Crompton Greaves
BSE: 500093 | NSE: CROMPGREAV | ISIN: INE067A01029 | Electric Equipment
- Directors Report
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- Auditors Report
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| Auditor's Report | Year End : Mar '09 |
We have audited the attached Balance Sheet of Crompton Greaves Limited
as at 31st March, 2009, the Profit and Loss Account and also the Cash
Flow Statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
In accordance with provisions of Section 227 of the Companies Act 1956,
we report that:
1. As required by the Companies (Auditors Report) Order, 2003 and 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, we enclose in the Annexure, a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to above, we
report that:
(a) we have obtained all information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) in our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Section 211 (3C) of the Companies
Act, 1956; and
(e) on the basis of the written representations received from directors
of the Company as on 31st March, 2009, and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31st March, 2009 from being appointed as a director in terms of
Section 274 (1)(g) of the Companies Act, 1956.
In our opinion, and to the best of our information and according to the
explanations given to us, the said accounts, read together with the
Significant Accounting Policies in Schedule A and the Notes on the
Balance Sheet and Profit and Loss Account in Schedule B, give the
information required by the Companies Act, 1956, in the mannet so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2009;
(ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(iii) in case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE)
(i) (a) The Company is maintaining proper records to showfull
particulars, including quantitative details and situation of all fixed
assets.
(b) As explained to us, these fixed assets have been physically
verified by the management, in accordance with a phased programme of
verification, which in our opinion, is reasonable, considering the size
of the Company and nature of its assets. The frequency of physical
verification is reasonable and no material discrepancies were noticed
on such verification.
(c) The Company has not disposed off any substantial part of its fixed
assets during the year, so as to affect its going concern status.
(ii) (a) As explained to us, the inventories have been physically
verified by the management during the year. In our opinion, the
frequency of such verification is reasonable.
(b) As per the information given to us, the procedures of physical
verification of inventory followed by the management are, in our
opinion, reasonable and adequate in relation to the size of the Company
and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records, which were not material, have been properly dealt
with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured, to
companies, firms and other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, paragraphs
4(iii)(b), (c) and (d) of the Companies (Auditors Report) Order, 2003
are not applicable to the Company.
(b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured, from companies,
firms and other parties covered in the register maintained under
Section 301 of the Companies Act, 1956. Accordingly,
paragraphs4(iii)(f) and (g) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
(iv) In our opinion, and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of audit, we have neither come across nor
have been informed of any continuing failure to correct major
weaknesses in the aforesaid internal control system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered in the register maintained under Section 301 of
the Companies Act, 1956, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year, have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
(vi) The Company has accepted deposits from the public and in our
opinion and according to the information and explanations given to us,
the directives issued by the Reserve Bank of India and the provisions
of Sections 58A, 58AA and other relevant provisions of the Companies
Act, 1956 and the rules framed thereunder, where applicable, have been
complied with. We are informed that no order has been passed by the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account and records
maintained by the Company pursuant to the rules prescribed by the
Central Government for the maintenance of cost records under Section
209 (1) (d) of the Companies Act, 1956, in respect of electric fans,
motors, power driven pumps, transformers and electric lamps and are of
the opinion that prima facie the prescribed accounts and records have
been made and maintained. The contents of these accounts and records
have not been examined by us.
(ix) (a) According to the information and explanations given to us, in
our opinion, the Company has been regular in depositing undisputed
statutory dues including provident fund, investor education and
protection fund, employees state insurance, income-tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
material statutory dues, as applicable, with the appropriate
authorities. According to the information and explanations given to
us, no undisputed amounts were in arrears as at 31st March, 2009, for a
period of more than six months from the date they become payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of income tax,
sales tax, service tax, excise duty and cess as at 31st March, 2009,
which have not been deposited on account of dispute, are as under:
Name of Nature Amount
the Statute of the Rs. crore *
disputed
dues
The Income Tax and
Tax Act, 1961 interest 4.31
The Central Tax, interest 0.01
Sales Tax Act, and penalty
1956, Local
Sales Tax Acts 6.63
and Works
Contract Tax
Act
16.63
0.08
The Central Duty,
Excise Act, service tax 0.09
1944 and and penalty
Service tax
under the
Finance Act,
1994 5.95
0.13
Period to Forum where
which the disputes are
amount pending
relates
1997-98 to ITAT
2004-05
1996-97 High Court
1992-93,
1995-96,
1998-99, Tribunal
2000-01 to
2003-04
1995-96 to Commissionerate
2006-07
1998-99 Assessing Officer
2001-02 and
2002-03, High Court
2005-06
1975-76 to
1981-82,
1991-92,
1999-2000 to CESTAT
2002-03,
2004-05,
2006-07
2005-06 to
2008-09 Commissionerate
* Net of pre-deposit paid in getting the stay / appeal admitted
(x) The Company has no accumulated losses as at 31st March, 2009 and it
has not incurred any cash losses in the financial year ended on that
date and in the immediately preceding financial year.
(xi) According to the information and explanations given to us, in our
opinion the Company has not defaulted in the repayment of dues to any
financial institutions or bank as at the balance sheet date. The
Company has not issued any debentures.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund / society are not applicable to the
Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in securities.
The Company has invested surplus fund in mutual funds. According to the
information and explanations given to us, proper records have been made
of the transactions and contracts and timely entries have been made
therein. The investments in mutual funds have been held by the Company
in its own name.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions of guarantee given by the Company
for loans taken by others from banks or financial institutions are not
prima fade prejudicial to the interests of the Company, except a
guarantee amounting to Rs. 5.68 crore to Power Equipment Limited, where
no details were available for our comment.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
(xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the Company, we report that
no funds raised on short-term basis have been used for long-term
investments.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
Section 301 of the Companies Act, 1956, during the year.
(xix) The Company has not issued any debentures during the year. Hence,
reporting on paragraph 4 (xix) of the Companies (Auditors Report)
Order, 2003 pertaining to creation of security or charge for debentures
does notarise.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, paragraph 4 (xx) of the Companies (Auditors Report)
Order, 2003 is not applicable to the Company.
(xxi) During the course of our examination of books and records of the
Company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instances of material
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For SHARP &TANNAN
CHARTERED ACCOUNTANTS
L. Vaidyanathan
PARTNER
Mumbai, 20th May, 2009 Membership No. 16368 |
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| Source : Religare Technova | |
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