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TECIL Chemical & Hydro Power Ltd.

BSE: 506680 Sector: Industrials
NSE: TECILCHEM ISIN Code: INE014B01011
BSE 05:30 | 01 Jan TECIL Chemical & Hydro Power Ltd
NSE 05:30 | 01 Jan TECIL Chemical & Hydro Power Ltd

TECIL Chemical & Hydro Power Ltd. (TECILCHEM) - Auditors Report

Company auditors report

To

The Members of TECIL CHEMICALS & HYDRO POWER LIMITED

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of TECIL CHEMICAL &HYDRO POWER LIMITED ('the Company') which comprise the Balance Sheet as at March 312018 the Statement of Profit and Loss and the Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.

Management's responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(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 flow of the Company in accordance with theAccounting principles generally accepted in India including the Indian Accountingstandards specified under section 133 of the act read with the rule 7 of companies(Accounts) Rules 2014 and the Companies (Indian Accounting Standards) Rules 2015 asamended. This responsibility also includes the maintenance of adequate accounting recordsin accordance with the provisions of the act for safeguarding the assets of the companyand for preventing and detecting the fraud and other irregularities; selection andapplication of appropriate accounting policies; making judgment and estimates that areresponsible and prudent; and design implementation and maintenance of internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud 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 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 of the IndAS financial statements in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10) of theAct. 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the Ind ASfinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of theInd AS 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 accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the Ind AS financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the Ind ASfinancial statements

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the Ind AS financial statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India so the state of affairs of the Company as at March31 2018 and its loss and its cash flow for the year ended on the date.

Report on Other Legal and Regulatory Requirements

1. As Required by the Companies (Auditors Report) Order 2016 ('the order') issued bythe Central government of India in terms of section 143(11) of the Act we give in theAnnexure A a statement on the matters specified in the paragraph 3 and 4 of the order.

2. As required by section 143(3) of the act we report that:

a. We have sought and obtained all the information and explanation which to the best ofour knowledge and belief were necessary for the purpose of our audit;

b. In our opinion proper books of account as required by the law have been kept by theCompany so far as it 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 Ind AS financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 Companies (Indian Accounting Standards) Rules 2015 as amended;

e. On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of sub section (2) ofsection 164 of the Companies Act 2013.

f. With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refers to ourseparate Report in 'Annexure A'.

g. With respect to the other matters included in the Independent Auditor's report inour opinion and to the best of our information and according to the explanations given tous:

1) The company has disclosed the impact of pending litigation on its financial positionin its financial statement.

2) The Company has made provision as required under the applicable law or AccountingStandards for material foreseeable losses if any on long term contracts includingderivative contracts.

3) There has been no delay in transferring amounts required to be transferred to theInvestors Education and Protection Fund by Company.

For S R PAI & CO
Chartered Accountants
(FRN: 0010793S)
Sd/-
CA Rajeeva Pai
Place: Cochin -20 Partner
Date: 18th May 2018 MRN: 214230

ANNEXURE 'A' TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in Paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

Report on Companies (Auditor's Report) Order 2016 ('the Order') issued by the CentralGovernment in terms of section 143(11) of the Companies Act 2013

(i) (a) The Company is maintaining proper records showing full particular includingquantitative details and situation of fixed assets.

(b) Fixed Assets were physically verified by the Management during the current year. Inour opinion the frequency of verification is reasonable having regard to the size of theCompany and the nature of its Fixed Assets.

(c) According to the information and explanation given to us and the records examinedby us we report that the immovable properties of land and building which are freeholdare held in the name of the Company as at the Balance Sheet date except 2.64 hectors ofland subject to re- conveyance of brought in land by the Government. In case of thebuilding constructed on leased land resumed by the Kerala Government compensation forappeal is pending before the Kerala High Court (Refer Note No 3 to the financialstatements).

(ii) There was no inventory at beginning of the year neither the company has effectedany purchase during the year hence in our opinion clause (ii) is not applicable to thecompany.

(iii) The company has not given loans to parties covered in the register maintainedunder section 189 of the companies Act 2013.

(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 ofgrant of loans making investments and providing guarantees and securities as applicable.

(v) In our opinion and according to the information and explanation given to us nofixed deposits were accepted from the public.

(vi) In our opinion clause 3(vi) of the order for maintenance of the cost recordsunder section 148(1) of the Companies Act 2013 is not applicable to the Company.

(vii) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including Provident Fund ESIC and Income Tax.

(b) According to the information and explanation given to us there were no undisputedamounts payables in the respect of Income Tax Sales Tax Wealth Tax Excise Duty andother material statutory dues in arrears as at 31st March 2018.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to the banks. TheCompany does not have any loans or borrowings from financial institutions or governmentand has not issued any debentures.

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause 3(ix) ofthe order is not applicable.

(x) Based on the audit procedures performed and information and explanations given tous we report that no fraud on or by the company has been noticed or reported during thecourse of our audit.

(xi) The Company has not paid any managerial remuneration for the year hence clause3(xi) of the order is not applicable.

(xii) The Company is not Nidhi Company and hence reporting under clause 3(xii) of theorder is not applicable.

(xiii) In our opinion and according to the information and explanation given to us theCompany is in compliance with section 177 and 188 of the act where applicable for alltransactions with the related parties and the details of related party transaction havebeen disclosed in the financial statements as required by the applicable accountingstandards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3(xiv) is not applicable to the Company.

(xv) In our opinion and according to the information and explanation given to usduring the year the Company has not entered into any non-cash transaction with itsdirections or person connected to its Directors and hence provisions of section 192 of theAct are not applicable.

(xvi) The Company is not required to be registered under Section 45-I of the ReserveBank of India Act 1934.

For S R PAI & CO
Chartered Accountants
(FRN: 0010793S)
Sd/-
CA Rajeeva Pai
Place: Cochin -20 Partner
Date: 18th May 2018 MRN: 214230

ANNEXURE 'B'

To the Independent Auditor's Report of even date on the Financial Statement of TECILCHEMICAL AND HYDRO POWER LIMITED

Report on the Internal Financial Control under Clause(i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

To the Members of TECIL CHEMICAL AND HYDRO POWER LIMITED

We have audited the internal financial controls over financial reporting of TECILCHEMICAL AND HYDRO POWER LIMITED ("the Company") as of 31st March 2018 inconjunction with our audit of the financial statements of the Company for the year endedon 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 (the "Guidance Note").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable information as required under the Companies Act 2013.

Auditor's 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 and the Standards on auditing as specified under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 judgment including the assessment of the risk 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 internal financial controls system overfinancial reporting.

Meaning of Internal Financial Control 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 purpose in accordance with generalaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

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

(2) provide reasonable assurance that transaction are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted principles andthat receipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; 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 Limitation of Internal Financial Control Over Financial Reporting

Because of the inherent limitations of internal financial control 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 risk that the internal financial control overfinancial reporting may become inadequate of change in condition or that the degree ofcompliance 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 controlover financial reporting were operating effectively as at 31st March 2018 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 Control Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For S R PAI & CO
Chartered Accountants
(FRN: 0010793S)
Sd/-
CA Rajeeva Pai
Place: Cochin -20 Partner
Date: 18 May 2018 MRN: 214230