You are here » Home » Companies » Company Overview » Tamilnadu Steel Tubes Ltd

Tamilnadu Steel Tubes Ltd.

BSE: 513540 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE176E01012
BSE LIVE 13:18 | 15 Dec 25.90 1.20
(4.86%)
OPEN

25.90

HIGH

25.90

LOW

24.75

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 25.90
PREVIOUS CLOSE 24.70
VOLUME 5500
52-Week high 54.80
52-Week low 24.70
P/E 7.60
Mkt Cap.(Rs cr) 13
Buy Price 24.90
Buy Qty 100.00
Sell Price 0.00
Sell Qty 0.00
OPEN 25.90
CLOSE 24.70
VOLUME 5500
52-Week high 54.80
52-Week low 24.70
P/E 7.60
Mkt Cap.(Rs cr) 13
Buy Price 24.90
Buy Qty 100.00
Sell Price 0.00
Sell Qty 0.00

Tamilnadu Steel Tubes Ltd. (TNSTEELTUBES) - Auditors Report

Company auditors report

Statutory Auditors

M/s. Abhay Jain & Co Chartered Accountants" Bushra House" Flat No.4-A2nd Floor New No.6 Old No.46 Nowroji Road Chennai - 600 031 hold office till theconclusion of the ensuing Annual General Meeting and are eligible for re-appointment. Theyhave confirmed their eligible to the effect that their re-appointment if made would bewithin the prescribed limits under the Act and that they are not disqualified forre-appointment.

The Notes on financial statement referred to in the Auditors’ Report areself-explanatory and do not call for any further comments. The Auditors’ Report doesnot contain any qualification reservation or adverse remark.

Cost Auditors

The Board has appointed Mrs Latha Venkatesh Cost Auditor (Firm Regn. No. 101017 M.No. 27953) for conducting the Audit of cost records of the company for various segmentsfor the Financial Year 2016-17.

Secretarial Auditor

The Board has appointed Mr. VS. Sowrirajan Practising Company Secretary (FCS 2368 CP. No 6482) to conduct Secretarial Audit for the financial year 2016-17. The SecretarialAudit Report for the financial year ended March 31 2017 is annexed herewith marked asAnnexure to this Report. The Secretarial Audit Report does not contain any qualificationreservation or adverse remark.

Audit Committee

The Audit Committee comprises Independent Directors namely Mr.M.J.Lakshmi NarasimhaRao Mr.Gopal Singh and Mrs. S. Rajalakshmi and Wholetime Directors Mr.Mahaveer Singhand Mr.M.T.Elumalai and Managing Director Mr.Rakesh Goyal. All the recommendations made bythe Audit Committee were accepted by the Board.

Vigil Mechanism

The Vigil Mechanism of the Company which also incorporates a whistle blower policy interms of the Listing Agreement includes an Ethics & Compliance Task Force comprisingsenior executives of the Company. Protected disclosures can be made by a whistle blowerthrough an e-mail or dedicated telephone line or a letter to the Task Force or to theChairman of the Audit Committee. The Policy on vigil mechanism and whistle blower policymay be accessed on the Company’s website at the link:

ACKNOWLEDGEMENT

Your Directors would like to express their sincere appreciation for the assistance andcooperation received from the financial institutions banks Government authoritiescustomers vendors and members during the year under review. Your Directors also wish toplace on record their deep sense of appreciation for the committed services by theCompany’s executives staff and workers.

For and on behalf of the Board of Directors

Place : Chennai RAKESH GOYAL Managing Director
Date : 30.05.2017 (DIN:-00990310)

Auditors' Report On Standalone Financial Results of M/s TAMILNADU STEEL TUBES LTD.CHENNAI For the Q.E. and Year Ended March 31st 2017

To: Board of Directors

M/s TAMILNADU STEEL TUBES LTD.

Mercury Apts. 1st Floor 65 Pantheon Road Egmore

CHENNAI - 600 008..

We have audited the accompanying Statements of Standalone Financial Results of M/sTAMILNADU STEEL TUBES LTD. for the Quarter Ended 31st March 2017 and the Financial YearEnded 31st March 2017 ( "the Statements") attached herewith being submittedby the company pursuant to the requirement of Regulation 33 of the SEBI (ListingObligation and Disclosure Requirements) Regulation 2015. These Quarterly FinancialResults as well as the Yearly Financial results have been prepared on the basis of AuditedFinancial Statement for the Year Ended 31st March 2017 and the Financial Results for thenine-month period ended December 31 2016 which were subject to Limited Review which arethe responsibility of the Company management and approved by the Board of Directors hasbeen prepared on the basis of the related standalone Financial Statements which are inaccordance with the Accounting Standards prescribed under Section 133 of the CompaniesAct. 2013 read with relevant rules issued thereunder and other accounting principlesgenerally accepted in India. Our responsibility is to express an opinion on the statement.

We conducted our audit in accordance with the auditing standards issued by theInstitute of Chartered Accounts of India. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial results are free ofmaterial misstatement(s). An audit includes examining on a test basis evidencesupporting the amounts disclosed in the statements. An audit also includes evaluating theappropriateness of the accounting principles used and the reasonableness of thesignificant estimates made by management as well as evaluating the overall presentationof the statement. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion.

In our opinion and to the best of our information and according to the explanationsgiven to us the statements:

(i) are presented in accordance with the requirements of Regulation 33 of the SEBI(Listing Obligation and Disclosure Requirements) Regulation 2015 in this regard; and

(ii) give a true and fair view in conformity with the aforesaid accounting standardsand other accounting principles generally accepted in India of the net loss and otherfinancial information of the Company for the Quarter Ended 31/03/2017 as well for theFinancial Year ended 31st March 2017.

for ABHAY JAIN & Co.
Place: Chennai Chartered Accountants
Date: 30.05.2017 (FRN. 000008S)
Sd/-
(A.K.JAIN)
Partner
M.No. 70224

INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF TAMIL NADU STEEL TUBES LIMITED REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Tamilnadu Steel Tubes Limited("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary 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 matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Financial Statements that give

the true and fair view of the financial position financial performance and cash flowsof the Company with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities selection and application of the appropriate accounting policies makingjudgements and estimates that are reasonable and prudent and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand 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 ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Company’s preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the Company’s internal control. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2016;

(b) In the case of the Statement of Profit and Loss of the profit of the Company forthe year ended on that date; and

(c) In the case of the Cash Flow Statement of the cash flows of the Company for theyear ended on that date.

(d) Company had provided requisite disclosures as to holdings as well as dealings inSpecified Bank Notes during the period from 8th November 2016 to 30th December 2016 andbased on our audit procedure performed we report that these are in accordance with thebooks of accounts maintained by the company.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. 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 ourknowledge 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 theCompany so far as appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d. In our opinion the Balance Sheet the Statement of Profit and Loss and the CashFlow Statement comply with Accounting Standards notified under the Act read with theGeneral Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairsin respect of Section 133 of the Companies Act 2013

e. On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.

f. With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A". Our report express an unmodified opinion on theadequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting.

g. With respect to the other matters included in the auditor’s report and to thebest of our information and according to the explanation given to us.

i) The company has disclosed the impact of pending litigation on its financial positionin its financial statement.

ii) The company has made provision as required under the applicable law or AccountingStandards for material foreseeable losses if any on long term contracts includingderivative contracts.

iii) There has been no delay in transferring amounts required to be transferred tothe investor’s education and protection fund by the company.

2. As required by the Companies (Auditor’s Report) Order 2016 (the Order) issuedby the

Central Government of India in terms of Section 143(3) of the Act we give in the"Annexure

B" a statement on the matters specified in paragraphs 3 and 4 of the Order.

for ABHAY JAIN & Co.
Place: Chennai Chartered Accountants
Date: 30.05.2017 (FRN. 000008S)
Sd/-
(A.K.JAIN)
Partner
M.No. 70224

Annexure - A to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

In conjunction with our audit of the consolidated financial statements of the Companyas of and for the year ended 31 March 2017 we have audited the internal financialcontrols over financial reporting of Tamilnadu Steel Tubes Limited company incorporatedin India as of that date.

Management’s Responsibility for Internal Financial Controls

The Respective Board of Directors of the Holding Company and its subsidiary companywhich is company incorporated in India are responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ("ICAI’).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") issued by ICAI and the Standards on Auditing issued byICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both issued by the Instituteof Chartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Holding Company and its subsidiary company which is companyincorporated in India have in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the ICAI. e e a ve ge y

for ABHAY JAIN & Co.
Place: Chennai Chartered Accountants
Date: 30.05.2017 (FRN. 000008S)
Sd/-
(A.K.JAIN)
Partner
M.No. 70224

Annexure - B to the Independent Auditors' Report

The Annexure referred to in paragraph 1 of our Report of even date to the members ofTAMILNADU STEEL TUBES LIMITED. On the accounts of the Company for the year ended 31stMarch 2017.

On the basis of such checks as we considered appropriate and according to theinformation 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 includingquantitative details and situation of its fixed assets.

(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification. In ouropinion the frequency of verification is reasonable

(c) The title deeds of immovable properties are held in the name of the Company.

2. (a) As explained to us inventories have been physically verified during the year bythe management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness. The Company is generally maintaining proper records of its inventories. Nomaterial discrepancy was noticed on physical verification of stocks by the management ascompared to book records.

3. (a) According to the information and explanations given to us and on the basis ofour examination of the books of account the Company has not granted any loans secured orunsecured to companies firms or other parties listed in the register maintained underSection 189 of the Companies Act 2013. Therefore the provision of clause 3(3a) (3b) and(3c) of the said order are not applicable to the Company

4. In our opinion and according to the information and explanations given to us theCompany has not given any loan nor made any investment and not provided guarantee or anysecurity as such the provisions of Section 185 and 186 of the Companies Act 2013 is notapplicable on the Company.

5. The Company has not accepted any Deposits from the public within the meaning ofsection 73 74 75 and 76 of the Act and the rules framed there under to the extentnotified.

6. We have broadly reviewed the cost records maintained by the Company pursuant to theRules prescribed by the Central Government under Section 148(1) of the Companies Act 2013and are of the opinion that prima facie the prescribed cost records have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

7. (a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including provident fund employees’ state insuranceincome tax sales tax service tax duty of customs duty of excise value added tax cessand other material statutory dues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues of income tax sales tax service taxduty of customs and duty of excise duty value added tax as at [balance sheet date] whichhave not been deposited on account of a dispute are as follows:

Name of the statute

Nature of dues

Amount

Period to which the amount relates

Forum where the dispute is pending

(Rs.in Lakhs)
INCOME TAX ACT 1961 Regular Demand 143.29 Block

Assessment

Hon'ble Madras High Court
INCOME TAX ACT 1961 Regular Demand 37.28 A/Y 1997-98 Hon'ble Madras High Court
INCOME TAX ACT 1961 Regular Demand 17.96 A/Y 1999-2000 Hon'ble Madras High Court
INCOME TAX ACT 1961 Regular Demand 116.06 A/Y 2011-12 Appeal is filed before ITAT Chennai.
SERVICE TAX Regular Demand 1.6 Nov 1997 to June 1998 Before BIFR
INCOME TAX ACT 1961 Regular Demand 65.17 A/Y 2014-15 CIT(A)

8. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans orborrowings to any financial institution or bank or government as of the balance sheetdate.

9. The Company has not raised any moneys by way of initial public offer further publicoffer (including debt instruments) and term loans. Accordingly the provisions of Clause3(9) of the Order are not applicable to the Company.

10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

11. The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

12. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(12) of the Order are not applicable to the Company.

13. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under AccountingStandard (AS) 18 Related Party Disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.

14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review39. Accordingly theprovisions of Clause 3(14) of the Order are not applicable to the Company.

15. The Company has not entered into any non cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(15) of the Order arenot applicable to the Company.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(16) of the Order are notapplicable to the Company.

for ABHAY JAIN & Co.
Place: Chennai Chartered Accountants
Date: 30.05.2017 (FRN. 000008S)
Sd/-
(A.K.JAIN)
Partner
M.No. 70224