| REPORT ON FINANCIAL STATEMENTS: - We have audited the accompanying
Financial statements of TAMILNADU STEEL TUBES LIMITED ("the
Company"), which comprise the Balance Sheet as at 31st March 2015,
and Statement of Profit and Loss and Cash Flow Statement for the year
then ended, and a summary of significant accounting policies and other
explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS The
Company's Board of Directors is responsible for the preparation of
these financial statements that gives a true and fair view of the
financial position, financial performance and cash flows of the
Company with the Accounting generally accepted in India, including the
accounting standards specified under Section 133 of the Act, read with
rule 7 of the Companies (Accounts) Rules, 2014.This Responsibility
also includes maintenance of adequate accounting records in preventing
and detecting frauds and other irregularities, selection and
application of the appropriate accounting policies, making judgments
and estimates that are reasonable and prudent, and the design,
implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the
presentation of the financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or
error.
AUDITORS' RESPONSIBILITY Our responsibility is to express an opinion
on these financial statements based on our audit We conducted our
audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. Those Standards require
that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Company's Internal Control . An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness of the accounting estimates made by the
management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statement.
OPINION In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India
a) In the case of the Balance Sheet, of the state of affairs of the
Company at 31.03.2015 ;
b) In the case of the Profit and Loss account, of the profit for the
year ended on that date and;
c) In the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
REPORT ON OTHER LEGAL REGULATORY REQUIREMENTS As required by the
Companies' (Auditor's Report) Order, 2015 ("the Order") issued
by the Central Government of India in terms of Section-143(3) of the
Act, we give in the Annexure a statement on the matters specified in
Paragraphs-3 and 4 of the Order.
As required by Section-143(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books.
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
accounts.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards notified
under the Act read with the General Circular 15/2013, dated 13.09.2013
of the Ministry of Corporate Affairs in respect of Section-133 of the
Companies Act 2013;
e) On the basis of written representations received from the directors
as on March 31, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2015 from being
appointed as a Director in terms of Section-164(2) of the Act
f) With respect to the other matters included in the auditor's
report and to the best of our information and according to the
explanation given to us.
1 The company has disclosed the pending litigation on its financial
position in its financial statement.
2 The Company has made provisions, as required under the applicable
law or accounting standards, for the material foreseeable losses, if
any, on long term contracts including derivative contracts.
3 There has been no delay in transferring amount, required to be
transferred, to the investor's education and protection fund by the
company.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF TAMILNADU STEEL TUBES LIMITED, CHENNAI. ON THE ACCOUNTS FOR
THE YEAR ENDED 31st MARCH 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of
our audit, we report that:
1) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its Fixed
Assets.
(b) As explained to us, all the Fixed Assets have been physically
verified by the management at reasonable intervals; no material
discrepancies were noticed on such verification.
2) (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of inventories. No
material discrepancy was noticed on physical verification of stocks by
the management as compared to the Book Records.
(3) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms
or other parties listed in the Register maintained under Section-189
of the Companies Act, 2013. Consequently, the provision of Clause
3(iii), (iiia) and (iiib) of the orders are not applicable to the
Company.
(4) In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been not
(5) The company has not accepted any Deposits from the public within
the meaning of section 73, 74, 75 and 76 of the Act and the rules
framed thereunder to the extent notified.
(6) We have broadly reviewed the cost records maintained by the
Company pursuant to the rules prescribed by the Central Government
under Section 148(1) of the Companies Act, 2013 and are of the opinion
that prima facie, the prescribed cost records have been made and
maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
(7) (a) According to the records of the company undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, VAT, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess to the extent applicable
and any other statutory dues have generally been regularly deposited
with the appropriate authorities..
(b) According to the information and explanations given to us and the
records of the company examined by us. There are no dues of income
tax, wealth tax, service tax, sales tax, customs duty and excise duty
and cess as on 31 of March, 2015 which have not been deposited on
account of a dispute, are as follows :
S.No Nature of Disputed Amount Forum where the Dispute is
Statutory Dues (Rs. in Lacs) Pending
1. INCOME TAX DUES:
i) Block Assessment 143.29 Appeal pending before the
Hon'ble
ii) AY 1997-1998 37.28 Madras High Court
iii) AY 1999-2000 88.22 Appeal is filed before
AIIT, Chennai
iv) AY 2011-2012 116.06
2. SERVICE TAX DUES: Pending for inclusion in
(From Nov. 1997 to 1.60 Modified Draft June 1998) Rehabilitation
Scheme (MDRS) before BIFR (c) There is no amount required to be
transferred by the company to the Investor Education and Protection
Fund Account in accordance with provisions of the Companies Act and
the rules made there under.
(8) The Company has not accumulated loss at the end of the financial
year ended as on 31st March 2015, but has not incurred cash loss
during the financial year covered by our audit and in the immediately
preceding financial year.
(9) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(10) According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from a
bank or financial institution
(11) Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not raised any term loans during the year, hence the provisions of
clause 11 of companies (Auditor's Report) Order, 2015 is not
applicable to the company.
(12) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the management.
FOR ABHAY JAIN & CO.,
Chartered Accountants
(FRN No.: 000008S)
Place: Chennai SD/-
Date : 30.05.2015 (A. K. JAIN-Partner)
Membership No. 070224 |