SENSEX NIFTY
ITC | Auditor's Report > Cigarettes > Auditor's Report from ITC - BSE: 500875, NSE: ITC
YOU ARE HERE > MONEYCONTROL > MARKETS > CIGARETTES > AUDITORS REPORT - ITC
ITC
BSE: 500875|NSE: ITC|ISIN: INE154A01025|SECTOR: Cigarettes
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Oct 23, 17:00
350.50
1.35 (0.39%)
VOLUME 51,370
LIVE
NSE
Oct 23, 17:00
350.40
1.4 (0.4%)
VOLUME 469,070
« Mar 13
Auditor's Report (ITC) Year End : Mar '14
1.  We have audited the accompanying financial statements of ITC
 LIMITED (the Company), which comprise the Balance Sheet as at 31st
 March, 2014, 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.
 
 Management''s Responsibility for the Financial Statements
 
 2.  The Company''s Management is responsible for the preparation of
 these financial statements that give a true and fair view of the
 financial position, financial performance and cash flows of the Company
 in accordance with the Accounting Standards notified under the
 Companies Act, 1956 (the Act) (which continue to be applicable in
 respect of Section 133 of the Companies Act, 2013 in terms of General
 Circular 15/2013 dated 13th September, 2013 of the Ministry of
 Corporate Affairs) and in accordance with the accounting principles
 generally accepted in India. This responsibility includes the design,
 implementation and maintenance of internal control relevant to the
 preparation and presentation of the financial statements that give a
 true and fair view and are free from material misstatement, whether due
 to fraud or error.
 
 Auditors'' Responsibility
 
 3.  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.
 
 4.  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 judgement, including the
 assessment of the risks of material misstatement of the financial
 statements, whether due to fraud or error. In making those risk
 assessments, the auditor considers internal control relevant to the
 Company''s preparation and fair presentation of the financial statements
 in order to design audit procedures that are appropriate in the
 circumstances, but not for the purpose of expressing an opinion on the
 effectiveness of the Company''s internal control. An audit also includes
 evaluating the appropriateness of the 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.
 
 5.  We believe that the audit evidence we have obtained is sufficient
 and appropriate to provide a basis for our audit opinion.
 
 Opinion
 
 6.  In our opinion and to the best of our information and according to
 the explanations given to us, the aforesaid financial statements give
 the information required by the Act in the manner so required and give
 a true and fair view in conformity with the accounting principles
 generally accepted in India:
 
 (a) in the case of the Balance Sheet, of the state of affairs of the
 Company as at 31st March, 2014;
 
 (b) in the case of the Statement of Profit and Loss, of the profit of
 the Company for the year ended on that date; and
 
 (c) in the case of the Cash Flow Statement, of the cash flows of the
 Company for the year ended on that date.
 
 Report on Other Legal and Regulatory Requirements
 
 7.  As required by the Companies (Auditor''s Report) Order, 2003 (the
 Order) issued by the Central Government in terms of Section 227(4A) of
 the Act, we give in the Annexure a statement on the matters specified
 in paragraphs 4 and 5 of the Order.
 
 8.  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 purposes of our
 audit.
 
 (b) In our opinion, proper books of account as required by law have
 been kept by the Company so far as it appears from our examination of
 those books.
 
 (c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
 Flow Statement dealt with by this Report are in agreement with the
 books of account.
 
 (d) In our opinion, the Balance Sheet, the Statement of Profit and
 Loss, and the Cash Flow Statement comply with the Accounting Standards
 notified under the Act (which continue to be applicable in respect of
 Section 133 of the Companies Act, 2013 in terms of General Circular
 15/2013 dated 13th September, 2013 of the Ministry of Corporate
 Affairs).
 
 (e) On the basis of the written representations received from the
 directors as on 31st March, 2014 taken on record by the Board of
 Directors, none of the directors is disqualified as on 31st March, 2014
 from being appointed as a director in terms of Section 274(1)(g) of the
 Act.
 
 Annexure to the Independent Auditors'' Report (Referred to in paragraph
 7 under ''Report on Other Legal and Regulatory Requirements'' section of
 our report of even date)
 
 In our opinion and according to the information and explanations given
 to us, the nature of the Company''s business/activities during the year
 are such that clauses (xii), (xiii), (xviii), (xix) and (xx) of
 paragraph 4 of the Order are not applicable to the Company. In respect
 of the other clauses, we report as under:
 
 (i) In respect of its fixed assets:
 
 (a) The Company has maintained proper records showing full particulars,
 including quantitative details and situation of the fixed assets.
 
 (b) The fixed assets were physically verified during the year by the
 Management in accordance with a regular programme of verification
 which, in our opinion, provides for physical verification of all the
 fixed assets at reasonable intervals. According to the information and
 explanations given to us, no material discrepancies were noticed on
 such verification.
 
 (c) During the year, in our opinion, a substantial part of fixed assets
 has not been disposed off by the Company.  (ii) In respect of its
 inventory:
 
 (a) As explained to us, the inventories other than material lying with
 third parties (which have substantially been confirmed) were physically
 verified during the year by the Management at reasonable intervals.
 
 (b) In our opinion and according to the information and explanations
 given to us, the procedures of physical verification of inventory
 followed by the Management were reasonable and adequate in relation to
 the size of the Company and the nature of its business.
 
 (c) In our opinion and according to the information and explanations
 given to us, the Company has maintained proper records of its
 inventories and no material discrepancies were noticed on physical
 verification.
 
 (iii) The Company has neither granted nor taken any loans, secured or
 unsecured, to/from companies, firms or other parties covered in the
 Register maintained under Section 301 of the Companies Act, 1956.
 
 (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 for the
 purchase of inventory and fixed assets and for the sale of goods and
 services. During the course of our audit, we have not observed any
 major weakness in such internal control system.
 
 (v) To the best of our knowledge and belief and according to the
 information and explanations given to us, there are no contracts or
 arrangements that needed to be entered in the Register maintained in
 the pursuance of Section 301 of the Companies Act, 1956.
 
 (vi) In our opinion and according to the information and explanations
 given to us, the Company has complied with the provisions of Sections
 58A and 58AA or any other relevant provisions of the Companies Act,
 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
 to the deposits accepted from the public. According to the information
 and explanations given to us, no Order has been passed by the Company
 Law Board or the National Company Law Tribunal or the Reserve Bank of
 India or any Court or any other Tribunal on the Company.
 
 (vii) In our opinion, the Company has an internal audit system
 commensurate with the size of the Company and the nature of its
 business.
 
 (viii) We have broadly reviewed the cost records maintained by the
 Company, as prescribed by the Central Government under Section
 209(1)(d) of the Companies Act, 1956, and are of the opinion that prima
 facie the prescribed cost records have been maintained and are being
 made up. We have, however, not made a detailed examination of the cost
 records with a view to determine whether they are accurate or complete.
 
 (ix) According to the information and explanations given to us and
 according to the books and records as produced and examined by us, in
 our opinion:
 
 (a) The Company is 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, customs duty, excise duty, cess and other material statutory dues
 as applicable with the appropriate authorities.
 
 (b) As at 31st March, 2014, the following are the particulars of dues
 on account of income tax, sales tax, wealth tax, service tax, customs
 duty, excise duty and cess matters that have not been deposited on
 account of any dispute:
 
 Name of          Nature of        Amount          Period to which
 the statute      the dues         (Rs.in             the amount
                                   Crores)              relates
 
                                                   Various years
                                                  covering the period
 
 Sales Tax       Sales tax          8.28               1987-2013
 and VAT         and VAT
 Laws
 
                                    8.66               1994-2014
 
                                  162.34               2000-2008
 
 Customs         Customs            0.01               2010-2011
 Act, 1962       duty
 
                                    1.50               2005-2007
 
 Central         Excise duty       10.66               1996-2014
 Excise
 Act, 1944
 
                                   61.82               1973-2013
 
                                    1.43               2005-2010
 
                                    0.31               1991-1996
 
 Finance Act,    Service tax        3.78               2004-2012
 1994
 
                                   15.26               2005-2011
 
 Income          Income tax        93.62               1999-2006
 Tax Act,
 1961
 
 
 Name of the Statue           Forum where pending
 
 Sales Tax
 and VAT
 Laws                         Appellate Authority -
                              upto Commissioners''/
                              Revisional authorities level
 
                              Appellate Authority -
                              Tribunal level
 
                              High Court
 
 Customs
 Act, 1962                    Appellate Authority -
                              upto Commissioners''/
                              Revisional authorities level
 
                              Appellate Authority -
                              Tribunal level
 
 Central
 Excise
 Act, 1944                    Appellate Authority -
                              upto Commissioners''/
                              Revisional authorities level
 
                              Appellate Authority -
                              Tribunal level
 
                              High Court
 
                              Supreme Court
 
 Finance Act,
 1994                         Appellate Authority -
                              upto Commissioners''/
                              Revisional authorities level
 
                              Appellate Authority -
                              Tribunal level
 
 Income
 Tax Act,
 1961                         Appellate Authority -
                              upto Commissioners''/
                              Revisional authorities level
 
 Out of the total disputed dues aggregating Rs. 367.67 Crores as above, Rs.
 234.20 Crores has been stayed for recovery by the relevant authorities.
 
 (x) The Company does not have accumulated losses at the end of the
 financial year and the Company has not incurred cash losses during the
 financial year covered by our audit and in the immediately preceding
 financial year.
 
 (xi) According to the information and explanations given to us, the
 Company has not defaulted in repayment of dues to any financial
 institution, bank or to debenture holders during the year.  
 
 (xii) In our opinion and according to the information and explanations
 given to us, the Company is not a dealer or trader in securities. The
 Company has maintained proper records of transactions and contracts in
 respect of shares, securities, debentures and other investments and
 timely entries have been made therein. All shares, securities,
 debentures and other investments have been held by the Company in its
 own name.
 
 (xiii) According to the information and explanations given to us, the
 Company has not given guarantees for loans taken by others from banks
 and financial institutions.
 
 (xiv) 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.
 
 (xv) In our opinion and according to the information and explanations
 given to us, and on an overall examination of the Balance Sheet, we
 report that funds raised on short-term basis have not been used during
 the year for long-term investment.
 
 (xvi) To the best of our knowledge and according to the information and
 explanations given to us, no fraud by the Company and no significant
 fraud on the Company has been noticed or reported during the year.
 
                                     For Deloitte Haskins & Sells
  
                                            Chartered Accountants
 
                                (Firm''s Registration No. 302009E)
 
                                                    P. R. Ramesh
 
 New Delhi                                               Partner
 
 23rd May, 2014                            (Membership No. 70928)
Source : Dion Global Solutions Limited
Quick Links for itc
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.