Mar 31, 2015
REPORT ON FINANCIAL STATEMENTS: - We have audited the accompanying
Financial statements of TAMILNADU STEEL TUBES LIMITED ("the
Company"), which comprise the Balance Sheet as at 31st March 2015,
and 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 The
Company's Board of Directors is responsible for the preparation of
these financial statements that gives a true and fair view of the
financial position, financial performance and cash flows of the
Company with the Accounting 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.This Responsibility
also includes maintenance of adequate accounting records in preventing
and detecting frauds and other irregularities, selection and
application of the appropriate accounting policies, making judgments
and estimates that are reasonable and prudent, and the 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
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 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.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 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 the Company's Internal Control . An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness of the accounting estimates made by the
management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statement.
OPINION In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid 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
a) In the case of the Balance Sheet, of the state of affairs of the
Company at 31.03.2015 ;
b) In the case of the Profit and Loss account, of the profit for the
year ended on that date and;
c) In the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
REPORT ON OTHER LEGAL REGULATORY REQUIREMENTS As required by the
Companies' (Auditor's Report) Order, 2015 ("the Order") issued
by the Central Government of India in terms of Section-143(3) of the
Act, we give in the Annexure a statement on the matters specified in
Paragraphs-3 and 4 of the Order.
As required by Section-143(3) of the Act, we report that:
a) 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 accounts as required by law have
been kept by the Company so far as appears from our examination of
those books.
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
accounts.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards notified
under the Act read with the General Circular 15/2013, dated 13.09.2013
of the Ministry of Corporate Affairs in respect of Section-133 of the
Companies Act 2013;
e) On the basis of written representations received from the directors
as on March 31, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2015 from being
appointed as a Director in terms of Section-164(2) of the Act
f) With respect to the other matters included in the auditor's
report and to the best of our information and according to the
explanation given to us.
1 The company has disclosed the pending litigation on its financial
position in its financial statement.
2 The Company has made provisions, as required under the applicable
law or accounting standards, for the material foreseeable losses, if
any, on long term contracts including derivative contracts.
3 There has been no delay in transferring amount, required to be
transferred, to the investor's education and protection fund by the
company.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF TAMILNADU STEEL TUBES LIMITED, CHENNAI. ON THE ACCOUNTS FOR
THE YEAR ENDED 31st MARCH 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of
our audit, we report that:
1) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its Fixed
Assets.
(b) As explained to us, all the Fixed Assets have been physically
verified by the management at reasonable intervals; no material
discrepancies were noticed on such verification.
2) (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of inventories. No
material discrepancy was noticed on physical verification of stocks by
the management as compared to the Book Records.
(3) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms
or other parties listed in the Register maintained under Section-189
of the Companies Act, 2013. Consequently, the provision of Clause
3(iii), (iiia) and (iiib) of the orders are not applicable to the
Company.
(4) In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been not
(5) The company has not accepted any Deposits from the public within
the meaning of section 73, 74, 75 and 76 of the Act and the rules
framed thereunder to the extent notified.
(6) We have broadly reviewed the cost records maintained by the
Company pursuant to the rules prescribed by the Central Government
under Section 148(1) of the Companies Act, 2013 and are of the opinion
that prima facie, the prescribed cost records have been made and
maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
(7) (a) According to the records of the company undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, VAT, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess to the extent applicable
and any other statutory dues have generally been regularly deposited
with the appropriate authorities..
(b) According to the information and explanations given to us and the
records of the company examined by us. There are no dues of income
tax, wealth tax, service tax, sales tax, customs duty and excise duty
and cess as on 31 of March, 2015 which have not been deposited on
account of a dispute, are as follows :
S.No Nature of Disputed Amount Forum where the Dispute is
Statutory Dues (Rs. in Lacs) Pending
1. INCOME TAX DUES:
i) Block Assessment 143.29 Appeal pending before the
Hon'ble
ii) AY 1997-1998 37.28 Madras High Court
iii) AY 1999-2000 88.22 Appeal is filed before
AIIT, Chennai
iv) AY 2011-2012 116.06
2. SERVICE TAX DUES: Pending for inclusion in
(From Nov. 1997 to 1.60 Modified Draft June 1998) Rehabilitation
Scheme (MDRS) before BIFR (c) There is no amount required to be
transferred by the company to the Investor Education and Protection
Fund Account in accordance with provisions of the Companies Act and
the rules made there under.
(8) The Company has not accumulated loss at the end of the financial
year ended as on 31st March 2015, but has not incurred cash loss
during the financial year covered by our audit and in the immediately
preceding financial year.
(9) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(10) According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from a
bank or financial institution
(11) Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not raised any term loans during the year, hence the provisions of
clause 11 of companies (Auditor's Report) Order, 2015 is not
applicable to the company.
(12) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the management.
FOR ABHAY JAIN & CO.,
Chartered Accountants
(FRN No.: 000008S)
Place: Chennai SD/-
Date : 30.05.2015 (A. K. JAIN-Partner)
Membership No. 070224
Mar 31, 2014
We have audited the accompanying Financial statements of TAMILNADU
STEEL TUBES LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March 2014, and 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
The Company''s Management is responsible for the preparation of these
financial statements that gives a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act 1956 ("the Act") read with the General Circular 15/2013 dt. 13th
Sep. 2013 of the Ministry of Corporate Affairs in respect of Section
133 of the Companies Act, 2013 and in accordance with the accounting
policies generally accepted in India. This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that gives
a true and fair view and are free from material misstatement, whether
due to fraud or error.
AUDITORS'' RESPONSIBILITY
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.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 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. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by the management,
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, 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:
a) In the case of the Balance Sheet, of the state of affairs of the
Company at 31.03.2014;
b) In the case of the Profit and Loss account, of the profit for the
year ended on that date and;
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
REPORT ON OTHER LEGAL REGULATORY REQUIREMENTS
As required by the Companies'' (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
Section-227(4A) of the Act, we give in the Annexure a statement on the
matters specified in Paragraphs-4 and 5 of the Order.
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 our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books.
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
accounts.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notified under
the Act read with the General Circular 15/2013, dt. 13.09.2013 of the
Ministry of Corporate Affairs in respect of Section-133 of the
Companies Act 2013;
e) On the basis of written representations received from the directors
as on March 31, 2014, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2014 from being
appointed as a Director in terms of of Section-274(1g) of the Act.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF TAMILNADU STEEL TUBES LIMITED, CHENNAI, ON THE ACCOUNTS FOR
THE YEAR ENDED 31st MARCH 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its Fixed
Assets.
(b) As explained to us, all the Fixed Assets have been physically
verified by the management at reasonable intervals; no material
discrepancies were noticed on such verification.
(c) In our opinion, the Company has not disposed off any substantial
part of its fixed assets during the year and the going concern status
of the Company is not affected.
2) (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of inventories. No
material discrepancy was noticed on physical verification of stocks by
the management as compared to the Book Records.
(3) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the Register maintained under Section-301 of
the Companies Act, 1956. Consequently, the provision of Clauses-iii(b),
iii(c) and iii(d) of the orders are not applicable to the Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
taken loans from an individual covered in the Register maintained under
Section 301 of the Companies Act, 1956. The maximum amount involved
during the year was Rs. 100.82 Lakhs and the year end balance of loans
taken from such parties was Rs. 100.82 Lakhs.
(f) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from an individual covered in the
Register maintained under Section-301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the company.
(g) The Company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest.
(4) In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
(5) a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in Section-301 of
the Act have been entered in the Register required to be maintained
under that section.
(b) As per information and explanations given to us, and in our
opinion, the transaction entered into by the Company with parties
covered u/s 301 of the Act and exceeding Rupees Five Lakhs in respect
of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the time.
(6) The Company has not accepted any deposits from the public covered
under section- 58A and 58AA of the Companies Act, 1956.
(7) As per information and explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
(8) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section-209(1)(d) of the
Companies Act 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(9) (a) According to the records of the company undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Sales Tax, VAT, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess to the extent applicable
and any other statutory dues have generally been regularly deposited
with the appropriate authorities.
(b) According to the information and explanations given to us, there
were no undisputed amounts payable in respect of Income-tax, Wealth
Tax, Service Tax, Sales-tax, Customs Duty and Excise Duty and Cess were
in arrears, as on 31st March 2014, for a period of more than six months
from the date they became payable.
(c) The disputed statutory dues aggregating to Rs. 386.45 Lakhs that
have not been deposited on account of disputed matters pending before
the appropriate authorities, are as under:
S. Nature of Disputed Amount Forum where the Dispute is
No. Statutory Dues (Rs. in Pending
Lacs)
1. INCOME TAX DUES:
i) Block Assessment 143.29
ii) AY 1997-1998 37.28 Appeal pending before
the Hon''ble
iii) AY 1999-2000 88.22 Madras High Court
iv) AY 2011-2012 116.06 Appeal is filed before CIT
Appeal Chennai
2. SERVICE TAX DUES: Pending for inclusion in
(From Nov. 1997 to Modified Draft Rehabilitation
June 1998) 1.60 Scheme (MDRS) before BIFR
(10) The Company has accumulated loss of Rs. 6.17 Crores as on 31st
March 2014, but has not incurred cash loss during the financial year
covered by our audit and in the immediately preceding financial year.
(11) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(12) According to the information and explanations given 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.
(13) The Company is not a Chit Fund or Nidhi/Mutual Benefit
Fund/Society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
(14) According to the information and explanations given to us, the
Company is not trading in Shares, Mutual Funds & Other Investments.
Proper records & timely entries have been maintained in this regard &
further investments specified are held in their own name.
(15) According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
(16) Based on our audit procedures and on the information given by the
management, we report that the Company has not raised any terms loans
during the year.
(17) Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
(18) Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
(19) The Company has no outstanding debentures during the period under
audit.
(20) The Company has not raised any money by public issue during the
year.
(21) Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year.
for ABHAY JAIN & CO.,
Chartered Accountants
FRN No. : 000008S
Place: Chennai Sd/-
Date : 30.05.2014 (A. K. JAIN)
Partner
Membership No. 070224
Mar 31, 2012
1) We have audited the attached Balance Sheet of M/S. TAMILNADU STEEL
TUBES LIMITED, as at 31st March 2012, the related 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 have 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 (Auditors Report) order, 2003 as
amended by the companies (Auditors' Report) (amendment) Order, 2004
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 of matters specified in paragraph 4 and 5 of the said Order.
4) Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief where necessary for the purposes of
our audit;
b) In our opinion, proper Books of Accounts as required by law has been
kept by the Company, so far as it appears from our examination of those
books.
c) The Balance Sheet, Profit and loss Account and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
accounts;
d) In our opinion, the Balance Sheet and Profit & Loss Account and the
Cash Flow Statement dealt with by this report are in compliance with
the accounting standards as referred to in Sub-section (3C) of Section
211 of the Companies Act, 1956.
e) On the basis of written representation received from the Directors,
as on 31st March 2012 and taken on record by the board of directors, we
report that none of the Directors are disqualified as on March 31st,
2012 from being appointed as a director in terms of Clause (g) of
Sub-section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, and the said accounts read together with
the Significant Accounting Policies and notes thereon give the
information required by the Companies Act, 1956, in the manner so
required and 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 affairs of the
Company as at 31st March, 2012;
b) In the case of Profit and Loss Account of the Profit for the year
ended on that date ;
c) In the case of the Cash Flow Statement of the Cash Flow for the year
ended as of that date.
ANNEXURE TO THE AUDITORS' REPORT REFERRED TO IN PARAGRAPH 3 OF OUR
REPORT OF EVEN DATE TO THE MEMBERS OF M/s TAMILNADU STEEL TUBES LTD.,
CHENNAI, ON THE ACCOUNTS FOR THE YEAR ENDED 31.03.2012.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its Fixed
Assets on the basis of available information.
(b) As explained to us, all the Fixed Assets have been physically
verified by the management in a phased periodical manner, which in our
opinion, is reasonable having regard to the size of the company and the
nature of its Assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion, the Company has not disposed off any substantial
part of the fixed assets during the year and the going concern status
of the Company is not affected.
(ii) (a) According to the information and explanations given to us, the
Inventory has been physically verified during the year by the
Management. In our opinion; the frequency of verification 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 inventories. There was no
material discrepancy noticed on physical verification of inventories as
compared to the Book Records.
(iii) (a) According to the information and explanations given to us,
the Company has taken Loan from one individual covered in the Register
maintained under Section 301 of the Companies Act, 1956. The Maximum
amount involved during the year was Rs. 59.10 Lakhs and the year end
balance of loan taken from such party was Rs. 100.81 Lakhs.
(b) According to the information and explanations given to us, the
Company has not granted any loans to a Company or parties covered in
the Register maintained under Section 301 of the Companies Act, 1956.
(c) According to the information and explanations given to us, the
loans and advances granted is interest free and in the opinion of the
management of the company, it is not prima facie prejudicial to the
interest of the Company.
(d) According to the information and explanations given to us, there is
no over due amount of loans taken from or granted to Companies, Firms
or other parties, listed in the Register maintained under Section 301
of the Companies Act 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to the purchase of inventory, fixed assets and
with regard to the sale of goods. During the course of our Audit, we
have not observed any continuing failure to correct major weakness in
internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered in the
Register maintained under section 301 of the Companies Act, 1956 (1 of
1956) have been so entered. (b) In our opinion and according to the
information and explanations given to us, the transactions made in
pursuance of Contracts or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956 and exceeding
the value of Rupees Five Lakhs in respect of any party during the year
have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
(vi) In our opinion and according to information and explanations given
to us, the company has not accepted any deposits from the public during
the year under Report.
(vii) In our opinion and according to information and explanation given
to us, the Company has Internal Audit System commensurate with the size
and nature of its business.
(viii) We have broadly reviewed the Books of Accounts relating to
materials, labour and other other items of Cost maintained by the
Company pursuant to the rules made by the Central Govt. for the
maintenance of Cost Records under Section 209 (1) (d) of the Companies
Act 1956, and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed Statutory Dues including Provident Fund,
Employees' State Insurance, Income Tax, Sales Tax, VAT, Wealth Tax,
Customs Duty, Excise Duty, Cess, and other material Statutory Dues as
applicable.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of Income-tax, Sales-tax, Wealth
Tax, Custom Duty, Excise Duty, Service Tax, Cess are in arrears, at at
31st March 2012, for a period of more than six months from the date
they became payable.
(c) The disputed statutory dues aggregating to Rs. 567.38 Lakhs that
have not been deposited on account of disputed matters pending before
the appropriate authorities, are as under:
Sl. Nature of Disputed Amount Forum where the Dispute
No. Statutory dues (Rs. in is pending
Lacs)
1. INCOME TAX DUES:
i) Block Assessment 164.09
ii) AY 1997-1998 40.09 Appeal pending before
iii) AY 1999-2000 88.22 the Hon'ble
iv) AY 2000-2001 257.06 Madras High Court
2. SERVICE TAX DUES: Pending for inclusion in
(From Nov. 1997 to June 1.60 Modified Draft
1998) Rehabilitation Scheme
(MDRS) before BIFR
3. Sales Tax Dues (Including
interest and penalty) Appeal pending before
Appellate
i) AY 2004-05 6.44 Assistant Commissioner
ii) AY 2005-06 5.84 of Commercial Taxes,
iii) AY 2006-07 4.04 Chennai
(x) In our opinion, the Accumulated Losses of the Company are not more
than 50% of its net worth. The company has not incurred cash losses
during the financial year covered by our audit report and in the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
Financial Institutions and Banks.
(xii) We are of the opinion, that the Company has not granted any 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 Nidhi/Mutual
Benefit Fund/Society. Therefore, the provisions of Clause 4 (xiii) of
the Companies (Auditor's Report) Order 2003, 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, are not applicable to the company.
(xv) In our opinion, the Company has not given any guarantee for the
loans taken by others from banks or financial institutions is not
prejudicial to the interest of the company.
(xvi) In our opinion, the Company has not obtained any Term Loans
during the Financial year.
(xvii) According to the information and explanations given to us and on
the overall examination of the Balance Sheet of the Company, we
report that no funds raised on shortterm basis have been used for
long-term investments, no long-term funds have been used to finance
short-term Assets except permanent Working Capital.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of Shares to Parties
and Companies covered in the Register maintained under Section 301 of
the Companies Act 1956.
(xix) According to the information and explanations given to us during
the period covered by our Audit Report, the Company has not issued any
debentures.
(xx) The Company has not raised any money by "Public Issue" during the
year. Accordingly, the provisions of Clause 4(xx) of the Companies
(Auditor's Report) Order 2003, is not applicable to the company.
(xxi) According to the information and explanations given to us no
fraud on or by the company have been noticed or reported during the
course of our Audit.
For ABHAY JAIN & CO.,
Chartered Accountants
FRN No.: 000008S
Sd/-
(A. K. JAIN)
Partner
M. No. 70224
Place: Chennai
Date : 29.06.2012
Mar 31, 2010
We have audited the attached Balance Sheet of Tamil Nadu Steels Tubes
Ltd., Chennai as at 31st March 2010 and also the profit and Loss
Account for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
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 the financial
statements, whether the same 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
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 as amended
by the Companies (Auditors Report) (Amendment) order 2004, issued by
the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in paragraph 4 and 5 of the said order.
Further to our comments in the annexure above, we state that:
a) 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 accounts, as required by law been
kept by the Company so far as it appears from our examination of those
books (and proper return adequate for the purposes of our audit have
been received from the branches not visited by us.)
c) The Balance Sheet and Profit and Loss Acc6unt referred to in this
report are in agreement with the books of account.
d) In our opinion, the Profit and Loss Account and Balance Sheet,
referred to in Report comply with the applicable Accounting Standards
referred to in Sub- Section 3 (c) of section 211 of the Companies Act,
1956.
e) On the basis of the written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the directors are disqualified as on 31st March 2010 from
being appointed as directors in terms of clause (g) of sub - section
(1) of Section 274 of the companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, and Subject to :
Note no.2 of Notes forming part of accounts regarding charging of Stamp
Duty on land (Rs. 3.08 Crores) acquisition to Profit and Loss Account,
the said Balance Sheet and Profit and Loss Account read together with
the notes thereon give the information required by the Companies Act
1956, in the manner so required and give true and fair view.
i) In the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March, 2010 and
ii) In the case of the Profit and Loss Account, of the Loss of the
Company for the year ended on that date.
iii) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
Annexure to the Auditors Report
(This is the Annexure referred to in our Report of even date)
In terms of the Information and Explanations given to us and the books
and records examined by us in the normal course of audit and to the
best of our knowledge and belief, we state as under:
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) According to the information and explanations given to us, fixed
assets have been physically verified by the Management during the year.
We have been informed that no material discrepancies were noticed on
such physical Verification. None of the fixed assets are revalued
during the year.
c) In our opinion, No substantial part of fixed assets has been
disposed of during the year, which will affect its status as going
concern.
(ii) According to the information and explanations given to us, the
stock of Inventory has been physically verified during the. year by the
Management at reasonable intervals. In our opinion, 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. The company has maintained proper records of
inventory.
(iii) (a) The Company has taken unsecured loans from 9 other parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
(i) The Maximum amount involved during the year was Rs 86 Lakhs and the
year end balance of loans taken from such parties was Rs. 73 Lakhs.
(ii) In our opinion, the terms and conditions whereof are not
prejudicial to the interest of the company.
(iii) The company is regular in repaying the principal as stipulated.
These are interest- free loans.
(b) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956 (Act).
(iv) In our opinion and according to the information and explanations
given to us, there is 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. Further, on the basis of our examination of the books and
records of the company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weakness in the
aforesaid internal control procedures.
(v) In our opinion and according to the information and explanations
given to us, the company has not entered into any transactions in the
previous financial year with respect to parties which need to be
entered into a register in pursuance of section 301 of the Companies
Act, 1956.
(vi) The company has not accepted deposits from the public within the
meaning of sections 58A and 58AA of the Act and the rules framed there
under.
(vii) In our opinion and according to information & explanation given
to us, the company has in house Internal Audit System commensurate with
the size & nature of its business.
(viii) The company has maintained cost records prescribed by the
Central Government under Section 209(1) (d) of the Act for any of its
products.
(ix) a) According to the records of the company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees
State Insurance, Income-tax, Sales-tax, Wealth Tax, Custom Duty, Excise
Duty, Service Tax, Cess and any other statutory dues with the
appropriate authorities, except in following cases:
S.No Nature Of dues pending Rs (In Lacs)
1 TNGST SALES TAX DUES(For the year
2000-01 & 2001-02) 30.46
2 UNCLAIMED DIVIDEND1993-94 (Not
deposited with I.P.F.) 2761
According to the explanation given,
the Company is in the process of
revalidating the related dividend warrants)
(b) According to the information and explanations given to us, the
following statutory dues have not been deposited on account of dispute:
Amount
S.No Nature of Disputead (Rupees Forum where the dispute
is pending
statutory dues in Lacs)
1 INCOME TAX DUES:
i) AY 1990-91 to
2000-01 164.09 Appeal pending before the
Honble Madras
High Court.
ii) AY 1997-1998 38.22 Appeal pending before the
Honble Madras High Court.
2 SERVICE TAX DUES: Pending for inclusion in
modified draff
(From Nov 1997 to
June1998) 1.65 rehabilitation scheme before
BIFR
(x) The Company has Accumulated Losses as on 31.3.2010, the said losses
exceed 50% of net worth of the company. However the company has not
incurred cash losses during the financial year covered by our audit
report and in the immediately preceding financial year.
(xi) The Company entered in to an O.T.S. (One Time Settlement) with its
Bankers viz. The Jammu & Kashmir Bank Ltd., whereby the Bankers have
directed the Company to pay a sum of Rs.10 Crores, with interest,
within the stipulated period, and if there is no violation in this
condition, they may reduce the liability from Rs. 15.09 Crores to Rs.10
Crores after full and final payment. Accordingly, the company has
agreed for this O.T.S. proposal and so far paid a sum of Rs.9.48 Crores
as principal and a sum of Rs. 1.79 Crores as interest and is in the
process of settling the O.T.S.
(xii) According to the records of the company examined by us and the
information explanation given to us, the Company has not granted any
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) The Company is not a Chit fund, Nidhi or Mutual benefit fund /
Society.
(xiv) The Company is not dealing in or trading in Shares, Securities,
Debentures and other investments.
(xv) According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from bank or
financial institutions.
(xvi) The Company has not obtained any term loans during the year.
(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
investments.
(xviii) The Company has not made preferential allotment of shares to
Parties and Companies covered in the register maintained under section
301of the Companies Act.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) During the course of our examination of the books and records of
the company carried in accordance with the generally accepted auditing
practices in India, and according to information and explanation given
to us we have neither come across any instance of fraud on or by the
company noticed or reported during the year, nor we have been informed
of such case by the management
For KUMBHAT & CO
(Firm Registration No: 001609S)
Chartered Accountants
Place: Chennai (AJIT KUMBHAT)
Date: 26.06.2010. Partner
M.No. 19582
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