You are here » Home » Companies » Company Overview » Tamil Nadu Telecommunications Ltd

Tamil Nadu Telecommunications Ltd.

BSE: 523419 Sector: Engineering
NSE: TNTELE ISIN Code: INE141D01018
BSE LIVE 13:58 | 13 Nov Stock Is Not Traded.
NSE 13:51 | 07 Dec 2.20 0
(0.00%)
OPEN

2.20

HIGH

2.20

LOW

2.20

OPEN 1.28
PREVIOUS CLOSE 1.28
VOLUME 751
52-Week high 4.66
52-Week low 1.13
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.28
Sell Qty 628.00
OPEN 1.28
CLOSE 1.28
VOLUME 751
52-Week high 4.66
52-Week low 1.13
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.28
Sell Qty 628.00

Tamil Nadu Telecommunications Ltd. (TNTELE) - Auditors Report

Company auditors report

To

The Members of Tamilnadu Telecommunications Limited.

Report on the Ind AS Financial Statements:

1. We have audited the accompanying Ind AS financial statements of TamilnaduTelecommunications Limited ("the Company") which comprise the Balance Sheetas at 31st March 2017 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Cash Flow the Statement of Changes in Equity asummary of the significant accounting policies and other explanatory information for theyear then ended

Management's Responsibility for the Ind AS Financial Statements:

2. 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 Ind AS financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Act.

3. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofaccounting records relevant to the preparation and presentation of the Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility:

4. Our responsibility is to express an opinion on these lnd AS financial statementsbased on our audit.

5. We have taken into account the provisions of the Act the Accounting and AuditingStandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

6. We conducted our audit of the lnd AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the lnd AS financial statements are free from materialmisstatement.

7. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the lnd AS financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe lnd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the lnd AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the lnd AS financial statements.

8. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the lnd AS financial statements.

Basis for Qualified Opinion

9. a ) The Company has not recognised the following financial liability/asset atFair Value in terms of IndAS 109 (including comparative figures as of 31stMarch 2016 and 1st April 2015):

i ) Amounts due to: Fujikura Limited amounting to Rs. 18945590; and

i i ) Trade Receivables (considered good) amounting to Rs.74311691.

Qualified Opinion:

10. In our opinion and to the best of our information and according to theexplanations given to us except for the effects of matter described in the Basis forQualified Opinion paragraph above the aforesaid lnd AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including the lndAS of the state of affairs (financial position) of the Company as at 31stMarch 2017 and its Loss (financial performance including other comprehensive income)Cash flows and the changes in equity for the year ended on that date.

Emphasis of Matter

11. Without qualifying our conclusion in respect of this matter we draw attention to:

a) S.No-3–Note–27-Notes to Accounts. As at 31st March 2017 the Company'saccumulated losses of Rs. 1177641518 (including a loss of Rs.162687588 for the yearunder audit) has eroded the Net Worth of the Company indicating the existence of materialuncertainty that may cast a doubt about the Company's ability to continue as a GoingConcern. Based on the mitigating factors and events occurring after the reporting periodas detailed in the said note the Management believes that the Going Concern assumption isappropriate.

b) S.No 21 -Note - 27 Notes to Accounts . The Company has not restated the amounts dueto its holding company viz.Telecommunications Consultants India Limited amounting toRs.839990817 at Fair value but retained the same at its book value.

c) Considering the present inability of the Company to repay its debts the Bridge Loanand the Working Capital Support received from Telecommunications Consultants India Limitedamounting to Rs.116573000 and Rs. 61950290 respectively should be treated as a LongTerm Financial Liability in the books of the Company and not as a Short term Borrowings.

Report on Other Legal and Regulatory Requirements:

12. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give astatement on the matters specified in paragraphs 3 and 4 of the Order.

13. As per the books and records produced before us and as per the information andexplanations given to us and based on such audit check that we considered necessary andappropriate we report that: (i) (a) The Company has maintained proper records showingfull including quantitative details and situation of fixed assets.

(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals and no material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties are held in the name of the Company subjectto the details provided in Annexure II to our Report.

(ii) (a) As explained to us the inventory has been physically verified during the yearby the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us thediscrepancies noticed on verification between the physical stocks and book records werenot material and have been properly dealt with in the books of account.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 during the year (iv) The Company has not grantedany loans investments guarantees and security to any person attracting the provisions ofSection 185 and 186 of the Companies Act 2013.

(v) The Company has not accepted any deposit from the public. Therefore the provisionsof Clause (v) of paragraph 3 of the CARO 2016 are not applicable to the Company.

(vi) The Central Government has not prescribed maintenance of cost records undersub-section (1) of section 148 of the Companies Act 2013.

(vii) (a) The Company has been generally regular in depositing with appropriateauthorities undisputed statutory dues including Provident Fund Income Tax Sales TaxService Tax Duty of Excise Duty of Customs Value added Tax Cess and other statutorydues with the appropriate authorities during the year as applicable to it except theProperty Tax amounting to Rs.4072150/-. We are informed that there is one employee whois eligible to be covered under Employees State Insurance scheme.

(b) The details of disputed dues of Sales Tax and Duty of Customs which have not beendeposited as on 31st March 2017 are as given below:

Statute Nature of dues Amount (Rs.) Forum where dispute is pending
Sales Tax Additional sales Tax 18608794 High Court of Madras
Sales Tax Non-Submission of C-forms 2295000 Commercial Sales tax officer.
Duty of Customs Difference in classification of imports 3155226 Commissioner of customs

(viii) The Company has not borrowed any sums from Banks or Financial Institutions orDebenture holders during the year and hence the question of default in repayment of duesto Banks or Financial Institutions or Debenture holders does not arise.

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year.

(x) In our opinion according to the information provided to us based on our auditchecks and on an overall examination of the books and records of the Company no fraud onor by the Company has been noticed or reported during the year.

(xi) The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct.

(xii) The said Company is not a Nidhi company.

Therefore the provisions of clause (xii) of paragraph 3 of CARO 2016 are notapplicable to the Company.

(xiii) All transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable Indian Accounting Standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.

(xv) The Company during the year has not entered into any non-cash transactions withdirectors or persons connected with him as prescribed under the provisions of section 192of Companies Act 2013.

(xvi) The Company is not a Non-Banking Finance Company. Therefore the provisions ofClause (xvi) of paragraph 3 of the CARO 2016 are not applicable to the Company.

14. 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 bestof 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 theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e) Our observations in para 11 (Emphasis of Matter) hereinabove regarding theassumption of Going Concern in our opinion may have adverse effect on the functioning ofthe Company.

f ) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164(2) of the Act.

g) 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 I.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements –Refer S.No.2101314 and 18 under Note-27–Notes to Accounts to the financial statements;

ii. The Company has made provision as required under the applicable law or Indianaccounting standards for material foreseeable losses if any on long-term contracts.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The Company has disclosed in its Ind AS financial statements the details ofSpecified Bank Notes (SBN) held and transacted during the period from 08thNovember 2016 to 30th December 2016 and they are in accordance with the booksof accounts maintained by the Company.

15. Report on the Directions issued by the Comptroller and Auditor General of Indiaunder Section 143(5) of the Companies Act 2013 for conducting audit of accounts for theyear 2016-17 is given in Annexure II to our Report.

For S.VENKATRAM & CO
Chartered Accountants
(FRN: 004656S)
R.Kandavelu
Place: Chennai Partner
Date: 29th May 2017 (M.No.12811)

Annexure - I

Annexure to the Independent Auditor's Report of even date on the Ind AS FinancialStatements of Tamilnadu Telecommunications Limited Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act"):

1. We have audited the internal financial controls over financial reporting of TamilnaduTelecommunications Limited ("the Company") as of 31st March 2017in conjunction with our audit of the Ind AS financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls:

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility:

3. 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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 Ind AS financial statements whether due to fraud or error.

5. 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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting:

6. 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: i. Pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; ii. Provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorizations of management and directors of the company; and iii. Provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the Company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting:

7. 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:

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the ICAI.

For S.VENKATRAM & CO
Chartered Accountants
(FRN: 004656S)
R.Kandavelu
Place: Chennai Partner
Date: 29th May 2017 (M.No.12811)

Annexure – II

Report on directions issued by Comptroller and Auditor General of India under Section143(5) of the Companies Act 2013 for conducting audit of accounts of TamilnaduTelecommunications Limited (TTL) for the year 2016-17.

S. No. Direction Observation
1. Whether the company has clear title/lease deeds for freehold and leasehold land respectively? If not please state the area of freehold and leasehold land for which title/lease deeds are not available. The Company is currently in possession of 9.78 acres of land out of which 2.42 acres of land acquired from CMDA and 7.36 acres of land acquired from Tamilnadu Government in the year 1998. In respect of CMDA land Memorandum of Lease cum Sale Agreement has been entered and on completion of payment the company has executed sale deed and the same in original was surrendered to SBI which is yet to be returned by SBI in spite of due clearances received from all the banks of the consortium.
Tamilnadu Govt Land of 7.36 acres was delivered to TIDCO by Tamilnadu Govt vide Land Delivery Receipt No.3959/96 and TIDCO vide its letter dated 03.09.1997 addressing TTL transferred the land to TTL. It is stated therein that the transfer of title deed will be completed on receipt of the cost of land in due course. The cost of land was finally determined by Govt in 2010 and the same was paid. Land Delivery Receipt was issued by the Govt to the Company.
2. Please report whether there are any cases of waiver/write off of debts /loans/interest etc. if yes the reasons there for and the amount involved. There were no cases of waiver/write-off of debts loans/ interest etc. during the year 2016-17.
3. Whether proper records are maintained for inventories lying with third parties & assets received as gift from Govt. or other authorities. There were no inventories lying with third parties and no assets have been received by the company as gift/grant(s) from Government or other authorities during the year.

 

For S.VENKATRAM & CO
Chartered Accountants
(FRN: 004656S)
R.Kandavelu
Place: Chennai Partner
Date: 29th May 2017 (M.No.12811)