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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 standalone financial statements of ITD Cementation India Limited (the Company), which comprise the Balance Sheet as at 31 December 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information. Management''s Responsibility for the Standalone Financial Statements 2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the Act) with respect to the preparation of these standalone 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 specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act; safeguarding the assets of the Company; preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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. Auditor''s Responsibility 3. Our responsibility is to express an opinion on these standalone financial statements based on our audit. 4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. 5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement. 06. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s 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 financial controls relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements. 7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the standalone financial statements. Basis for Qualified Opinion 8. As stated in Note 37 to the standalone financial statements, the Company''s trade receivables and unbilled work in progress as at 31 December 2015 include amounts aggregating H3,033 lakhs (31 December 2014: H2,655 lakhs) and H479 lakhs (31 December 2014: H1,584 lakhs) respectively, being considered as good and recoverable by the management. These amounts are presently under negotiation with the customers or subject matter of litigation. 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 consequential impact, if any, on the accompanying standalone financial statements. Our audit opinion on the standalone financial statements for the year ended 31 December 2014 was also qualified in respect of this matter. Qualified Opinion 9. 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 aforesaid standalone 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, of the state of affairs of the Company as at 31 December 2015, and its loss and its cash flows for the year ended on that date. Emphasis of Matter 10. We draw attention to Note 38 to the standalone financial statements which describes the uncertainty related to recoverability of long-term trade receivables and unbilled work in progress aggregating to H2,863 lakhs (31 December 2014: H2,863 lakhs) and H8,678 lakhs (31 December 2014: H8,678 lakhs) respectively, outstanding as at 31 December 2015, representing various claims recognized during the earlier period based on the terms and conditions implicit in the contracts. These claims being technical in nature and being subject matter of litigation, the Company has assessed the recoverability of these claims based on 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 standalone financial statements. Our opinion is not modified in respect of these matters. Report on Other Legal and Regulatory Requirements 11. As required by the Companies (Auditor''s Report) Order, 2015 (the Order) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order. 12. As required by Section 143(3) of the Act, we report that: a. we have sought and except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit; b. except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; c. the standalone financial statements dealt with by this report are in agreement with the books of account; d. in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended); e. the matters described in paragraph 8 and paragraph 10 under the Basis for Qualified Opinion and Emphasis of Matters paragraph respectively, in our opinion, may have an adverse effect on the functioning of the Company; f. on the basis of the written representations received from the directors as on 31 December 2015 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 December 2015 from being appointed as a director in terms of Section 164(2) of the Act; g. with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. as detailed in Note 30 (d) to (g), 37 and 38 to the standalone financial statements, the Company has disclosed the impact of pending litigations on its standalone financial position; ii. except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the Company, as detailed in Note 37 to the standalone financial statements, has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long- term contracts including derivative contracts; and iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company. Annexure to the Independent Auditor''s Report of even date to the members of ITD Cementation India Limited, on the standalone financial statements for the year ended 31 December 2015 Based on the audit procedures performed for the purpose of reporting a true and fair view on the standalone 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. (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) The Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of clauses 3(iii)(a) and 3(iii) (b) of the Order are not applicable. (iv) Owing to the nature of its business, the Company does not sell any goods. Accordingly, clause 3(iv) of the Order with respect to sale of goods is not applicable. 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 services. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas. (v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable. (vi) 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 sub-section (1) of Section 148 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. (vii) (a) Undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales- tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, 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, duty of customs and cess that have not been deposited with the appropriate authorities on account of any dispute. The dues outstanding in respect of income-tax, sales-tax, duty of excise and value added tax on account of any dispute, are as follows: Name of the statute Nature of dues Amount Amount Paid (Rs,in lakhs) Under Protest (Rs,in lakhs) Sales Tax Act/Works Sales Tax 31.97 - Contract Tax Act Sales Tax Act/Works Sales Tax 29.39 14.69 Contract Tax Act Sales Tax Act/Works Sales Tax 45.29 9.06 Contract Tax Act Sales Tax Act/Works Sales Tax 3.95 - Contract Tax Act Sales Tax Act/Works Value Added Tax 129.60 19.91 Contract Tax Act Sales Tax Act/Works Sales Tax 149.45 15.00 Contract Tax Act Sales Tax Act/Works Value Added Tax 79.83 23.95 Contract Tax Act Sales Tax Act/Works Value Added Tax 10.38 2.70 Contract Tax Act Sales Tax Act/Works Sales Tax 0.68 0.34 Contract Tax Act Sales Tax Act/Works Sales Tax 0.19 - Contract Tax Act Sales Tax Act/Works Sales Tax 99.56 26.12 Contract Tax Act Sales Tax Act/Works Sales Tax 4.29 - Contract Tax Act Sales Tax Act/Works Sales Tax/ Entry 168.71 - Contract Tax Act Tax Sales Tax Act/Works Sales Tax/ Value 387.06 - Contract Tax Act Added Tax Sales Tax Act/Works Sales Tax 105.80 - Contract Tax Act Sales Tax Act/Works Sales Tax 16.60 - Contract Tax Act Sales Tax Act/Works Value Added Tax 265.81 - Contract Tax Act Sales Tax Act/Works Sales Tax 478.17 70.00 Contract Tax Act Sales Tax Act/Works Sales Tax 0.15 - Contract Tax Act Central Excise Act,1944 Excise Duty 51.70 - Income Tax Act, 1961 Income Tax 123.13 - Income Tax Act, 1961 Income Tax 0.63 - Income Tax Act, 1961 Income Tax 137.85 - Income Tax Act, 1961 Income Tax 386.20 - Name of the Statute Period to which the Forum Where Dispute is amount relates pending Sales Tax Act/Works Contract Tax Act 2004-05 Deputy Commissioner of Commercial Taxes, Bihar Sales Tax Act/Works Contract Tax Act 2003-04 Joint Commissioner of Commercial Taxes, Bihar Sales Tax Act/Works Contract Tax Act 2005-06 Taxation Appellate Tribunal, Patna Sales Tax Act/Works Contract Tax Act 2011-12 Assistant Commercial Tax Officer Sales Tax Act/Works Contract Tax Act 2009-10 Joint Commissioner of Commercial Taxes, Rajkot Sales Tax Act/Works Contract Tax Act 2010-11 Deputy Commissioner Commercial Taxes) Gandhidham Sales Tax Act/Works Contract Tax Act 2006-07 & Assistant Commissioner 2007-08 (Appeals), Commercial Taxes, Ernakulam Sales Tax Act/Works Contract Tax Act 2005-06 Maharashtra Sales Tax Tribunal, Mumbai Sales Tax Act/Works Contract Tax Act 2003-04 Assistant Commissioner of Sales Tax, Orissa Sales Tax Act/Works Contract Tax Act 2005-06 Assistant Commissioner, Rajasthan Sales Tax Act/Works Contract Tax Act 2006-07, 2007-08, Appellate Deputy 2008-09 & 2009-10 Commissioner of Commercial Taxes, Tamil Nadu Sales Tax Act/Works Contract Tax Act 1997-98 & 2007-08 Deputy Commissioner of Commercial Taxes, Uttar Pradesh Sales Tax Act/Works Contract Tax Act 2010-11 & 2011-12 Deputy Commissioner of Commercial Taxes, Allahabad Sales Tax Act/Works Contract Tax Act 2004-05, 2006-07, Appellate and Revisional 2007-08 & 2008-09 board, West Bengal 2010-11 Commissioner, Commercial Taxes, Kolkata Sales Tax Act/Works Contract Tax Act 1994-95 Revision Board (Tribunal), Kolkata Sales Tax Act/Works Contract Tax Act 2011-12 Joint Commissioner Sales Tax, West Bengal Sales Tax Act/Works Contract Tax Act 2012-2013 The West Bengal Taxation Tribunal, Salt Lake Kolkata Sales Tax Act/Works Contract Tax Act 1999-00 Joint Commissioner of Commercial Taxes, Bihar Central Excise Act,1944 May 1998 to January Commissioner of Central 1999 Excise Income Tax Act, 1961 A.Y. 2010-11 Income Tax Appellate Tribunal, Mumbai Income Tax Act, 1961 A.Y.2010-11 Assessing Officer, Mumbai Income Tax Act, 1961 A.Y.2011-12 Income Tax Appellate Tribunal, Kolkata Income Tax Act, 1961 A.Y. 2011-12, 2012-13 Commissioner of Income & 2013-14 Tax (Appeals) (c) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under. Accordingly, the provisions of clause 3(vii)(c) of the Order are not applicable. (viii) 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 year. (ix) The Company has not defaulted in repayment of dues to any bank or financial institution during the year. The Company did not have any outstanding debentures during the year. (x) 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. (xi) In our opinion, the Company has applied the term loans for the purpose for which these loans were obtained. (xii) 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''s Registration No.: 001076N/N500013 per Sudhir N. Pillai Place: Mumbai Partner Date: 24 February 2016 Membership No.: 105782