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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 06, 16:00
75.65 0.60 (0.80%)
Volume
AVERAGE VOLUME
5-Day
28,817
10-Day
31,492
30-Day
52,997
17,385
  • Prev. Close

    75.05

  • Open Price

    75.45

  • Bid Price (Qty.)

    74.80 (1)

  • Offer Price (Qty.)

    75.65 (200)

NSE Live

Dec 06, 15:59
75.70 0.60 (0.80%)
Volume
AVERAGE VOLUME
5-Day
316,908
10-Day
357,814
30-Day
746,765
220,285
  • Prev. Close

    75.10

  • Open Price

    75.10

  • Bid Price (Qty.)

    75.70 (500)

  • 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, 2011 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 Company''s 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 (Auditor''s 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. Schedule 20 (x)(a) and (b) of the financial statements which states that sundry debtors at December 31, 2011 include Rs. 1,449 lakhs (previous year Rs. 2,964 lakhs) relating to price escalation and variation claims which are disputed by the customer. These claims are in various stages of litigation and the reliability of these amounts is dependent upon these matters being finally resolved in favor of the Company. ii. Schedule 20(xi) of the financial statements which states that work-in-progress at December 31, 2011 includes Rs 2,757 lakhs (previous year Rs 2,757 lakhs) in respect of a contract which has been rescinded by the Company and Rs 5,929 lakhs (previous year Rs 5,929 lakhs) in respect of another contract where the Company has received a notice from the customer withdrawing from the Company the balance works to be executed under the contract; besides the Company has also issued guarantees aggregating Rs. 616 lakhs (previous year Rs 616 lakhs) and Rs. 2,227 lakhs (previous year Rs. 2,227 lakhs) for these contracts respectively. The Company has made claims against the customer to recover these amounts and intends to pursue these matters, if necessary, through legal action. Based upon legal advice received, management is reasonably conf dent of recovery of these amounts of work in progress and consequently no changes have been made to the values and classification of these amounts in the financial statements. The recovery of these amounts is dependent upon these matters ultimately being resolved in favor 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, 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on December 31, 2011 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 Schedule 20(xii)to the financial statements, sundry debtors at December 31, 2011 include variation claims of Rs. 3,455 lakhs (previous year Rs. 3,910 lakhs) which are disputed by the customer. Out of this, claims amounting to Rs. 2,346 lakhs (previous year Rs. 2,346 lakhs) are a subject matter of arbitration. The Company has received arbitration awards in its favour in respect of the balance amount of Rs. 1,109 lakhs (previous year Rs. 1,564 lakhs) which have since been challenged by the customer (previous year Rs 1,109 lakhs challenged by the customer). Our audit report on the financial statements for the year ended December 31, 2010 was also qualified in respect of this matter; b. As described in Schedule 20(xiii) to the f nancial statements, sundry debtors at December 31, 2011 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. Our audit report on the financial statements for the year ended December 31, 2010 was also qualified in respect of this matter; c. In our view there is an uncertainty in respect of reliability of the claims and receivables described in paragraphs vi (a) and (b) 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 revenue, sundry debtors, the profit before tax, reserves and earnings per share reported in the financial statements for the years ended December 31, 2011 and December 31, 2010; 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 af airs of the Company as at December 31, 2011; (b) in the case of the 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 fowls 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 Company'') (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 verify action. (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 verify action 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 (Auditor''s 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, we have not observed any major weakness or continuing failure to correcr any major weakness in the internal control system of the Company 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 f flaks 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 generally 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. (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 Period to which the amount Forum where dispute is pending (Rs) relates Sales Tax Act / Works Tax 1,659,990 Year ended Revision Board (Tribunal) Kolkata Contract Tax Act March 31, 1995 Sales Tax Act / Works Tax 33,914 Year ended Assistant Co -mmissioner of Sales Contract Tax Act March 31, 2004 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 Commi -ssioner of Contract Tax Act March 31, 1998 Commercial Taxes Sales Tax Act / Works Tax 18,500 Year ended Assistant C -ommissioner, Rajasthan Contract Tax Act March 31, 2006 Sales Tax Act / Works Penalty 15,450 Year ended Assistant Co mmissioner of Contrac Tax Act March 31, 2000 Commercial Taxes Sales Tax Act / Works Tax 4,236,447 Year ended March 31, 2007 Excise and Taxation Offi cer, Punjab Contract Tax Act Sales Tax Act / Works Tax 3,196,927 Year ended Assistant Co -mmissioner of Contract Tax Act March 31, 2005 Commercial T -axes, Bihar Sales Tax Act / Works Tax 5,667,105 Year ended Deputy Commi -ssioner of Contract Tax Act March 31, 2007 Commercial T -axes, West Bengal Sales Tax Act / Works Tax 1,112,354 Year ended Commercial T -ax Offi cer, Contract T ax Act March 31, 2004 Tamil Nadu Sales Tax Act / Works Tax 295,916 Period from April 1, 2007 to Commercial -Tax Offi cer, Contract Tax Act March 31, 2009 Tamil Nadu Sales Tax Act / Works Tax 2,254,954 Year ended Asst Commis -sioner of Commercial Contract Tax Act March 31, 2004 Taxes,Bihar Sales Tax Act / Works Tax 26,325,047 Year ended Commercial T -ax Offi cer, West Contract Tax Act March 31, 2008 Bengal Central Sales Tax Tax 49,788 Year ended Commercial T -ax Offi cer, West March 31, 2008 Bengal Sales Tax Act / Works Tax 152,480,520 Period from March 2007 to Deputy Commissioner of Contract Tax Act September 2010 Commercial T -axes, Andhra Pradesh Sales Tax Act / Works Penalty 75,438,787 Period from March 2007 to Assistant Co -mmissioner of Contract Tax Act September 2010 Commercial T -axes, Andhra Pradesh Sales Tax Act / Works Tax 3,252,481 Year ended Assistant Commissioner of Contract Tax Act March 2009 Commercial T -axes, Bihar_ Sales Tax Act / Works Tax 20,076 Period from April 2007 to Assistant Commissioner of Contract Tax Act December 2007 Commercial T -axes, Uttar Pradesh Sales Tax Act / W orks Tax 136,241,989 Year ended Excise and T -axation Of cer, Contract Tax Act March 2008 Haryana Sales Tax Act / Works Tax 4,528,910 Year ended Joint Commis -sioner of Contract Tax Act March 2006 Commercial Taxes, Bihar Sales Tax Act / Works Tax 2,890,752 Year ended Deputy Commi -ssioner of Contract Tax Act March 2009 Commercial T -axes, West Bengal Central Excise Duty Duty 5169,538 Period from May 1998 to Commissioner Offi central Excise January 1999 Income Tax Act, 1961 Tax dema -nded 53,030,830 Year ended Commissioner of Income Tax - on assess -ment March 31, 2004 (Appeals) u/s 144 Income Tax Act, 1961 Tax dema -nded 151,511,711 Year ended ITAT on asses -sment March 31, 2005 u/s 143(3) Income Tax Act, 1961 Tax dema -nded 21,746,692 Year ended ITAT on asses -sment March 31, 2006 u/s 144_ Income Tax Act, 1961 TDS tax 7,737,391 Year ended Commissioner of Income Tax - deman -ded on March 31, 2007 to March 31, (Appeals) assess -ment 2009 (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 (Auditor''s 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 (Auditor''s 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 guarantees for loans taken by an unincorporated joint ventures 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 Firm Registration No. 101049W Chartered Accountants per Amit Majmudar Partner Membership No.: 36656 Mumbai February 29, 2012