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Tanfac Industries Ltd.

BSE: 506854 Sector: Industrials
NSE: TANFACIND ISIN Code: INE639B01015
BSE LIVE 15:52 | 15 Dec 132.60 -0.60
(-0.45%)
OPEN

130.50

HIGH

139.30

LOW

130.50

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 130.50
PREVIOUS CLOSE 133.20
VOLUME 9348
52-Week high 155.00
52-Week low 46.80
P/E 47.70
Mkt Cap.(Rs cr) 132
Buy Price 0.00
Buy Qty 0.00
Sell Price 132.60
Sell Qty 362.00
OPEN 130.50
CLOSE 133.20
VOLUME 9348
52-Week high 155.00
52-Week low 46.80
P/E 47.70
Mkt Cap.(Rs cr) 132
Buy Price 0.00
Buy Qty 0.00
Sell Price 132.60
Sell Qty 362.00

Tanfac Industries Ltd. (TANFACIND) - Auditors Report

Company auditors report

To

The Members

Tanfac Industries Limited

Report on the Financial Statements

1. We have audited the accompanying financial statements of Tanfac Industries Limited("the Company") which comprise the Balance Sheet as at March 31 2015 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

2. The management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ('the Act') with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility 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 judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance 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 theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error.

In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the financial statements- that give a true andfair view in order to design audit procedures that are appropriate in the circumstancesbut 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 theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's management and Board of Directors as well as evaluatingthe overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

6. 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 of the state of affairs of the Company as at 31stMarch 201 5its profit/loss and its cash flows for the year ended on that date.

Emphasis of Matter Paragraph

7 In forming our opinion which is not qualified we have considered Note No. 27.12 ofthe financial statements stating that despite losses and reducing net worth thefinancial statements of the company have been prepared under 'Going Concern' assumptionbasis having regard to the business plans of the company and continued financial supportfrom a promoter

Report on Other Legal and Regulatory

Requirements

8 As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters Specified in paragraphs 3 and4 of the Order.

9 As required by section 143(3) of the Act we further 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 appears from our examination of those books;

c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d. in our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014

a. on the basis of written representations received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164(2) of theAct

b. In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:

(i) The impact of pending litigations ‘ has been duly disclosed in the financialstatements. Refer Note Nos. 27.1.a and 27.3 to the Financial Statements

(ii) The Company did not have any long-term contracts including derivative contractsfor which there existed any foreseeable losses

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Khimji Kunverji & Co.
Chartered Accountants
Firm Registration No. 105146W
Hasmukh B Dehdia
Camp : Chennai Partner
Date : 15th May 2015 Membership No. F-33494

Annexure referred to in paragraph 8 Our Report of even date to the members of TanfacIndustries Limited on the Financial Statements for the year ended 31 st March 2015

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) As explained to us fixed assets have been physically verified by the management atregular intervals; as informed to us no material discrepancies were noticed on suchverification;

(ii) (a) The management has conducted physical verification of inventory at reasonableintervals during the year;

(b) The procedures of physical verification of inventory followed by the managementsare reasonable and adequate in relation to the size of the Company and the nature of itsbusiness;

(c) The Company is maintaining proper records of inventory and no materialdiscrepancies were noticed on physical verification; _

(iii) The company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the Act. Henceclause (iii)(a) & (iii) (b) of Paragraph 3 of the Order are not applicable.

(iv) Based on our audit procedures there is adequate internal control systemcommensurate with the size of the Company and the nature of its business for the purchaseof inventory and fixed assets and for the sale of goods. On the basis of examination ofthe books and records of the Company and according to the information and explanationsgiven and as per checking carried out in accordance with the auditing standards generallyaccepted in India neither we have observed nor have we been reported of any continuingfailure to correct major weakness in the internal control system relating to these areas.As regards the internal controls in the area of sale of services there is significantimprovement as compared to prior years in our opinion the same needs to be strengthenedfurther to make it commensurate with the size of the company and nature of its business.

(v) The company has not accepted any deposits from the public hence requirement ofcompliance with the provisions of Section 73 to 76 or any other relevant provisions of theAct and the Companies (Acceptance of Deposits) Rules 2014 are not applicable to thecompany

(vi) We have broadly reviewed the books of account maintained by the company pursuantto the rules made by the Central Government for the maintenance of cost records underSection 148(1) of the Act in respect of company’s products to which said rules aremade applicable and are of the opinion that prima facie the prescribed accounts andrecords have been maintained.

(vii) (a) According to the information and explanations given to us and based on therecords of the company examined by us the company is regular in depositing the undisputedstatutory dues including Provident Fund Employees' State Insurance Income-taxSales-tax Wealth Tax Service Tax Custom Duty Excise Duty cess and other materialstatutory dues as applicable with the appropriate authorities in India ;

(b) According to the information and explanations given to us and as per the recordsof the Company following dues of Sales tax Custom duty Excise duty Service tax andIncome Tax have not been deposited on account of some dispute or are partially depositedunder protest

Name of Statute Nature of the Dues Disputed amount (Rs in Lacs) Period to which the amount relates Forum where dispute is pending
TNGST Act 1959 Levy of sales tax from sales effected through Pondicherry 52.77 2004-05 Writ petition before Hon'ble High Court of Madras
52.77
Custom Act 1962 Duty on fluorspar shipment shortage 10.79 1998-99 Customs Officer
10.79
Central Excise Interest Accrued to be added 0.27 2001-02 SB CEGAT Chennai
Act 1944 Cenvat credit disallowed on steels/pipes 31.02 (April '03 - August '05 l
Cenvat credit disallowed

4.74

September '05 -
on steels/pipes March '06
Cenvat credit disallowed

4.84

April '06 -
on steels/pipes March '07
Cenvat credit disallowed on steels/pipes 0.47 April '07 - March '07 Additional/ ) Joint Commissioner Pondicherry
Cenvat credit disallowed on steels/pipes 1.93 October '07 - March '08
Cenvat credit disallowed on steels/pipes 10.49 April '08 - September '08 ' '
Cenvat credit disallowed on steels/pipes 21.55 September '08 - March ’09) J
Excise duty on freight collected on outward freight 0.74 January '14- November '1 4 Asst.Commissioner Cuddalore
Total 76.05
Service Tax on Lease Rent 12.30 2001-02 to 2004-05 The Commissioner/The Asst. Commissioner Pondicherry
Service tax on GTA 19.64 2006-07 to 2007-08 The Commissioner Pondicherry
Finance Act 1994 (Service Tax) Service Tax Credit disallowed on Maintenance/Repairs Service Tax Credit - Disallowed on Export Commission paid under the head Business Auxiliary Service 13.16 4.13 2011-12 (January '14- January '1 5 The Dy. Commissioner Pondicherry
Service tax Credit disallowed courier Banking security Test Inspection etc 3.23 January '14 - April '14 The Assistant ) Commissioner Cuddalore
Service tax Credit disallowed on maintenance/repair 4.13 January '14- November ' 1 4) _
Total 56.82
Income Tax Act 1961 Replacement of equipment claimed as revenue expenditure reclassified by Dept as capital expenditure [tax demanded]) Including Interest) 85.39 2002 - 03 Income Tax Appellate Tribunal
Disallowance of various expenses (Including Interest) 75.79 2007-08 The Commissioner of Income Tax [Appeals] Chennai
Total 161.18

(c) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

(viii) The Company has accumulated losses (Debit balance in Profit & Loss Account)of Rs 4889.66 lacs and also incurred cash loss of Rs 97.69 lacs in the current financialyear but not in the immediately preceding financial year.

(ix) Based on the audit procedures and as per the information and explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to financial institution or bank.

(x) According to information and explanations given to us the Company has not givenany guarantee for loans taken by others from bank orfinancial institutions.

(xi) According to the information and explanations given to us by the management noterm loans are raised/ availed during the year by the Company; hence the provisionof paragraph 3(xi) of the Order are not applicable to it.

(xii) During the course of our examination of the books and records of the companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud on or by the Company noticed or reported duringthe course of our audit nor have we been informed of any such instance by the Managementof the Company.

For Khimji Kunverji & Co.
Chartered Accountants
Firm Registration No.105146W
Hasmukh B Dehdia
Camp : Chennai Partner
Date : 1 5th May 201 5 Membership No. F-33494