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TAAL Enterprises Ltd.

BSE: 539956 Sector: Services
NSE: N.A. ISIN Code: INE524T01011
BSE LIVE 15:29 | 13 Dec 158.00 -7.35
(-4.45%)
OPEN

164.00

HIGH

165.00

LOW

158.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 164.00
PREVIOUS CLOSE 165.35
VOLUME 5451
52-Week high 249.95
52-Week low 125.25
P/E
Mkt Cap.(Rs cr) 49
Buy Price 158.00
Buy Qty 176.00
Sell Price 161.50
Sell Qty 20.00
OPEN 164.00
CLOSE 165.35
VOLUME 5451
52-Week high 249.95
52-Week low 125.25
P/E
Mkt Cap.(Rs cr) 49
Buy Price 158.00
Buy Qty 176.00
Sell Price 161.50
Sell Qty 20.00

TAAL Enterprises Ltd. (TAALENTERPRISES) - Auditors Report

Company auditors report

To the Members of TAAL Enterprises Limited Report on the Standalone FinancialStatements

We have audited the accompanying standalone financial statements of TAAL EnterprisesLimited ("the Company") which comprises the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance withaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

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.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor

considers internal financial control relevant to the Company's preparation of thestandalone financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the standalone financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its loss and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to Note 27.5 to the standalone financial statements which states thatduring the current year due to nonavailability of the requisite statutory licencesrequired for carrying on the demerged charter business the demerged charter business hascontinued to be operated by Taneja Aerospace and Aviation Limited (a related entity of theCompany) in trust for and on behalf of the Company including banking transactionsstatutory compliances and all other commercial activities. However the accounting entriespertaining to the demerged charter business are accounted in the books of account of theCompany.

Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. 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 purposes 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule

7 of the Companies (Accounts) Rules 2014.

(e) In our opinion there are no matters that may have an adverse effect on thefunctioning of the Company.

(f) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 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 A'

(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 does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of sub-section 11 of section 143 of the Act wegive in the ‘Annexure B'a statement on the matters specified in paragraphs 3 and 4of the Order.

For MZSK & Associates
Chartered Accountants
FirmRegistrationNo. 105047W
Deepak Rao
Place: Pune Partner
Date: August 13 2016 Membership No. 113292.

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF TAAL ENTERPRISES LIMITED

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

To the Members of TAAL Enterprises Limited

We have audited the internal financial controls over financial reporting of TAALEnterprises Limited ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

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 judgement 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 controls systemoverfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for

external purposes in accordance with generally accepted accounting principles. ACompany's internal financial control over financial reporting includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton 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 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 March 31 2016 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 Institute of CharteredAccountants of India.

Explanatory paragraph

We also have audited in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under section 143(10) of theAct the standalone financial statements of the Company which comprise the Balance Sheetas at March 31 2016 and the related Statement of Profit and Loss and Cash Flow Statementfor the year then ended and a summary of significant accounting policies and otherexplanatory information. This material weakness was considered in determining the naturetiming and extent of audit tests applied in our audit of the March 31 2016 standalonefinancial statements of the Company and this report does not affect our report datedAugust 13 2016 which expressed an unqualified opinion on those financial statements.

For MZSK & Associates
Chartered Accountants
FirmRegistrationNo. 105047W
Deepak Rao
Place: Pune Partner
Date: August 13 2016 Membership No. 113292

Annexure B To Independent Auditors' Report

[Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' in the Independent Auditors' Report of even date to the members of TAALEnterprises Limited on the financial statements for the year ended March 31 2016]

i. (a) The company has maintained proper records showing

full particulars including quantitative details and

situation of fixed assets.

(b) All the fixed assets have not been physically verified by the management during theyear but there is a regular program of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the company does not own any immovableproperty; the requirements of paragraph 3 i(c) of the Order are not applicable to theCompany.

ii. The Company is involved in the business of rendering services. Accordingly therequirements of paragraph 3(ii) of the Order are not applicable to the Company.

iii. The Company has granted loan to one Company covered in the register maintainedunder section 189 of the Companies Act 2013.

(a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the rate of interest and other terms andconditions on which the loan have been granted to the Company listed in the registermaintained under Section 189 of the Act are not prima facie prejudicial to the interestof the Company.

(b) In the case of the loan granted to the Company listed in the register maintainedunder section 189 of the Act schedule of repayment of principal and payment of interesthave not been stipulated and also the party have not repaid the principal amount and havealso not been regular in the payment of interest to the Company.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the details of amount overdue for more thanninety days are as follows:

No. of Cases Principal amount overdue Rs. In Lakhs Interest overdue Rs. In Lakhs Total overdue Rs. In Lakhs Remarks
One Nil 39.80 39.80 Reasonable steps have been taken by the Company for recovery of interest amount

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofloans investments guarantees and security made.

v. In our opinion and according to the information and explanations given to us thereare no amounts outstanding which are in the nature of deposits as on 31st March 2016 andthe Company has not accepted any deposits during the year.

vi. The provisions of sub-section (1) of section 148 of the Act are not applicable tothe Company.

Accordingly the provisions stated in paragraph 3 (vi) of the order are not applicableto the company.

vii. (a) Undisputed statutory dues including provident fund

employees' state insurance income-tax sales-tax service tax duty of customs dutyof excise value added tax cess and any other statutory dues have not been regularlydeposited with the appropriate authorities and there has been a delay in few cases.

According to the information and explanations given to us undisputed dues in respectof provident fund employees' state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues which wereoutstanding as at 31st March 2016 for a period of more than six months from the datethey became payable are as follows:

Name of the statute Nature of

the dues

Amount Rs in Lakhs Period to which the amount relates Due Date Date of Payment Remarks

if any

Income tax Tax Deducted at Source 17.13 Apr-15 to Aug-15 7th of subsequent Month 14th June 2016 Not applicable

(b) According to the information and explanation given to us there are no dues ofincome tax sales-tax wealth tax service tax customs duty excise duty value addedtax cess and any other statutory dues which have not been deposited on account of anydispute.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to the financial institution bank ordebenture holders.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable

x. 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 employees during the course of our audit.

xi. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not paid any amount formanagerial remuneration. Accordingly paragraph 3 (xi) of the Order is not applicable.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferential

allotment or private placement of shares or fully or partly convertible debenturesduring the year. Accordingly the provisions of clause 3 (xiv) of the Order are notapplicable to the Company.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

xvi. In our opinion the Company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company.

For MZSK & Associates
Chartered Accountants
FirmRegistrationNo. 105047W
Deepak Rao
Place: Pune Partner
Date: August 13 2016 Membership No. 113292