The Members of
We have audited the accompanying standalone financial statements of TARMAT LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2017 theStatement Profitand Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.
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 of these Standalone financialstatements that give a true and fair view of the financial position financial performanceand cash generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe 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 theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the
Company's Directors as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficientand appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationgiven to us except for the matters described in the paragraphs "Emphasis ofMatter" 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 Profitsand its cashflows affairs theCompanyasat31stMarch2017 for the year ended on that date.
Emphasis of Matter
We draw attention to the following matters in the Notes to the financial statements
1) Note No 7 of the Financial Statements in respect of Short Term Borrowings a) TheCompany has not provided interest on Working Capital facilities and bank charges on BankGuarantees facilities enjoyed from Vijaya Bank and Kotak Mahindra Bank Ltd. Resulting intooverstatement of Net profit and understatement of Loan Balance to that extent. Further thecompany has not provided interest on term loan facilities enjoyed from Kotak Mahindra BankLtd and SREI Finance. However the amount of interest cannot be quantified in absence ofBalance confirmation from Vijaya Bank b) The balances of loan outstanding of Vijaya BankKotak Mahindra Bank Ltd and SREI Finance are subject to balance confirmation. Due to NonAvailability of confirmation of aforsesaid balances we are unable to quantify the impactof the adjustments if any arising from reconciliation and settlement of account balancesin the financial statements.
2) Note No 17 of the Financial Statements in respect of Cash and cash Balance
The Balances of Fixed Deposit with Vijaya Bank amounting to Rs 449.03 and Balance withBank in Current Accounts grouped under Cash and Cash Balances are not being confirmed bybanks. Due to Non Availability of confirmation of aforsesaid balances we are unable toquantify the impact of the adjustments if any arising from reconciliation and settlementof account balances in the financial statements.
Our Opinion is not modified in respect of the matters mentioned above.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("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" a statement on the matters specified in theparagraph 3 and 4 of the Order to the extent applicable.
2. 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 in agreement with thebooks of account
(d) In our opinion the aforesaid standalone financial statements under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014.
(e) 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.
(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 B".
(g) 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 Note 24 (iv) to the financial statements;
II. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses III. The company has not transferred thefollowing amounts which were required to be transferred to the Investor Education andProtection Fund by the Company
|Nature of Amount to be transferred ||Amount |
|Share Application Money ||177000 |
|Unpaid Dividend - 2010 ||43367 |
IV. The Company has provided requisite disclosures in the Standalone financialstatements as to holdings well as dealings in Specified Bank notes during the period from08th November 2016 to 30th December
2016. Based on audit procedures and relying on the management representation we reportthat the disclosures are in accordance with Books of account maintained by the Company andas produced to us by the Management. Refer Note no 34 (5) to the standalone financialstatements.
| ||For HEGDE & ASSOCIATES |
| ||Chartered Accountants |
| ||Firm Reg. No 103610W |
|Manoj Shetty || |
|(Partner) || |
|M.No 138593 || |
|Date: 29.05.2017 || |
|Place: MUMBAI || |
"Annexure-A" TARMAT LIMITED
Statement on matters specified in paragraphs 3 & 4 of the Companies (Auditor'sReport) Order 2016 ("the order") issued by the Central Government in terms ofsub section (11) of section 143 of the Companies Act 2013 for the year ended 31st March2017 for the year ended 31st March 2017
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of fixed assets by whichfixed assets are verified in a phased manner over a period of three years. In accordancewith this program certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification. In our opinion this frequency ofphysical verification is reasonable having regard to the size of the company and nature ofbusiness.
(C) The title deeds of immoveable properties are held in the name of the company.
(ii) The inventory has been physically verified and certified by the management at theyear end. In our opinion the frequency of verification is reasonable. The discrepanciesnoticed on such verification were not material and have been properly dealt within thebooks 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. Therefore clause (iii) of para 3 of the order isnot applicable.
(iv) In respect of loans investments guarantees and security made or provided by thecompany during the year the provisions of sections 185 and 186 of the Companies Act 2013have been complied with.
(v) In accordance with information and explanations given to us the company has notaccepted any deposits during the year and hence directives issued by the Reserve bank ofIndia and provisions of section 73 to 76 and other applicable provisions of the CompaniesAct 2013 and rules framed there under are not applicable. No order in this regard inrespect of the company has been passed by the Company Law Board or Reserve Bank of Indiaor National Company Law Tribunal or any other court or any other tribunal.
(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 of the Act and are of opinion that prima facie the prescribed accounts andrecords have been made and maintained.
(vii) In our opinion and according to the information and explanation given to usbarring the delay & the non-payment of the following undisputed statutory liabilitythe company is regular in depositing undisputed statutory dues including Sales Tax WealthTax Cess and other material statutory dues if any applicable to it with appropriateauthorities.
|Name of the ||Nature of ||Amount (Rs ) ||Period to which ||Due Date ||Date of ||Remarks if |
|Statute ||Dues || ||the amount || ||Payment ||any |
| || || ||relates || || || |
|Income Tax ||Tax Deducted ||3471742/- ||2016-17 ||30-09-2017 ||Unpaid || |
|Act1961 ||at Source ||9964863/- ||2015-16 ||30-09-2016 || || |
| || ||11886224/- ||2013-14 ||30-09-2014 || || |
|MVAT Act 2002 ||VAT ||10583729/- ||2013-14 ||30-04-2014 ||Unpaid || |
| ||Provident Fund ||8217/- ||2016-17 ||20-04-2017 || || |
| ||ESIC ||1996/- ||2016-17 ||20-04-2017 || || |
| ||Profession Tax ||57650/- ||2016-17 ||20-04-2017 ||Unpaid || |
| || ||97675/- ||2015-16 ||20-04-2016 ||Unpaid || |
| || ||95500/- ||2014-15 ||20-04-2015 ||Unpaid || |
| || ||69000/- ||2013-14 ||20-03-2014 ||Unpaid || |
| || ||165325/- ||2012-13 ||20-03-2013 ||Unpaid || |
| || ||96950/- ||2011-12 ||20-03-2012 ||Unpaid || |
|Name of the Statute ||Nature of Dues ||Amount (Rs ) ||Period to which the amount relates ||Due Date ||Date of Payment ||Remarks if any |
| ||Unpaid Divdend ||43367/- ||2010 || || ||To be Transferred to Investor Education and Protection Fund by the Company |
| ||Share Application Money ||177000/- ||2005-06 || || ||To be Transferred to Investor Education and Protection Fund by the Company |
(b) According to the information and explanation given to us there are no dues ofIncome tax Sales Tax Service Tax Custom duty Excise duty and Cess which have not beendeposited on account of dispute except in the following:
|Name of the Statute ||Nature of the dues ||Amount involved. ||Period Pending Before |
|Maharashtra VAT ||Assessment ||14308082 ||01.04.05 DC Appeal V To 31.03.06 |
|Maharashtra VAT ||Assessment ||12616462 ||01.04.05 DC Appeal V To 31.03.06 |
|Maharashtra VAT ||Assessment ||26511442 ||01.04.08 DC Appeal V To 31.03.09 |
|Maharashtra VAT ||Assessment ||34855394 ||01.04.06 DC Appeal III To 31.03.07 |
|Maharashtra VAT ||Assessment ||79241439 ||01.04.07 DC Appeal III To 31.03.08 |
|Maharashtra VAT ||Assessment ||36699459 ||01.04.09 DC Appeal III To 31.03.10 |
|Maharashtra VAT ||Assessment ||44570870 ||01.04.10 DC Appeal III To 31.03.11 |
(viii)According to the information and explanation given to us the company hasdefaulted in repayment of the following dues with Banks. The amount of default is as perthe records maintained by the company and the banks or financial institutions have notconfirmed the balances outstanding as on 31st March 2017.
|Particulars ||Amount of ||Period of ||Remarks if |
| ||default as at ||default ||any |
| ||the balance || || |
| ||sheet date || || |
|Vijaya Bank ||409525684 ||Unpaid || |
|Vijaya Bank (Performance Gurantee) ||334826921 ||Unpaid || |
|Kotak Mahindra Bank ||19180353 ||Unpaid || |
|SREI Finance Ltd ||2629264 ||Unpaid || |
(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. Therefore clause (ix)of para 3 of the order is not applicable.
(x) In accordance with our audit as per generally accepted auditing practices and theinformation and explanation given to us no fraud by or on the Company by its officers orits employees has been noticed or reported during the year nor have we been informed ofany such case by the management.
(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.
(xii) The company is not a Nidhi Company as defined in section 406(1) of the CompaniesAct 2013. Therefore clause (xii) of para 3 of the order is not applicable.
(xiii)All transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc as required by the applicable accounting standards.
(xiv)The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Therefore clause(xiv) of para 3 of the order is not applicable.
(xv)The company has not entered into any non-cash transactions with directors orpersons connected with him and therefore compliance of the provisions of section 192 ofCompanies Act 2013 is not applicable.
(xvi)The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For HEGDE & ASSOCIATES
Firm Reg. No 103610W
"Annexure-B" TARMAT LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") for the year ended 31st March 2017
We have audited the internal financial controls over financial reporting of TARMATLIMITED ("the Company") as of March 31 2017 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date.
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 Companies Act 2013.
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 Institute of Chartered Accountants ofIndia. Those Standards and the Guidance 168 Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internalfinancialcontrols over financial reporting was established and maintainedand if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls reporting and their operating effectiveness. Our audit ofinternal financial controls over financial systemover financial reporting includedobtaining an understanding of internal financial controls overfinancialreportingassessing 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. Webelieve that the audit evidence we have obtained is sufficientand appropriate to provide abasis for our audit opinion on the Company's internal financial controls system overfinancial 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 generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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.
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 2017 based on theinternal control over financial reporting criteria established by 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.
| ||For HEGDE & ASSOCIATES |
| ||Chartered Accountants |
| ||Firm Reg. No 103610W |
|Manoj Shetty || |
|(Partner) || |
|M.No 138593 || |
|Date: 29.05.2017 || |
|Place: MUMBAI || |