OVERVIEW
This operating and financial review is intended to convey the Managements perspective
on the financial and operating performance of the Company as on the close of the Financial
Year 2022-23.
This Report is to be read in conjunction with the Companys financial statements, the
schedules and notes thereto and the other information included elsewhere in the Integrated
Report. The Companys financial statements have been prepared in accordance with Indian
Accounting Standards (Ind AS) complying with the requirements of the Companies Act, 2013
(Act), as amended and Regulations issued by the Securities and Exchange Board of India
(SEBI) from time to time.
INDUSTRY STRUCTURE AND DEVELOPMENTS.
Crimson Metal Engineering Company Ltd is in to steel industry. Temporarily, we are not
in our main line of business, albeit at low level, due to tough economic environment and
will try to resume as situation warrants so.
OPPORTUNITIES AND THREATS
The Company is exploring the revival of the production and marketing of the Companys
product and given the competitive nature of the product the final decision for revival may
take longer than expected. Currently the time frame estimated is upwards of 24 months.
SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE
The company have been operating in single segment and product viz., manufacture of
pipes and recently leased its manufacturing activities for the time being
OUTLOOK
The Company believes that the overall economy is in the revival mode and due to the
absence of the company in the segment they were operating they have to catch up a
significant lost ground to achieve quick recovery.
RISK & CONCERNS
The main risk to which the company is exposed to is the fluctuation in the Raw material
prices and the competition from the various competitors. Companys Enterprise Risk
Management (ERM) process has matured over the years and the ERM team is regularly working
to make it more effective and robust to cover all areas of business.
The ERM process involves periodic identification of risks which is likely to affect the
business adversely, rating the risks on their impact and likelihood, preparation of risk
heat map, identification of early warning indicators, estimation of risk velocity,
implementation of risk mitigation plans by the risk owners and continuous monitoring of
the mitigation plans by the Risk Management Committee of the Board and the Management.
Risks are being identified in the areas including sales, supply chain, finance, regulatory
approvals, environment, operations, safety, projects, industrial relations, etc.
Mitigation strategies and plans have been accordingly developed to manage and mitigate the
likelihood and impact of such risks
Adequate management control is in place to ensure quick action on early warnings and to
proactively monitor and mitigate all potential risks. A comprehensive risk management
strategy act as a
framework for all de-risking and risk mitigation activities undertaken by your company
with the fullest involvement of top management professionals.
INTERNAL CONTROL SYSTEM & THEIR ADEQUACY
The Company has adequate internal control systems to ensure operational efficiency,
protection and conservation of resources, accuracy and promptness in financial reporting
and compliance of laws and regulations. The Company regularly monitors that all regulatory
guidelines are complied with at all levels.
The Audit Committee constituted by the Board reviews the adequacy of the internal
control system. FINANCIAL AND OPERATIONAL PERFORMANCE
The financial statements are prepared in compliance with the requirements of the
Companies Act and the Indian Accounting Standards (Ind As) notified under the Companies
(Indian Accounting Standards) Rules, 2015 (as amended from time to time). The financial
statements of the Company for the financial year ended March 31, 2023 are prepared in
accordance with the Ind As. Previous year figures have been regrouped/rearranged to make
them comparable with figures of current year.
The details of the financial performance of the Company are reflected in the Balance
Sheet, Statement of Profit & Loss and other Financial Statements, appearing
separately. Highlights are provided below:
| Particulars |
Year ended March 31, 2023 |
Year ended March 31, 2022 |
| Total Income |
816.96 |
968.27 |
| Profit before Tax |
11.78 |
10.21 |
| Profit after Tax |
32.49 |
78.87 |
The financial performance of the Company has been further explained in the Directors
Report of the Company for the Financial Year 2022-23 appearing separately.
HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS
Management is keen on following the best practices for attracting, retaining and
enhancing human resources of the Company. Internal transfer, job rotation and training
have been inculcated at different levels of the organization hierarchy to evolve team
leaders and managers. The above- mentioned measures will ensure a motivated workforce,
promote the ownership and sharing economic growth of the Company.
Competing on the strength of our people, all of us are bonded together by core values
of Pride, Integrity, Discipline and Ambition. We thrive in this climate of Right People
for Right Culture. Your Company has consciously built an entrepreneurial and empowering
culture of Results, Not Reasons. Our culture emphasises on having a workforce that is
diverse, agile, eager to learn and driven to succeed.
STATUTORY COMPLIANCE
The Managing Director, after obtaining confirmation from all the departments of the
Company, makes a periodic declaration regarding the compliance with the provisions of
various statutes, applicable to the Company. An enterprise-wide digital compliance
management tool has been implemented to help monitor compliance real-time across the
organization. Due systems and processes are in place to ensure effectiveness of this tool.
The Company Secretary, being the Compliance Officer, ensures compliance with the relevant
provisions of the Companies Act, 2013 and SEBI Listing Regulations.
CAUTIONARY STATEMENT
The Company has made forward-looking statements in this document that are subject to
risks and uncertainties. Forward-looking statements may be identified by their use of
words like experts, believes, estimates or similar expressions. All statements that
address expectations or projections about the future, including, but not limited to,
statements about Companys strategy for growth, product development, market position,
market expenditures, and financial results are forwardlooking statements.
By Order of the Board of Directors For Crimson Metal Engineering Company Limited
| Date: July 28, 2023 |
Vinay Kumar Goyal |
Chandrakesh Pal |
| Place: Chennai |
Managing Director |
Whole Time Director |
|
DIN:00134026 |
DIN:07277936 |
INDEPENDENT AUDITORS REPORT
TO THE MEMBERS OF CRIMSON METAL ENGINEERING COMPANY LTD
Report on the Standalone Ind AS Financial Statements
Opinion
We have audited the accompanying standalone financial statements of CRIMSON METAL
ENGINEERING COMPANY LTD ("the Company"), which comprise the Balance Sheet as
at March 31, 2023, the Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year
ended on that date, and a summary of the significant accounting policies and other
explanatory information (hereinafter referred to as "the standalone financial
statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2023, the Profit and total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing specified under section 143(10) of the Act (SAs). Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India (ICAI) together with the independence
requirements that are relevant to our audit of the standalone financial statements under
the provisions of the Act and the Rules made thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAIs Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We do not consider any matter to be key audit matter to
be communicated in our report for the year under audit.
Information Other than the Standalone Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the standalone financial statements and our auditors report thereon.
Our opinion on the standalone financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial statements or our knowledge
obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of 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, total
comprehensive income, changes in equity and cash flows of the Company in accordance with
the Ind AS and other accounting principles generally accepted in India. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for 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 standalone financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Companys financial reporting
process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal financial controls relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the standalone financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone
financial statements, including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters. We describe these matters
in our auditors report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in
"Annexure I" a statement on the matters specified in paragraphs 3 and 4 of the
Order.
2. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b) 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 Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
e) On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure II". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
g) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in
our opinion and to the best of our information and according to the explanations given to
us:
i. The Company has disclosed the impact of pending litigations on its financial
position in its standalone financial statements. Refer note 31 to the financial
statements.
ii. According to the information and explanations provided to us, the Company did not
have any longterm contracts including derivative contracts for which there are any
material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief,
no funds (which are material either individually or in the aggregate) have been advanced
or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person or entity, including foreign
entity ("Intermediaries"), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the
Company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.
v. The Company has not proposed, declared or paid any dividend during the year under
audit.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023.
For O P BAGLA & CO LLP CHARTERED ACCOUNTANTS Firm Regn No. 000018N/N500091
| PLACE : NEW DELHI |
(ATUL AGGARWAL) |
| DATED : 29.05.2023 |
PARTNER |
|
M No. 092656 |
|
UDIN: 23092656BGUFMV5491 |
+91-9892691696
