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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

Nov 29, 16:00
72.25 -1.00 (-1.37%)
Volume
AVERAGE VOLUME
5-Day
34,166
10-Day
42,694
30-Day
78,148
23,348
  • Prev. Close

    73.25

  • Open Price

    74.30

  • Bid Price (Qty.)

    72.70 (50)

  • Offer Price (Qty.)

    72.70 (1)

NSE Live

Nov 29, 15:58
72.50 -0.80 (-1.09%)
Volume
AVERAGE VOLUME
5-Day
398,720
10-Day
487,646
30-Day
1,001,130
412,366
  • Prev. Close

    73.30

  • Open Price

    74.05

  • Bid Price (Qty.)

    72.50 (410)

  • 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, 2009 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) 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 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, 2009 the aggregate claims recognised as revenue amount to Rs. 2,028 lakhs (previous year Rs. 2,028 lakhs). Sundry debtors at December 31, 2009 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. ii. Note 33 to the financial statements. According to this, sundry debtors as at December 31, 2009 include variation claims of Rs. 1,515 lakhs (including Rs. 554 lakhs recognized as revenue and Rs. 525 lakhs recognized as interest income during year ended December 31, 2009) for which the Company had received an arbitration award in its favour which has subsequently been upheld by the district court. The customer has further challenged this court order and realisability of this amount would be dependent on this matter being finally resolved in favour of the Company. This matter was qualified in our audit report for the year ended December 31, 2008. 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, 2009, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on December 31, 2009 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956; vi. a. As described in Note 30 to the financial statements, sundry debtors at December 31, 2009 include variation claims of Rs. 5,042 lakhs (previous year Rs. 4,182 lakhs) recognized upto December 31, 2009, which are disputed by the customer. Outofthis, claims amounting to Rs. 2,801 lakhs (previous year Rs. 3,817lakhs) are a subject matter of arbitration. The Company has received arbitration awards in its favour in respect of the balance amount of Rs. 2,241 lakhs which have since been challenged by the customer. Our audit report on the financial statements for the year ended December 31, 2008 was also qualified in respect of this matter; b. As described in Note 31 to the financial statements, debtors include Rs. 3,384 lakhs (previous year Rs. 3,384lakhs) representing interim work bills for work done which have not been certified by customers beyond normal periods of certification. Our audit report on the financial statements for the year ended December 31, 2008 was also qualified in respect of this matter; c. As described in Note 32 to the financial statements, sundry debtors at December 31, 2009 include an amount of Rs. 1,225 lakhs (previous year Rs. 1,225 lakhs) recognized as income in the earlier years. Based on the payment schedule originally agreed with the customer, the above mentioned claim was expected to be received by the Company over a period of time commencing from financial year 2008/2009. No amounts have been received by the Company till date and further rescheduling of the payment which was in progress at December 31, 2008 has not yet been finalised. 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. Our audit report on the financial statements for the year ended December 31, 2008 was also modified in respect of this matter; d. In our view there is an uncertainty in respect of realisability of these claims and receivables described in paragraphs vi(a) to (c) 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, 2009 and December 31, 2008; vii. 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 paragraph 5(vi) 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, 2009; (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 (the Compay) (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) There was no substantial disposal of fixed assets during the year. (ii) (a) The inventory comprising 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 material, 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 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. 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) The Company is 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, customs duty, cess and other material statutory dues applicable to it. The provisions relating to excise duty are not applicable to the Company. Further, since the Central Government has till date not prescribed the amount of cess payable under Section 441 A of the Companies Act, 1956, we are not in a position to comment upon the regularity or otherwise of the Company in depositing the same. (b) According to the information and explanations given to us, no undisputed amounts payable 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 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, service-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) Period to which the Forum where amount relates dispute is pending Sales Tax Act/Works Tax 3,175,428 Year ended Revision Board (Tribunal) Contract Tax Act March 31, 1995 Kolkatta Sales Tax Act/Works Tax 67,914 Year ended Assistant Commissioner of Contract Tax Act March 31, 2004 Sales Tax Sales Tax Act/Works Tax and Penalty 2,255,469 Year ended Assistant Commissioner of Contract Tax Act March 31, 2005 Commercial Taxes Sales Tax Act/Works Tax 408,950 Year ended Deputy Commis -sioner of Contract Tax Act March 31, 1998 Commercial Taxes Sales Tax Act/Works Tax 18,500 Year ended Assistant Comm -issioner, Contract Tax Act March 31, 2006 Rajasthan Sales Tax Act/Works Penalty 15,450 Year ended Assistant Commi -ssioner of Contract Tax Act March 31, 2000 Commercial Taxes Sales Tax Act/Works Penalty 3,094,104 Year ended Deputy Commiss -ioner of Contract Tax Act March 31, 2006 Commercial Taxes Sales Tax Act/Works Tax 5,566,213 Year ended Deputy Commiss -ioner of Contract Tax Act March 31,2005 Commercial Taxes, Kakinada Sales Tax Act/Works Tax 599,703 Year ended Assistant Commis -sioner of Contract Tax Act March 31, 2006 Commercial Taxes, Uttar Pradesh Sales Tax Act/Works Tax 1,360,373 Year ended Assistant Commis -sioner of Contract Tax Act March 31, 2007 Commercial Taxes, Uttar Pradesh Sales Tax Act/Works Tax 5,648,597 Year ended Excise and Taxa -tion Officer, Contract Tax Act March 31, 2007 Punjab Sales Tax Act/Works Tax 3,196,927 Year ended Assistant Commis -sioner of Contract Tax Act March 31, 2005 Commercial Taxes, Bihar Sales Tax Act/Works Tax 5,667,105 Year ended Deputy Commiss -ioner of Contract Tax Act March 31, 2007 Commercial Taxes, West Bengal Central Excise Duty Duty 5,169,538 Period from May 1998 Commissioner of to January 1999 Central Excise Income Tax Act, 1961 Tax demanded on 363,612 Year ended Deputy Commiss -ioner of assessment u/s 143(3) March 31, 2002 Income Tax Income Tax Act, 1961 Penalty u/s 271(1 )(c) 216,513 Year ended Deputy Commiss -ioner of March 31, 2002 Income Tax Income Tax Act, 1961 Penalty u/s 271(1 )(c) 511,780 Year ended Assistant Commis -sioner of March 31, 2003 Income Tax Income Tax Act, 1961 Tax demanded on 53,030,830 Year ended Commissioner of assessment u/s 144 March 31, 2004 Income Tax - (Appeals) Income Tax Act, 1961 Tax demanded on 151,511,711 Yearended ITAT assessment u/s 143(3) March 31, 2005 Income Tax Act, 1961 Tax demanded on 21,746,692 Yearended ITAT assessment u/s 144 March 31, 2006 Income Tax Act, 1961 Penalty u/s 271 (1 )(c) 266,963 Year ended CIT(A) March 31,2001 (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 guarantee for loans taken by an unincorporated joint venture of which the Company is a member, from bank, the terms and conditions whereof, in our opinion, are not 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 Amit Majmudar Partner Membership No.: 36656 Mumbai March 4, 2010