You are here » Home » Companies » Company Overview » Talbros Automotive Components Ltd

Talbros Automotive Components Ltd.

BSE: 505160 Sector: Auto
NSE: TALBROAUTO ISIN Code: INE187D01011
BSE 12:06 | 27 Jun 433.00 6.55
(1.54%)
OPEN

440.00

HIGH

440.15

LOW

429.50

NSE 11:53 | 27 Jun 436.55 9.80
(2.30%)
OPEN

434.65

HIGH

439.00

LOW

429.95

OPEN 440.00
PREVIOUS CLOSE 426.45
VOLUME 682
52-Week high 654.90
52-Week low 254.20
P/E 14.43
Mkt Cap.(Rs cr) 535
Buy Price 430.50
Buy Qty 8.00
Sell Price 433.70
Sell Qty 4.00
OPEN 440.00
CLOSE 426.45
VOLUME 682
52-Week high 654.90
52-Week low 254.20
P/E 14.43
Mkt Cap.(Rs cr) 535
Buy Price 430.50
Buy Qty 8.00
Sell Price 433.70
Sell Qty 4.00

Talbros Automotive Components Ltd. (TALBROAUTO) - Auditors Report

Company auditors report

To the Members of Talbros Automotive Components Limited Report on theAudit of the Standalone Financial Statements Opinion

We have audited the accompanying Standalone financial statements of TalbrosAutomotive Components Limited ("the Company") which comprise the BalanceSheet as at March 31 2021 the Statement of Profit and Loss (including othercomprehensive income) the Statement for Cash Flow and the Statement of Changes in Equityfor the year ended on that date and notes to the financial statement including summary ofsignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlegenerally accepted in India of the state of the affairs of the Company as at March 312021 its profit and total comprehensive income its cash flows and the changes in equityfor the year ended on that date.

Basis for Opinion

We conducted our audit of standalone financial statements in accordancewith the Standards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the independence requirements thatare relevant to our audit of the standalone financial statements under the provisions ofthe Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics.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.

Emphasis of Matters

We draw attention to note no. 47 to the Standalone FinancialStatements which describes that the potential impact of

COVID-19 pandemicon the carrying value of its assets and liabilitiesare dependent on future developments which remain uncertain.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr. Key Audit Matters Auditor's Response
1 Valuation Of complex instruments involving high estimation uncertainty Principal Audit Procedures
The Company has material long term investments in group companies which are un-quoted. We have verified the group shareholding in the investment in equity instruments which are fair valued by the company.
We have verified the reasonableness of assumptions used and the valuation technique used to determine the fair value.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Corporate Governance and Corporate Information but doesnot include the standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.

If based on the work we have performed we conclude that there is amaterial misstatement in this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these Standalonefinancial statements that give a true and fair view of the financial position financialperformance total comprehensive income cash flows and changes in equity of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments 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 ofthe accounting records relevant to the preparation and presentation of the Standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is responsible for overseeing the company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of Standalone FinancialStatements

Our Objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in aggregate they could reasonably be expected to influence the economicdecision of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs We exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and to obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

- Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

- Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

- Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on thecompany's ability to continue as a going concern. If we conclude that materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusion are based on the audit evidencesobtained up to the date of our auditor's report. However future events or conditionsmay cause the company to cease to continue as a going concern.

- Evaluate the overall presentation Structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charge with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of section143(11) of the Act we give in "Annexure I" a statement on the matters specifiedin paragraphs 3 and 4 of the Order.

As required by Section 143 (3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by the law havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss including othercomprehensive income the Statement of Cash Flows and the Statement of Changes in Equitydealt with by this Report are in agreement with the relevant books of account.

(d) In our opinion the aforesaid standalone financial statementscomply with Ind AS specified under Section 133 of the Act read with relevant rules issuedthere under.

(e) On the basis of the written representations received as on March31 2021 taken on record by the Board of Directors none of the directors are disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct.

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure II". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company'sinternal financial controls over financial reporting.

(g) With respect to the other matters to be included in theAuditor's report in accordance with the requirements of section 197(16) of the Actas amended:

In our opinion and to best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

(h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

(i) The company has disclosed the impact of pending litigation on itsfinancial position in its Ind AS financial statements- Refer Note 39 to the Standalone IndAS financial statements.

(ii) The Company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses.

(iii) There was no delay in transferring amounts required to betransferred to Investor Education and Protection Fund by the Company.

For J. C. Bhalla & Co.
Chartered Accountants
Firm Regn. No. 001111N
(Akhil Bhalla)
Partner
Membership No. 505002
UDIN:
Place: New Delhi
Dated: June 8 2021

Referred to in Paragraph 1 under "Report on Other Legal andRegulatory Requirements" section of report of even date on the Standalone financialstatements for the year ended on March 31 2021 of Talbros Automotive ComponentsLimited:

1. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property plant &equipment.

(b) The company has a regular program of physical verification of itsProperty Plant and equipment under which Property plant and equipment are verified in aphased manner over a period of three years which in our opinion is reasonable havingregard to the size of the Company and nature of its fixed assets. In accordance with thisprogram certain Property plant and equipment were verified during the year and accordingto the information and explanation given to us no material discrepancies were noticed onsuch verification.

(c) According to the information and explanation given to us and on thebasis of examination of title deeds other relevant records provided to us evidencing thetitle confirmation from the lenders with whom title deeds have been deposited as securityfor banking facilities we report that the title deeds of the immovable properties areheld in the name of the Company as at the balance sheet date.

In respect of leasehold immovable properties (which are included underthe head ‘Property plant and equipment) the lease agreements are in the name of theCompany where the Company is the lessee in the agreement.

2. According to the information and explanations given to usinventories have been physically verified by the management at reasonable intervals duringthe year except for inventories lying with third parties for which certificatesconfirming inventories held by them have been obtained in most of the cases. Thediscrepancies noticed on physical verification of inventories as compared to book recordswere not material and same have been properly dealt within books of account.

3. According to the information and explanations given to us and in ouropinion 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.

Accordingly clauses (iii) (a) (iii) (b) & (iii) (c) of paragraph3 of the Companies (Auditor's Report) Order 2016 are not applicable to the Companyfor the current year.

4. In our opinion and according to the information and explanationsgiven to us the Company has not entered into any transaction covered under section 185 ofthe Act. However the company has complied with the provisions of Sections 186 of the Actin respect of grant of loans making investments and providing guarantees and securitiesas applicable.

5. In our opinion and according to the information and explanationsgiven to us the Company has complied with the directives issued by the Reserve Bank ofIndia the provisions of Sections 73 to 76 and other relevant provisions of the Act andthe Companies (Acceptance of Deposits) Rules 2014 (as amended) as applicable with regardto the deposits accepted. According to the information and explanations given to us noorder has been passed by the Company Law Board or National Company Law Tribunal or ReserveBank of India or any Court or any other Tribunal in this regard.

6. We have broadly reviewed the books of account maintained by theCompany pursuant to the Rules made by the Central Government for the maintenance of costrecords under sub-section (1) of Section 148 of the Act in respect of Company'sproducts and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. However we have not made a detailed examination of thecost records with a view to determine whether they are accurate or complete.

7. (a) According to the information and explanation given to us theCompany is regular in depositing to the appropriate authorities undisputed statutory duesincluding Provident Fund Income tax Goods & service tax employee's stateinsurance Custom duty and any other statutory dues to the extent applicable to it.According to the information and explanations given to us no undisputed amounts inrespect of statutory dues were in arrears as at March 31 2021 for a period of more thansix months from the date they became payable.

(b) According to the information and explanations given to us the duesoutstanding in respect of income-tax cenvat credit service tax duty of customs duty ofexcise and value added tax which have not been deposited on account of any dispute are asfollows:

Name of the statute Nature of dues Amount (Rs. In Lakhs) Amount paid under protest (Rs. In Lakhs) Period to which the amounts relates Forum where dispute is pending
Finance Act 1994 Cenvat-Credit disallowed 8.85 2007-08 to 2010-11 Assistant Commissioner Faridabad
Custom Act 1962 Demand of Custom Duty 28.12 4.13 FY 2012-13 2014-15 2015-16 The Customs Excise and Service Tax Appellate Tribunal
Custom Act 1962 Demand of Custom Duty 7.97 2013-14 Deputy Commissioner of Customs Delhi

8. In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of loans or borrowings to any bankor financial institution or government during the year. The Company did not have anyoutstanding debentures during the year.

9. The Company did not raise moneys by way of initial public offer orfurther public offer (including debt instruments). In our opinion and according to theinformation and explanations given to us the term loans were applied for the purpose forwhich the loans were obtained.

10. To the best of our knowledge and according to the information andexplanation given to us no fraud by the company or no fraud on the company by its officeror employees has been noticed or reported during the year.

11. In our opinion and according to the information and explanationsgiven to us managerial remuneration has been paid by the Company in accordance with therequisite approvals mandated by the provisions of Section 197 of the Act read withSchedule V to the Act.

12. In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly clause (xii) of paragraph 3of the Companies (Auditors Report) Order 2016 is not applicable.

13. According to the information and explanations given to us and basedon our examination of the records of the Company all transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

14. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly provisions of clause 3 (xiv) of the order are notapplicable.

15. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly clause(xv) of paragraph 3 of the Companies (Auditors Report) Order 2016 is not applicable.

16. The Company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934.

For J. C. Bhalla & Co.
Chartered Accountants
Firm Regn. No. 001111N
(Akhil Bhalla)
Partner
Membership No. 505002
UDIN:
Place: New Delhi
Dated: June 8 2021

Annexure II to Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Talbros Automotive Components Limited ("the Company") as ofMarch 31 2021 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by The Institute of Chartered Accountants of India.

These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby The Institute of Chartered Accountants of India and deemed to be prescribed undersection 143(10) of the Companies Act 2013 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness.

Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial reporting includes those policies and procedures 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 asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and those 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 timelydetection of unauthorized acquisition use or disposition of the company's assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2021 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For J. C. Bhalla & Co.
Chartered Accountants
Firm Regn. No. 001111N
(Akhil Bhalla)
Partner
Membership No. 505002
UDIN:
Place: New Delhi
Dated: June 8 2021

.