You are here » Home » Companies » Company Overview » Thejo Engineering Ltd

Thejo Engineering Ltd.

BSE: 500492 Sector: Engineering
NSE: THEJO ISIN Code: INE121N01019
BSE 05:30 | 01 Jan Thejo Engineering Ltd
NSE 00:00 | 20 Feb 581.00 3.65
(0.63%)
OPEN

580.00

HIGH

581.00

LOW

580.00

OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Thejo Engineering Ltd. (THEJO) - Auditors Report

Company auditors report

TO THE MEMBERS OF THEJO ENGINEERING LIMITED

1. Report on the Financial Statements

We have audited the accompanying financial statements of Thejo Engineering Limited ("theCompany")which comprise the Balance Sheet as at March 312018 and the Statement ofProfit and Loss Cash Flow statement for the year then ended and a summary of significantaccounting policies and other explanatory information.

2. Management's Responsibility for the 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 f i nancial statements that give a true and fair view of financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specif i edunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 andthe Companies (Accounting Standards) Amendment Rules 2016 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 fi nancial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the fi nancial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

3. Auditor's Responsibility

Our responsibility is to express an opinion on these fi nancial statements based on ouraudit.

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 of the fi nancial statements in accordance with the Standards onAuditing specif ed under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the fi nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the fi nancial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefi nancial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal fi nancial control relevant to the Company's preparation ofthe fi nancial 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 the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the fi nancial statements.

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

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner 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 March312018 and its prof t and its Cash Flows for the year ended on that date.

5. Report on Other Legal and Regulatory Requirements

i) 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 of theAct we give in the "Annexure A" to this Report a statement on thematters specified in paragraphs 3 and 4 of the said Order.

ii) 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 it appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d. In our opinion the aforesaid fi nancial statements comply with the AccountingStandards specif ed under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 and the Companies (Accounting Standards) Amendment Rules 2016 asamended.

e. On the basis of written representations received from the directors as on March312018 taken on record by the Board of Directors none of the directors is disqualif edas on March 312018 from being appointed as a director in terms of Section 164 (2) of theAct.

f. With respect to the internal fi nancial controls with reference to fi nancialstatements 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 f nancialposition as referred to in note 25.1.4 to the standalone f nancial statements.

ii) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For BRAHMAYYA & CO.
Chartered Accountants
Firm Regn. No. : 000511S
P. BABU
Place : Chennai Partner
Date : 28.05.2018 Membership No. : 203358

Referred to in Paragraph 5 of Our Report of Even Date

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details

and situation of fixed assets.

(b) Fixed assets have been physically verified by the Management during the year inaccordance with an annual plan of verification which in our opinion is reasonable havingregard to the size of the Company and the nature of the fixed assets. The discrepanciesnoticed on such verification were not material and have been properly dealt with in thebooks of account.

(c) The title deeds of immovable properties owned by the company are held in the nameof the Company based on the documents produced for our verification.

(ii) Inventories have been physically verifi ed by the management at reasonableintervals during the year. In our opinion the frequency of such verification isreasonable. The discrepancies noticed on verification between the physical stocks and thebook records which were not material have been properly dealt with in the books ofaccount.

(iii) The Company has granted an unsecured advance to one of its subsidiary companycovered in the Register maintained under Section 189 of the Act for which there are noterms of repayment of advance or payment of interest. The Company has also grantedunsecured loan to two subsidiaries covered in the Register maintained under Section 189of the Act.

(a) The terms and conditions of the grant of such loans are not prejudicial to theCompany's interest.

(b) The repayment of principal and payment of interest has been stipulated and therepayments and receipts are regular

(c) There is no overdue amount in respect of the loans mentioned in para (a) above.

(iv) In our opinion and according to the information and explanations given to us theCompany has not advanced any loan given any guarantee or provided any security to theparties covered under Section 185 and the Company has not given any loan or made anyinvestment covered under section 186 of the Companies Act 2013. Accordingly reportingunder clause 3 (iv) of the Order does not arise.

(v) According to the information and explanations given to us the Company has notaccepted any deposits within the meaning of Sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed thereunder. Accordinglyreporting under clause 3 (v) of the Order does not arise.

(vi) We have broadly reviewed the cost record maintained by the company prescribed bythe Central Government under Section 148(1) of the act and are of the opinion that primfacie the prescribed cost records have been maintained. We have however not made adetailed examination of cost records with a view to determine whether they are accurate orcomplete.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of

the records of the Company the Company is generally regular in depositing undisputedstatutory dues including provident fund employees' state insurance income tax salestax service tax goods and services tax duty of customs value added tax and otherstatutory dues applicable to it during the year with appropriate authorities. According tothe information and explanations given to us there were no undisputed amounts payable inrespect of provident fund employees' state insurance income-tax sales tax service taxgoods and services tax duty of customs value added tax and other dues outstanding as at31 March 2018 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us in case dues of incometax or sales tax or service tax or duty of customs or goods and service tax or duty ofexcise or value added

tax or cess have not been deposited on account of any dispute the amounts involved andthe forum where dispute is pending are mentioned below:

Name of statute Disputed Amount Period to which it relates Forum where dispute is pending
APGST 7.40 2002-03 Commercial Tax Officer Naidupet Andhra Pradesh
APGST 9.92 2003-04 Commercial Tax Officer Naidupet Andhra Pradesh
Central Excise 18.25 July 2000 - June 2004 CESTAT Bangalore
Central Excise 3.49 July 2004 - Jan 2005 CESTAT Bangalore
Central Excise 1.23 Feb 2005 - Aug 2005 CESTAT Bangalore
Central Excise 0.66 Jan 2007 - April 2007 CESTAT Bangalore
CST 1.36 2002 - 03 Commercial Tax Officer Naidupet Andhra Pradesh
CST 16.18 2000 - 01 High Court of Judicature at Andhra Pradesh
Customs 12.50 Oct - 01 Commissioner of Customs
Income Tax 5.43 AY 2003-04 to 200809 Income Tax Department
Service Tax 5.33 2011-12 Service Tax Department
Central Excise 0.23 Sep 2005 - March 2006 CESTAT Bangalore
CST 0.42 2004 - 05 Joint Commissioner of Commercial Taxes (Appeals) Jharkhand
Central Excise 0.68 April - Dec. 2006 CESTAT Bangalore
Jharkhand Sales Tax 5.31 2004 - 05 Joint Commissioner of Commercial Taxes (Appeals) Jharkhand
Income Tax 28.47 AY 2001-02 CIT(A)
MP Sales Tax 1.04 2013-14 Commissioner of Commercial Taxes
IT - TDS - Salary 0.45 AY 2010-11 TDS - AO
Service Tax 5.62 Apr-Sep 2014 Assistant Commissioner - Service Tax
West Bengal VAT 2.95 2015-16 VAT Tribunal
Uttar Pradesh VAT 3.91 2011-12 Assistant Commissioner - Appeals
Jharkhand VAT 12.21 2010-11 Deputy Commissioner - Appeals
Jharkhand VAT 22.03 2011-12 Deputy Commissioner - Appeals
Income Tax 4.95 AY 2014-15 CIT (Appeals)

(viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans or borrowingto banks and fi nancial institutions. The Company has not taken any loans or borrowingfrom Government or through placement of debentures during the year.

(ix) The Company has neither raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. The Company has availed termloans during the year and utilized for the purpose for which they have been obtained.

(x) To the best of our knowledge and belief and according to the information andexplanations given to us during the year no fraud by the Company and no fraud on theCompany by its officers or employees were noticed or reported during the course of ouraudit.

(xi) According to the information and explanations given to us and the records of theCompany examined by us in our opinion managerial remuneration including sitting fees toDirectors has been paid in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company all transactions with the related parties arein compliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the fi nancial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly reporting under clause 3 (xvi) of the Order does not arise.

For BRAHMAYYA & CO.
Chartered Accountants
Firm Regn. No. : 000511S
P. BABU
Place : Chennai Partner
Date : 28.05.2018 Membership No. : 203358

ANNEXURE-B TO THE AUDITORS' REPORT

Referred to in Paragraph 5 of Our Report of Even Date

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 fi nancial controls over fi nancial reporting of ThejoEngineering Limited ("the Company") as of 31 March 2018 in conjunction withour audit of the fi nancial 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 internal financial controls based on the internal control over fi nancial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reporting("the Guidance Note") issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal fi nancial controls that were operating effectively for ensuring theorderly and effi cient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 ("theAct").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal fi nancialcontrols 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 Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal fi nancial controls system over fi nancial 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 risks ofmaterial misstatement of the AS financial statements whether due to fraud or error.

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 fi nancial reporting and thepreparation of fi nancial 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 ref i ect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations of

management and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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.

Opinion

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 31 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 Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For BRAHMAYYA & CO.
Chartered Accountants
Firm Regn. No. : 000511S
P. BABU
Place : Chennai Partner
Date : 28.05.2018 Membership No. : 203358