ix) According to the information and explanations given to us and as
per the books and records examined by us, the company does not have any
dues payable to any financial institutions, banks and debenture
holders.
(x) The company has given guarantee/bonds for joint ventures &
subsidiaries of Rs.167.57 crore, the terms and conditions whereof are
not prejudicial to the interest of the company;
(xi) In our opinion and on the basis of information and explanations
given to us, the company has not raised any term loan during the
financial year, hence the related reporting requirement of the Order
are not applicable.
(xii) During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the year, nor
have we been informed of such case by the management.
ReportAs per Sub-direction u/s 143(5) of the CompaniesAct 2013 of
Container Corporation of India Ltd.
Sl. Directions Remarks
No.
1. If the Company has been Not applicable
selected to disinvestement,
a complete status report in
terms of valuation of Assets
(including intangible assets
and land) and Liabilities
(including Committed &General
Reserves) may be examined
including the mode and present
stage of disinvestment
process.
2. Please report whether there Revenue collection from customers
are any cases of waiver was found waived off on commercial
/write off of debts/Loans consideration to the extent of
interest.,if yes, Rs.37,04,857.50
the reasons there for and
the amount involved.
3. Whether proper records are There are no such cases; hence not
maintained for inventories applicable
lying with third parties &
assets received as gift
from Govt. or other
authorities.
4. A report on age-wise analysis Age-wise analysis of pending legal
of pending legal/arbitration / arbitration cases:
cases including the reasons
of pendency and existence/
effectiveness of a monitoring
mechanism for expenditure 1.Less than 1 year Rs.131,30,/5/28.00
on all legal cases (foreign
and local) may be given. 1-3 Years Rs.613,62,35,459.05
Morethan3years Rs.289,72,08,665.92
2. Expenditure on legal cases is
being governed as per Schedule of
Prices (SOP) and Delegation of
Powers (DOP) being issued from
time to time. In view of this, we
observed that there is adequate
mechanism for monitoring of
expenditure on all legal cases.
3. Legal cases are pending before
different authorities in their
ordinary course of judiciary
proceedings.
For KUMAR VIJAY GUPTA & CO.
Chartered Accountants FRN: 07814N
Sd/-
(CA PAWAN GARG)
Place: New Delhi Partner
Date: 28th May, 2015 (M.No. 097900)
Mar 31, 2014
We have audited the accompanying financial statements of Container Corporation of India Limited (Âthe
companyÂ) which comprises of Balance Sheet as at 31st March, 2014, and Statement of Profit & Loss and also the
Cash Flow Statement of the company for the year ended on that date and a summary of significant accounting
policies and other explanatory information annexed thereto, in which are incorporated the accounts of eight
regions audited by respective branch auditors appointed by the Comptroller and Auditor General of India, relied
upon by us and the accounts of Corporate Office, New Delhi audited by us.
ManagementÂs Responsibility for the Financial Statements
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 Accounting Standards
referred to in sub section (3C) of Section 211 of Companies Act,1956 (Âthe ActÂ). 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.
AuditorÂs 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 amounts and disclosures in the financial
statements. The procedures selected depend on the auditorÂs judgment, including the assessment of the risks of
material misstatement of financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the CompanyÂs 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 the 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 said accounts,
read together with Significant Accounting Policies and Notes on Accounts, 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 Indiai. In the case of Balance Sheet, of the state of affairs of the company as at 31st March, 2014;
ii. In the case of Statement of Profit & Loss, of the PROFIT for the year ended on that date; and
iii. In the case of Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As require by the Companies (AuditorÂs Report) Order, 2003 (Âthe OrderÂ) issued by the Central Government of
India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 we give in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the order.
Independent Auditor's Report
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 accounts as required by law have been kept by the company, so far as
appears from our examination of those books and proper returns adequate for the purpose of our audit
have been received from the branch auditors in respect of regions not audited by us.
(c) The reports of the branch auditors on the account of regions audited by them have been received and
considered by us in preparing this report after making such adjustments, as we considered necessary.
(d) The Balance sheet, Profit & Loss account and Cash Flow Statement dealt with by this Report are in
agreement with the books of account and with the returns received from regions audited by Branch
Auditors.
(e) In our opinion, the Balance Sheet and Profit & Loss Account and Cash Flow Statement dealt by this Report
comply with the accounting standards referred in sub-section (3C) of Section 211 of the Companies Act,
1956.
(f) In terms of Department of Company Affairs GSR829 (E) dated 21st October 2003, Government
Companies are exempt from applicability of provisions of Section 274(1) (g) of the Companies Act, 1956.
(g) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid
under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.
For KUMAR VIJAY GUPTA & CO.
Chartered Accountants
FRN: 007814N
(CA PAWAN GARG)
Place : New Delhi Partner
th Date : 27 May, 2014 (M.NO.: 097900)
ANNEXURE REFERRED TO IN PARAGRAPH 5.1 OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS OF CONTAINER st CORPORATION OF INDIA LIMITED FOR THE YEAR ENDED 31 March 2014
(i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed
assets.
(b) As per the information and explanations given to us, fixed assets have been physically verified by the management during theyear in phased manner, which in our opinion is reasonable having regards to the size of the company and nature of Fixed Asset. The discrepancies noticed on such physical verification were not material.
(c) The company has disposed/written off some of its fixed assets during the year. However, in our opinion this has not affected the going concern status of the company.
(ii) (a) The inventory of company consisting of stores and spare parts has been physically verified by the management on test check basis. 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) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) (a) According to the information and explanation given to us, 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 Act.
(b) Not applicable in view of Para (a) above.
(c) Not applicable in view of Para (a) above.
(d) Not applicable in view of Para (a) above.
(e) The company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.
(f) Not applicable in view of Para (a) above
(g) Not applicable in view of Para (a) above
(iv) In our opinion and according to the information and explanation 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 purchases of stores and spare parts, fixed assets and for rendering services.
(v) (a) According to the information and explanations given to us, we are of the opinion that no contracts or arrangements that need to be entered into the register maintained under Section 301 of the Companies Act, 1956..
(b) Not applicable in view of Para (a) above.
(vi) The company has not accepted any deposits from public in the terms of Sections 58A and 58AA and other relevant provisions of the Companies Act, 1956.
(vii) In our opinion the company has an internal audit system commensurate with the size & nature of its business.
(viii)As informed to us, the Central Government has not prescribed maintenance of cost records under Section 209 (1)
(d) of the Companies Act, 1956, in respect of the business of the company.
(ix) (a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employees state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other material statutory dues applicable to it. According to the information and explanations given to us, undisputed amount payable in respect of outstanding statutory dues that were in arrears, as at 31/3/2014 for a period of more than six months from the date they became payable are given below:
Nature of the Statue Nature of the Dues Amount (` In Crore) Period to which the amount relates
NIL
The Eastern Region has accounted for Property Tax payable in respect of its assets at various locations amounting to
` 1200227.80 till 31 March, 2014 on actual basis, payment is made on bill raised by concerned authorities.
(b) According to the information and explanations given to us, there are dues of sales tax, income tax, custom duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute are given below:
Forum where Nature of the Dues Amount Period to which dispute pending ( ` In Crore) the amount relates
st th CESTAT Service Tax Finance Act 1994 0.01 01 May 2003 to 16 July 2003 CCE (Appeals) Service Tax Finance Act 1994 0.01 January 2004 to March 2004 Dist. Court Kanpur Water Tax- Jal Sansthan Kanpur 0.69 2000-01 to date
HON. High Court of Allahabad Income Tax Act,1961 3.11 2007-08, 2008-09, 2009-10
Disputed but Deposited/ adjusted against Refunds:
Appeal before ITAT Income Tax Act, 1961 52.09 AY 2006-07 to 2009-10
Appeal before CIT (A) Income Tax Act, 1961 287.72 AY 2007-08, 2010-11 and 2011-12
SLP of Deptt. Before the HON. SC Income Tax Act, 1961 17.29 AY 2003-04 and 2005-06
Deptt. Appeal before ITAT Income Tax Act, 1961 304.09 AY 2004-05 and 2006-07 to 2009-10
(x) The company has neither accumulated losses as at the end of the financial year nor has incurred any cash losses during the
financial year covered by our audit and in the immediately preceding financial year.
(xi) The company has not defaulted in the repayment of dues to any financial institutions or banks. The company has not issued any debentures during the year.
(xii) The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/ mutual benefit fund/ society.
(xiv) In our opinion and according to information and explanation given to us, the company is not dealing in shares, securities, debentures and other investments. The investments in the shares of joint ventures and subsidiary company are held by the company in its own name and are not traded.
(xv) The company has given counter indemnity to banks in connection with loans raised by the joint venture company (Gateway st Terminal India Pvt. Ltd) including interest outstanding thereon. As at 31 March, 2014 the amount of such counter indemnity works out to ` 233.21 crores. In our opinion, the terms and conditions thereof are not prima-facie prejudicial to the interest of the company.
(xvi) The company has not taken any Term Loans during the year.
(xvii) As the company has not raised any funds on short term basis, this clause is not applicable.
(xviii)The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the year. (xx) As the company has not raised any money by public issue during the year, this clause is not applicable.
(xxi) As per the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year.
For KUMAR VIJAY GUPTA & CO.
Chartered Accountants
(FRN: 007814N)
CA Pawan Garg
Place: New Delhi Partner
th Dated: 27 May, 2014 M.No. 097900
Mar 31, 2013
1. We have audited the accompanying Financial Statements of Container
Corporation of India Limited ("the company") which comprises of the
Balance Sheet as at 31st March,2013, and the Statement of Profit & Loss
and also the Cash Flow Statement of the company for the year ended on
that date and summary of Significant Accounting policies and other
explanatory information annexed thereto, in which are incorporated the
accounts of six regions audited by respective branch auditors appointed
by the Comptroller and Auditor General of India, relied upon by us and
the accounts of Northern Region, North Central Region and Corporate
Office, New Delhi audited by us.
2. Management''s Responsibility for the Financial Statements
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.
3. Auditor''s 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. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by the 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.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts, read together with
Significant Accounting Policies and Notes on Accounts, 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 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.
5. Emphasis of Matter
Refer Foot Note no. 2 of NOTE 5 "Fixed Assets" - Sale/Lease Deeds
in respect of Land & Buildings valuing Rs.102.94 Crore are yet to be
executed in favour of the company. Our opinion is not qualified in
respect of this matter.
6. Report on Other Legal and Regulatory Requirements
6.1 As required by the Companies (Auditor''s Report) order, 2003 ("
the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the order.
6.2 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 accounts as required by law have
been kept by the company so far as appears from our examination of
those books and proper returns adequate for the purpose of our audit
have been received from the branch auditors in respect of regions not
audited by us;
c. The reports of the branch auditors on the accounts of regions
audited by them have been received and considered by us in preparing
this report after making such adjustments, as we considered necessary.
d. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account and with the returns received from regions audited by branch
auditors.
e. In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
f. In terms of Department of Company Affairs GSR 829 (E) dated 21st
October 2003, Government Companies are exempt from applicability of
provisions of Section 274 (1) (g) of the Companies Act, 1956.
g. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A OF THE
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE REFERRED TO IN PARAGRAPH 6.1 OF OUR REPORT OF EVEN DATE ON THE
ACCOUNTS OF CONTAINER CORPORATION OF INDIA LIMITED FOR THE YEAR ENDED
31st MARCH, 2013.
(i) (a) The Company has generally maintained proper records showing
full particulars, including quantitative details and situation of its
fixed assets.
(b) As per the information and explanations given to us, fixed assets
have been physically verified by the management during the year in
phased manner, which in our opinion, is reasonable having regards to
the size of the company and nature of Fixed Asset. The discrepancies
noticed on such verification were not material.
(c) The company has disposed/written off some of its fixed assets
during the year. However, in our opinion this has not affected the
going concern status of the company.
(ii) (a) The inventory of the company consisting of stores and spare
parts has been physically verified by the management on test check
basis. In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are generally reasonable and adequate in relation to the
size of the company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) According to the information and explanations given to us,
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.
(b) Not applicable in view of para (a) above.
(c) Not applicable in view of para (a) above.
(d) Not applicable in view of para (a) above.
(e) The company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(f) Not applicable in view of para (e) above.
(g) Not applicable in view of para (e) above.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to the purchase of stores and spare parts, fixed assets and for
rendering services.
(v) (a) According to the information and explanations given to us, we
are of the opinion that there are no contracts or arrangements that
need to be entered into the register maintained under section 301 of
the Companies Act, 1956.
(b) Not applicable in view of para (a) above.
(vi) The company has not accepted any deposits from the public in terms
of section 58A and 58AA and other relevant provisions of the Companies
Act, 1956.
(vii) In our opinion, the company has an internal audit system, which
is generally commensurate with the size and nature of its business.
(viii) As informed to us, the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956, in respect of the business of the company.
(ix) (a) The company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employee''s state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and other material statutory dues applicable to it.
According to the information and explanations given to us, the
undisputed amounts payable in respect of outstanding statutory dues
that were in arrears, as at 31st March,2013 for a period of more than
six months from the date they became payable are given below:
Name of the
Statute Nature of
the Dues Amnt. Period to which the
(Rs.in
Crore) amount Relates
Customs
Act, 1962 Custom Duty 1.37 1997-98 Rs. 1.08 cr.
(Auction) 2003-04 Rs. 29.58lac.
(Northern Region)
Custom
Act 1962 Custom Duty
Auction(WR) 0.1 2006-07
Service Tax Service tax & Penalty 1.60 April 2004 to June 2008
(b) According to the information & explanations given to us, dues of
income tax, sales tax, wealth tax, service tax, customs duty, excise
duty and cess that have not been deposited on account of any dispute
are given below:
Forum where dispute
pending Nature of the
Dues Amt Period to which the
(Rs. in
Cr.) amount relates
CESTAT Service Tax 0.01 01st May 2003 to
Finance Act 1994 16th July 2003
CCE(Appeals) Service Tax 0.01 January 2004 to
Finance Act 1994 March 2004
Appellate authority VAT Penalty u/s
86(19) of DVAT 0.33 14th December 2005
Delhi
Appellate authority
VAT Delhi Sales Tax (NR) 0.08 Year 2000-01
Delhi Sales tax act
Appellate authority
VAT Delhi Delhi VAT Act 0.23 Year 2008-09
Dist. Court Kanpur Water Tax-Jal
Sansthan 0.69 2000-01 to date
Kanpur
Commissioner of
Income Tax Income Tax
Act, 1961 2.18 Years 2007-08,
(Appeals), Ghaziabad 2008-09, 2009-10
Disputed but Deposited/ adjusted against Refunds:
Appeal before ITAT Income Tax
Act 1961 74.13 AY 2006-07 to
2009-10
Appeal before CIT (A) Income Tax
Act 1961 121.08 AY 2010-11
Appeal before CIT (A) Income Tax
Act 1961 3.28 AY 2007-08
SLP of Deptt. Before
the HON. SC Income Tax
Act 1961 26.93 AY 2003-04
to 2005-06
Dept appeal Before
the HON. ITAT Income Tax
Act 1961 41.94 AY 2006-07
and 2007-08
Deptt. Appeal before
ITAT Income Tax
Act 1961 155.06 AY 2006-07 and
2007-08
Deptt. Appeal before
ITAT Income Tax
Act 1961 112.52 AY 2009-10
Deptt. Appeal before
ITAT Income Tax
Act 1961 0.81 AY 2004-05
(x) The company has neither accumulated losses as at the end of the
financial year nor has incurred any cash losses during the financial
year covered by our audit and also in the immediately preceding
financial year.
(xi) The company has not defaulted in repayment of dues to financial
institution or banks. The company has not issued any debentures.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society.
(xiv) In our opinion and according to the information and explanations
given to us, the company is not dealing in shares, securities and other
investments. The investments in the shares of joint ventures &
subsidiary company are held by the company in its own name and are not
traded.
(xv) The company has given counter indemnity to bank(s) in connection
with loans raised by the joint venture company (Gateway Terminals India
Pvt. Ltd.) including interest outstanding thereon. As at 31st March,
2013, the amount of such counter indemnity works out to Rs.316.72
crore. In our opinion, the terms and conditions thereof are not
prima-facie prejudicial to the interests of the company.
(xvi) The company has not taken any term loans during the year.
(xvii) As the company has not raised any funds on short-term basis,
this clause is not applicable.
(xviii) The company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the year.
(xx) As the company has not raised money by public issues during the
year, this clause is not applicable.
(xxi) As per the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the year.
For KUMAR CHOPRA & ASSOCIATES
Chartered Accountants( Firm Regn.No:000131N)
CA. Sunil Jain (Partner)
M. No.080990
Place: New Delhi
Date: 25 /05/2013
Mar 31, 2012
We have audited the attached Balance Sheet of Container Corporation of
India Limited as at 31st March,2012, and the Statement of Profit & Loss
and also the Cash Flow Statement of the company for the year ended on
that date annexed thereto, in which are incorporated the accounts of
six regions audited by respective branch auditors appointed by the
Comptroller and Auditor General of India, relied upon by us and the
accounts of Northern Region, North Central Region and Corporate Office,
New Delhi audited by us. These financial statements are the
responsibility of the company's management. Our responsibility is to
express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1) As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of section 227 (4A)
of the Companies Act, 1956, and on the basis of such examination of the
books and records of the Company as we considered appropriate and the
information and explanations given during the course of audit and after
considering the reports of branch auditors, we enclose in the Annexure
a statement on the matters specified in Paragraphs 4 and 5 of the said
Order.
2) Further to our comments in the Annexure referred to in paragraph 1
above, we report that:
Sale/Lease Deeds in respect of Land & Buildings valuing Rs. 1.45 Crore
are yet to be executed in favour of the company (Foot Note no. 2 of
NOTE 5: Fixed Assets)
3) We further report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from our examination of
those books and proper returns adequate for the purpose of our audit
have been received from the branch auditors in respect of the regions
audited by them.
c) The reports of the branch auditors on the accounts of regions
audited by them have been received and considered by us in preparing
this report after making such adjustments, as we considered necessary.
d) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
e) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
f) In terms of Department of Company Affairs GSR 829 (E) dated 21st
October 2003, Government Companies are exempt from applicability of
provisions of Section 274 (1) (g) of the Companies Act, 1956.
g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to our
comments in paragraphs 2 above (no financial impact) read together with
Significant Accounting Policies and Notes on Accounts, give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India- i) in the case of
Balance Sheet, of the state of affairs of the company as at 31st March,
2012;
ii) in the case of Profit & Loss Account, of the profit for the year
ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE ON THE
ACCOUNTS OF CONTAINER CORPORATION OF INDIA LIMITED FOR THE YEAR ENDED
31st MARCH, 2012.
(I) (a) The Company has generally maintained proper records showing
full particulars, including quantitative details and situation of its
fixed assets.
(b) As per the information and explanations given to us, fixed assets
have been physically verified by the management during the year in
phased manner, which in our opinion, is reasonable having regards to
the size of the company and nature of Fixed Asset. The discrepancies
noticed on such verification were not material.
(c) The company has disposed/written off some of its fixed assets
during the year. However, in our opinion this has not affected the
going concern status of the company.
(ii) (a) The inventory of the company consisting of stores and spare
parts has been physically verified by the management on test check
basis. In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are generally reasonable and adequate in relation to the
size of the company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) According to the information and explanations given to us,
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. (b) Not applicable in
view of para (a) above.
(c) Not applicable in view of para (a) above.
(d) Not applicable in view of para (a) above.
(e) The company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(f) Not applicable in view of para (e) above.
(g) Not applicable in view of para (e) above. (iv) In our opinion and
according to the information and explanations given to us, there are
adequate internal control systems commensurate with the size of the
company and the nature of its business with regard to the purchase of
stores and spare parts, fixed assets and for rendering services. (v)
(a) According to the information and explanations given to us, we are
of the opinion that there are no contracts or arrangements that need to
be entered into the register maintained under section 301 of the
Companies Act, 1956. (b) Not applicable in view of para (a) above.
(vi) The company has not accepted any deposits from the public in terms
of section 58A and 58AA and other relevant provisions of the Companies
Act, 1956.
(vii) In our opinion, the company has an internal audit system, which
is generally commensurate with the size and nature of its business.
(viii) As informed to us, the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956, in respect of the business of the company. (ix) (a) The
company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employeeÃs state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
material statutory dues applicable to it. According to the information
and explanations given to us, the undisputed amounts payable in respect
of outstanding statutory dues that were in arrears, as at 31st March,
2012 for a period of more than six months from the date they became
payable are given below:
Name of the
Statute Nature of the Dues Amnt. Period to which the
(Rs. in
Crore) amount Relates
Customs Act, 1962 Custom Duty (Auction) 1.37 1997-98 Rs. 1.08 cr.
(Northern Region) 2003-04 Rs. 29.58lac.
Customs Act, 1962 Custom Duty
Auction (WR) 0.1 2006-07
Building & Other
Workers Cess Under Building
& Other 1.57 Upto 2011-12
Welfare Cess
Act, 1996 Workers Welfare
Cess Act, 1996
Service Tax Service tax & Penalty 1.60 April 2004 to June
2008
(b) According to the information & explanations given to us, dues of
income tax, sales tax, wealth tax, service tax, customs duty, excise
duty and cess that have not been deposited on account of any dispute
are given below:
Forum where
dispute pending Nature of the Dues Amt (Rs.in Cr.) Period to
which the
amount
relates
CESTAT Service Tax 0.01 01st May
2003 to
Finance Act 1994 16th July
2003
CCE( Appeals) Service Tax 0.01 January
2004 to
Finance Act 1994 March 2004
Sub Ãregistrar
Vadodora Additional Stamp Duty 0.20 2003-04
Appellate authority
VAT Penalty u/s 86(19)
of DVAT Delhi 0.33 14th Dec
-ember 2005
Appellate authority
VAT Delhi Sales Tax (NR) 0.01 Year 1997-98
Delhi Sales tax act
Appellate authority
VAT Delhi Sales Tax (NR) 0.08 Year 2000-01
Delhi Sales tax act
Appellate authority
VAT Delhi Delhi VAT Act 0.11 Year 2008-09
Dist. Court Kanpur Water Tax -Jal Sansthan
Kanpur 0.69 2000-01 to
date
Commissioner of
Income tax Income Tax Act 1961 2.18 Years 2007
-08, 2008-09,
(Appeals Ghaziabad) 2009-10
Municipal Authority Property Tax 11.78 Years 2001-
02 to 2010-
11
(x) The company has neither accumulated losses as at the end of the
financial year nor has incurred any cash losses during the financial
year covered by our audit and also in the immediately preceding
financial year.
(xi) The company has not defaulted in repayment of dues to financial
institution or banks. The company has not issued any debentures.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society.
(xiv) In our opinion and according to the information and explanations
given to us, the company is not dealing in shares, securities and other
investments. The investments in the shares of joint ventures &
subsidiary company are held by the company in its own name and are not
traded.
(xv) The company has given counter indemnity to the guarantor (a joint
venture partner) in relation to the guarantor providing payment
guarantees to the banks for loans raised by the joint venture company,
to the extent of 26% (the shareholding of the company in joint venture)
of the loan and interest outstanding. As at 31st March,2012, the amount
of such counter indemnity works out to Rs. 106.30 Crore. In our opinion,
the terms and conditions thereof are not prima-facie prejudicial to the
interests of the company.
(xvi) The company has not taken any term loans during the year.
(xvii) As the company has not raised any funds on short-term basis,
this clause is not applicable.
(xviii) The company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the year.
(xx) As the company has not raised money by public issues during the
year, this clause is not applicable.
(xxi) As per the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the year.
For KUMAR CHOPRA & ASSOCIATES
Chartered Accountants
Firm Regn.No:000131N
(CA. Sunil Jain)
Place: New Delhi Partner
Date : 22 May, 2012 M. No. 080990
Mar 31, 2011
We have audited the attached Balance Sheet of Container Corporation of
India Limited as at 31st March,2011, and the Profit & Loss Account and
also the Cash Flow Statement of the company for the year ended on that
date annexed thereto, in which are incorporated the accounts of six
regions audited by respective branch auditors appointed by the
Comptroller and Auditor General of India, relied upon by us and the
accounts of Northern Region, North Central Region and Corporate Office,
New Delhi audited by us. These financial statements are the
responsibility of the company's management. Our responsibility is to
express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1) As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of section 227 (4A)
of the Companies Act, 1956, and on the basis of such examination of the
books and records of the Company as we considered appropriate and the
information and explanations given during the course of audit and after
considering the reports of branch auditors, we enclose in the Annexure
a statement on the matters specified in Paragraphs 4 and 5 of the said
Order.
2) Further to our comments in the Annexure referred to in paragraph 1
above, we report that:
Sale/Lease Deeds in respect of Land & Buildings valuing Rs. 1.45 Crore
are yet to be executed in favour of the company (Note no. 2, Schedule
3).
3) We further report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from our examination of
those books and proper returns adequate for the purpose of our audit
have been received from the branch auditors in respect of the regions
audited by them.
c) The reports of the branch auditors on the accounts of regions
audited by them have been received and considered by us in preparing
this report after making such adjustments, as we considered necessary.
d) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
e) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
f) In terms of Department of Company Affairs GSR 829 (E) dated 21st
October 2003, Government Companies are exempt from applicability of
provisions of Section 274 (1) (g) of the Companies Act, 1956.
g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to our
comments in paragraphs 3 above (no financial impact) read together with
Significant Accounting Policies and Notes on Accounts, give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India- i) in the case of
Balance Sheet, of the state of affairs of the company as at 31st March,
2011;
ii) in the case of Profit & Loss Account, of the profit for the year
ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE ON THE
ACCOUNTS OF CONTAINER CORPORATION OF INDIA LIMITED FOR THE YEAR ENDED
31st MARCH, 2011.
(i) (a) The company has generally maintained proper records showing
full particulars, including quantitative details and situation of its
fixed assets.
(b) As per the information and explanations given to us, fixed assets
have been physically verified by the management during the year in
phased manner, which in our opinion, is reasonable having regards to
the size of the company and nature of Fixed Asset. The discrepancies
noticed on such verification were not material.
(c) The company has disposed/written off some of its fixed assets
during the year. However, in our opinion this has not affected the
going concern status of the company.
(ii) (a) The inventory of the company consisting of stores and spare
parts has been physically verified by the management on test check
basis. In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are generally reasonable and adequate in relation to the
size of the company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) According to the information and explanations given to us,
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.
(b) Not applicable in view of para (a) above.
(c) Not applicable in view of para (a) above.
(d) Not applicable in view of para (a) above.
(e) The company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(f) Not applicable in view of para (e) above.
(g) Not applicable in view of para (e) above.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to the purchase of stores and spare parts, fixed assets and for
rendering services.
(v) (a) According to the information and explanations given to us, we
are of the opinion that there are no contracts or arrangements that
need to be entered into the register maintained under section 301 of
the Companies Act, 1956.
(b) Not applicable in view of para (a) above.
(vi) The company has not accepted any deposits from the public in terms
of section 58A and 58AA and other relevant provisions of the Companies
Act, 1956.
(vii) In our opinion, the company has an internal audit system, which
is generally commensurate with the size and nature of its business.
(viii) As informed to us, the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956, in respect of the business of the company.
(ix) (a) The company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employee's state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and other material statutory dues applicable to it.
According to the information and explanations given to us, the
undisputed amounts payable in respect of outstanding statutory dues
that were in arrears, as at 31st March, 2011 for a period of more than
six months from the date they became payable are given below:
Name of the
Statute Nature of
the Dues Amnt. Period to which the
(Rs. in Crore) amount Relates
Customs Act, 1962 Custom Duty
(Auction) 1.37 1997-98 Rs. 1.08 cr.
(Northern
Region) 2003-04 Rs. 29.58lac.
Employees
provident PF on contractors 0.05 2009-10
fund Act payments (NWR)
Building & Other
Workers Cess under Building
& Other Workers 0.97 UPTO 2010-11
Welfare Cess
Act, 1996 Welfare Cess Act, 1996
Madhya Pradesh Property Tax 0.06 2005-06 to 2009-10
Municipal
Corporation Act 1961
(B) According to the information & explanations given to us, dues of
income tax, sales tax, wealth tax, service tax, customs duty, excise
duty and cess that have not been deposited on account of any dispute
are given below:
Forum where
dispute pending Nature of
the Dues Amt (Rs. in Cr.) Period to
which the
amount relates
CESTAT Service Tax 0.01 01st May 2003 to
Finance Act 1994 16th July 2003
CCE( Appeals) Service Tax 0.01 January 2004 to
Finance Act 1994 March 2004
Sub Ãregistrar
Vadodora Additional Stamp
Duty 0.20 2003-04
Appellate authority
VAT Penalty u/s 86(19)
of DVAT Delhi 0.33 14th December 2005
Appellate authority
VAT Delhi Sales Tax (NR) 0.01 Year 1997-98
Delhi Sales tax act
Appellate authority
VAT Delhi Sales Tax (NR) 0.08 Year 2000-01
Delhi Sales tax act
Appellate authority
VAT Delhi Delhi VAT Act 0.11 Year 2008-09
Municipal Corp
Ludhiana Octeroi under
local taxes 0.16 2007-08
Appellate authority Service Tax 0.13 2007-08
Service tax Ludhiana Finance Act 1994
Dist. Court Kanpur Water Tax-Jal
Sansthan Kanpur 0.69 2000-01 to date
(x) The company has neither accumulated losses as at the end of the
financial year nor has incurred any cash losses during the financial
year covered by our audit and also in the immediately preceding
financial year.
(xi) The company has not defaulted in repayment of dues to financial
institution or banks. The company has not issued any debentures.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society.
(xiv) In our opinion and according to the information and explanations
given to us, the company is not dealing in shares, securities and other
investments. The investments in the shares of joint ventures &
subsidiary company are held by the company in its own name and are not
traded.
(xv) The company has given counter indemnity to the guarantor (a joint
venture partner) in relation to the guarantor providing payment
guarantees to the banks for loans raised by the joint venture company,
to the extent of 26% (the shareholding of the company in joint venture)
of the loan and interest outstanding. As at 31st March,2011, the amount
of such counter indemnity works out to Rs. 126.32 Crore. In our opinion,
the terms and conditions thereof are not prima-facie prejudicial to the
interests of the company.
(xvi) The company has not taken any term loans during the year.
(xvii) As the company has not raised any funds on short-term basis,
this clause is not applicable.
(xviii) The company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the year.
(xx) As the company has not raised money by public issues during the
year, this clause is not applicable.
(xxi) As per the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the year.
For KUMAR CHOPRA & ASSOCIATES
Chartered Accountants
Firm Regn.No:000131N
(CA. R. K. Aggarwal)
Place: New Delhi Partner
Date: 21.07.2011 M. No. 081510
Mar 31, 2010
We have audited the attached Balance Sheet of Container Corporation of
India Limited as at 31st March,2010, and the Profit & Loss Account and
also the Cash Flow Statement of the company for the year ended on that
date annexed thereto, in which are incorporated the accounts of six
regions audited by respective branch auditors appointed by the
Comptroller and Auditor General of India, relied upon by us and the
accounts of Northern Region, North Central Region and Corporate Office,
New Delhi audited by us. These financial statements are the
responsibility of the companys management. Our responsibility is to
express an opinion on these financial statements based on ouraudit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that ouraudit provides a reasonable basis for
ouropinion.
1) As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of section 227 (4A)
of the Companies Act, 1956, and on the basis of such examination of the
books and records of the Company as we considered appropriate and the
information and explanations given during the course of audit and after
considering the reports of branch auditors, we enclose in the Annexure
a statement on the matters specified in Paragraphs 4 and 5 of the said
Order.
2) Attention is drawn to Note Nos. 2(d) and 5 of Schedule 11. The
company has made provision for Income Tax for the year after
considering tax deduction of Rs. 25.93 crores in respect of new Inland
Container Depots (Inland Ports). In earlier years the same has not been
allowed by the tax authorities and the COD instead of giving permission
to pursue the appeal before the Honble High Court has advised the
company and Income tax department to resolve the matter
administratively and revert back to it if this mechanism fails.
3) Further to our comments in the Annexure referred toin paragraph 1
above, we report that:
i) Sale/Lease Deeds in respect of Land & Buildings valuing Rs. 1.45 Crore
are yet to be executed in favour of the company (Note no. 2, Schedule
3).
ii) Balances of Sundry Debtors, Loans & Advances, Deposits, Sundry
Creditors (including Indian Railways) have not been
confirmed/reconciled. (Note no. 13, Schedule 11).
iii) We are unable to comment on the shortfall, if any, in the value of
non-moving stock of stores & spare parts. (Note no.21, Schedule 11).
4) We further report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of
ouraudit.
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 and proper returns adequate for the purpose of our audit
have been received from the branch auditors in respect of the regions
audited by them.
c) The reports of the branch auditors on the accounts of regions
audited by them have been received and considered by us in preparing
this report after making such adjustments, as we considered necessary.
d) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreementwith the books of account.
e) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
f) In terms of Department of Company Affairs GSR 829 (E) dated 21st
October2003, Government Companies are exempt from applicability of
provisions of Section 274 (1) (g) of the Companies Act, 1956.
g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, (subject to our
comments in paragraphs 3 (i) above(no financial impact) and the
observations made in paragraphs 3 (ii) and (iii) above, the financial
impact of which could not be determined), read together with
Significant Accounting Policies and Notes on Accounts, give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India-
i) inthecaseof BalanceSheet, of the state of affairs of the company as
at31st March, 2010;
ii) in the case of Profit & Loss Account, of the profit for the year
ended on that date; and
iii) in the case of Cash FlowStatement, of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE ON THE
ACCOUNTS OF CONTAINER CORPORATION OF INDIA LIMITED FOR THE YEAR ENDED
31st MARCH, 2010.
(i) (a) The company has generally maintained proper records showing
full particulars, including quantitative details and situation of its
fixed assets.
(b) As per the information and explanations given to us, fixed assets
have been physically verified by the management during the year in
phased manner, which in our opinion, is reasonable having regards to
the size of the company and nature of Fixed Asset. The discrepancies
noticed on such verification were not material.
(c) The company has disposed/written off some of its fixed assets
during the year. However, in our opinion this has not affected the
going concern status of the company.
(ii) (a) The inventory of the company consisting of stores and spare
parts has been physically verified by the management on test check
basis. In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are generally reasonable and adequate in relation to the
size of the company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) According to the information and explanations given to us,
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.
(b) Not applicable in view of para (a) above.
(c) Not applicable in view of para (a) above.
(d) Not applicable in view of para (a) above.
(e) The company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
undersection 301 of the Companies Act, 1956.
(f) Not applicable in view of para (e) above.
(g) Not applicable in view of para (e) above.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to the purchase of stores and spare parts, fixed assets and
forrendering services.
(v) (a) According to the information and explanations given to us, we
are of the opinion that there are no contracts or arrangements that
need to be entered into the register maintained undersection 301 of the
Companies Act, 1956.
(b) Not applicable in view of para (a) above.
(vi) The company has not accepted any deposits from the public in terms
of section 58A and 58AA and other relevant provisions of the Companies
Act, 1956.
(vii) In our opinion, the company has an internal audit system, which
is generally commensurate with the size and nature of its business.
(viii)As informed to us, the Central Government has not prescribed
maintenance of cost records undersection 209 (1) (d) of the Companies
Act, 1956, in respect of the business of the company.
(ix) (a) The company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and other material statutory dues applicable to it.
According to the information and explanations given to us, the
undisputed amounts payable in respect of outstanding statutory dues
that were in arrears, as at 31st March,2010 for a period of more than
six months from the date they became payable are given below:
Name of the Statute Nature of the Dues Amnt. Period to which the
(Rs. in Crore) amount Relates
Customs Act, 1962 Custom Duty
(Northern Region) 0.90 Upto 2000-01
Customs Act, 1962 Custom Duty
(Auction) 1.37 1997-98 Rs.1.08 cr.
(Northern Region) 2003-04 Rs.29.58lac.
Employees provident PF on contractors
payments 0.05 2009-10
fund Act (NWR)
Building & Other
Workers Cess under
Building & 0.42 2008-09
Welfare Cess
Act, 1996 Other Workers Welfare
Act, 1996
In addition the company has made provision for property tax payable in
respect of its assets at various locations amounting to Rs. 12.31 Crore
upto 31st March,2010, on estimated basis, pending commencement /
completion of assessments by the appropriate authorities.
(b) According to the information & explanations given to us, dues of
income tax, sales tax, wealth tax, service tax, customs duty, excise
duty and cess that have not been deposited on account of any dispute
are given below:
Forum where Nature of the Dues Amnt. Period to which the
dispute pending (Rs. in Crore) amount Relates
CESTAT Service Tax 0.01 01st May 2003 to
Finance Act 1994 16th July 2003
CCE( Appeals) Service Tax 0.01 January 2004 to
Finance Act
1994 March 2004
Sub -registrar
Vadodora Additional Stamp Duty 0.20 2003-04
Appellate
authority VAT Penalty u/s 86(19) 0.33 14th December 2005
of DVAT Delhi
Appellate
authority Sales Tax (NR) 0.01 Year 1997-98
VAT Delhi Delhi Sales tax act
Appellate
authority Sales Tax (NR) 0.08 Year 2000-01
VAT Delhi Delhi Sales tax act
Municipal Corp
Ludhiana Octeroi under local taxes0.16 2007-08
Appellate
authority
Service Service Tax 0.13 2007-08
tax Ludhiana Finance Act 1994
High Court Sales Tax (SR) 0.42 Year 2000-01
under sales tax act
Dist. Court
Kanpur Water Tax-Jal 0.69 2000-01 to date
Sansthan Kanpur
(x) The company has neither accumulated losses as at the end of the
financial year nor has incurred any cash losses during the financial
year covered by our audit and also in the immediately preceding
financial year.
(xi) The company has not defaulted in repayment of dues to financial
institution or banks. The company has not issued any debentures.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and othersecurities.
(xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society.
(xiv)In our opinion and according to the information and explanations
given to us, the company is not dealing in shares, securities and other
investments. The investments in the shares of joint ventures &
subsidiary company are held by the company in its own name and are not
traded. However, letterof allotment/Share Certificates in one joint
venture Company costing Rs. 0.05 Crore are not available with the company
(Note to Schedule 4).
(xv)The company has given counter indemnity to the guarantor (a joint
venture partner) in relation to the guarantor providing payment
guarantees to the banks for loans raised by the joint venture company,
to the extent of 26% (the shareholding of the company in joint venture)
of the loan and interest outstanding. As at 31st March,2010, the amount
of such counter indemnity works out toRs. 167.92 Crore. In our opinion,
the terms and conditions thereof are not prima-facie prejudicial to the
interests of the company.
(xvi)The company has not taken any term loans during the year.
(xvii)As the company has not raised any funds on short-term basis, this
clause is not applicable.
(xviii)The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained undersection
301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the year.
(xx) As the company has not raised money by public issues during the
year, this clause is not applicable.
(xxi) As per the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the year.
For KUMAR CHOPRA & ASSOCIATES.
Chartered Accountants
FRN: 000131N
Place: New Delhi (SUNIL JAIN)
Date : 19 July, 2010 Partner
M. No. 080990