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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

Oct 22, 16:00
87.00 0.35 (0.40%)
Volume
AVERAGE VOLUME
5-Day
179,720
10-Day
180,877
30-Day
151,924
46,713
  • Prev. Close

    86.65

  • Open Price

    87.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Oct 22, 15:59
87.00 0.30 (0.35%)
Volume
AVERAGE VOLUME
5-Day
1,843,100
10-Day
1,723,649
30-Day
1,570,767
630,732
  • Prev. Close

    86.70

  • Open Price

    87.05

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    87.00 (11218)

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, 2008 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, 2008 includes an amount of Rs. 1,225 lakhs (previous year 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 originally agreed by the Company with the customer, the above mentioned claim was expected to be received by the Company over a period of time comenencing from financial year 2008 / 2009. No amounts have been received by the Company against this amount till date and further the payment schedule for this amount is in the process of being rescheduled. The realisability of this amount of Rs. 1,225 lakhs is dependent upon finalization of the rescheduled payment plan and the customer adhering to the same. 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, 2008 the aggregate claims recognised as revenue amount to Rs. 2,028 lakhs (previous year Rs. 2,028 lakhs). Sundry debtors at December 31, 2008 include Rs. 1,140 lakhs (previous year Rs. 1,140 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, 2008, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on December 31,2008 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. 3,384 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, 2008 include variation claims of Rs. 4,182 lakhs (previous year Rs. 4,182 lakhs) recognized in the earlier years, which are disputed by the customer. Out of this, claims amounting to Rs. 3,817 lakhs (previous year Rs. 4,026 lakhs) are a subject matter of arbitration. Of these claims the Company has received arbitration awards of Rs. 2,610 lakhs (previous year Rs. 2,610 lakhs), in its favour and includes an arbitration award of Rs. 990 lakhs (previous year Rs.Nil) upheld by the district court in favour of the Company. The period within which the customer can challenge the award for Rs. 990 lakhs has not elapsed and the arbitration awards for the balance amount of Rs. 1,620 lakhs have since been challenged by the customer; viii. Our audit report on the financial statements for the year ended December 31,2007 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 years ended December 31, 2008 and December 31, 2007; 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, 2008; (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 construction material, tools and equipments and machinery spares 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 construction materials, tools and equipments and machinery spares. 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) 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. Therefore the provisions of clause 4(iii)(a) to (g) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. (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) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements exceeding value of Rupees five lakhs have been entered into during the financial year at prices which are reasonable having regard to the prevailing market prices at the relevant time. (vi) The Company has not accepted any deposits from the public. (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 provident fund, investor education and protection fund, employees state insurance dues, sales-tax, wealth-tax, service tax, customs duty, cess have generally been regularly deposited during the year by the Company with the appropriate authorities. There have been delays in the deposit of tax deducted at source in a few cases and in some of these cases the number of days of delay is significant. The provisions relating to excise duty are not applicable to the Company. (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 explanations given to us, the following are the outstanding dues of sales tax, excise duty, service tax and income tax that have not been deposited by the Company on account of a dispute: Name of the statute Nature of dues Amount (Rs) Sales Tax Act/ Tax 3,175,428 Works Contract Tax Act Sales Tax Act / Tax, Penalty 3,293,365 Works Contract and Interest Tax Act Bombay Sales Tax Tax, Penalty 914,255 and Interest Sales Tax Act/ Tax 67,914 Works Contract Tax Act Sales Tax Act / Tax and 606,325 Works Contract Penalty Tax Act Sales Tax Act / Tax and 2,255,469 Works Contract Penalty Tax Act Sales Tax Act / Tax 408,950 Works Contract Tax Act Sales Tax Act/ Penalty 3,094,104 Works Contract Tax Act Sales Tax Act / Tax 18,500 Works Contract Tax Act Sales Tax Act/ Penalty 15,450 Works Contract Tax Act Central Excise Duty 5,169,538 Duty Service tax Service tax in 60,835,804 respect of certain construction contracts Income tax Act, 1961 Tax demanded 363,612 on assessment u/s 143(3) Income tax Act, 1961 Penalty u/s 216,513 271(1 )(c) Income tax Act, 1961 Penalty u/s 511,780 271(1 )(c) Income tax Act, 1961 Tax demanded 204,542,541 on assessment u/s 143(3) Income tax Act, 1961 Tax demanded 21,746,692 on 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 of March 31,2002 Sales Tax Year ended Joint Commissioner of March 31,2002 Sales Tax Year ended Assistant Commissioner March 31,2003 of Sales Tax Year ended Appellate Assistant March 31, 2004 Commissioner Year ended Assistant Commissioner March 31, 2005 of Commercial Taxes Year ended Deputy Commissioner March 31, 1998 of Commercial Taxes Year ended Deputy Commissioner March 31, 2006 of Commercial Taxes Year ended Assistant Commissioner March 31, 2006 Rajasthan Year ended Assistant Commissioner March 31,2000 of Commercial Taxes Period from Commissioner of May 1998 to Central Excise January 1999 Years ended Petition filed by the March 31, 2006 and Company in the 2007 and period Mumbai High Court from April 1,2007 to December 31, 2008 Year ended Deputy Commissioner March 31, 2002 of Income Tax Year ended Assistant Commissioner March 31,2002 of Income Tax Year ended Assistant Commissioner March 31, 2003 of Income Tax Year ended Commissioner of March 31, 2005 Income Tax - (Appeals) Year ended Commissioner of March 31, 2006 Income Tax - (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 given a guarantee for loans taken by an unincorporated joint venture of which the Company is a member, from bank or financial institutions, the terms and conditions whereof, in our opinion, are not prima facie prejudicial to the interest of the Company. (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 not raised any money from public issue during the year. (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 Hemal Shah Partner Membership No.: 42650 Mumbai March 5,2009