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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 14, 16:00
92.35 1.80 (1.99%)
Volume
AVERAGE VOLUME
5-Day
189,472
10-Day
236,833
30-Day
139,779
195,404
  • Prev. Close

    90.55

  • Open Price

    90.55

  • Bid Price (Qty.)

    91.75 (1500)

  • Offer Price (Qty.)

    92.35 (595)

NSE Live

Oct 14, 15:59
92.25 1.65 (1.82%)
Volume
AVERAGE VOLUME
5-Day
1,939,635
10-Day
2,308,578
30-Day
1,528,788
3,206,619
  • Prev. Close

    90.60

  • Open Price

    91.15

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    92.25 (326)

Annual Report

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

Auditor's Report

1. We have audited the accompanying financial statements of ITD Cementation India Limited, (the Company), which comprise the Balance Sheet as at 31 December 2014, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statements 2. 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 principles generally accepted in India, including the Accounting Standards notified under the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. 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 disclosures in the financial statements. The procedures selected depend on the auditors'' judgment, 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 Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by 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 qualified audit opinion. Basis for Qualified Opinion 6. As stated in Note 36 to the Financials Statements, the company''s trade receivables and unbilled work in progress as at 31 December, 2014 include amounts aggregating Rs. 2,655 lakhs and Rs. 1,584 lakhs respectively, being considered as good and fully recoverable by the management. These amounts are presently under negotiation with the customers. In the absence of external balance confirmations from the customers or other alternative audit evidence to corroborate management''s assessment of recoverability of these balances and having regard to the age of these receivables, we are unable to comment on the extent to which these balances are recoverable and the consequential impact, if any, on the accompanying financial statements. Qualified Opinion 7. In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph the 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: i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 December 2014; ii) in the case of Statement of Profit and Loss, of the profit for the year ended on that date; and iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date. Emphasis of Matter 8. We draw attention to Note 37 to the financial statements regarding long-term trade receivables, trade receivables and unbilled work in progress aggregating to Rs. 2,863 lakhs (31 December20l3: Rs. Nil), Rs. 8,52l lakhs (31 December 2013:Rs. 11,099 lakhs) and Rs. 25,467 lakhs (31 December 2013: Rs. 25,507 lakhs) respectively outstanding as at 31 December 2014, representing various claims recognised during the earlier year based on the terms and conditions implicit in the contracts. These claims being technical in nature and being subject matter of arbitration/ litigation, the Company has assessed the recoverability of these claims based on recommendation of Dispute Resolution Board, awards received from Arbitration Tribunal, High Court orders received and legal opinion from an independent counsel. On the basis of such assessment, management is of the opinion that the claims are tenable and would be realized in full and accordingly no adjustments have been made in the Financial Statement. Our opinion is not modified in respect of these matters. 9. We draw attention to Note 38 to the financial statements which describe the uncertainty related to the recoverability of short- term advances aggregating to Rs. 6,8I9 lakhs to ITD Cemindia JV, Company''s Joint Venture. The recoverability of these advances is majorly dependent on the Joint Venture''s ability to realize the outstanding dues from its customer which are presently under litigation. Our opinion is not modified in respect of this matter. Report on Other Legal and Regulatory Requirements 10. As required by the Companies (Auditor''s Report) Order 2003 (the Order) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order 11. As required by Section 227(3) of the Act, we report that: a. Except for the matter described in the basis for Qualified Opinion paragraph, we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit; b. 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; c. the financial statements dealt with by this report are in agreement with the books of account; d. Except for the possible effects of the matter described in the Basis of Qualified Opinion paragraph, in our opinion, the financial statements comply with the Accounting Standards notified under the Companies Act, I 956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013 ; and e. on the basis of written representations received from the directors, as on 31 December 2014 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 December 2014 from being appointed as a director in terms of clause (g) of sub-section (I) of Section 274 of the Act. Annexure to the Independent Auditors'' Report of even date to the members of ITD Cementation India Limited, on the financial statements for the year ended 31 December 2014. Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that: (i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. (b) The fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets. (c) In our opinion, a substantial part of fixed assets has not been disposed off during the year. (ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the year. (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 and no material discrepancies between physical inventory and book records were noticed on physical verification. (iii) (a) The Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Act. Accordingly the provisions of clauses 4(iii)(b) to 4(iii) (d) of the Order are not applicable. (e) The Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under Section 301 of the Act. Accordingly the provisions of clauses 4(iii)(f) and 4(iii)(g) of the Order are not applicable. (iv) In our opinion, 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) In our opinion, the particulars of all contracts or arrangements that need to be entered into the register maintained under Section 301 of the Act have been so entered. (b) In our opinion, the transactions made in pursuance of such contracts or arrangements and exceeding the value of Hfive lacs in respect of any party during the year have been made 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 within the meaning of Sections 58A and 58AA of the Act and the Companies (Acceptance of Deposits) Rules, 1975. Accordingly the provisions of clause 4(vi) of the Order are not applicable. (vii) In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business. (viii) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Act in respect of Company''s services and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete. (ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees'' state insurance, income-tax, sales-tax, wealth tax, service tax, custom duty, excise duty cess and other material statutory dues, as applicable, have generally been regularly deposited with the appropriate authorities, though there has been a slight delay in a few cases. Further no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they became payable. (b) There are no dues in respect of wealth tax, service tax, customs duty and cess that have not been deposited with the appropriate authorities on account of any dispute. The dues outstanding in respect of sales-tax, income-tax and excise duty on account of any dispute, is as follows: Name of statue Nature of Amount Amount disputes (Rs.) under protest (Rs. ) Sales Tax Act/Works Sales Tax 1,659,990 - Contract Tax Act Sales Tax Act/Works Sales Tax 67,914 34,000 Contract Tax Act Sales Tax Act/Works Sales Tax 408,950 - Contract Tax Act Sales Tax Act/Works VAT 26,580,593 - Contract Tax Act Sales Tax Act/Works VAT 12,960,122 1,991,029 Contract Tax Act Sales Tax Act/Works VAT 632,339 - Contract Tax Act Sales Tax Act/Works Sales Tax 18,500 - Contract Tax Act Sales Tax Act/Works Sales Tax 3,196,927 - Contract Tax Act Sales Tax Act/Works Sales Tax 2,254,954 - Contract Tax Act Sales Tax Act/Works Sales Tax 4,528,910 - Contract Tax Act Sales Tax Act/Works Sales Tax 3,267,931 - Contract Tax Act Sales Tax Act/Works Sales Tax 20,076 - Contract Tax Act Sales Tax Act/Works Sales Tax/CST/ 38,706,490 - Contract Tax Act VAT Sales Tax Act/Works Sales Tax 8,319,618 117,125 Contract Tax Act Sales Tax Act/Works Sales Tax 1,709,364 - Contract Tax Act Sales Tax Act/Works VAT/ Entry Tax 95,565,080 - Contract Tax Act Sales Tax Act/Works VAT 63,226,914 - Contract Tax Act Sales Tax Act/Works VAT 7,983,049 2,394,916 Contract Tax Act Sales Tax Act/Works VAT 1,038,399 - Contract Tax Act Central Excise Act,l944 Excise Duty 5,169,538 - Income Tax Act, 1961 Income tax 29,622,346 - Income Tax Act, 1961 Income Tax 54,408,408 - Income Tax Act, 1961 Income Tax 62,952 - Income Tax Act, 1961 Income Tax 13,784,674 - Income Tax Act, 1961 Income Tax 27,212,390 - Name of statue paid Period Forum where dispute is to which the pending amount relates Sales Tax Act/Works YE. 1994-95 Revision Board (Tribunal), Contract Tax Act Kolkata Sales Tax Act/Works YE. 2003-04 Assistant Commissioner of Contract Tax Act Sales Tax, Orissa Sales Tax Act/Works YE. 1997-98 Deputy Commissioner of Contract Tax Act Commercial Taxes Sales Tax Act/Works YE. 2011-12 Joint Commissioner sales tax, Contract Tax Act West Bengal Sales Tax Act/Works YE. 2009-10 Joint Commissioner of Contract Tax Act Commercial Taxes, Rajkot Sales Tax Act/Works YE. 2010-11 Joint Commissioner (Appeals) Contract Tax Act Rohtak Sales Tax Act/Works YE. 2005-06 Assistant Commissioner, Contract Tax Act Rajasthan Sales Tax Act/Works YE. 2004-05 Assistant Commissioner of Contract Tax Act Commercial Taxes, Bihar Sales Tax Act/Works YE. 2003-04 Joint Commissioner of Contract Tax Act Commercial Taxes, Bihar Sales Tax Act/Works YE. 2005-06 Taxation appellate tribunal, Contract Tax Act Patna Sales Tax Act/Works YE. 1999-00, Joint Commissioner of Contract Tax Act 2008-09 Commercial Taxes, Bihar Sales Tax Act/Works April 2007 to Assistant Commissioner of Contract Tax Act December 2007 Commercial Taxes, Uttar Pradesh Sales Tax Act/Works YE. 2004-05, Appellate and revisional Contract Tax Act 2006-07, board, West Bengal 2007-08, 2008-09 Sales Tax Act/Works YE. 2006-07, Appellate Tribunal,Tamil Nadu Contract Tax Act 2007-08 & 2008-09 Sales Tax Act/Works YE. 2009-10 Appellate Deputy Contract Tax Act Commissioner of Commercial Taxes Sales Tax Act/Works YE. 2009-10 Deputy Commissioner of Contract Tax Act and 2010-11 Commercial Taxes, Allahabad Sales Tax Act/Works YE. 2009-10 Commissioner, Commercial Contract Tax Act & 2010-11 Taxes, Kolkata Sales Tax Act/Works YE. 2006-07 Assistant Commissioner Contract Tax Act & 2007-08 (Appeals), Commercial Taxes, Ernakulam Sales Tax Act/Works YE. 2005-06 Maharashtra Sales Tax Contract Tax Act Tribunal, Mumbai Central Excise Act,l944 May 1998 to Commissioner of Central January 1999 Excise Income Tax Act, 1961 A.Y 2003-04 and High Court, Mumbai 2004-05 Income Tax Act, 1961 A.Y 2008-09 Income Tax Appellate Tribunal Income Tax Act, 1961 A.Y 2010-11 Assessing Officer Mumbai Income Tax Act, 1961 A.Y 2011-12 Income Tax Appellate Tribunal Income Tax Act, 1961 A.Y 2010-11 Commissioner of Income Tax & 2012-13 (Appeals) (x) In our opinion, the Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and the immediately preceding financial yean (xi) In our opinion, the Company has not defaulted in repayment of dues to any financial institution or a bank or to debenture- holders during the year (xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly the provisions of clause 4(xii) of the Order are not applicable. (xiii) In our opinion, the Company is not a chit fund or a nidhi/ mutual benefit fund/ society Accordingly provisions of clause 4(xiii) of the Order are not applicable. (xiv) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Order are not applicable. (xv) In our opinion, the terms and conditions on which the Company has given guarantee for loans taken by others from banks or financial institutions are not, prima facie, prejudicial to the interest of the Company (xvi) In our opinion, the Company has applied the term loans for the purpose for which these loans were obtained. (xvii) In our opinion, no funds raised on short-term basis have been used for long-term investment by the Company. (xviii) During the year, the Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under Section 301 of the Act. Accordingly the provisions of clause 4(xviii) of the Order are not applicable. (xix) The Company has neither issued nor had any outstanding debentures during the yean Accordingly the provisions of clause 4(xix) of the Order are not applicable. (xx) The Company has not raised any money by public issues during the year Accordingly the provisions of clause 4(xx) of the Order are not applicable. (xxi) No fraud on or by the Company has been noticed or reported during the period covered by our audit. For Walker, Chandiok & Co LLP (Formerly Walker, Chandiok & Co.) Chartered Accountants Firm Registration No.: 00I076N/N5000I3 per Amyn Jassani Partner Membership No.: 46447 Mumbai 24 February 2015