CEAT Ltd

BSE: 500878 | NSE: CEAT LIMITED | ISIN: INE482A01020 
Market Cap: [Rs.Cr.] 2,118.40 | Face Value: [Rs.] 10
Industry: Tyres

Auditor's Report
Independent Auditors

To the Members of CEAT Limited

Report on the Financial Statements

We have audited the accompanying financial statements of CEAT Limited, whichcomprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss andCash Flow Statement for the year then ended, and a summary of significant accountingpolicies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position, financial performance and cash flows of theCompany in accordance with accounting principles generally accepted in India, includingthe Accounting Standards referred to in sub-section (3C) of section 211 of the CompaniesAct, 1956 ("the Act"). This responsibility includes the design, implementationand maintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment, including the assessment of the risks of material misstatement ofthe 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 fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as atMarch 31, 2013;

(b) in the case of the Statement of Profit and Loss, of the profit for the year endedon that date; and

(c) in the case of the Cash Flow Statement, of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2003 ("theOrder") issued by the Central Government of India in terms of sub-section (4A) ofsection 227 of the Act, we give in the Annexure a statement on the matters specified inparagraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

(a) We have obtained all the information and explanations which to the best of ourknowledge 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 theCompany so far as appears from our examination of those books;

(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of section211 of the Companies Act, 1956;

(e) On the basis of written representations received from the directors as on March 31,2013, and taken on record by the Board of Directors and other information available withthe Company, none of the directors is disqualified as on March 31, 2013, from beingappointed as a director in terms of clause (g) of sub-section (1) of section 274 of theCompanies Act, 1956.

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W
per Sudhir Soni
Place: Mumbai Partner
Date: May 07, 2013 Membership No.: 41870

ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT ON EVEN DATE

Re: CEAT Limited (‘the Company’)

(i) (a) The Company has maintained proper records showing full particulars, includingquantitative details and situation of fixed assets.

(i) (b) All fixed assets have not been physically verified by the management during theyear but there is a regular programme of verification which, in our opinion, is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such verification. (i) (c) There was no disposal of asubstantial part of fixed assets during the year.

(ii) (a) The management has conducted physical verification of inventory at reasonableintervals during the year.

(ii) (b) The procedures of physical verification of inventory followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business.

(ii) (c) The Company is maintaining proper records of inventory. Discrepancies noted onphysical verification of inventories were not material, and have been properly dealt within the books of account.

(iii) (a) According to the information and explanations given to us, the Company hasnot granted any loans, secured or unsecured to companies, firms or other parties coveredin the register maintained under section 301 of the Companies Act, 1956. Accordingly, theprovisions of clause (iii)(a) to (d) of the Order are not applicable to the Company andhence not commented upon.

(iii) (e) According to information and explanations given to us, the Company has nottaken any loans, secured or unsecured, from companies, firms or other parties covered inthe register maintained under section 301 of the Companies Act, 1956. Accordingly, theprovisions of clause (iii)(e) to (g) of the Order are not applicable to the Company andhence not commented upon.

(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 andthe nature of its business, for the purchase of inventory and fixed assets and for thesale of goods. During the course of our audit, we have not observed any major weakness orcontinuing failure to correct any major weakness in the internal control system of thecompany in respect of these areas.

(v) (a) According to the information and explanations provided by the management, weare of the opinion that the particulars of contracts or arrangements referred to insection 301 of the Companies Act, 1956 that need to be entered into the registermaintained under section 301 have been so entered.

(v) (b) None of the transactions made in pursuance of such contracts or arrangementsexceed the value of Rupees five lakh in respect of any one such party in the financialyear.

(vi) In respect of deposits accepted, in our opinion and according to the informationand explanations given to us, directives issued by the Reserve Bank of India and theprovisions of sections 58A, 58AA or any other relevant provisions of the Companies Act,1956, and the rules framed there under, to the extent applicable, have been complied with.We are informed by the management that no order has been passed by the Company Law Board,National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

(vii) In our opinion, the Company has an internal audit system commensurate with thesize of the Company and nature of its business.

(viii) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 209(1)(d) of the Companies Act, 1956, related to the manufacture of automotivetyres, tubes and flaps and are of the opinion that prima facie, the prescribed accountsand records have been made and maintained. We have not, however, made a detailedexamination of the same.

(ix) (a) Undisputed statutory dues including provident fund, investor education andprotection fund, employees’ state insurance, income-tax, sales-tax, wealth-tax,service tax, customs duty, excise duty, cess and other material statutory dues havegenerally been regularly deposited with the appropriate authorities.

(ix) (b) According to the information and explanations given to us, no undisputedamounts payable in respect of provident fund, investor education and protection fund,employees’ state insurance, income-tax, wealth-tax, service tax, sales-tax, customsduty, excise duty cess and other material statutory dues were outstanding, at the yearend, for a period of more than six months from the date they became payable.

(ix) (c) According to the records of the Company, the dues outstanding of income-tax,sales-tax, wealth-tax, service tax, customs duty, excise duty and cess on account of anydispute, are as follows:

Rs. in lacs

Sr. Nature of Dues Period Authority with which Appeal is pending Disputed Amount Deposit Amount Net Amount
1 Central Excise 1978-2006 Commissioner-High Court 45,91 - 45,91
2 Service Tax 1996-2012 Commissioner / Custom Excise & Service Tax Appellate Tribunal 11,65 - 11,65
3 Sales Tax 2000-2012 Sales Tax Appellate Tribunal 46,97 1,84 45,13
4 Income Tax 1985-2009 High Court 19,41 - 19,41
5 Wealth Tax 2002-2003 Income Tax Appellate Tribunal 7 - 7
Total 124,01 1,84 122,17

(x) The Company has no accumulated losses at the end of the financial year and it hasnot 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 bythe management, we are of the opinion that the Company has not defaulted in repayment ofdues to a financial institution, bank or debenture holders.

(xii) According to the information and explanations given to us and based on thedocuments and records produced before us, the Company has not granted loans and advanceson 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 (xiii) of the Companies (Auditor’sReport) 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 (xiv) of theCompanies (Auditor’s Report) Order, 2003 (as amended) are not applicable to theCompany.

(xv) According to the information and explanations given to us, the Company has notgiven any guarantee for loans taken by others from bank or financial institutions.

(xvi) Based on the information and explanations given to us by the management, termloans were applied for the purpose for which the loans were obtained.

(xvii) According to the information and explanations given to us and on an overallexamination of the balance sheet of the Company, we report that no funds raised onshort-term basis have been used for long-term investment.

(xviii)The Company has not made any preferential allotment of shares to parties orcompanies 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 did not raise money by public issue during the year.

(xxi) Based upon the audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and as per the information and explanationsgiven by the management, we report that no fraud on or by the Company has been noticed orreported during the year.

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W
per Sudhir Soni
Place: Mumbai Partner
Date: May 07, 2013 Membership No.: 41870
   
Futures & Options Quote
Future Data Not present
Key Information

Key Executives:

H V Goenka , Vice Chairman

Paras K Chowdhary , Non Executive Director

Anant Vardhan Goenka , Managing Director

Vinay Bansal , Director


Company Head Office / Quarters:

463 Dr Annie Besant Road,
Worli,
Mumbai,
Maharashtra-400030
Phone : Maharashtra-91-22-24930621 / Maharashtra-
Fax : Maharashtra-91-22-66606039 / Maharashtra-
E-mail : investors@ceat.in
Web : http://www.ceattyres.in

Registrars:

TSR Darashaw Ltd
6-10 Haji Moosa,Patrawala Ind.Estate,DrEMoses Rd Mahalaxm,Mumbai - 400 011

 
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