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Talbros Engineering Ltd.

BSE: 538987 Sector: Auto
NSE: N.A. ISIN Code: INE717E01013
BSE 00:00 | 28 Feb 90.10 -5.25
(-5.51%)
OPEN

86.05

HIGH

90.30

LOW

86.05

NSE 05:30 | 01 Jan Talbros Engineering Ltd
OPEN 86.05
PREVIOUS CLOSE 95.35
VOLUME 986
52-Week high 194.70
52-Week low 81.55
P/E 10.60
Mkt Cap.(Rs cr) 46
Buy Price 88.00
Buy Qty 20.00
Sell Price 97.95
Sell Qty 50.00
OPEN 86.05
CLOSE 95.35
VOLUME 986
52-Week high 194.70
52-Week low 81.55
P/E 10.60
Mkt Cap.(Rs cr) 46
Buy Price 88.00
Buy Qty 20.00
Sell Price 97.95
Sell Qty 50.00

Talbros Engineering Ltd. (TALBROSENGG) - Auditors Report

Company auditors report

To

The Members of

Talbros Engineering Limited

Faridabad (Haryana)

Report on the Ind AS financial statements

We have audited the accompanying Ind AS financial statements of TALBROS ENGINEERINGLIMITED (the Company) which comprise the Balance Sheet as at March 31st 2019 theStatement of Profit and Loss (including other Comprehensive Income) Statement of Changesin Equity and the Cash Flow Statement for the year then ended and a summary of significantAccounting policies and other explanatory information.

Management's Responsibility for the Ind AS 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 Ind AS 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 standardsreferred to in section 133 of the Act read with rule 7 of the Companies (Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of Act for safeguarding the assets of the Company and forpreventing 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 financial controlsthat were operating effectively for ensuring the accuracy and completeness of accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

We have taken into account the provisions of the act the accounting and auditingstandards and matter 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 Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of the material misstatement ofthe Ind AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal control relevant to the Company's preparationof the Ind AS financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place adequate internal financialcontrol system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used andreasonableness of the accounting estimates made by management as well as evaluating theoverall presentation of the Ind AS financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS the financialposition of the company as on March 31st 2019 and its financial performance includingOther Comprehensive Income its Cash flows and the changes in equity for the year ended onthat date.

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 inparagraphs 3 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 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 the Cash Flow Statement dealtwith by this Report are in agreement with the books of account;

d) in our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified in section 133 of the Act read with rule 7 of Companies (Accounts)Rules 2014;

e) on the basis of written representations received from the directors as on March 31st2019 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31st 2019 from being appointed as a director in terms Section 164(2) of theAct.

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 auditors' 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 explanation given to us:

i) The company has disclosed the impact of pending litigations on its financialposition in its Ind AS 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 duly transferred any amounts that is required to be transferred tothe Investor Education and Protection Fund.

For D S R V AND CO LLP (Formerly known as Dinesh Mohan & Co.)
Chartered Accountants
FRN: 006993 N
Sd/-
D.K. AGARWAL
Place- Faridabad (PARTNER)
Date- 20.05.2019 M.No. : 85714
UDIN No. 19085714AAAABI4860

ANNEXURE TO THE AUDITORS' REPORT

ANNEXURE ‘A'

(As referred in paragraph 1 of Report on other legal and regulatory requirementsof our report to the members of TALBROS ENGINEERING LIMITED on the accounts for theyear ended March 31st 2019).

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

b) As explained to us the fixed assets have been regularly verified by the managementat reasonable intervals. No material discrepancies have been noticed on such verificationduring the year.

c) Based on the audit procedures performed and according to the records of the companytitle deeds of the immovable properties are held with the company.

ii) As explained to us the inventory has been regularly verified during the year andthe frequency of such verification is reasonable. As far as we could ascertain andaccording to the information and explanations given to us no material discrepancies werenoticed between the physical stock and the book records.

iii) As per information and explanations given to us the Company has not granted anyloans secured or unsecured to companies firms Limited Liability Partnerships or otherparties covered in the register maintained under section 189 of the Companies Act 2013.Accordingly sub-clauses (a) (b) and (c) of para (iii) of the Order are not applicable tothe Company.

iv) In our opinion and according to the information and explanation given to us thecompany has complied with the provisions of section 185 and 186 of act in respect ofloans investments guarantees and security to the extent applicable to it.

v) In our opinion and according to the information and explanations given to us theCompany has complied with the directives issued by the Reserve Bank of India and theprovisions of Section 73 to 76 of the Act or any other relevant provisions of the Act andthe rules framed there under with regard to deposits accepted from the public. We havebeen informed that no order has been passed by Company Law Board or National Company LawTribunal or Reserve Bank of India or any Court or any other Tribunal in this regard.

vi) To the best of our knowledge and as explained the company is not required tomaintain cost records as specified by the Central Government under Section 148(1) of theCompanies Act 2013. Accordingly Para (vi) of the order is not applicable to the Company.

vii) (a) The Company has been generally regular in depositing with appropriateauthorities undisputed statutory dues including Provident Fund Investor Education andProtection Fund Employees' State Insurance Income Tax Sales Tax Service Tax WealthTax Custom Duty Excise Duty and Cess and any other material statutory dues applicable toit though there has been a slight delay in few cases. According to the information andexplanations given to us no undisputed amounts payable in respect of statutory dues werein arrear as at 31st March 2019 for a period of more than six months from the date theybecome payable except ESI payable contractor र 1406101/-.

(b) According to the information and explanations given to us there are no dues ofSales Tax Income Tax Custom Duty Wealth Tax Service Tax Excise Duty and Cess whichhave not been deposited on account of any dispute.

viii) Based on our audit procedures and as per the information and explanations givenby the management we are of the opinion that the company has not defaulted in repaymentof loans to the bank. The company did not have any outstanding dues / loans in respect offinancial institution government or debentures during the year.

ix) We have verified that the end use of money raised by the public issue is asdisclosed in the notes to the Ind AS financial statements. The company did not have anyterms loans outstanding during the year.

x) Based on the audit procedures performed for the purpose of reporting the true andfair view of the Ind AS financial statements and as per the information and explanationgiven by the management we report that no fraud on or by the company has been noticed orreported during the year except during the year the Company made advance for import ofmachinery but payment of र 7701953/- was hacked through internet fraud.

xi) In our opinion the managerial remuneration has been paid in accordance with therequisite approval mandated by the provisions of section 197 read with schedule V to theact.

xii) In our opinion the company is not a chit fund or a nidhi / mutual benefit fund /society. Therefore the provision of clause 3(xii) of the order are not applicable to thecompany.

xiii) In our opinion all the transactions with the related parties are in compliancewith section 177 and 188 of act where applicable and the details have been disclosed inthe financial statement as required by applicable accounting standard.

xiv) The company has not made any preferential allotment or private placement of sharesor partly convertible debentures during the year therefore reporting under clause 3(xiv)shall not be applicable.

xv) According to the information and explanation given to us and on an overallexamination of the Ind AS financial statements of the company we report that the companyhas not entered into any cash transactions with directors or persons connected with him.

xvi) In our opinion the company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934.

For D S R V AND CO LLP
(Formerly known as Dinesh Mohan & Co.)
Chartered Accountants
FRN: 006993 N
Sd/-
D.K. AGARWAL
Place- Faridabad (PARTNER)
Date- 20.05.2019 M.No. : 85714
UDIN No. 19085714AAAABI4860

ANNEXURE ‘B'

Annexure to the independent Auditor's Report of Talbros Engineering Limited

Report on the Internal financial controls under clause (i) of Sub-section 3 of section143 Of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/s TalbrosEngineering Limited ("the company") as of March 31st 2019 in conjunction withour audit of the standalone Ind AS financial statements of the company for the year endedon that date.

Management's responsibility for internal financial controls

The companies' 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 controlsstated in the guidance Note on the 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.

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 notes on Audit of internal financial controls over financial reporting(the "Guidance Note") and the standards of 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 issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate financial controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting including obtaining anunderstanding of internal financial controls assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrols based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatements of the Ind ASfinancial 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 systemover financial reporting.

Meaning of internal financial controls over financial reporting

A company's internal financial controls system over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of Ind AS financial statements for the external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlssystem over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and disposition of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Ind AS financial statements in accordance with the generally acceptedaccounting principles and that receipts and the expenditures of the company are beingmade only in accordance with authorisations of management and directors of the company;

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the Ind AS financial statements.

Inherent limitation of internal financial controls over financial reporting

Because of the Inherent limitation of internal financial controls over financialreporting including the possibility of collution 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 of the internal financial controlsover 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 over financial reporting and such of the internal financial controlsover financial reporting were operating effectively as at March 31st 2019 based on the ofthe internal financial controls over financial reporting criteria established by thecompany considering the essential components of internal control stated in the guidanceNote on Audit of the internal financial controls over financial reporting issued by theInstitute of Chartered Accountant of India.

For D S R V AND CO LLP
(Formerly known as Dinesh Mohan & Co.)
Chartered Accountants
FRN: 006993 N
Sd/-
D.K. AGARWAL
Place- Faridabad (PARTNER)
Date- 20.05.2019 M.No. : 85714
UDIN No. 19085714AAAABI4860