Mar 31, 2014
We have audited the accompanying financial statements of TCP Ltd, which
comprises the Balance Sheet as at March, 31 2014 and the Statement of
Profit and Loss and Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory
information.
Management''s Responsibility for the Financial Statements
The Company''s management is responsible for the preparation of these
financial statements that 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 sub-section
(3C) of section 211 of the Companies Act, 1956 (the Act) read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosure in the financial statements. The procedures
selected depend on the auditor''s judgement, including the assessment
of the risk of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessment, the
auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness
of the company''s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness
of the accounting estimates made by the management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
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 Statement of Profit or Loss, of the PROFIT of the
company for the year ended on that date; and
c) In the case of Cash Flow Statement, of the Cash Flows of the company
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 accounts as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance sheet and the statement of Profit or
Loss and the Cash Flow Statement comply with the accounting standards
referred to sub-section (3C) of Section 211 of the Act read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
e. On the basis of written representation 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 Act;
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the Act,
nor has it issued any Rules under the said section, prescribing the
manner in which such cess is to be paid, no cess is due and payable by
the Company.
ANNEXURE TO THE AUDITORS'' REPORT Referred to in Paragraph 3 of our
Report of even date
1. In respect of fixed assets, the Company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets.
Some of the fixed assets have been physically verified during the year
by the management in accordance with a programme of verification, which
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.
There was no substantial sale of fixed assets during the year.
2. As explained to us, the inventories of the Company have been
physically verified during the year by the management at reasonable
intervals.
According to the information and explanations given to us, in our
opinion, the procedures of physical verification of stocks followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
On the basis of our examination of records of inventories, in our
opinion, the Company has maintained proper records of inventories and
no material discrepancies were noticed between physical stocks and book
records.
3. In our opinion, and according to the information and explanations
given to us, the Company has granted unsecured loan to one party (i.e.
to its subsidiary company) covered in the register maintained under
section 301 of the Companies Act, 1956 and the year end balance of such
loan was Rs. 103.70 lakhs.
The aforesaid loan of Rs. 103.70 lakhs given to Subsidiary Company was
interest free and did not carry any other terms and conditions as
regards repayment and since this was given to the Subsidiary Company,
in our opinion, were not prejudicial to the interest of the company.
During the year, in respect of the aforesaid loan to Subsidiary
Company, there has been no partial recovery towards principal. In the
absence of any terms, we are unable to comment on the regularity of
repayment of principal amount.
The Company has taken unsecured loans from 10 parties covered in the
register maintained under section 301 of the Companies Act, 1956, and
the year end balance of loans taken from such parties was Rs. 1,262.63
lakhs.
According to the information and explanations given to us, in our
opinion, the rate of interest and other terms and conditions on loans
taken by the Company, are not prima-facie prejudicial to the interest
of the Company.
According to the information and explanations given to us, in our
opinion, the Company is regular in payment of principal and interest to
the parties, wherever applicable, from whom loans have been taken by
the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, with regard to the purchase of inventory, fixed assets and
for sale of goods. Further on the basis of our examination of the books
and records of the Company carried out in accordance with the auditing
standards generally accepted in India, and according to the information
and explanations given to us, we have neither come across nor have we
been informed of any continuing failure to correct major weaknesses in
the internal control system.
5. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the register
required to be maintained under section 301 of the Companies Act, 1956
have been so entered and the transactions during the year in pursuance
of such contracts or arrangements have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section 58
A and 58 AA or any other relevant provisions of the Act and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public. As per information and explanations
given to us, no order in respect of the above has been passed on the
Company by the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal in respect of
the aforesaid deposits.
7. In our opinion, the Company has an Internal Audit System
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956. We are of the opinion that prima-facie the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, undisputed statutory dues including provident fund,
investor education and protection fund, employees'' state insurance,
income tax, sales tax, wealth tax, customs duty, excise duty, service
tax, cess and other material statutory dues applicable to the Company
have generally been regularly deposited with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amounts payable in respect of income tax, sales tax,
customs duty, excise duty, service tax and cess were in arrears as at
31st March, 2014 for a period of more than six months from the date
they became payable except an amount of Rs.20,80,980/- pertaining to
Electricity Tax.
As at 31st March 2014, according to the records of the Company and the
information and explanations given to us, the following are the
particulars of disputed dues that have not been deposited: -
Particulars of Dispute Forum where
pending Remarks
1. Excise Duty (Rs.)
6,01,696 Tribunal Rs. 2,30,930 has been paid
under protest
1,99,984 Commissioner
(Appeals) Rs. 9,000 has been paid under
protest
2. Income Tax (Rs.)
6,25,26,170 Commissioner
(Appeals) Rectification
petition u/s 154 of
(AY 2008-09) Income tax Act, 1961 is
pending before the Assessing
Officer.
7,58,06,720 Commissioner
(Appeals) Rectification order was
passed
(AY 2010-11) by the Assessing Officer and
the appeal is pending before
the Commissioner of
Income Tax.
1,31,91,900 Commissioner
(Appeals) Appeal is pending disposal
(AY 2011-12) before the Commissioner of
Income Tax.
10. The Company does not have any accumulated losses as at 31st March
2014 and has not incurred cash losses during the financial year ended
on that date or in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution and bank. The Company has not issued any
debentures.
12. In our opinion and 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.
13. The Provisions of any special statute as specified under clause
(xiii) of the Order are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities and
hence Clause (xiv) of the Order is not applicable to the Company.
15. According to the information and explanations given to us, the
company has not given any guarantee for loan taken by others from
financial institutions and hence Clause (xv) of the Order is not
applicable to the Company.
16. In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purposes for which they were obtained.
17. 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, the funds raised on short term basis have been utilized for
long term investments to the extent of Rs. 797.37 lakhs towards
purchase of fixed assets and Rs 1972.53 lakhs towards investment in
shares.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures during the year and hence
reporting under Clause (xix) of the Order is not applicable to the
Company.
20. The Company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us, during
the year, no fraud on or by the Company has been noticed or reported.
For M/s T. Selvaraj & Co
CHARTERED ACCOUNTANTS
Firm Registration No: 003703S
S.Vidya
Partner
Membership No: 217934
Place: Chennai
Date : 30th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of TCP Ltd, which
comprises the Balance Sheet as at March, 31 2013, and the Statement of
Profit and Loss and Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory
information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that 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 the Companies Act, 1956 (the Act). This
responsibility includes the design, implementation and maintenance of
internal controls 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosure 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 the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the State of Affairs of the
Company as at March 31, 2013;
b) In the case of the Statement of Profit or Loss, of the PROFIT of the
Company for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
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.
As required by section 227(3) of the Act, we report that
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. The Balance Sheet, 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 sub-section (3C) of Section 211 of the Act;
e. On the basis of the 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 Act;
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the Act,
nor has it issued any rules under the said section, prescribing the
manner in which such cess is to be paid, no cess is due and payable by
the Company.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in Paragraph 3 of our Report of even date
1. In respect of fixed assets, the Company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets.
Some of the fixed assets have been physically verified during the year
by the management in accordance with a programme of verification, which
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.
There was no sale of fixed assets during the year.
2. As explained to us, the inventories of the Company have been
physically verified during the year by the management at reasonable
intervals.
According to the information and explanations given to us, in our
opinion, the procedures of physical verification of stocks followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
On the basis of our examination of records of inventories, in our
opinion, the Company has maintained proper records of inventories and
no material discrepancies were noticed between physical stocks and book
records.
3. In our opinion, and according to the information and explanations
given to us, the Company has granted unsecured loan to one party (i.e
to its subsidiary company) covered in the register maintained under
section 301 of the Companies Act, 1956 and the year end balance of such
loan was Rs. 102.02 lakhs.
The aforesaid loan of Rs. 102.02 lakhs given to Subsidiary Company was
interest free and did not carry any other terms and conditions as
regards repayment and since this was given to the Subsidiary Company,
in our opinion, were not prejudicial to the interest of the company.
During the year, in respect of the aforesaid loan to Subsidiary
Company, there has been no partial recovery towards principal. In the
absence of any terms, we are unable to comment on the regularity of
repayment of principal amount.
The Company has taken unsecured loans from 10 parties covered in the
register maintained under section 301 of the Companies Act, 1956, and
the year end balance of loans taken from such parties was Rs. 1185.80
lakhs.
According to the information and explanations given to us, in our
opinion, the rate of interest and other terms and conditions on loans
taken by the Company, are not prima-facie prejudicial to the interest
of the Company.
According to the information and explanations given to us, in our
opinion, the Company is regular in payment of principal and interest to
the parties, wherever applicable, from whom loans have been taken by
the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, with regard to the purchase of inventory, fixed assets and
for sale of goods. Further on the basis of our examination of the books
and records of the Company carried out in accordance with the auditing
standards generally accepted in India, and according to the information
and explanations given to us, we have neither come across nor have we
been informed of any continuing failure to correct major weaknesses in
the internal control system.
5. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the register
required to be maintained under section 301 of the Companies Act, 1956
have been so entered and the transactions during the year in pursuance
of such contracts or arrangements have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section 58
A and 58 AA or any other relevant provisions of the Act and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public. As per information and explanations
given to us, no order in respect of the above has been passed on the
Company by the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal in respect of
the aforesaid deposits.
7. In our opinion, the Company has an Internal Audit System
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956. We are of the opinion that prima-facie the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, undisputed statutory dues including provident fund,
investor education and protection fund, employees'' state insurance,
income tax, , sales tax, wealth tax, customs duty, excise duty, service
tax, cess and other material statutory dues applicable to the Company
have generally been regularly deposited with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amounts payable in respect of income tax, sales tax,
customs duty, excise duty, service tax and cess were in arrears as at
31st March, 2013 for a period of more than six months from the date
they became payable except an amount of Rs. 14,980/- pertaining to
provident fund dues and an amount of Rs 4,68,307/- pertaining to
Electricity tax.
As at 31st March 2013, according to the records of the Company and the
information and explanations given to us, the following are the
particulars of disputed dues that have not been deposited: -
Particulars of Dispute Forum where pending Remarks
1. Excise Duty (Rs.)
6,01,696 Tribunal Rs. 2,30,930 has been
paid under protest
1,99,984 Commissioner
(Appeals) Rs. 9,000 has been paid
under protest
2. Income Tax (Rs.)
6,25,26,170 Commissioner
(Appeals) Rectification petition
u/s 154 of
(AY 2008-09) Income tax Act, 1961
is pending before the
Assessing Officer.
20,61,00,380 Commissioner
(Appeals) Rectification petition
u/s 154 of
(AY 2010-11) Income tax Act,1961 is
pending before the
Assessing Officer.
10. The Company does not have any accumulated losses as at 31st March
2013 and has not incurred cash losses during the financial year ended
on that date or in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution and bank. The Company has not issued any
debentures.
12. In our opinion and 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.
13. The Provisions of any special statute as specified under clause
(xiii) of the Order are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities and
hence Clause (xiv) of the Order is not applicable to the Company.
15. According to the information and explanations given to us, the
company has not given any guarantee for loan taken by others from
financial institutions and hence Clause (xv) of the Order is not
applicable to the Company.
16. In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purposes for which they were obtained.
17. 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, the funds raised on short term basis have been utilized for
long term investments to the extent of Rs. 360.61 lakhs towards
purchase of fixed assets.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures during the year and
hence reporting under Clause (xix) of the Order is not applicable to
the Company.
20. The Company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us, during
the year, no fraud on or by the Company has been noticed or reported.
For T. SELVARAJ & CO
Chartered Accountants
Firm Regn No.:003703S
M.BALAGANESH
Partner
Membership No.208781
Place: Chennai 600 004
Date : 29th May 2013
Mar 31, 2009
1. We have audited the attached Balance Sheet of M/s TCP Limited as at
31st March, 2009. the Profit and Loss Account of the Company tor the
year ended on that dale annexed thereto and the Cash Flow Statement for
the year ended on that date, which we have signed under reference to
this report. 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 eKamining, 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion,
3. As required by the Companies {Auditors Report) Order, 2003 as
amended by the Companies {Auditors Report) (Amendment) Order, 2004
(together the "Order") issued by the Central Government in terms of
sub-section (4A) of section 227 of the Companies Act, 1956 (the Act),
we enclose in the Annexure hereto a statement on the matters specified
in the paragraphs 4 and 5 of the said Order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief 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 appears from our examination of
those books;
(c) The Balance Sheet, the Profit and Loss Account and the Casti 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 are in compliance with the Accounting Standards
referred to in sub-section (3C) of the section 211 of the Companies
Act, 1956;
(e) On the basis of written representations received from the Directors
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
under clause (g) of sub-section (1} of section 274 of the Companies
Act. 1956 on the said date;
(f) In our opinion and to the best Of our information and according to
the explanations given to us, the said accounts together with the notes
thereon give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
i. in the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2009: ii. in the case of the Profit and Loss Account,
of the Profit for the year ended on that date; and iii. in the case of
the Cash Flow Statement, of the Cash Flow for the year ended on that
date.
ANNEXURE TO THE AUDITORS REPORT Referred to in Paragraph 3 of our
Report of even date
1. In respect of fixed assets, the Company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets,
Some Of the fixed assets hare been physically verified during the year
by the management in accordance with a programme of verification, which
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.
There was no substantial sale of fixed assets during the year.
2. As explained to us, the inventories of the Company have been
physically verified during the year by the management at reasonable
intervals.
According to the information and explanations given to us, in our
opinion, the procedures of physical verification of stocks followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
On the basis of our examination of records of inventories, in our
opinion, the Company has maintained proper records of inventories and
no material discrepancies were noticed between physical stocks and book
records.
3. In our opinion, and according to the information and explanations
given to us, the Company has granted unsecured loan to one party (i.e
to its subsidiary company) covered in the register maintained under
section 301 of the Companies Act, 1956 and the year end balance of such
loan wasRs. 121.49 lakhs.
The aforesaid loan of Rs. 121.49 lakhs given to Subsidiary Company was
interest free and did not carry any other terms and conditions as
regards repayment and since this was given to the Subsidiary Company,
in our opinion, were not prejudicial to the interest of the company.
During the year, in respect of the aforesaid loan to Subsidiary
Company, there has been no recovery towards principal. In the absence
of any terms, we are unable to comment on the regularity of repayment
of principal amount.
The Company has taken unsecured loans from 10 parties covered in the
register maintained under section 301 of the Companies Act, 1956, and
the year end baJaoee of loans taken from such parties was Rs. 769.65
lakhs.
According to the information and explanations given to us, in our
opinion, the rate of interest and other terms and conditions on loans
taken by the Company, are not prima-facie prejudicial to the interest
of the Company.
According to the information and explanations given to us, in our
opinion, the Company is regular in payment of principal and interest to
the parties, wherever applicable, from whom loans have been taken by
the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate interna! control procedures
commensurate with the size of the Company and the nature of its
business, with regard to the purchase of inventory, fixed assets and
for sale of goods. Further on the basis of our examination of the books
and records of the Company tarried out in accordance with the auditing
standards generally accepted in India, and according to the information
and explanations given to us, we have neither come across nor have we
been informed of any continuing failure to correct major weaknesses in
the internal control system.
5. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the register
required to be maintained under section 301 of the
Companies Act, 1956 have been so entered and the transactions during
the year in pursuance of such contracts or arrangements have been made
at prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section 58
A and 58 AA or any other relevant provisions of the Act and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public. As per information and explanations
given to us, no order in respect of the above has been passed on the
Company by the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal in respect of
the aforesaid deposits.
7. In our opinion, the Company has an Internal Audit System
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 20.9( 1 )(d) of the Companies
Act, 1956. We are of the opinion that prima-facie the prescribed
accounts and records have been maintained and are being made up.
9.. According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, undisputed statutory dues including provident fund,
investor education and protection fund, employeesstale insurance,
income tax, fringe benefit tax, sales tax. wealth fax, customs duty,
excise duty, service tax, cess and other material statutory dues
applicable to the Company have generally been regularly deposited with
the appropriate authorities. According to the information and
explanations given to us, no undisputed amounts payable in respect of
income lax, fringe benefit tax, wealth tax. sales tax, customs duty,
excise duty, service tax and cess were in arrears as at 31st March.
2009 for a. period of more than six months from the date they became
payable.
As at 31st March 2009, according to the records of the Company and the
information and explanations given to us, the following are the
particulars of disputed dues on account of excise duty and service tax
that have not been deposited: -
Particulars
of Dispute Forum where pending Remarks
1. Excise Duty (Rs)
10,55,940 Tribunal Rs. 4,33,393 has been paid
under protest
2.44,603 Commissioner (Appeals) Rs. 9,000 has been paid
under protest
2. Service Tax (Rs)
49,961 Commissioner (Appeals)
10. The Company does not have any accumulated losses as at 31st March
2009 and has not incurred cash losses during the financial year ended
on that date or in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution and bank. The Company has not issued any
debentures.
12. In our opinion and 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.
13. The Provisions of any special statute as specified under clause
(xiii) of the Order are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities and
hence Clause (xiv) of the Order is not applicable to the Company.
15. According to the information and explanations given to us, the
company has not given any guarantee for loan taken by others from
financial institutions and hence Clause (xv) of the Order is not
applicable to the Company.
16. In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purposes for which they were obtained.
17. 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, the funds raised on short term basis have been utilized for
long term investments to the extent of Rs. 106.48 lakhs towards
purchase of fixed assets and Rs.2.232.50 lakhs towards investment in
Preference shares.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year.
19 The Company has not issued any debentures during the year and hence
reporting under Clause (xix) of the Order is not applicable to the
Company.
20. The Company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us. during
the year, no fraud on or by the Company has been noticed or reported.
For T.SELVARAJ & CO.,
Chartered Accountants
M. Balaganesh
Partner
Membership No. 203781
Place: Chennai
Date : 26th August, 2009
Mar 31, 2003
1. We have audited the attached Balance Sheet of M/s T C P Limited as
at 31st March, 2003, the Profit & Loss Account of the Company for the
year ended on that date annexed thereto and the Cash Flow Statement for
the year ended on that date, which we have signed under reference to
this report. 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 the 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 Manufacturing and Other Companies (Auditors
Report) Order, 1988 issued by the Central Government in terms of
Section 227(4A) of the Companies Act, 1956, we give in the annexure
hereto a statement on the matters specified in the paragraphs 4 and 5
of the said order.
4. Further to our comments in the annexure referred to in paragraph 3
above we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief 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 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 are in compliance with the Accounting Standards
referred to in sub-section (3C) of the Section 211 of the Companies
Act, 1956.
e) On the basis of written representations received from the Directors
and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2003 from being appointed as a Director
under clause (g) of sub section (1) of Section 274 of the Companies
Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts together with the notes
thereon give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
i) in the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2003;
ii) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT Referred to In paragraph 3 of our Report
of even date
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of information available. According to the information and
explanations given to us, the fixed assets have been physically
verified by the management during the year in a phased periodical
manner which in our opinion is reasonable, having regard to the size of
the Company and nature of such verification. No material discrepancies
were noticed on such verification.
2. None of the fixed assets have been revalued during the year.
3. The stock of finished goods, stores, spares and raw materials have
been physically verified by the management at reasonable intervals
during the year.
4. The procedures of physical verification of stocks followed by the
Management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
5. As explained to us, there were no material discrepancies noticed on
physical verification of the stocks having regard to the size of the
operations of the Company.
6. The valuation of the stocks is fair and proper in accordance with
generally accepted accounting principles and is on the same basis as in
the preceding year.
7. The Company has taken interest free loans from Directors and other
parties listed in the register maintained u/s.301
of the Companies Act, 1956. The Company has granted unsecured loans and
advances, to Companies, firms or other parties listed in the register
maintained u/s.301 of the Companies Act, 1956. In our opinion, the
rates of interest, wherever applicable, and the terms and conditions of
loans and advances are prima facie not prejudicial to the interests of
the company. In terms of sub section 6 of section 370 of the Companies
Act, 1956, the provisions of Section 370 are not applicable to the
Company.
8. Loans or Advances in the nature of loans have been given by the
company to the employees and others who are repaying the principal
amounts as stipulated and are also regular in payment of interest
wherever applicable.
9. 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 stores, raw materials including
components, plant and machinery, equipments and other assets and for
the sale of goods.
10. According to the information and explanations given to us, the
transactions of sale of goods and materials made in pursuance of
contracts or arrangements entered in the register maintained under
Section 301 of the Companies Act, 1956, and aggregating during the year
to Rs.50.000/- or more in respect of each party have been made at
prices which
are reasonable having regard to the prevailing market prices for such
goods and materials where such market prices are available or the
prices at which transactions for similar goods or materials have been
made with other parties.
11. As explained to us, the Company has a regular procedure for the
determination of unserviceable or damaged stores, raw materials and
finished goods. Adequate provision has been made in the accounts for
loss arising on the items so determined.
12. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
58A of the Companies Act, 1956, and the Companies (Acceptance of
Deposits) Rules 1975 with regard to deposits accepted from the Public.
13. In our opinion, reasonable records have been maintained by the
Company for the sale and disposal of realizable scraps and by-products.
14. In our opinion the Company has an internal audit system
commensurate with its size and the nature of its business.
15. The Central Government has prescribed the maintenance of cost
records under Section 209(1 )(d) of the Companies Act, 1956 in respect
of products manufactured by the Company. We have broadly reviewed the
books of account maintained and in our opinion, the prescribed accounts
and records have prima facie been maintained by the Company.
16. According to the records, the Company has generally been regular
in depositing Provident Fund and Employees State Insurance dues with
the appropriate authorities.
17. According to the information and explanations given to us and the
books and records examined by us, there were no undisputed amounts
payable in respect of income tax, sales tax, customs duty and excise
duty which were outstanding as at 31st March 2003, for a period of more
than six months from the date they become payable.
18. According to the information and explanations given to us, no
personal expenses have been charged to revenue other than those payable
under contractual obligations or in accordance with generally accepted
business practice.
19. The Company is not a sick industrial company within the meaning of
clause (o) of Sub-Section (1) of Sec.3 of the Sick Industrial Companies
(Special Provisions) Act, 1985, (1 of 1986).
20. In respect of trading activity of the Company, we are informed
that there are no damaged goods.
for T. SELVARAJ AND CO.
Chartered Accountants
N. MEENAKSHISUNDARAM
Partner
Place: Chennai
Date : 25th July 2003
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