Mar 31, 2017
To
The Members of TCI Finance Limited
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of TCI Finance Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information(âhere after referred to as âstandalone financial statementsâ).
Management''s Responsibility for the Standalone Financial Statements
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. 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these Standalone Financial Statements based on our audit.
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.
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.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Financial Statements. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Standalone Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. 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 Standalone 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 Standalone Financial Statements.
Opinion
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 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 March 31, 2017 and its Profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, 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 and the Cash Flow Statement 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.
(e) On the basis of the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 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, we give our report in âAnnexure Aâ; and
(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, 2016, 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 financial statements - Refer Note No 22.1 to the financial statements;
ii. The Company did not have any material foreseeable losses relating to long term contracts including derivative contracts; and
iii. There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosure in its Standalone Financial statements as to holding as well as dealing in specified Bank Notes during the period from November 8, 2016 to December 30, 2016 and these are in accordance with the books of account maintained by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in the âAnnexure Bâ, a statement on the matters specified in paragraphs 3 and 4 of the Order.
Annexure A to the Independent Auditorsâ report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of TCI Finance Limited (âthe Companyâ) as of March 31, 2017 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the âGuidance Note on Audit of Internal Financial Controls over Financial Reportingâ issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the âGuidance Note on Audit of Internal Financial Controls over Financial Reportingâ (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk whether a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
(Referred to in paragraph â2â under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
i. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us, all the fixed assets have been physically verified by the management during the year in accordance with programme of verification, which in our opinion, is reasonable having regard to the size of the Company and the nature of the assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, the title deeds of the immovable properties are held in the name of the Company.
ii. Having regard to the nature of the Companyâs business, paragraph 3(ii) of the Order relating to inventory is not applicable.
iii. In our opinion and according to the information and explanations given to us, the Company has granted unsecured loans to parties covered in the register maintained under Section 189 of the Companies Act, 2013.
a. The term and conditions of the loans granted by the Company to two parties covered in the register maintained under Section 189 of the Companies Act, 2013 is amounting to Rs, 3,122.50 Lakhs and the balance outstanding as at March 31, 2017 is Rs, 2,515.91 Lakhs are not prejudicial to the interests of the Company.
b. Schedule of repayment of principal and payment of interest has been stipulated by the Company. The Company is in regular receipt of principal and interest from the parties mentioned as per the register 189 of the Companies Act, 2013.
c. There are no over dues towards principal and interest for more than ninety days except the following for which the Company has taken reasonable steps for recovery of the same.
No of Cases |
3 |
Principal Amount Overdue |
Nil |
Interest Overdue |
Rs, 38.47 Lakhs |
Total Amount Overdue |
Rs, 38.47 Lakhs |
iv. In our opinion and according to the information and explanations given to us, there are no transactions which attracts Section 185 and Section 186 of the Companies Act 2013. Hence, reporting under the provisions of paragraph 3(iv) of the Order does not arise. Refer Note No 22.3 of the financial statements.
v In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits. Accordingly, the provisions of paragraph 3(v) of the Order does not arise.
vi. In our opinion and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under Section 148 (1) of the Companies Act, 2013 for the activities of the Company.
vii. (a) According to the information and explanations given to us and based on the examination of records of the Company, the Company is regular in depositing undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income-tax, Wealth Tax, Sales-tax, Service Tax, Customs duty, Excise Duty, Value Added Tax, Cess and any other material statutory dues applicable to it with the appropriate authorities during the year except the following
S. No |
The outstanding demand pertains to the AY |
Demand Raised u/s |
Demand Amount |
Demand uploaded by |
1 |
2014- 2015 |
143(3) |
'' 34,51,770 |
Jurisdictional AO |
2 |
2015-2016 |
143(1 a) |
'' 39,94,370 |
CPC |
(b) Details of dues of Income Tax, Sales tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax and Cess which have not been deposited as on March 31, 2017 on account of disputes are as below:
Nature of |
Nature of the |
Amount |
Period to which |
Forum where |
statute |
dues |
(?) |
the amount relates |
dispute is pending |
Karnataka Sales Tax |
Tax/Penalty |
63,661 |
1996-1997 |
Joint Commissioner of Commercial Taxes (Appeals) |
viii. In our opinion and according to the information and explanations given to us and based on the examination of records of the Company, the Company has not defaulted in repayment of dues to financial institutions.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. Term loans availed by the Company during the year were, prima facie, applied by the Company for the purposes for which they were obtained.
x. During the course of our examination of the books and other 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, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year, nor have we been informed of such case by the management.
xi. In our opinion and according to the information and explanations given to us and based on the examination of records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with the Schedule V of the Companies Act, 2013.
xii. According to the information and explanations given to us and based on our examination of the records, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on the examination of records of the Company, all the transactions with the related parties are in compliance with Section 177 and 188 of the Companies Act 2013 and the details have been disclosed in the financial statements as required by the applicable accounting standard.
xiv. According to the information and explanations given to us and based on the examination of records of the Company, the Company has not made preferential allotment or private placement of shares or fully or partly Convertible debentures during the year. Hence, reporting under the provisions of paragraph 3(xiv) of the Order does not arise.
xv. According to the information and explanations given to us and based on the examination of records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him during the year. Accordingly, paragraph 3(xv) of the order is not applicable.
xvi. The Company is a Non Banking Financial Institutions as per Section 45I(a) of the Reserve Bank of India Act, 1934 and obtained the Certificate of Registration.
for M. Bhaskara Rao & Co.
Chartered Accountants
Firm Registration No. 000459S
P. Swath
Partner
Hyderabad, May 2, 2017 Membership No: 513946
Mar 31, 2016
To
The Members of TCI Finance Limited
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of TCI Finance Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information("here after referred to as "financial statements").
Management''s Responsibility for the Standalone Financial Statements
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. 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these Standalone Financial Statements based on our audit.
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.
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.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Financial Statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Standalone Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. 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 Standalone 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 Standalone Financial Statements.
Opinion
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 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 March 31, 2016 and its Profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, 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.
Annual Report 2015-16
(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 and the Cash Flow Statement 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.
(e) On the basis of the written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 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, we give our report in ''Annexure A''; and
(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. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note No 23.1 to the financial statements;
ii. The Company did not have any material foreseeable losses relating to long term contracts including derivative contracts; and
iii. There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in the "Annexure B", a statement on the matters specified in paragraphs 3 and 4 of the Order.
Re: TCI Finance Limited
Annexure A to the Independent Auditors'' report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of TCI Finance Limited ("the Company") as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the "Guidance Note on Audit of Internal Financial Controls over Financial Reporting" issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the "Guidance Note on Audit of Internal Financial Controls over Financial Reporting" (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk whether a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that v1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Annexure B to the Independent Auditors'' Report
(Referred to in paragraph ''2'' under ''Report on Other Legal and Regulatory Requirements'' section of our report of even
date)
i. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us, all the fixed assets have been physically verified by the management during the year in accordance with programme of verification, which in our opinion, is reasonable having regard to the size of the Company and the nature of the assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, the title deeds of the immovable properties are held in the name of the Company.
ii. Having regard to the nature of the Company''s business, paragraph 3(ii) of the Order relating to inventory is not applicable.
iii. In our opinion and according to the information and explanations given to us, the Company has granted unsecured loans to parties covered in the register maintained under Section 189 of the Companies Act, 2013.
a. The term and conditions of the loans granted by the Company to two parties covered in the register maintained Section 189 of the Companies Act, 2013 is amounting to Rs. 3,012.50 Lakhs and the balance outstanding as at March 31, 2016 is Rs. 2,737.50 Lakhs are not prejudicial to the interests of the Company.
b. Schedule of repayment of principal and payment of interest has been stipulated by the Company. The Company is in regular receipt of principal and interest from the parties mentioned as per the register 189 of the Companies Act, 2013.
c. There are no over dues towards principal and interest for more than ninety days.
i-. In our opinion and according to the information and explanations given to us, there are no transactions which attracts Section 185 and Section 186 of the Companies Act 2013. Hence, reporting under the provisions of paragraph 3(iv) of the Order does not arise. Refer Note No 23.3 of the financial statements.
v In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits. Accordingly, the provisions of paragraph 3(v) of the Order does not arise.
vi. In our opinion and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under Section 148 (1) of the Companies Act, 2013 for the activities of the Company.
vii. (a) According to the information and explanations given to us and based on the examination of records of the Company, the Company is regular in depositing undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income-tax, Wealth Tax, Sales-tax, Service Tax, Customs duty, Excise Duty, value Added Tax, Cess and any other material statutory dues applicable to it with the appropriate authorities during the year.
(b) Details of dues of Income Tax, Sales tax, Service Tax, Customs Duty, Excise Duty, value Added Tax and Cess which have not been deposited as on March 31, 2016 on account of disputes are as below:
Nature of |
Nature of the |
Amount |
Period to which |
Forum where |
statute |
dues |
(Rs.) |
the amount relates |
dispute is pending |
Karnataka Sales Tax |
Tax/Penalty |
63,661 |
1996-1997 |
Joint Commissioner of Commercial Taxes (Appeals) |
viii. In our opinion and according to the information and explanations given to us and based on the examination of records of the Company, the Company has not defaulted in repayment of dues to financial institutions.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) durign the year. Term loans availed by the Company during the year were, prima facie, applied by the Company for the purposes for which they were obtained.
x. During the course of our examination of the books and other 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, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year, nor have we been informed of such case by the management.
xi. In our opinion and according to the information and explanations given to us and based on the examination of records of the Company, the managerial remuneration has been paid is in accordance with the Section 198 read with the Schedule - of the Companies Act, 2013.
xii. According to the information and explanations given to us and based on our examination of the records, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on the examination of records of the Company, all the transactions with the related parties are in compliance with Section 177 and 188 of the Companies Act 2013 and the details have been disclosed in the financial statements as required by the applicable accounting standard.
xiv. According to the information and explanations given to us and based on the examination of records of the Company, the Company has not made preferential allotment or private placement of shares or fully or partly Convertible debentures during the year. Hence, reporting under the provisions of paragraph 3(xiv) of the Order does not arise.
xv. According to the information and explanations given to us and based on the examination of records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him during the year.
xvi. The Company is a Non Banking Financial Institutions as per Section 45I(a) of the Reserve Bank of India Act, 1934 and obtained the Certificate of Registration.
for M. Bhaskara Rao & Co.
Chartered Accountants
Firm Registration No. 000459S
D. Bapu Raghavendra
Partner
Hyderabad, April 28, 2016 Membership No.213274
Mar 31, 2015
We have audited the accompanying standalone financial statements of TCI
Finance Limited ("the Company"),which comprise the Balance Sheet as at
March 31,2015,the Statement of Profit and Loss and the Cash Flow
Statement for the year the ended and summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone FinancialStatements
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.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 financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on the standalone financial
statements based on our audit.
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.
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 financial statements
are free from material misstatement.
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 control 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.
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.
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, of the state of affairs of the Company as
at March 31,2015 and its profit and its cash flows for the year ended
on that date.
Emphasis of Matter:
We draw attention to Note No 20.2 to the financial statements regarding
Managerial remuneration relating to current year. The Company is
awaiting approval from the Central Government in this regard.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015
("the Order") issued by the Central Government 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.
2. As required by Section 143 (3) of the Act, 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 and the Cash
Flow Statement 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.
(e) In our opinion and according to information and explanations given
to us, there are no financial transactions or matters which have any
adverse effect on the functioning of the Company.
(f) On the basis of the 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.
(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. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note No 23.1 to
the financial statements;
ii. The Company did not have any material foreseeable losses relating
to long term contracts including derivative contracts.
iii. There are no amounts which are required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report (Referred to in
paragraph '1' under 'Report on Other Legal and Regulatory Requirements'
section of our report of even date)
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations given to us, all the
fixed assets have been physically verified by the management during the
year in accordance with programme of verification, which in our
opinion, is reasonable having regard to the size of the Company and the
nature of the assets. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
ii. Having regard to the nature of the Company's business, paragraph
4(ii) of the Order relating to inventory is not applicable.
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 Companies Act, 2013. Accordingly clause (b)
paragraph 4(iii) of the Order is not applicable.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets. During the course of our audit, we have
not observed any major weakness in such internal control system .
v In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits. Accordingly,
the provisions of paragraph 4(v) of the Order is not applicable.
vi. In our opinion and according to the information and explanations
given to us, the Central Government has not prescribed the maintenance
of cost records under Section 148 (1) of the Companies Act, 2013 for
the activities of the Company.
vii. (a) According to the information and explanations given to us, the
Company is regular in depositing undisputed statutory dues including
Provident Fund, Employees' State Insurance, Income-tax, Wealth Tax,
Sales-tax, Service Tax, Customs duty, Excise Duty, Value Added Tax,
Cess and any other material statutory dues applicable to it with the
appropriate authorities during the year.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees' State Insurance, Service Tax, Income Tax, Wealth
Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other
material statutory dues in arrears as at March 31,2015 for a period of
more than six months from the date they became payable.
(c) Details of dues of Income Tax, Sales tax, Service Tax, Customs
Duty, Excise Duty, Value Added Tax and Cess which have not been
deposited as on March 31,2015 on account of disputes are as below:
Nature of Nature of the Amount Period to which
statute dues (Rs.) the amount relates
Karnataka Sales Tax/Penalty 63,661 1996-1997
Tax
Nature of Statute Forum where dispute is pending
Karnataka Sales Tax Joint Commissioner of Commercial Taxes
(Appeals)
(d) According to the information and explanations given to us, no
amount is required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provisions for the
Companies Act, 1956 and the rules made there under.
viii. The Company does not have accumulated losses at the end of the
financial year and has not incurred any cash losses during the current
financial year and in the immediately preceding financial year.
ix. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks and financial institutions except in respect of following delays
in repayment of installments of term loans to financial institutions
and interest dues:
Particulars Amount (Rs.) Number of Days
Dues to financial institutions
- term loans 14,483,749 30
- Interest on Term Loans 428,073 30
x. According to the information and explanations given to us, the terms
and conditions of the guarantee given by the Company for loans taken by
others are not prima facie prejudicial to the interests of the Company.
xi. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purposes for which they were obtained.
xii. During the course of our examination of the books and other
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, no instance of fraud on or by the Company
was noticed or reported during the year.
for M. Bhaskara Rao & Co.,
Chartered Accountants
Firm Registration No. 000459S
M V Ramana Murthy
Partner
Hyderabad, April 29, 2015 Membership No.206439
Mar 31, 2014
We have audited the accompanying financial statements of TCI Finance
Limited ("the Company"), which comprise the Balance Sheet as at
March 31,2014, the Statement of Profit and Loss and the 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub section (3C) of section 211
of Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s 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 judgement, 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 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 as at March 31,2014;
(b) in the case of the Statement of Profit and Loss, 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 and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
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 our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c. the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d. in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Companies Act,
1956; and
e. on the basis of written representations received from the directors
as on March 31,2014, and 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 clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Re: TCI Finance Limited Annexure to the Independent Auditors'' Report
(Referred to in paragraph ''1'' under ''Report on Other Legal and
Regulatory Requirements'' section of our report of even date)
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations given to us, all the
fixed assets other than Leased Assets have been physically verified by
the management during the year in accordance with programme of
verification, which in our opinion, is reasonable having regard to the
size of the Company and the nature of the assets. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) The fixed assets (leased assets), whose lease period was run off,
were written off during the year, in our opinion, do not constitute
substantial part of the fixed assets of the Company and such disposal
(written off) has, in our opinion, not affected the going concern
status of the Company.
ii. Having regard to the nature of the Company''s business, paragraph
4(ii) of the Order is not applicable.
iii. (d) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly clauses (b), (c) and (d) of paragraph 4(iii) of the Order
are not applicable.
(e) The Company has not taken any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956 except unsecured loan from
subsidiary of Rs. 26,00,00,000/-; maximum amount outstanding during the
year was Rs. 26,00,00,000/- and year end balance was Rs. Nil.
(f) In our opinion, the rate of interest and other terms and conditions
of such loan are not prima facie prejudicial to the interests of the
Company.
(g) The payment of principal amount and interest have been regular
during the year.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets. During the course of our audit, we have
not observed any major weakness in such internal control system.
v In our opinion and according to the information and explanations
given to us, there are no contracts or arrangements, the particulars of
which need to be entered in to the register maintained under section
301 of the Act.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
Accordingly, the provisions of paragraph 4(vi) of the Order is not
applicable.
vii. The internal audit of the Company is conducted by internal audit
department. In our opinion, the Company has an adequate internal audit
system commensurate with the size of the Company and nature of its
business.
viii. In our opinion and according to the information and explanations
given to us, the Central Government has not prescribed the maintenance
of cost records under Section 209 (1) (d) of the Companies Act 1956 for
the activities of the Company.
ix. (a) According to the information and explanations given to us, the
Company is regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, and
any other material statutory dues applicable to it with the appropriate
authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2014 for a period of more than six months
from the date they became payable.
(c) Details of dues of Sales tax / income tax / custom tax / wealth tax
/ service tax / excise duty / cess which have not been deposited as on
March 31,2014 on account of dispute are given below:
Nature of Nature of Amount Period to which
statute dues (Rs) the amount relates
Karnataka Sales Tax Tax/Penalty 63,661 1996-1997
Nature of statue Forum where dispute is pending
Karnataka sales tax Joint Commissioner of Commercial Taxes (Appeals)
x. The Company has no accumulated losses at the end of the financial
year and has not incurred any cash losses in the current and
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
banks, financial institutions and debenture holders except in respect
of delay in redemption of debentures and repayment of instalments of
term loans to financial institutions and interest dues as detailed
below:
Particulars Amount (Rs) Number of Days
Dues to Debenture Holders 28,00,00,000 184
Dues of term loans to financial 2,09,69,942 Ranging from1- 152
institutions
Interest to Debenture Holders 38,04,932 23
Interest on Term Loans 2,08,30,017 Ranging from 1- 114
xii. According to the information and explanations 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.
Accordingly, the provisions of paragraph 4 (xii) of the Order is not
applicable.
xiii. In our opinion, the Company is not a Chit fund/ Nidhi/ Mutual
benefit fund/ Society. Accordingly, the provisions of paragraph 4
(xiii) of the Order is not applicable.
xiv. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of the
transactions and contracts in respect of its dealing in share
securities, debentures and other investments and timely entries have
been made. The above said securities have been held by the Company in
its own name.
xv. According to the information and explanations given to us, the
terms and conditions of the guarantee given by the Company for loans
taken by others are not prima facie prejudicial to the interest of the
Company.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purposes for which they were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, funds
raised on short term basis have, prima facie, not been used for long
term investment.
xviii. According to the information and explanations given to us, the
Company has not made preferential allotment of shares during the year
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 and the
records examined by us, securities / charges have been created in
respect of term loans taken from financial institutions.
xx. During the year covered by our audit, the Company has not raised
any monies by public issues.
xxi. During the course of our examination of the books and other
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, no instance of fraud on or by the Company
was reported during the year, nor have we been informed of such case by
the management.
for M. Bhaskara Rao & Co.
Chartered Accountants
Firm Registration No. 000459 S
M. V. Ramana Murthy
Partner
Secunderabad,May 7, 2014 Membership No.206439
Mar 31, 2013
Report on Financial Statements
We have audited the accompanying financial statements of TCI Finance
Limited ("the Company" ), which comprise the Balance Sheet as
at March 31, 2013, the Statement of Profit and Loss and the 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub section (3C) of section 211
of Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s 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 judgement, 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
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 as at March 31, 2013;
b) in the case of the Statement of Profit and Loss, 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 and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("Âthe Order" ) issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the Order.
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 our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c. the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d. in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 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,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Re: TCI Finance Limited Annexure to the Auditors'' Report
(Referred to in paragraph "Â1'' under "ÂReport on Other
Legal and Regulatory Requirements'' section of our report of even
date)
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations given to us, all the
fixed assets other than Leased Assets have been physically verified by
the management during the year in accordance with programme of
verification, which in our opinion, is reasonable having regard to the
size of the Company and the nature of the assets. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification. Leased Assets have not been
physically verified by the Management during the year.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
ii. Having regard to the nature of the Company''s business, para
4(ii) of the Order is not applicable.
iii. (a) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly paragraphs
(b), (c) and (d) of para 4(iii) of this Order are not applicable.
(b) According to the information and explanations given to us, the
Company has not taken any loan, secured or unsecured from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Accordingly paragraphs (e), (f) and (g)
of para 4(iii) of the Order are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets. During the course of our audit, we have
not observed any major weakness in such internal control system.
v. In our opinion and according to the information and explanations
given to us, there are no contracts or arrangements, the particulars of
which need to be entered in to the register maintained under section
301 of the Act.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
Accordingly, the provisions of para 4(vi) of the Order is not
applicable.
vii. In our opinion, the Company has an adequate internal audit system
commensurate with the size of the Company and nature of its business.
viii. In our opinion and according to the information and explanations
given to us, the Central Government has not prescribed the maintenance
of cost records under Section 209 (1) (d) of the Companies Act 1956 for
the activities of the Company.
ix. (a) According to the information and explanations given to us, the
Company is regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax,
Service Tax, and any other material statutory dues applicable to it
with the appropriate authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2013 for a period of more than six months
from the date they became payable.
(c) Details of dues of Sales tax / income tax / custom tax / wealth tax
/ service tax / excise duty / cess which have not been deposited as on
31st March, 2013 on account of dispute are given below:
Nature of Nature of the Amount Period to which Forum where
statute dues (Rs) the amount
relates dispute is
pending
Karnataka
Sales Tax Tax/Penalty 63,661 1996-1997 Joint
Commissioner
of
Commercial
Taxes
(Appeals)
x. The Company has no accumulated losses at the end of the financial
year and has not incurred any cash losses in the current and
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
banks, financial institutions and debenture holders except in respect
of delay in redemption of debentures and interest dues as detailed
below:
Particulars Amount (Rs) No of Days
Dues to Debenture Holders 28,00,00,000 122
Interest on Term Loans 63,42,329 Range from 7 to 29
Interest to Debenture
Holders 1,10,88,219 Range from 2 to 22
xii. According to the information and explanations 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.
Accordingly, the provisions of para 4 (xii) of the Order is not
applicable.
xiii. In our opinion, the Company is not a Chit fund/ Nidhi/ Mutual
benefit fund/ Society. Accordingly, the provisions of para 4 (xiii) of
the Order is not applicable.
xiv. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of the
transactions and contracts in respect of its dealing in share
securities, debentures and other investments and timely entries have
been made. The above said securities have been held by the Company in
its own name.
xv. According to the information and explanations given to us, the
terms and conditions of the guarantee given by the Company for loans
taken by others are not prima facie prejudicial to the interest of the
Company.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purposes for which they were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, funds
raised on short term basis have, prima facie, not been used for long
term investment.
xviii. According to the information and explanations given to us, the
Company has not made preferential allotment of shares during the year
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 and the
records examined by us, securities / charges have been created in
respect of debentures issued and term loans taken from banks and
financial institutions.
xx. During the year covered by our audit, the Company has not raised
any monies by public issues.
xxi. During the course of our examination of the books and other
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, no instance of fraud on or by the Company
was reported during the year, nor have we been informed of such case by
the management.
for M. Bhaskara Rao & Co.
Chartered Accountants
Firm Registration No. 000459S
M. V. Ramana Murthy
Partner
Secunderabad, May 07, 2013 Membership No.206439
Mar 31, 2012
1. We have audited the attached Balance Sheet of TCI FINANCE LIMITED
as at March 31, 2012, the Statement of Profit and Loss and the Cash
Flow Statement for the year ended on that date, both 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 conducted our audit in accordance with the 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 misstatements. 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. Attention is invited to note 24.5 forming part of the financial
statements regarding managerial remuneration and in respect of which
Central Government approval is awaited.
4. As required by the Companies (Auditor's Report) Order, 2003 (CARO)
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.
5. Further to our comments in paragraph 3 and in the Annexure referred
to in paragraph 4 above, 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 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 and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956.
e. in our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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:
i) in the case of the Balance Sheet, of the state of the affairs of the
Company as at March 31, 2012
ii) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date and
iii) in the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
6. On the basis of written representations received from the Directors
as on March 31, 2012 and taken on record by the Board of Directors,
none of the Directors are disqualified as on March 31, 2012 from being
appointed as directors in terms of Section 274(1)(g) of the Companies
Act, 1956.
For S. B. Billimoria & Co.
Chartered Accountants
(Registration No.101496W)
V. Srikumar
Partner
Place : Bengaluru (Membership No. 084494)
Date : 26th, May 2012
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 4 of our report of even date)
(i) Having regard to the nature of the Company's
business/activities/result, clauses 4 (ii), (viii), (xii), (xiii),
(xviii), (xix) and (xx) of CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
(b) All the fixed assets other than leased assets were physically
verified during the year by the management in accordance with a
programme of verification which, in our opinion, provides for physical
verification of all the fixed assets at reasonable intervals having
regard to the size of the Company and the nature of its assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification. Leased assets have not
been physically verified by the management during the year.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) According to the information and explanations given to us, the
Company has neither taken nor granted secured or unsecured loans
from/to companies, firms or other parties covered 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 is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets. During the course of our audit, we have
not observed any major weakness in such control system.
(v) In our opinion and according to the information and explanations
given to us, there are no contracts or arrangements, the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956.
(vi) According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales Tax, Custom Duty, Excise
Duty and any other material statutory dues applicable to it with the
appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income tax,
Custom Duty, Excise Duty and any other material statutory dues
applicable to it in arrears, as at March 31, 2012 for a period of more
than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty which have not been deposited as on March 31,
2012 on account of dispute are given below:
Nature of Nature of the Amount Period to which Forum where
statute dues (Rs) the amount relates dispute is
pending
Karnataka Sales
Tax Tax/Penalty 63,661 1996-97 Joint
Commissioner
of
Commercial
taxes
( Appeals)
(ix) The Company has no accumulated losses at the end of financial year
and it has not incurred cash losses in the current and immediately
preceding financial year.
(x) In our opinion and according to the information and explanations
given to us, the company has defaulted in repayment of dues to
financial institutions and debenture holders as stated below:
Amount of default Period of delay (in days)
(loan and Interest) (Rs.)
62,500,000 27
10,000,000 110
20,630,313 111
1,537,094 114
23,000,000 132
7,332,593 133
20,000,000 92
50,000,000 124
4,102,192 27
(xi) Based on our examination of the records and evaluations of the
related internal controls, the Company has maintained proper records of
the transactions and contracts in respect of its dealing in shares
securities, debentures and other investments and timely entries have
been made therein. The aforesaid securities have been held by the
Company in its own name.
(xii) In our opinion and according to information and explanations
given to us, the terms and conditions of the guarantee given by the
company for loans taken by others are not prima facie prejudicial to
the interest of the company.
(xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were obtained.
(xiv) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance sheet of the
Company, we report that funds raised on short term basis have not been
used for long-term investment.
(xv) The Company has created security in respect of the debentures
issued.
(xvi) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
For S. B. Billimoria & Co.
Chartered Accountants
(Registration No.101496W)
V. Srikumar
Partner
Place : Bengaluru (Membership No. 084494)
Date : 26th, May 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of TCI FINANCE LIMITED
as at March 31, 2011 and the Profit and Loss Account and the Cash Flow
Statement for the year ended on that date, both 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 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 misstatements. 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 (Auditor's Report) Order, 2003 (CARO)
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.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
a. we have 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 Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956.
e. in our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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:
i) in the case of the Balance Sheet, of the state of the affairs of the
Company as at March 31, 2011
ii) in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date and
iii) in the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
5. On the basis of written representations received from the Directors
as on March 31, 2011 and taken on record by the Board of Directors,
none of the Directors are disqualified as on March 31, 2011 from being
appointed as directors in terms of Section 274(1)(g) of the Companies
Act, 1956.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report attached)
(i) Having regard to the nature of the Company's
business/activities/result, clauses 4 (ii), (viii), (xii), (xiii),
(xv), (xviii) and (xx) of CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
(b) All the fixed assets other than leased assets were physically
verified during the year by the management in accordance with a
programme of verification which, in our opinion, provides for physical
verification of all the fixed assets at reasonable intervals having
regard to the size of the Company and the nature of its assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification. Leased assets have not
been physically verified by the management during the year.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) According to the information and explanations given to us, the
Company has neither taken nor granted secured or unsecured loans
from/to companies, firms or other parties covered 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, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchase of fixed
assets and the sale of services. During the course of our audit, we
have not observed any major weakness in such control system.
(v) In our opinion and according to the information and explanations
given to us, there are no contracts or arrangements, the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956.
(vi) According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales Tax, Custom Duty, Excise
Duty, Cess and any other material statutory dues applicable to it with
the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income tax,
Custom Duty, Excise Duty, Cess, and any other material statutory dues
applicable to it in arrears, as at March 31, 2011 for a period of more
than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
March 31, 2011 on account of dispute are given below:
Nature of Nature of the Amount Period to which Forum where
statute dues (Rs) the amount relates dispute is
pending
Karnataka
Sales Tax Tax/Penalty 63,661 1996-97 Joint
Commissioner
of
Commercial
taxes ( Appeals)
(ix) The Company does not have accumulated losses as at end of the
year. The Company has not incurred cash losses in the financial year;
the company incurred cash losses in the immediately preceding financial
year.
(x) In our opinion and according to the information and explanations
given to us, having regard to the fact that an amount of Rs.62,500,000
payable to a financial institution was rescheduled during the year and
subsequently repaid, the Company has not defaulted in the repayment of
dues to banks, financial institutions and debenture holders.
(xi) Based on our examination of the records and evaluations of the
related internal controls, the Company has maintained proper records of
the transactions and contracts in respect of its dealing in shares
securities, debentures and other investments and timely entries have
been made therein. The aforesaid securities have been held by the
Company in its own name.
(xii) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were obtained.
(xiii) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance sheet of the
Company, we report that funds raised on short term basis have not been
used for long-term investment.
(xiv) According to the information and explanations given to us, during
the period covered by our audit report, the Company had issued 35
debentures of Rs.10,000,000 each. The Company has created security in
respect of debentures issued.
(xv) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
For S. B. Billimoria & Co.
Chartered Accountants
(Registration No.101496W)
M. Ramachandran
Partner
(Membership No.16399)
Kochi,
May 31, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of TCI FINANCE LIMITED
as at March 31, 2010 and the Profit and Loss Account and the Cash Flow
Statement for the year ended on that date, both 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.
2. 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 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 (CARO)
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.
4. Without qualifying our opinion we draw attention to Schedule I and
Note 7(a) of Schedule Q to the financial statements.
5. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
a. we have 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 Profit and Loss Account ancLthe Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956.
e. in our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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:
i) in the case of the Balance Sheet, of the state of the affairs of the
Company as at March 31, 2010
ii) in the case of the Profit and Loss Account, of the Loss of the
Company for the year ended on that date and
iii) in the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
6. On the basis of written representations received from the Directors
as on March 31, 2010 and taken on record by the Board of Directors,
none of the Directors are disqualified as on March 31, 2010 from being
appointed as directors in terms of Section 274( 1 )g) of the Companies
Act, 1956.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our
report attached)
(i) Having regard to the nature of the Companys
business/activities/result, clauses 4 (ii), (viii), (xii), (xiii),
(xv), (xviii), (xix).and (xx) of CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
(b) All the fixed assets were physically verified during the year by
the management in accordance with a programme of verification which, in
our opinion, provides for physical verification of all the fixed assets
at reasonable intervals having regard to the size of the Company and
the nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) According to the information and explanations given to us, the
Company has neither taken nor granted secured or unsecured loans from /
to companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, paragraph 4
(iii) of the order is not applicable.
iv) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchase of fixed
assets and the sale of services. During the course of our audit, we
have not observed any major weakness in such control system.
v) In our opinion and according to the information and explanations
given to us, there are no contracts or arrangements, the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956. Accordingly, Clause 4(v) of the Order is
not applicable.
vi) According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year.
In respect of unclaimed deposits, the Company has complied with the
provisions of Sections 58 A & 58 AA or any relevant provisions of the
Companies Act, 1956.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
viii) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income-tax, Sales Tax, Custom Duty, Excise
Duty, Cess and any other material statutory dues applicable to it with
the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income tax,
Custom Duty, Excise Duty, Cess, and any other material statutory dues
applicable to it were in arrears, as at March 31, 2010 for a period of
more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
March 31, 2010 on account of dispute are given below:
Name of Nature of the Amount Period to which Forum where
statute dues (Rs) the amount relates dispute is
pending
Karnataka
Sales Tax Tax/Penalty 63,661 1996-97 Joint Commissioner of
Commercial taxes (Appeals)
ix) The Company does not have accumulated losses as at end of the year.
The Company has incurred cash losses during the financial year covered
by our audit and did not have cash losses in the immediately preceding
financial year.
x) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institution.
xi) Based on our examination of the records and evaluations of the
related internal controls, the Company has maintained proper records of
the transactions and contracts in respect of its dealing in shares
securities, debentures and other investments and timely entries have
been made therein. The aforesaid securities have been held by the
Company in its own name.
xii) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were obtained other than temporary deployment pending applicable.
xiii) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance sheet of the
Company, we report that funds raised on short term basis have not been
used for long-term investment.
xiv) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
(Registration NO.008072S)
Ganesh Balakrishnan
Partner
Secunderabad, May 5,2010 Membership No.201193
Mar 31, 2009
1. We have audited the attached Balance Sheet of TCI FINANCE LIMITED
as at March 31, 2009 the Profit and Loss Account for the year ended on
that date and the Cash Flow Statement for the year ended on that date,
both 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.
2. 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 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 [CARO]
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order, to the
extent applicable.
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 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 Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the accounting standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956;
e) in our opinion and to the best of our information and according to
the explanations given to us the said accounts, read with the notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required, give a true and fair view in conformity with
the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2009;
(ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
6. On the basis of written representations received from the directors
as on March 31, 2009, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2009 from being
appointed as a director in terms of clause (g) of sub-section {1) of
Section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our
report of even date)
The nature of the Companys business/ activities during the year is
such that paragraphs 4 (ii), (viii), (xii), (xiii), (xv), (xviii),
(xix) and (xx) of the CARO are not applicable to the Company.
(i) In respect of its fixed assets:
{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 during the year by
the management and no material discrepancies were noticed on such
verification. The management has informed us that the leased assets
could not be verified as all of them are under litigation for recovery
of dues and full provision has been made there against.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(ii) In respect of loans, secured or unsecured, granted or taken by the
Company to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956,
according to the information and explanations give to us:
(a) The Company has granted advance to one party (subsidiary). At the
year end, the outstanding balance of such advance granted aggregated to
Rs. 13,620,000 and the maximum amount involved during the year was
Rs.13,620,000.
(b) No terms and conditions have been specified for repayment of
advance.
(c) The Company has taken loan from one party. At the year end, the
outstanding balance of such loan is Rs.NIL and maximum amount involved
during the year was Rs.85,000,000.
(d) The rate of interest and other terms and conditions of such loan
is, in our opinion, prima facie not prejudicial to the interest of the
Company.
(e) The payment of principal amount and interest in respect of such
loan is as per stipulations.
(iii) 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 for the purchase of fixed assets and for the sale of services
and we have not observed any continuing failure to correct major
weaknesses in such internal controls.
(iv) In our opinion, and according to the information and explanations
given to us, there are no contracts or arrangements, the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956. Accordingly, paragraph 4{v) of the order is
not applicable.
(v) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58 and 58AA of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public.
(vi) In our-opinion, the Company has an internal audit system
commensurate with the size and the nature of its business.
(vii) In respect of statutory dues
(a) According to the information and explanations given to us, the
Company has been regular in depositing undisputed statutory dues,
including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales-tax, wealth tax, service
tax, customs duty and any other material statutory dues with the
appropriate authorities during the year.
(b) According to the information and explanations given to us, there
are no disputed customs duty, excise duty, wealth tax and cess which
have not been deposited as on March 31, 2009. The details of disputed
sales tax which have not been deposited as on March 31, 2009 on account
of any dispute are given below:
Name of Nature of the Amount
statute dues (Rs)
Karnataka Sales Tax Tax Penalty 63,661
Name of statue Period to which Forum where
the amount relates dispute is pending
Karnataka Sales Tax 1996-97 Joint Commissioner of
Commercial Taxes (Appeals)
(viii) The Company does not have accumulated losses and has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year
(ix) In our opinion and according to the information and explanations
given to us, the company has not defaulted in the repayment of dues to
financial institutions and banks.
(x) Based on our examination of the records and evaluation of the
related internal controls, the Company has maintained proper records of
transactions and contracts in respect of its dealing in shares,
securities, debentures and other investments and timely entries have
been made therein. The aforesaid securities have been held by the
Company in its own name.
(xi) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purposes for which the loans were obtained.
(xii) According to the information and explanations given to us, and on
an overall examination of the balance sheet of the Company, funds
raised on short term basis have, prima facie, not been used during the
year for long term investment.
(xiii) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
Ganesh Balakrishnan
Partner
Secunderabad, 12th May, 2009 Membership No.201193
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article