Mar 31, 2018
INDEPENDENT AUDITORâS REPORT
To the members of TVS Srichakra Limited Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of TVS Srichakra Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs 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 (âthe Actâ) with respect to the preparation of these Standalone financial statements to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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.
Auditorâs 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 and the Rules made thereunder including 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 thereunder and the Order issued under Section 143(11) of the Act.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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, 2018, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
The comparative financial information of the Company for the year ended March 31st, 2017 prepared in accordance with Ind AS included in this Statement has been audited by the predecessor auditor. The report of the predecessor auditor on this comparative financial information dated May 24th, 2017 expressed an unmodified opinion.
Our report 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, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the âAnnexure Aâ, 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 (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity 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 Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the Directors as on 31st March, 2018 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March, 2018 from being appointed as a Director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
(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 as at March 31, 2018 on its financial position in its standalone financial statements at Note No. 41.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at March 31, 2018.
iii. There were no amounts which were required to be transferred to the Investors Education and Protection Fund by the Company.
Referred to in paragraph 1 of the Independent Auditorsâ Report of even date to the members of TVS Srichakra
Limited on the financial statements as of and for the year ended March 31, 2018
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 Company has a program of verification of fixed assets in a three-year period which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Fixed assets have been physically verified by the management during the year as per the said program. As informed, discrepancies noticed on such verification were not material and have been properly dealt with in the books of account.
c. According to the information and explanations given to us and based on the examination of the relevant records provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings, are held in the name of the Company as at the Balance Sheet date.
ii. As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and the discrepancies noticed on such verification were not material and have been properly dealt with in the books of account.
iii. Based on our audit procedures and according to the information and explanation given to us, the Company has not granted any loans, secured or unsecured, to any companies, firms or other parties, covered in the register maintained under Section 189 and accordingly, subclasses a, b and c of clause iii of paragraph 3 of the Order are not applicable.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 186 of the Act, with respect to the investments made and loans given. The Company has not provided any guarantees or security. The Company has not granted any loans under Section 185.
v. Based on our audit procedures and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of the provisions of Section 73 of the Act and Rules made thereunder and hence reporting under clause (v) is not applicable.
vi. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government for the maintenance of cost records under Section 148 (1) (d) of the Companies Act, 2013 and we are of the opinion that prima facie the prescribed accounts and records have been maintained.
vii. According to the information and explanations given to us, in respect of statutory dues:
a. The Company has generally been regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales-Tax, Service-Tax, duty of Customs, Excise Duty, Value Added Tax, Goods and Services Tax and cess with the appropriate authorities during the year and that there are no arrears of statutory dues outstanding as at 31 March, 2018 for a period of more than six months from the date they became payable.
b. Dues relating to Income Tax / Sales Tax / Service Tax, which have not been deposited with the appropriate authorities on account of any dispute, are stated in the table below:
Name of the statute |
Period |
Amount (Rs. in crores)* |
Forum where the dispute is pending |
Income Tax |
2008-09 to 2015-16 |
1.30 |
Income Tax Office CPC (TDS) |
Sales Tax |
Various years |
11.02 |
Asst. Commissioner |
Sales Tax |
2009-10 & 2010-11 |
0.08 |
Dy. Commissioner |
Sales Tax |
2012-13 |
0.02 |
Dy. Commissioner (Appeals) |
Sales Tax |
Various years |
0.60 |
Jt. Commissioner |
Name of the statute |
Period |
Amount (Rs. in crores)* |
Forum where the dispute is pending |
Excise Duty & Service Tax |
Apr 06 to Sep 07 |
0.10 |
High Court |
Excise Duty & Service Tax |
Various periods |
0.92 |
CESTAT |
Excise Duty & Service Tax |
Various periods |
10.48 |
Commissioner |
Excise Duty & Service Tax |
Various periods |
0.18 |
Asst. Commissioner |
Excise Duty & Service Tax |
Various periods |
0.04 |
Dy. Commissioner |
Excise Duty & Service Tax |
Various periods |
1.72 |
Joint Commissioner |
* net of amounts paid under protest.
viii. Based on our audit procedures and according to the information and explanations given to us, the company has not defaulted in repayment of loans or borrowings to a financial institution, bank, government or dues to debenture holders.
ix. Based on our audit procedures and according to the information and explanations given to us, no term loans were raised during the year. The Company did not raise any money by way of initial/ further public offer. Accordingly, the provisions of Clause 3(ix) of the Order are not applicable to the Company.
x. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. Based on our audit procedures and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. Based on our audit procedures and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
xiv. Based on our audit procedures and according to the information and explanations given to us, the Company has not made any preferential allotment/ private placement of shares/ fully/ partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. Based on our audit procedures and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with Directors or persons connected with them.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
Referred to in paragraph 2(f) of the Independent Auditorsâ Report of even date to the members of TVS Srichakra Limited on the Standalone financial statements for the year ended March 31, 2018
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 TVS Srichakra Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company forthe 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 Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. 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 Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (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, both issued by the Institute of Chartered Accountants of India. 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 were 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 that 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 auditorâs judgement, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 standalone 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 standalone 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 maintained, 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, 2018, 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.
For PKF Sridhar & Santhanam LLP
Chartered Accountants
Firm''s Registration No.003990S/S200018
T V Balasubramanian
Place of Signature: Madurai Partner
Date: 22nd May 2018 Membership No.027251
Mar 31, 2017
Report on the Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements of M/s TVS Srichakra Limited, Madurai - 625001 (âthe companyâ), which comprise the Balance Sheet as at 31st March 2017, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
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 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and Changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards (Ind AS) specified under Section 133 of the Act, read with Rule 4 of Companies (Indian Accounting Standards) Rules, 2015.
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 these Standalone Ind AS 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 of Ind AS financial statements 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 Ind AS financial statements is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 Ind AS 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 Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations furnished to us, the aforesaid Standalone Ind AS 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 including the Ind AS;
a) of the state of affairs of the Company as at March 31, 2017; and
b) its Profit for the year ended on that date (including other comprehensive income);
c) its cash flows for the year ended on that date; and
d) the changes in Equity for the year ended on that date
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) order, 2016 (âthe orderâ), issued by the Central Government of India in term of sub-section (11) of Section 143 of the Act, we give in the âAnnexure-Aâ, a statement on the matters specified in the paragraphs 3 and 4 of the Order, to the extent applicable.
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 (including Other Comprehensive Income), the Statement of Changes in Equity, and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015.
e. on the basis of 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 internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure - Bâ.
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 furnished to us :
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements ( Refer Note No 31(C)(11) to the financial statements.
ii. The Company did not have any long-term contracts including derivative contract for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investors Education and protection fund by the Company.
iv. The Company has provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes from November 08, 2016 to December 30, 2016 and these are in accordance with the books of account maintained by the Company.
Annexure A referred to in our report under âReport on Other Legal and Regulatory requirements Para 1â of even date on the accounts for the year ended 31st March 2017.
1. a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
b) Fixed assets are verified physically by the management in accordance with a regular programme at reasonable intervals. In our opinion the interval is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
c) The title deeds of immovable properties of the Company are held in the name of the Company based on the confirmation received from the Company''s bank.
2. The inventory has been physically verified at reasonable intervals during the year by the management. In our opinion, the frequency of verification is reasonable. The discrepancies between the physical stocks and the books were not material and have been properly dealt with in the books of account.
3. During the year, the Company has not granted any loan to a company, firm, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
4. During the year, the Company has not granted any loan or has made any investments, furnished any guarantees or provided any security. Hence reporting on whether there is compliance with provisions of Section 185 and 186 of the Companies Act, 2013 does not arise.
5. The Company has not accepted any deposit within the meaning of Sections 73 to 76 of the Companies Act, 2013, during the year.
6. 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 148(1) of the Companies Act 2013 and are of the opinion that, prima facie the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
7. a) According to the information and explanations given to us and the records of the Company examined by us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other statutory dues applicable to it. According to the information and explanation given to us, there are no undisputed amounts payable in respect of Income Tax, Sales-Tax, Service Tax, Customs Duty, Excise Duty and Cess were in arrears as at 31.03.2017 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, the dues of Income tax, Sales Tax, Excise Duty and Service Tax which have not been deposited on account of any dispute are furnished below:
(Rs in Crores)
Forum where Dispute is pending |
Income-tax |
Sales Tax |
Excise duty & Service Tax |
High Court |
- |
- |
0.34 |
Commissioner |
- |
- |
10.58 |
Joint Commissioner |
- |
- |
0.38 |
Joint Commissioner (Appeals) |
- |
0.58 |
- |
Deputy Commissioner |
- |
0.08 |
0.04 |
Deputy Commissioner (Appeals) |
- |
0.02 |
- |
Assistant Commissioner |
- |
24.76 |
0.18 |
Appellate Tribunal |
- |
- |
2.53 |
Income Tax Office CPC (TDS) |
1.30 |
- |
- |
8. The Company has not availed any term loan from banks or financial institutions during the year. Hence the question of reporting on default in repayment thereof does not arise. The Company has not defaulted in repayment of term loans from banks or financial institutions availed in earlier years.
9. a) The company has not raised any money by the way of initial public offer or further public offers including debt instruments during the year. Hence reporting on utilization of such money does not arise.
b) The company has not availed any fresh term loan during the year. The loans availed in earlier years were applied for the purpose for which they were availed.
10. Based on the audit procedures adopted and information and explanations furnished to us by the management, no fraud on or by the company has been noticed or reported during the course of our audit.
11. In our opinion and according to the information and explanations furnished to us, managerial remuneration has been paid and provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
12. The Company is not a Nidhi Company and as such this clause of the Order is not applicable.
13. a) In our opinion and according to the information and explanations furnished to us, all transactions with the related parties are in compliance with Sections 177 and 188 of Companies Act, 2013.
b) The details of transactions during the year have been disclosed in the Financial Statements as required by the applicable accounting standards. Refer Note no 31(C)(7) to Financial statements.
14. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures under Section 42 of the Companies Act, 2013.
15. In our opinion and according to the information and explanations furnished to us, the Company has not entered into any non-cash transactions with Directors or persons connected with them.
16. The Company is not required to register under Section 45-IA of the Reserve Bank of India Act, 1934.
For Sundaram & Srinivasan
Chartered Accountants
Firm Registration No. 004207S
K S Narayanaswamy
place : Madurai partner
Date : 24.05.2017 Membership No.: 8593
Mar 31, 2016
To
The Members of TVS SRICHAKRA LIMITED
TVS Building
7-B West Veli Street
Madurai - 625 001
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of TVS SRICHAKRA LIMITED, MADURAI - 625
001 (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
MANAGEMENTâS RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to 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 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.
AUDITORSâ RESPONSIBILITY
Our responsibility is to express an opinion on these 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 auditorsâ 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 auditors consider internal financial control relevant to the Companyâs preparation of the 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 Companyâs 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 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 affairs of the Company as at 31st March 2016, its profit and its cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditorsâ Report) Order, 2016 (âthe orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, We give in the âAnnexure Aâ, 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 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 31st March, 2016 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March, 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, refer to our separate Report in âAnnexure Bâ
(g) With respect to the other matters to be included in the Auditorsâ 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. 27(O) to the financial statements;
ii. The Company did not have any long-term contracts including derivative contract for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and protection Fund by the Company during the year.
REFERRED TO IN PARAGRAPH 1 ON âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ
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) The Company has a regular program of verifying fixed assets every year which, in our opinion, is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such verification.
c) The title deeds of immovable properties are held in the name of the Company
(ii) Physical Verification of stock of finished goods, stores, spare parts and raw materials has been conducted by the Management at reasonable intervals. The discrepancies noticed on verification between the physical stock and the book records were not material and the same have been properly dealt with in the accounts.
(iii) According to information and explanation given to us the company has not granted any loans to parties covered in the register maintained under section 189 of the Companies Act, 2013 during the year. A sum of Rs.34.59 crores which has been granted to a wholly owned subsidiary Company as advance in an earlier year has been converted into optionally convertible debenture during the year. Interest on the advance has been received during the year. An advance of Rs.1.66 crores made during the year has been received back during the year along with interest. No amount is outstanding at the end of the year.
(iv) According to information and explanation given to us, the company has not given any loan, furnished any guarantees or provided any security during the year. The company has complied with Section 185 of the Companies Act, 2013 in respect of investments made during the year.
(v) According to information and explanation given to us, the company has not accepted any deposits within the meaning of sections 73 to 76 of the Companies Act, 2013 during the year.
(vi) 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 148(1) of the Companies Act 2013 and are of the opinion that, prima facie the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and the records of the Company examined
by us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other statutory dues applicable to it. According to the information and explanation given to us, there are no undisputed amounts payable in respect of Income Tax, Sales-Tax, Service Tax, Customs Duty, Excise Duty and Cess were in arrears as at 31.03.2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the dues of Income tax, Sales Tax, Excise Duty and Service Tax which have not been deposited on account of any dispute are furnished below:
REFERRED TO IN PARAGRAPH 1 ON âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ OF OUR REPORT OF EVEN DATE
(Rs in Crores)
Forum Where Dispute is pending |
Income-tax |
Sales Tax |
Excise duty & Service Tax |
High Court |
- |
- |
0.34 |
Commissioner |
4.46 |
- |
0.02 |
Joint Commissioner |
- |
0.60 |
0.20 |
Deputy Commissioner |
- |
0.11 |
0.09 |
Assistant Commissioner |
- |
19.01 |
0.29 |
Appellate Tribunal |
- |
- |
2.53 |
Income Tax Office CPC (TDS) |
1.19 |
- |
- |
(viii) The Company has not defaulted in repayment of loans or borrowings to banks. The company has not availed any loans from financial institutions.
(ix) The Company has not raised any money by way of initial public offer or further public offers including debt instruments during the year and hence reporting on utilization of such money does not arise.
(x) Based upon the audit procedures performed and information and explanation given by the management we report that no fraud on or by the Company by it officers or employees has been noticed or reported during the year ended31st March 2016.
(xi) According to information and explanation given to us, managerial remuneration has been paid and provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and as such this clause of the Order is not applicable.
(xiii) According to information and explanations given to us and based upon the audit procedures performed, all the transactions with the related parties are in compliance with Section 177 and Section 188 of the Act where applicable and the details have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv)The company has not made private placement of shares/debentures during the year.
(xv) According to information and explanations given to us, the Company has not entered into any non-cash transactions with the directors or persons connected with them.
(xvi)The Company is not required to be registered under Section 45 IA of the RBI Act.
REFERRED TO IN PARAGRAPH 2(F) ON âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ OF OUR REPORT OF EVEN DATE
We have audited the Internal Financial Controls over financial reporting of TVS SRICHAKRA LIMITED, MADURAI - 625 001 (âthe Companyâ), as of 31st March, 2016 in conjunction with the audit of the financial statements of the Company for the year ended on that date.
MANAGEMENTSâ 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 Guidance Note on Audit of Internal Financial Controls over Financial Reporting 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 Companyâs 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 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, both issued by the Institute of Chartered Accountants of India. Those Standards and 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 were 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 includes obtaining an understanding of internal financial controls over financial reporting, assessing the risk, whether 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 auditorâs judgement, 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 internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A Companyâs 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 Companyâs 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 Companyâs assets that could have a material effect on the financial statements.
REFERRED TO IN PARAGRAPH 2(F) ON âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ OF OUR REPORT OF EVEN DATE
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.
For SUNDARAM & SRINIVASAN, Chartered Accountants Firm registration No. 004207S
K S NARAYANASWAMY
Place : Madurai Partner
Date : 11.5.2016 Membership No. 8593
Mar 31, 2015
We have audited the accompanying standalone financial statements of TVS
SRICHAKRA LIMITED, MADURAI - 62500l("the Company"), which comprise the
Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
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 financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on these 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
thereunder.
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 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 auditors consider 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, 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 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
read together with the annexure to our report 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;
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
ii. in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
iii. 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
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 accounts.
(d) In our opinion, the aforesaid 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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditors''
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, 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 Notes on
accounts (Note 27 (o))to the financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and protection Fund by the
Company.
ANNEXURE TO THE REPORT OF THE AUDITORS TO THE MEMBERS OF TVS SRICHAKRA
LIMITED, MADURAI
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner at
reasonable intervals. No material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification
is reasonable having regard to the size of the Company and the nature
of its assets.
ii) (a) Physical verification of stock of finished goods, stores, spare
parts and raw materials has been conducted by the Management at
reasonable intervals.
(b) The procedures of physical verification of inventories followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the book records were not material and the same have been properly
dealt with in the accounts.
iii) (a) The Company has not granted any loan during the year.
(b) A sum of Rs.34.59 crores has been granted to a wholly owned
subsidiary Company as advance in an earlier year, which is interest
free. This along with an advance of Rs.0.01 crore made during the year
is outstanding at the year end. (Maximum outstanding during the year :
Rs.34.60 Crores). No amounts have been received back during the year.
iv) The Company has an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and for sale of goods and
there are no major weaknesses in such internal control system.
v) The Company has not accepted deposits from the public.
vi) 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 148(1) of the Companies Act,
2013 and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
vii) (a) The Company is generally regular in depositing with
appropriate authorities undisputed
statutory dues including Provident Fund, Employees'' State Insurance,
Income Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Value
Added Tax, Cess and other material statutory dues applicable to it.
According to the information and explanations given to us, there are no
undisputed amounts payable in respect of Income Tax, Sales-Tax, Service
Tax, Customs Duty, Excise Duty and Cess were in arrears, as at
31.03.2015 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, the dues
of Income Tax, Sales Tax, Excise Duty & Service Tax which have not been
deposited on account of any dispute are furnished below:
Rs. in Crores
Forum Where Dispute is Income-Tax Sales Tax Excise Duty &
Pending Service Tax
High Court - - 0.10
Customs, Excise and Service - - 1.58
Tax Appellate Tribunal
Commissioner - - 1.71
Commissioner (Appeals) 3.53 - 0.02
Joint Commissioner - 0.01 0.20
Joint Commissioner (Appeals) - 0.29 -
Deputy Commissioner - 0.08 0.79
Deputy Commissioner (Appeals) - 3.34 -
Assistant Commissioner - 5.78 -
Appellate Tribunal 0.11 - -
Income Tax Office CPC (TDS) 1.73 - -
Commercial Tax Officer - 0.02 -
(c ) There are no amounts due and outstanding which are required to be
transferred to Investor Education and Protection Fund.
viii) The Company does not have any accumulated losses and no loss cash
or otherwise has been incurred by the Company in the current financial
year or 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
Bank.
x) The Company has not given any guarantee during the year.
xi) The Company has not availed any term loan during the year. In our
opinion, the term loans availed during earlier years were applied for
the purposes for which the loans were obtained.
xii) 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 Sundaram & Srinivasan
Chartered Accountants
Firm Registration
No.004207 S
K.S. Narayanaswamy
Madurai Partner
23.5.2015 Membership No: 8593
Mar 31, 2014
We have audited the accompanying financial statements of TVS SRICHAKRA
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2014, the Statement of Profit and Loss, 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 the Companies Act, 1956 ("the Act"). 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 judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''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 appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
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, 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.
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
Companies Act, 1956 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 REPORT OF THE AUDITORS
1. The nature of the Company''s business/activities during the year is
such that, to the best of our knowledge and the information and
explanations given to us, clauses (xiii) & (xiv) of paragraph 4 of the
Order are not applicable to the Company.
2. (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 by the Management at
reasonable intervals. No material discrepancies were noticed on such
verification.
(c) The company has not disposed off any major/ substantial part of the
fixed assets during the year.
3.(a) Physical verification of stock of finished goods, stores,
spare parts and raw materials has been conducted by the Management at reasonable intervals.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the book records were not material and the same have been properly
dealt with in the accounts.
4. (a) A sum of Rs.105.96 lakhs has been granted to a
wholly owned subsidiary company as advance during the year, which is
interest free. This, along with an advance granted in the previous
year, totalling Rs.3459.05 lakhs is outstanding at the year end.
(Maximum outstanding is Rs.3459.05 lakhs)
(b) In respect of other loans and advances granted, repayment is
regular. Payment of interest is also regular.
5. 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 purchases of inventory and fixed assets and for sale of goods and
there are no major weaknesses in such internal control.
6. (a) According to the information and explanations
given to us, we are of the opinion that the transactions that need to
be entered in the register maintained under section 301 of the
Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs.5 lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
7. The Company has not accepted deposits from the public.
8. The Company has an internal audit system commensurate with the size
of the Company and nature of its business.
9. 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 and are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
10. (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education Protection Fund, Employees'' State Insurance,
Income Tax, Excise Duty, Sales Tax, Service Tax, Custom Duty,
Cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, there
are no undisputed amounts payable in respect of Income Tax, Sales-Tax,
Service Tax, Customs Duty, Excise Duty and Cess which were in arrears,
as at 31.03.2014 for a period of more than six months from the date
they became payable.
(c) According to the information and explanations given to us, the dues
of Excise Duty, Sales Tax & Income Tax and which have not been
deposited on account of any dispute are furnished below:
Rs. in Lakhs
Forum Where Dispute is Pending Excise Duty Sales Tax Income-tax
High Court - - -
Customs, Excise and Service
Tax Appellate Tribunal 158.00 - -
Commissioner of Central Excise 1.81 - -
Deputy Commissioner of Central
Excise 63.65 - -
Assistant Commissioner of
Central Excise 23.84 - -
Appellate Tribunal 13.18 11.00
Assessing Officer - 1650.00 -
Commissioner of Income-tax
(Appeals), Madurai - - 352.95
11. The Company does not have any accumulated losses and no loss cash
or otherwise has been incurred by the Company in the current financial
year or preceding financial year.
12. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
Bank.
13. The Company has not granted loans and advances on the basis of
security by way of pledge of shares and other securities.
14. The Company has not given any guarantee during the year.
15. In our opinion, on the basis of information and explanations given
to us, the term loans were applied for the purposes for which the loans
were obtained.
16. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short-term basis have been used for long-term
investment.
17. The Company has not issued any shares during the year and hence the
question of any preferential allotment of shares to parties covered in
the register maintained under section 301 of the Companies Act, 1956
does not arise.
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by issue of shares during the
year.
20. 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 SUNDARAM & SRINIVASAN
Chartered Accountants
Firm Registration No. 004207 S
K S NARAYANASWAMY
Place : Chennai Partner
Date : 24.5.2014 Membership No:008593
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of TVS SRICHAKRA
LIMITED ("the Company"), which comprise 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
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 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 judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by 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 ("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 appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
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.
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
Companies Act, 1956 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.
1. The nature of the Company''s business/activities during the year is
such that, to the best of our knowledge and the information and
explanations given to us, clauses (xiii) & (xiv) of paragraph 4 of the
Order are not applicable to the Company.
2. 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 by the Management at
reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
c) The assets disposed-off during the year are not substantial and
therefore do not affect the going concern status of the Company.
Further the investment transferred during the year does not affect the
going concern status of the Company.
3. a) The inventory has been physically verified during the year by
the Management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) The Company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the book records were not material and the same have been properly
dealt with in the accounts.
4. a) The Loan of Rs.1012 Lakhs granted during last year to a
subsidiary company has been received back during the year. The interest
of Rs.25.88 Lakhs is outstanding at the end of the year. This interest
of Rs.25.88 Lakhs has been received after the end of the accounting
year.
b) As explained to us, the non-core activities will henceforth be
carried by its wholly owned subsidiary company. Consequentially a sum
of Rs. 3353 Lakhs is outstanding from this Company at the end of the
accounting year which is interest free. (Maximum outstanding Rs. 3353
Lakhs)
c) In respect of other loans and advances granted, repayment is
regular. Payment of interest is also regular.
5. 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 purchases of inventory and fixed assets and for
sale of goods and there are no major weaknesses in such internal
control.
6. a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered in the
register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs.5 lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
7. The Company has not accepted deposits from the public.
8. The Company has an internal audit system commensurate with the size
of the Company and nature of its business.
9. 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 and are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
10. a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education Protection Fund, Employees'' State Insurance, Income
Tax, Excise Duty, Sales Tax, Service Tax, Custom Duty, CESS and other
material statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales-Tax, Service
Tax, Customs Duty, Excise Duty and CESS were in arrears, as at
31.3.2013 for a period of more than six months from the date they
became payable.
11. The Company does not have any accumulated losses and no loss cash
or otherwise has been incurred by the Company in the current financial
year or preceding financial year.
12. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
Bank.
13. The Company has not granted loans and advances on the basis of
security by way of pledge of shares and other securities.
14. The Company has not given any guarantee during the year.
15. In our opinion, on the basis of information and explanations given
to us, the term loans were applied for the purposes for which the loans
were obtained.
16. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
17. The Company has not issued any shares during the year and hence
the question of any preferential allotment of shares to parties covered
in the register maintained under Section 301 of the Companies Act, 1956
does notarise.
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by issue of shares during the
year.
20. 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 SUNDARAM & SRINIVASAN
Chartered Accountants
Firm Registration No.004207 S
K S NARAYANASWAMY
Place : Chennai Partner
Date : 22.5.2013 Membership No.008593
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s TVS Srichakra
Limited, as at 31st March, 2012 and also the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date
annexed thereto. These Financial Statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We 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 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. a) As required by the Companies (Auditor's Report)
Order, 2003 issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraph 4 and
5 of the said Order to the extent applicable to the Company.
b) Further to our comments in the Annexure referred to in paragraph (a)
above, we report that :
(i) 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;
(ii) 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.
(iii) The Balance Sheet and Statement of Profit and Loss dealt with by
this report are in agreement with the books of account.
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow statement dealt with by this report comply with the
Accounting Standards referred to in sub- section (3C) of Section 211 of
the Companies Act,1956;
(v) On the basis of written representations received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, they 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;
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date;
(c) in the case of Cash Flow statement, the Cash flows of the Company
for the year ended on that date.
1. The nature of the Company's business/activities during the year
is such that, to the best of our knowledge and the information and
explanations given to us, clauses (xiii) & (xiv) of paragraph 4 of the
Order are not applicable to the Company.
2. (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 by the Management at
reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
(c) The Company has not disposed off any major/ substantial part of the
fixed assets during the year.
3. (a) The inventory has been physically verified during the year by
the Management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the book records were not material and the same have been properly
dealt with in the accounts.
4. (a) The Company has granted a loan of Rs.1012 lakhs during the year
to a subsidiary Company. The rate of interest and terms and conditions
on which such loan has been given is not prejudicial to the interests
of the Company. The loan together with interest of Rs.25.88 lakhs is
outstanding at the end of the year. The maximum amount outstanding at
any time during the year is 1037.88 lakhs.
(b) The Company has taken during the year Rs.1500 lakhs as loan from a
party listed in the register maintained under Section 301 of the
Companies Act, 1956, which have been repaid during the year. The rate
of interest and terms and conditions on which the loan was obtained are
not prejudicial to the interests of the Company.
(c) In respect of other loans and advances granted, repayment is
regular. Payment of interest is also regular.
5. 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 purchases of inventory and fixed assets and for
sale of goods and there are no major weaknesses in such internal
control.
6. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered in the
register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs.5 lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
7. The Company has not accepted deposits from the public.
8. The Company has an internal audit system commensurate with the size
of the Company and nature of its business.
9. 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 and are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
10. (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education Protection Fund, Employees' State Insurance, Income
Tax, Excise Duty, Sales Tax, Service Tax, Custom Duty, Cess and other
material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Service
Tax, Customs Duty, Excise Duty and Cess were in arrears, as at
31.3.2012 for a period of more than six months from the date they
became payable.
(c) According to the information and explanations given to us, the dues
of Sales Tax and Excise Duty which have not been deposited on account
of any dispute is furnished below:
Rs. in Lakhs
Forum where Excise Duty Sales Tax
Dispute is Pending
High Court - -
Customs, Excise and 158.00 -
Service Tax Appellate
Tribunal
Commissioner of Central 2.83 -
Excise
Deputy Commissioner of
Central Excise 6.04 -
Assistant Commissioner 21.80 -
of Central Excise
Appellate Tribunal - 3.21
Assessing Officer - 12.91
11. The Company does not have any accumulated losses and no loss cash
or otherwise has been incurred by the Company in the current financial
year or preceding financial year.
12. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
Bank.
13. The Company has not granted loans and advances on the basis of
security by way of pledge of shares and other securities.
14. The Company has given guarantee of (GBP 610000) Rs.492.64 lakhs to
a Bank for the loan taken by a Subsidiary Company.
15. In our opinion, on the basis of information and explanations given
to us, the term loans were applied for the purposes for which the loans
were obtained.
16. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
17. The Company has not issued any shares during the year and hence
the question of any preferential allotment of shares to parties covered
in the register maintained under Section 301 of the Companies Act, 1956
does not arise.
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by issue of shares during the
year.
20. 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 SUNDARAM & SRINIVASAN
Chartered Accountants
Firm Registration No. 004207 S
K S NARAYANASWAMY
Place : Chennai Partner
Date : 26.5.2012 Membership No:8593.
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s TVS Srichakra
Limited, as at 31st March, 2010 and also the Profit & Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These Financial Statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
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 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. a) As required by the Companies (Auditors
Report) Order, 2003 issued by the Central Government of India in terms
of Sub-section (4A) of Section 227 of the Companies Act, 1956, we
enclose in the Annexure a statement on the matters specified in
paragraph 4 and 5 of the said Order to the extent applicable to the
Company.
b) Further to our comments in the Annexure referred to in paragraph (a)
above, we report that:
(i) 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;
(ii) 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;
(iii) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
Directors, as on 31 st March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
(vi) 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;
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(b) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date;
(c) in the case of Cash Flow Statement, the Cash flows of the Company
for the year ended on that date.
ANNEXURE TO THE REPORT OF THE AUDITORS
1. The nature of the Companys business/activities during the year is
such that, to the best of our knowledge and the information and
explanations given to us, clauses (xiii) & (xiv) of paragraph 4 of the
Order are not applicable to the Company.
2. (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 by the Management at
reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
(c) The Company has not disposed off any major/ substantial part of the
fixed assets during the year.
3. (a) The inventory has been physically verified during the year by
the Management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the book records were not material and the same have been properly
dealt with in the accounts.
4. (a) The Company has not granted any loan during the year to any
party listed in the register maintained under Section 301 of the
Companies Act, 1956.
(b) The Company has not taken any loan from parties listed in the
register maintained under Section 301 of the Companies Act, 1956.
(c) In respect of other loans and advances granted, repayment is
regular. Payment of interest is also regular.
5. 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 purchases of inventory and fixed assets and for
sale of goods and there are no major weaknesses in such internal
control.
6. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under Section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs.5 lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
7. The Company has not accepted deposits from the public.
8. The Company has an internal audit system commensurate with the size
of the Company and nature of its business.
9. 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 and are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
10. (a) The Company is regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education Protection Fund, Employees State Insurance,
Income Tax, Excise Duty, Sales Tax, Service Tax, Customs Duty, Cess and
other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Service
Tax, Customs Duty, Excise Duty and Cess were in arrears, as at
31.3.2010 for a period of more than six months from the date they
became payable.
.(c) According to the information and explanations
given to us, the dues of Sales Tax and Excise Duty which have not been
deposited on account of any dispute is furnished below :
Rs. in Lakhs
Forum where dispute Excise Duty Sales Tax
is pending
High Court 3.22 -
Commissioner 4.85 -
Assistant Commissioner 21.79 -
Appellate Tribunal 166.03 3.00
Assessing Officer - 3.08
11. The Company does not have any accumulated losses and no loss cash
or otherwise has been incurred by the Company in the current financial
year or preceding financial year.
12. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
Bank.
13. The Company has not granted loans and advances on the basis of
security by way of pledge of shares and other securities.
14. The Company has not given Guarantee for loans taken by others, from
banks or financial institutions.
15. In our opinion, on the basis of information and explanations given
to us, the term loans were applied for the purposes for which the loans
were obtained.
16. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
17. The Company has not issued any shares during the year and hence the
question of any preferential allotment of shares to parties covered in
the register maintained under Section 301 of the Companies Act, 1956
does not arise.
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by issue of shares during the
year.
20. 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 SUNDARAM & SRINIVASAN
Chartered Accountants
Firm Registration No. 004207 S
K S NARAYANASWAMY
Place : Chennai Partner
Date : 28.5.2010 Membership No:8593.