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ITD Cementation India Ltd.

BSE: 509496 | NSE: ITDCEM |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE686A01026 | SECTOR: Construction & Contracting - Civil

BSE Live

Dec 03, 16:00
75.15 -0.60 (-0.79%)
Volume
AVERAGE VOLUME
5-Day
33,367
10-Day
36,396
30-Day
58,788
36,805
  • Prev. Close

    75.75

  • Open Price

    75.55

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Dec 03, 15:59
75.10 -0.50 (-0.66%)
Volume
AVERAGE VOLUME
5-Day
387,679
10-Day
408,839
30-Day
797,514
309,431
  • Prev. Close

    75.60

  • Open Price

    75.95

  • Bid Price (Qty.)

    75.10 (1065)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2016 2015 2014 2013 2012 2011 2010 2009 2008

Auditor's Report

1. We have audited the attached Balance Sheet of ITD Cementation India Limited (the Company) as at December 31,2007 and also the Profit and Loss Account and 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. 2. 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. 3. As required by the Companies (Auditors Report) Order, 2003 (as amended) (the Order) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 4. Without qualifying our report, we draw attention to: i. note 32 to the financial statements. Sundry Debtors at December 31,2007 includes an amount of Rs. 1,225 lakhs (December 31,2006: Rs. 1,225 lakhs) comprising a claim made by the Company and a writeback of a provision for doubtful debts of earlier years. Based on the payment schedule agreed by the Company with the customer, the above mentioned claim is expected to be received by the Company over a period of time commencing from financial year 2008 / 2009. The realisability of this amount of Rs. 1,225 lakhs is dependent upon the customer adhering to the proposed payment plan which in turn depends on the customer achieving its revenue and profit projections. ii. note 29 to the financial statements. According to this, the Company has in prior years recognized price escalation claims on two road contracts which were disputed by the customer. For the period from inception of the contract to December 31,2007 the aggregate claims recognised as revenue amount to Rs. 2,028 lakhs (previous year Rs. 2,028 lakhs). Sundry debtors at December 31, 2007 include Rs. 1,140 lakhs (previous year Rs. 1,153 lakhs) in respect of these escalation claims. The Company has received favourable verdicts in the Dispute Redressal Board and thereafter in Arbitration in respect of these amounts. The Company has till date not recovered these amounts. The Customer has appealed against the Arbitration award and the realisability of this amount is dependent on this matter being finally resolved in favour of the Company. 5. Further to our comments in the Annexure referred to above, we report that: i. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit; ii. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; iii. The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account; iv. In our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956; v. On the basis of the written representations received from the directors, as on December 31,2007, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on December 31,2007 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; vi. As described in Note 31 to the financial statements, debtors include Rs.3,384 lakhs (previous year Rs. 3,711 lakhs) representing interim work bills for work done which have not been certified by customers beyond normal periods of certification; vii. As described in Note 30 to the financial statements, sundry debtors at December 31,2007 include variation claims of Rs. 4,182 lakhs (previous year Rs, 4,332 lakhs) recognized in the earlier years, which are disputed by the customer. Out of this, claims amounting to Rs. 4,026 lakhs (previous year Rs. 4,177 lakhs) are a subject matter of arbitration. Of these claims the Company has received arbitration awards of Rs. 2,610 lakhs (previous year Rs. 1,916 lakhs) in its favour, of which Rs. 1,620 lakhs have since been challenged by the customer and for the balance of Rs. 990 lakhs, the period within which the customer can challenge the award has not elapsed; viii. Our audit report on the financial statements for the year ended December 31,2006 was also modified in respect of the matters stated in paragraphs vi and vii above and the corresponding amounts in respect of that year are given in brackets; ix. In our view there is an uncertainty in respect of realisability of these claims and receivables described in paragraphs vi and vii above. Accordingly, pending the ultimate outcome of these disputes, arbitration and related matters and certification, we are unable to comment on the adjustments, if any, that may be necessary to turnover, sundry debtors, the profit before tax, reserves and earnings per share reported in the financial statements for the year ended December 31,2007 and December 31,2006; x. In our opinion and to the best of our information and according to the explanations given to us, the said financial statements give the information required by the Companies Act, 1956, in the manner so required and subject to our comments in paragraphs 5 (vi) to (ix) above, the impact of which on the financial statements cannot be ascertained, 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 December 31,2007; (b) in the case of Profit and Loss Account, of the profit of the Company for the year ended on that date; and (c) in the case of Cash Flow Statement, of the cash flows for the year ended on that date. Annexure referred to in paragraph 3 of our report of even date Re: ITD Cementation India Limited (i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. (b) Fixed assets have been physically verified by the management during the year and no material discrepancies were identified on such verification. (c) Fixed assets disposed off during the year were not substantial, and therefore do not affect the going concern assumption. (ii) (a) The inventory of stores, spare parts and construction material has been physically verified by the management during the year. In our opinion the frequency of verification is reasonable. (b) The procedures of physical verification of inventory 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 of direct materials, spares and tools and equipment. 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 accounts. (iii) As informed, the Company has neither granted nor taken-any loans, secured or unsecured to or 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 is an adequate internal control system 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, no major weakness has been noticed in the internal control system in respect of these areas. (v) (a) According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 that need to be entered into the register maintained under section 301 have been so entered. (b) The transaction made in pursuance of one such contract exceeding the value of Rupees five lakhs entered into during the financial year has been entered into at prices which are reasonable having regard to the prevailing market prices at the relevant time. Other transactions made in pursuance of such contracts or arrangements exceeding the value of Rupees five lakhs entered into during the financial year are of a unique and specialized nature with regard to the items involved and in the absence of any comparable prices, we are unable to comment whether the transactions were made at prevailing market prices at the relevant time. (vi) The Company has not accepted any deposits from the public to which the directives of the Reserve Bank of India and provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956, and rules framed there under, apply. (vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business. (viii) To the best of our knowledge and as explained, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956 for any of the services rendered by the Company. (ix) (a) Undisputed statutory dues relating to investor education and protection fund, provident fund, employees state insurance dues, sales-tax, wealth-tax and customs duty have been regularly deposited during the year by the Company with the appropriate authorities. There have been delays in the deposit of service tax and works contract tax with the respective authorities. There have been several delays in the deposit of income tax and works con tract tax, and there have been significant delays in deposit of income-taxes in few cases. In respect of service tax, the Company had in prior years filed a petition in the Mumbai High Court contesting the applicability of service tax to the Company. However post June 2007, the Company has started to deposit service tax dues with the appropriate authorities. (b) According to the information and explanations given to us, there are no undisputed dues in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and other undisputed statutory dues which were outstanding, at the year end for a period of more than six months from the date they became payable. (c) According to the records of the Company, there are no dues of wealth-tax, customs duty and cess which have not been deposited with the appropriate authorities on account of any dispute. According to information and explanation given to us, the following dues have not been deposited by the Company on account of a dispute: Name of Nature of dues Amount (Rs) the statute Sales Tax Act / Works Tax 3,175,428 Contract Tax Act Sales Tax Act / Works Tax, Penalty 3,293,365 Contract Tax Actand Interest Bombay Sales Tax Tax, Penalty 914,255 and Interest Sales Tax Act / Works Tax 67,914 Contract Tax Act Sales Tax Act / Works Tax and Penalty 606,325 Contract Tax Act Sales Tax Act / Works Tax and Penalty 2,255,469 Contract Tax Act Sales Tax Act / Works Tax 408,950 Contract Tax Act Central Excise Duty Duty 5,169,538 Service tax Service tax in respact 30,885,519 of certain construction contracts Income tax Tax demanded on 3,63,612 Act, 1961 assessment u/s 143(3) Income tax Penalty u/s 2,16,513 Act, 1961 271(1)(c) Income tax Tax demanded on 1,049,994 Act, 1961 assessment u/s 143(3) Income tax Penalty u/s 5,11,780 Act, 1961 271(1)(c) Income tax Tax demanded on 258,751,971 Act, 1961 assessment u/s 143(3) Period to which Forum where the amount relates dispute is pending Year ended Revision Board March 31,1995 (Tribunal) Kolkatta Year ended Joint Commissioner March 31,2002 of Sales Tax Year ended Joint Commissioner March 31,2002 of Sales Tax Year ended Assistant March 31, 2003 Commissioner of Sales Tax Year ended Appellate Assistant March 31, 2004 Commissioner Year ended Assistant March 31,2005 Commissioner of Commercial Taxes Year ended Deputy Commissioner March 31,1998 of Commercial Taxes Period from May Commissioner of 1998 to January 1999 Central Excise Years ended Petition filed by the March 31,2006 Company in the and 2007 and Mumbai High Court period from Refer clause (ix)(a) April1,2007 to December 31, 2007 Year ended Deputy Commissioner March 31,2002 of Income Tax Year ended Deputy March 31,2002 Commissioner of Income Tax Year ended Assistant March 31, 2003 Commissioner of IncomeTax Year ended Assistant March 31,2003 Commissioner of IncomeTax Year ended Commissioner of March 31, 2005 IncomeTax (Appeals) (x) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year. (xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to its bankers or financial institutions. The Company did not have any outstanding debentures during the year. (xii) According to the information and explanations given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. (xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. (xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions. (xvi) Based on information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained. (xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment. (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 did not have any outstanding debentures during the year. (xx) The Company has raised money from issue of equity shares offered on rights basis to the existing shareholders. We have verified that the end use of money raised by public issues is as disclosed in the Notes 37 and 38 to the financial statements. (xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit. For S. R. Batliboi & Associates Chartered Accountants per Amit Majmudar Partner Membership No.: 36656 Mumbai March 7, 2008